Pigou’s Dividend versus Ramsey’s Dividend in the Double Dividend Literature

This paper deals with the welfare analysis of green tax reforms. The aims of this paper are to highlight misinterpretations of policy assessments in the double dividend literature, to specify which of the efficiency costs and benefits should be ascribed to each dividend, and then, to propose a definition for the first dividend and the second dividend. We found the Pigou’s dividend more appropriate for policy guidance, in contrast to the Ramsey’s dividend usually found in mainstream literature. Therefore, we take up some authors’ recent claims about the need of unambiguous and operative definitions of these dividends both for empirical purposes, and political advice. Finally, the paper analyzes a green tax reform for the US economy to illustrate the advantages of our definitions for policy assessment. The new definitions proposed in this paper i) overcome some shortcoming of the mainstream current definitions in the literature regarding overestimation of the efficiency costs; and, ii) provide information by themselves and not as a partial view of the whole picture.Double Dividend, Green Tax Reforms, Ramsey’s Dividend, Pigou’s Dividend

Pigou's Dividend versus Ramsey's Dividend in the Double Dividend Literature

The aims of this paper are to highlight misinterpretations of policy assessments in the double dividend literature, to specify which of the efficiency costs and benefits should be ascribed to each dividend, and then, to propose a definition for the first dividend and the second dividend. We found the Pigou's dividend more appropiate for policy guidance than the usual Ramsey's dividend. Finally, the paper analyzes a green tax reform for the US economy to illustrate the advantages of the new definitions proposed in this paper: i) overcome some shortcoming of the mainstream current definitions in the literature regarding overestimation of the efficiency costs; and, ii) provide information by themselves and not as a partial view of the whole picture.Double dividend, Green Tax Reforms, Ramsey's dividend, Pigou's dividend

Devaluation Beliefs and Debt Crisis: The Argentinian Case

Throughout the year 2001 the Argentine real GDP fell by 20 percent and the Investment Rate decreased by more than 20 percent of the GDP. The government made several announcements on changes in exchange rate policy in order to assist the recovery of the economy. At same time, the Trade Balance produced a huge surplus and the Argentine External Debt over GDP ratio increased so much that it forced the Argentinian government to default and, afterwards, devalue the peso 40 percent. We explore the relationship between default and the expectations on devaluation. We find that depending on the level of debt and given an expectation of devaluation two types of crises can arise: if the level of debt is low the government devalues but does not default; for a higher level of debt, the government devalues and defaults to cancel the future cost of repaying the debt. We have calibrated our model to match the main features of the Argentine crisis and we show that the External Debt over GDP ratio was in a crisis zone where the government found it optimal to default and to devalue.Debt crisis, Devaluation, Argentina

Geological factors controlling occurrence and distribution of arsenic in groundwaters from the southern margin of the Duero Basin, Spain

Groundwater from springs and boreholes on the southern edge of the Cenozoic Duero Basin (DB) of Spain has concentrations of arsenic (As) which are commonly above the EC drinking-water limit of 10 μg/L and reach observed values up to 241 μg/L. Groundwater compositions within the sedimentary aquifer vary from Ca–HCO3 type, variably affected by evaporation and agricultural pollution at shallow levels, to Na–HCO3 compositions in deeper boreholes of the basin. Groundwater conditions are mainly oxidising, but reducing groundwaters exist in sub-basins within the aquifer, localised flow paths likely being influenced by basement structure. Arsenic concentrations are spatially variable, reaching up to 38 μg/L in springs of the Spanish Central System (SCS) basement aquifer and up to 62 μg/L in springs from the DB. Highest As concentrations are associated with the Na–HCO3 compositions in deep boreholes (200–450 m depth) within the DB. These have high pH values (up to 9.6) which can give rise to associated elevated concentrations of V and U (up to 64 and 30 μg/L, respectively). In the deep borehole waters of the DB, oxidising flows derived from the mineralised igneous–metamorphic basement and discharging via major faults, and are considered the origin of the higher concentrations. Compositions are consistent with desorption of As and other anionic species from metal oxyhydroxides in an oxic environment. Under locally reducing conditions prevalent in some low-flow parts of the DB, an absence of detectable dissolved As is coincident with low or undetectable SO4 concentrations, and consistent with loss via formation of authigenic sulphide minerals. Mitigation measures are needed urgently in this semi-arid region where provision of alternative sources of safe drinking water is logistically difficult and expensive