An experimental analysis of grandfathering vs dynamic auctioning in the EU ETS

This study constitutes a first attempt to experimentally test the performance of a 100% auction versus a 100% free allocation of CO2 permits under the rules and parameters that mimic the EU ETS (imperfect competition, uncertainty in emissions’ control, and allowing banking). It also incorporates a first attempt to include in the analysis measures of the risk preferences of subjects participating in emission permits experiments. Another distinctive feature of this study is the implementation of a theoretically appropriate auction format for the primary allocation of emission permits. Our experimental results indicate that the EU ETS has the potential to reduce CO2 emissions, achieving targets considerably more restrictive than the current ones at high efficiency levels, both with auctioned and free emission permits. Auctioning, however, reveals a clear potential to do better than grandfathering the initial allocation of permits. In addition, the results reveal that concerns about undue scarcity, and corresponding high prices, in secondary markets generated by a primary auction market are not warranted under the proposed dynamic auction format.EU ETS, auctioning, grandfathering, banking, Ausubel auction

Vineyard and Olive Orchard Management to Maintain Yield and Quality Under Abiotic Stress Conditions

Yield and quality of fruits are multifaceted traits involving various plant and fruit processes that, for a given genetic makeup, depend on environmental factors and agronomic practices. Crop yield has to meet the demand of a growing population, but crop quality is a challenging issue affected by consumer’s behavior and increasingly associated with food security. The projected climate scenario for South Mediterranean Europe predicts lower precipitation and higher temperatures that will negatively affect agricultural activity. A warmer and drier climate is expected to cause changes in crop yield and its quality. Higher temperatures affect photosynthesis, causing alterations in sugars, organic acids, flavonoid contents, firmness, and antioxidant activity. Reduced soil water availability will impact on the capacity of plants to accumulate biomass and when conjugated with warmer weather, it can trigger disorders like fruit sunburn further depressing crop yields. New cultivation techniques are necessary to produce sufficient food supplies to meet the basic nutrient requirements of the growing human population and support the agriculture economy. We focus on the production of olives and wine grapes, two of the most cultivated fruit crops of Southern Europe, which is certainly strongly affected by changing weather conditions. We review the recent developments on agronomic practices to counter or minimize the projected environmental changes, and we will report on our own experiences

Ochratoxin A removal during the main steps of wine making

A few years ago, the presence of ochratoxin A (OTA) was reported for the first time in wine. Grape juice is usually more contaminated than wines, and red grape products are more contaminated than white ones. This knowledge has led researchers to conclude that grape processing could contribute to a reduction in the content of this mycotoxin in grape products, such as the case of wines. This study presents the effect of the more common vinification steps on the fate of the mycotoxin during wine making. Grapes with a content of OTA ranging from 0.43 to 7.48 μg/Kg were used for vinification. These grapes were obtained by inoculating recently harvested grapes with an ochratoxin A producing Aspergillus. It was found that after alcoholic fermentation just about 31.8% of the OTA initially present in grapes remained in the wine. After racking, this amount decreased to 10.9 %, and, after malolactic fermentation, to 8.1%. Also, it was found that OTA was present in higher amounts in spent fractions from wine making, such as the lees obtained after fermentation or the sediment obtained after racking. After malolactic fermentation, the most common eonological fining agents were able to decrease even more the content of OTA in the final wine. Vinification assays with eonological enzymes commonly used in wine making industry were also done. Based on this data, we concluded that this reduction is associated with the mycotoxin removal by adsorption into solid wastes or fining agents, and not due to any degradation of ochratoxin A into other compounds.Quality of Life Program (QOL) ; Instituto Nacional de Investigação Agrária e das Pescas ; Estação Vitivinícola Amândio Galhano (INIAP) ; Fundação para a Ciência e Tecnologia (FCT

An experimental analysis of grandfathering vs dynamic auctioning in the EU ETS

This study constitutes a first attempt to experimentally test the performance of a 100% auction versus a 100% free allocation of CO2 permits under the rules and parameters that mimic the EU ETS (imperfect competition, uncertainty in emissions’ control, and allowing banking). It also incorporates a first attempt to include in the analysis measures of the risk preferences of subjects participating in emission permits experiments. Another distinctive feature of this study is the implementation of a theoretically appropriate auction format for the primary allocation of emission permits. Our experimental results indicate that the EU ETS has the potential to reduce CO2 emissions, achieving targets considerably more restrictive than the current ones at high efficiency levels, both with auctioned and free emission permits. Auctioning, however, reveals a clear potential to do better than grandfathering the initial allocation of permits. In addition, the results reveal that concerns about undue scarcity, and corresponding high prices, in secondary markets generated by a primary auction market are not warranted under the proposed dynamic auction format.Fundação para a Ciência e Tecnologia (FCT) - POCTI/ECO/45435/0

More on the dynamic Vickrey mechanism for multi-unit auctions: an experimental study on the emission permits initial auction

The purpose of this paper is to contribute to the multiple-units auction literature, by testing the performance of the dynamic Vickrey auction (the Ausubel model), in an experimental setting, representing the functioning of an emission permits market with an Ausubel auction for the initial allocation of permits. Other features of the experiment include the possibility of banking and the inclusion of uncertainty, and the parameters were set so as to replicate an environment similar to the EU-ETS market. Our results reveal that emission permits are not exactly allocated as theoretically predicted in the Ausubel auction although the differences are not statistically significant. Comparison of our results with previous experimental studies on the same auction mechanism, although under very different conditions, indicate no relevant differences exist on the Ausubel auction performance, which is an important policy indication when decisions are being taken on the implementation of several auctions for multiple units, namely in the context of the EU-ETS.Fundação para a Ciência e a Tecnologia (FCT)We thank FCT for research support under grant POCTI/ECO/45435/02. Financial support from NIMA is also appretiated

The Ausubel auction in the EU ETS

Comunicação apresentada no ESA – Economic Science Association Regional Meeting Europe, Innsbruck, Austria, 2009.info:eu-repo/semantics/draf

European Union's CO2 emission permits market : an experimental study

Global warming is a major issue on international political agendas regardless of the uncertainties and divergences still remaining on the real dimension of the problem. Scientific community disagreement on its true consequences for human life is even bigger but public opinion urges for action. Anthropogenic greenhouse gases (GHG) emissions became the target and its mitigation compulsory, as they are pointed as key responsible for the sudden and severe global climate change we are facing. Therefore, to choose the best policy instrument to achieve this environmental goal while minimizing the consequences for economies competitiveness is a crucial task (...)info:eu-repo/semantics/draf

Do emission permits markets' original advantages still hold?

Comunicação apresentada no World Congress of Environmental and Resource Economists, 3rd Edition, Kyoto, Japan, 2006Emission permits markets have been implemented all over the world but in very different conditions than those assumed in the original models developed by Dales (1968) or Montgomery (1972). This paper summarizes the assumptions that are violated when implementing this policy instrument. Reviewing the most significant literature in the area, we analyse the consequences of these violations for the outcome of emission permits markets, and derive conclusions about whether the traditional advantages associated with this instrument still hold. The major solutions that have been suggested for the identified market failures are also described. We find that despite the conflicting results reported in the literature, there are some conclusions unanimously accepted. Importantly, we find that the characteristics of market institutions are significant determinants of the outcome of these markets, which means that these aspects may no longer be treated as a mere detail as within the neoclassical approach. In addition, we find that these characteristics have important impacts on many other “market failures” identified in this paper. Since these aspects were not included in the original models, their predictions differ from the results effectively achieved with the implementation of an emissions permit market.info:eu-repo/semantics/publishedVersio

Evolution of factors affecting mechanical olive harvesting

Harvest efficiency is defined as the percentage of fruits harvested by total production. The percentage of fruits harvested is less than 100% when working with trunk shakers to detach olives. It is important to increase the percentage of fruits harvested in order to increase farmer’s income. This objective can be achieved knowing the evolution of the main factors affecting fruit detachment. Fruit removal force (FRF), fruit weight (P) and the ratio between them are important for harvest efficiency. Field trials took place for two years (2013-2014) in Vilariça Valley, northeast Portugal in an olive orchard with ‘Cobrançosa Transmontana’ cultivar. It was adopted a mechanical harvesting system based on a trunk shaker to detach fruits, and an inverted umbrella to collect fruits. Elementary operation times were measured in seconds to evaluate work rates. FRF and P were measured in the ripening period, to evaluate their evolution. In this paper are presented the preliminary results of the ratio FRF (fruit removal force)/fruit weight evolution during the ripening period (P) and the results of the equipment work rate (trees h-1). The ratio FRF/P has predominantly descendant values in the weeks before harvest, from 140 to 80 as a result of a FRF downward variation from 4.9 to 2.94 N and an upward variation of P from 0.0294 to 0.0637 N. The FRF/P ratio stabilizes the decline in the last week of November just before harvesting, registering in some cases a slight increase in consequence of FRF increase higher than P increase (contrary to the tendency of previous weeks). Equipment work rate showed values between 40 and 57 trees h-1, confirming previous results.The authors want to thank to the Program PRODER Medida 4.1 Nº 44663 for the financial support, to the farmer of Quinta do Carrascal – Viaz and personnel involved in the field trials allowing to get data presented

Evolution of factors affecting mechanical olive harvesting

Harvest efficiency is defined as the percentage of fruits harvested by total production. The percentage of fruits harvested is less than 100% when working with trunk shakers to detach olives. It is important to increase the percentage of fruits harvested in order to increase farmer’s income. This objective can be achieved knowing the evolution of the main factors affecting fruit detachment. Fruit removal force (FRF), fruit weight (P) and the ratio between them are important for harvest efficiency. Field trials took place for two years (2013-2014) in Vilariça Valley, northeast Portugal in an olive orchard with ‘Cobrançosa Transmontana’ cultivar. It was adopted a mechanical harvesting system based on a trunk shaker to detach fruits, and an inverted umbrella to collect fruits. Elementary operation times were measured in seconds to evaluate work rates. FRF and P were measured in the ripening period, to evaluate their evolution. In this paper are presented the preliminary results of the ratio FRF (fruit removal force)/fruit weight evolution during the ripening period (P) and the results of the equipment work rate (trees h-1). The ratio FRF/P has predominantly descendant values in the weeks before harvest, from 140 to 80 as a result of a FRF downward variation from 4.9 to 2.94 N and an upward variation of P from 0.0294 to 0.0637 N. The FRF/P ratio stabilizes the decline in the last week of November just before harvesting, registering in some cases a slight increase in consequence of FRF increase higher than P increase (contrary to the tendency of previous weeks). Equipment work rate showed values between 40 and 57 trees h-1, confirming previous results.The authors want to thank to the Program PRODER Medida 4.1 Nº 44663 for the financial support, to the farmer of Quinta do Carrascal – Viaz and personnel involved in the field trials allowing to get data presented