Can stability of foreign aid agreement reduce global income inequality?

Global initiatives on debt relief call for increasing foreign aid assistance to alleviate income inequality. But the potential gains from foreign aid policy coordination may be limited by the willing participation of diverse and self-interested donor countries. If stability of the foreign aid agreement does not occur, then aid effectiveness fails. Thus, the aim of this paper is to investigate the effects of the stability of foreign aid agreement on income redistribution amongst countries. The findings show that stability has positive effects on income mobility from the rich to the poorest countries reducing global income inequality

An Assessment of Carousel Value-Added Tax Fraud in The European Carbon Market

The literature on the European Union Emission Trading System (EU ETS) is by now very rich. Much is known about the efficiency, the effectiveness, and the environmental and distributional impacts of the EU ETS. Less, however, is known about the carousel value-added-tax (VAT) fraud phenomena in the European carbon market. This article evaluates the welfare effects of carousel VAT fraud in the EU ETS using a computable general equilibrium (CGE) analysis. According to our findings, if VAT fraud occurs in the EU ETS, the effects on welfare for the EU Member States are negative, with welfare loss significantly higher than the VAT fraud value. This article also discusses the reverse charge mechanism that EU Member States could adopt to reduce the VAT fraud phenomena in the European carbon market

Regulation Support to Industrial Clusters: A Cross-Country Analysis

We empirically investigate the role of regulatory governance and industrial clusters to foster the country\u2019s economic performance. Using the ordinary least-square (OLS) regression for a cross section of countries, including the 25 EU Member States, our findings show that the regulation governance has the strongest effects on the employment rate performing a buffering effect with the cluster development. An antagonist effect occurs for the other economic indicators

An Analytic Hierarchy Process for The Evaluation of Transport Policies to Reduce Climate Change Impacts

Transport is the sector with the fastest growth of greenhouse gases emissions, both in developed and in developing countries, leading to adverse climate change impacts. As the experts disagree on the occurrence of these impacts, by applying the analytic hierarchy process (AHP), we have faced the question on how to form transport policies when the experts have different opinions and beliefs. The opinions of experts have been investigated by a means of a survey questionnaire. The results show that tax schemes aiming at promoting environmental-friendly transport mode are the best policy. This incentives public and environmental-friendly transport modes, such as car sharing and car pooling.Analytic Hierarchy Process, Transport Policies, Climate Change

A global perspective on effectiveness of aid for trade

Recent global initiatives on debt relief and development assistance call for increasing aid for trade to the poorest countries. The paper applies a multi-country computable general equilibrium model to measure the effectiveness of alternative aid for trade categories. The findings show that aid for trade policies expand trade and alleviate international income inequalities in the recipient countries, that will benefit mainly from aid for trade adjustment and technical assistance

The Impact of Trade Liberalisation on Water Use: A Computable General Equilibrium Analysis

We used that GTAP-W model – GTAP5 with water resources added – to estimate the impact of hypothetical Doha-like liberalization of agricultural trade on water use. Three conclusions emerge. First, the change in regional water use is less than 10%, even if agricultural tariffs are reduced by 75%. Second, patterns are non-linear. Water use may go up for partial liberalization, and down for more complete liberalization. This is because different crops respond differently to tariff reductions, but also because trade and competition matter too. Third, trade liberalization tends to reduce water use in water scarce regions, and increase water use in water abundant regions, even though there no water markets in most countries

An Analytic Hierachy Process for Ranking Operating Costs of Low Cost and Full Service Airlines

This paper develops an application of the analytic hierarchy process to rank the operating cost components of full service and low cost airlines. It takes into account the financial balance sheets and answers to a questionnaire submitted to the managers of selected airlines. The results suggest that the analytic hierarchy process can be appropriately used to obtain the ranking of the costs taking into account different views: financial, management and operative. Rental, office equipment and other supplies costs show the highest importance in the cost ranking, both for full services and low cost airlines. The robustness of the results is tested by Monte Carlo analysis

The Effect of Advanced Traveller Information Systems (ATIS) on public transport demand and its uncertainty

Advanced Traveller Information Systems (ATISs) include a broad range of advanced computer and communication technologies. These systems are designed to provide transit riders pre-trip and real-time information, to make better informed decisions regarding their mode of travel, planned routes and travel times. ATISs include in-vehicle displays, terminal or wayside based information centres, information by phone or mobile and internet. In this article, a Stated Preference survey has been carried out in order to know the preferences of public transport\u2019s customers related to different ATISs and their willingness to pay in Palermo. An ordered probit demand model has been calibrated to determine the potential additional share of demand attracted by the adoption of ATISs. Finally, Monte Carlo simulation has been carried out to appraise the uncertainty on some parameters of the calibrated demand model. The results show that respondents give more importance to the type of information and its cost, whereas they are less interested in the system that provides the information

Managing water scarcity at a river basin scale with economic instruments

This paper presents a conceptual framework for both assessing the role of economic instruments, and reshaping them in order to enhance their contribution to the goals of managing water scarcity. Water management problems stem from the mismatch between a multitude of individual decisions, on the one hand, and the current and projected status of water resources on the other. Economics can provide valuable incentives that drive individual decisions, and can design efficient instruments to address water governance problems in a context of conflicting interests and relevant transaction costs. Yet, instruments such as water pricing or trading are mostly based on general principles of welfare economics that are not readily applicable to assets as complex as water. A flaw in welfare economic approaches lies in the presumption that economic instruments may be good orbad on their own (e.g., finding the "right" price). This vision changes radically when we focus on the problem, instead of the instrument. In this paper, we examine how economic instruments to achieve welfare-enhancing water resource outcomes can realize their full potential in basin-scale management contexts. We follow a political economy perspective that views conflicts between public and private interest as the main instrumental challenge of water management. Our analysis allows us to better understand the critical importance of economic instruments for reconciling individual actions towards collective ambitions of water efficiency, equity and sustainability with lessons for later-adopting jurisdictions. Rather than providing panaceas, the successful design and implementation of economic instruments as key river basin management arrangements involves high transaction costs, wide institutional changes and collective action at different levels