Output-Based Allocations of Emissions Permits: Efficiency and Distributional Effects in a General Equilibrium Setting with Taxes and Trade

Abstract The choice of mechanism for allocating tradable emissions permits has important efficiency and distributional effects when tax and trade distortions are considered. We present different rules for allocating carbon allowances within sectors (lump-sum grandfathering, output-based allocation [OBA], and auctioning) and among sectors (historical emissions and value-added shares). Using a partial equilibrium model, we explore how OBA mitigates price increases, limits incentives for conservation in favor of lowering energy intensity, and changes relative output prices among sectors. We then use a computable general equilibrium model from the Global Trade Analysis Project, modified to incorporate a labor/leisure choice, to compare overall mechanism performance. The output subsidies implicit in OBA mitigate tax interactions, which can lead to higher welfare than grandfathering. OBA with sectoral distributions based on value added generates effective subsidies similar to a broad-based tax reduction, performing nearly like auctioning with revenue recycling, which generates the highest welfare. OBA based on historical emissions supports the output of more polluting industries, which more effectively counteracts carbon leakage but is more costly in welfare terms. Industry production and trade impacts among sectors that are less energy intensive are also quite sensitive to allocation rules.emissions trading, output-based allocation, tax interaction, carbon leakage

Why Don't Foreign Firms Cooperate in U.S. Antidumping Investigations?: An Emperical Analysis

Foreign firms face punitive duties if they do not cooperate with the US Department of Commerce (DOC) in antidumping procedures. For example, 37% of all foreign firms involved in antidumping investigations in the US chose faced “facts available” margins for the 1995-2002 period, with average antidumping duties of 31% for cooperating foreign firms, compared to 87% for those who do not. The existing literature has focused on how DOC discretion has led to foreign firm non-cooperation. This paper instead examines individual foreign firm’s decisions about whether to cooperate during this same period. We find evidence that non-cooperation is consistent with a model of foreign firms rationally choosing not to cooperate, rather than solely as a result of investigating authority bias against imports.antidumping, commercial policy, trade policy, facts available

Comparing Policies to Combat Emissions Leakage: Border Tax Adjustments versus Rebates

We explore conditions determining which anti-leakage policies might be more effective complements to domestic greenhouse gas emissions regulation. We consider four policies that could be combined with unilateral emissions pricing to counter effects on international competitiveness: a border tax on imports, a border rebate for exports, full border adjustment, and a domestic production rebate (as might be implemented with output-based allocation of emissions allowances). Each option faces different potential legal hurdles in international trade law; each also has different economic impacts. While all have the potential to support domestic production, none is necessarily effective at reducing global emissions. Nor is it possible to rank order the options. In each case, the effectiveness depends on the relative emissions rates, elasticities of substitution, and consumption volumes. We illustrate these results with simulations for the energy-intensive sectors of two different economies, the United States and Canada.environmental tax, rebate, border tax adjustment, emissions leakage, climate

ViCoCITY – A virtual company environment used in distance education to teach key professional skills

This paper will discuss the background and rationale for the introduction of ViCoCITY to the Bachelor of Science in Information Technology (BSc in IT) degree offered through distance education by Oscail, Dublin City University (DCU)

Effectiveness and Impact of UNDP Mine Action Support: Lessons Learned

The United Nations Development Programme (UNDP) has supported mine action in more than 40 countries since its first involvement in Cambodia in 1992. UNDP support generally focuses on the development of national mine action management capacities. In early 2016, the Independent Evaluation Office (IEO) of UNDP concluded the first global evaluation of the results of UNDP support in mine action, with particular attention to its effectiveness and impact. The evaluation reviewed documentation relating to all national, UNDP-supported mine action programs, in-depth desk reviews of support to 14 countries, and background for field case studies of three national programs (Laos, Mozambique, and Tajikistan). It also included visits to two dozen communities in Laos (n=8), Mozambique (n=11), and Tajikistan (n=5)—all of which were previously mine-affected and where demining had occurred at least five years before the evaluation visit. The evaluation highlighted several important lessons regarding effectiveness of international support in mine action and provided important nuances to the discussion of impact in mine action. UNDP management accepted the recommendations addressed to it

Bayesian Nonparametric Inference of Switching Linear Dynamical Systems

Many complex dynamical phenomena can be effectively modeled by a system that switches among a set of conditionally linear dynamical modes. We consider two such models: the switching linear dynamical system (SLDS) and the switching vector autoregressive (VAR) process. Our Bayesian nonparametric approach utilizes a hierarchical Dirichlet process prior to learn an unknown number of persistent, smooth dynamical modes. We additionally employ automatic relevance determination to infer a sparse set of dynamic dependencies allowing us to learn SLDS with varying state dimension or switching VAR processes with varying autoregressive order. We develop a sampling algorithm that combines a truncated approximation to the Dirichlet process with efficient joint sampling of the mode and state sequences. The utility and flexibility of our model are demonstrated on synthetic data, sequences of dancing honey bees, the IBOVESPA stock index, and a maneuvering target tracking application.Comment: 50 pages, 7 figure