Modelling Environmental Risk

As environmental issues have become increasingly important in economic research and policy for sustainable development, firms in the private sector have introduced environmental and social issues in conducting their business activities. Such behaviour is tracked by the Dow Jones Sustainable Indexes (DJSI) through financial market indexes that are derived from the Dow Jones Global Indexes. The sustainability activities of firms are assessed using criteria in three areas, namely economic, environmental and social. Risk (or uncertainty) is analysed empirically through the use of conditional volatility models of investment in sustainability-driven firms that are selected through the DJSI. The empirical analysis is based on financial econometric models to determine the underlying conditional volatility, with the estimates showing that there is strong evidence of volatility clustering, short and long run persistence of shocks to the index returns, and asymmetric leverage between positive and negative shocks to returns.Environmental sustainability index, environmental risk, conditional volatility, Dow Jones Sustainability Indexes, GARCH, GJR, persistence, shocks, asymmetry, moment condition, log-moment condition.

China and the Evolution of the Present Climate Regime

The recent events that followed the US decision not to comply with the Kyoto Protocol seem to drastically undermine the effectiveness of the Protocol in controlling GHG emissions. Therefore, it is important to explore whether there are economic factors and policy strategies that might help the US to modify its current policy and move back to the Kyoto-Bonn agreement. For example, can an increased participation of developing countries induce the US to effectively participate in the effort to reduce GHG emissions? Is a single emission trading market the appropriate policy framework to increase participation in the Kyoto-Bonn agreement? This paper addresses the above questions by analysing whether the participation of China in the cooperative effort to control GHG emissions can provide adequate incentives for the US to move back to the Kyoto process and eventually ratify the Kyoto Protocol. This paper analyses three different climate regimes in which China could be involved and assesses the participation incentives for the major world countries and regions in these three regimes.Agreements, Climate, Incentives, Negotiations, Policy

Economic Growth, Innovation, Cultural Diversity. What Are We All Talking About? A Critical Survey of the State-of-the-art

This report constitutes the first deliverable of the project ENGIME – Economic Growth and Innovation in Multicultural Environments, financed by the European Commission – FP5 – Key Action: Improving socio-economic knowledge base. Contract HPSE-CT2001-50007Multiculturalism, Diversity, Economic Growth

Identification, Quantification and Removal of Pharmaceuticals and Endocrine Disrupting Compounds from Water Using Customized PDMS Membrane

This study concentrates on the identification and quantification of three pharmaceutical compounds (ibuprofen, naproxen and diclofenac) and an endocrine disrupting compound (17α-ethinylestradiol) in wastewater effluents collected from Adelaide Wastewater Treatment Plant and Greenway Pollution Control Plant, London, ON, Canada. For sample preparation, both solid-phase extraction and liquid-liquid extraction techniques were followed and GC-FID and LC-MS were used for sample analysis. Although the target pharmaceuticals were present in the wastewater samples at concentrations in a range of 0.29-8.98 µ/L, 17α-ethinylestradiol was not detected. For eradicating or removing the above-mentioned organic compounds from water, organic solvent nanofiltration (OSNF) membrane was used in this study. Different types of OSNF membranes were prepared where commercially available PTFE ultrafiltration membrane as well as laboratory-made polysulfone ultrafiltration membranes served as the base supports, and poly (dimethylsiloxane) as the thin active layer. A thin film composite membrane was also prepared using a base support made of a mixture of polysulfone and multi-walled carbon nanotubes and a thin active layer top constituted from interfacial polymerization between m-phenylenediamine and trymesoyl chloride. For membrane characterization, Scanning Electron Microscopy (SEM) and Atomic Force Microscoopy (AFM) were performed. The performance of the membranes was studied by monitoring permeability along with the removal capacity using a dead-end filtration system, under a pressure range of 5~30 bars. A commercially available polyimide membrane, DuraMem, was exploited to compare the membrane performance. The 2.5% PTFE/PDMS (RTV 615) membrane showed the highest performance by removing 95~97% 17α- ethinylestradiol, 70% ibuprofen, 65% naproxen and 65% diclofenac. Hansen’s Solubility Parameter theory was adopted to explain the removal mechanism of pharmaceutical compounds, while size exclusion theory explained the removal of the synthetic estrogen by OSNF

Mapping Diversity in Social History

The paper is an overview of diversity in history, starting as far back as the societies in classical Ancient Europe and traditional non-European societies, where differentiation was basically between the enslaved and free population and the out-of-caste in India. With the end of slavery the European feudal society adopted a functionalist tripartition based on priests, warriors and peasants. The analysis continues in pre-industrial Europe (1500-1800), where in many cities class struggle was represented by the conflicts between crafts and between cities, with some participation of the élites. In 17th century England only one class existed, and class struggle was the struggle inside one class. Other considerations on the stratification of pre-industrial society are related to classes inferred from empirical subjectivity, social hierarchy and horizontal and vertical solidarity. In industrial society, the paper discusses the Marxian, Weberian and Marshall models and the syncretism between status and class. The second part of the paper is devoted to diversity outside formal society with the definitions of the processes that generate the marginalization of people and social groups, while the third part of the paper concerns the urban milieu and social integration/differentiation. Considerations are made on urban topography (e.g. ghettos, “miracle courts”, etc.) and on the relationship between topographic position within the urban tissue and positioning in the social pyramid. Finally, the last part of the paper is an excursus on the historiographic assumptions and policies toward diversity and marginality.Diversity, Marginalization, Social history, Social integration, Social Differentiation

The great transformation: decarbonising Europe’s energy and transport systems. Bruegel Blueprint 16, February 2012

Foreword. The euro-area crisis dominates the economic news. Yet, the world and Europe may face even more important challenges that will shape our lives and the lives of our children.World population is projected to increase to 9 billion or more by 2050. At the same time, current trends indicate an increase in living standards and a growing middle class around the world. These two mega-trends will have profound implications, and the way they are managed will be one of the key determinants of prosperity and peace in the decades or even centuries to come. A number of factors are important in this respect. More people and more income will increase the global demand for energy. Choosing the right sources of this energy will be one of the determining factors of global temperature. The continued reliance on fossil-fuel energy sources is one of the main factors behind the risk of significant global temperature increases. The internationally agreed goal of limiting the temperature rise to less than two degrees Celsius above pre-industrial levels appears increasingly illusory. Currently, fossil energy sources dominate many economic areas. For instance, our transport infrastructure is largely based on fossil fuels, and is thereby one of the main contributor of the carbon dioxide emissions that are linked to global temperature. Thinking about a decarbonisation strategy is therefore a key challenge with a global dimension. Economic growth in Europe will be affected by the costs of this transition from the current energy and transport system. A smooth transition towards a low-carbon energy and transport system could come at comparatively modest cost. Furthermore, identifying the most economically beneficial solutions early on and becoming a global technology leader and standard setter offers vast opportunities for exports and economic growth. Hence, our decarbonisation strategy may eventually have a greater impact on long-term European growth than the current economic crisis. Bruegel is contributing to this debate with this report, which is based on research that received funding from the Fuel Cell and Hydrogen Joint Undertaking. The authors argue carefully that to make decarbonisation growth friendly, a consistent policy approach is needed. Policy intervention appears indispensable as the energy and transport system is so based around and locked-in into an incumbent technology. Overcoming this lock-in is crucial. The report makes three main proposals. First, the scope, geographical coverage and duration of carbon pricing should be extended. By setting a higher carbon price, incentives for developing and investing in new low-carbon technologies are created. Second, temporary consortia for new infrastructure to solve early-phase market failures could be put in place. This is discussed using the example of hydrogen vehicles. Lastly and importantly, an open and public transition model is needed so that second-best transport solutions do not get a head start that afterwards cannot be reversed. The technological, economic and political challenge ahead is vast. But choosing the right decarbonisaton strategy offers huge economic, environmental and societal benefits. We should not overlook this debate because of the euro crisis