The environment as a factor of production

The authors develop a model of environmental resource use in production with an empirical analysis of how electric power companies consume and bank sulfur dioxide pollution permits. The model considers emissions, fuels, and labor as variable inputs with quasi-fixed inputs of permits and capital. Incorporating information from permit markets allows the authors to distinguish between user costs and asset shadow values. Their findings indicate that firms are holding stocks of pollution permits for reasons other than short-term cost savings. The results also reveal substantial substitution possibilities between emissions, permits stocks, and other factors of production. The authors speculate that anticipated secondary markets for carbon-offset inventories related to the flexibility mechanisms of the Kyoto Protocol will have similar effects for greenhouse-gas emitting firms.Markets and Market Access,Economic Theory&Research,Payment Systems&Infrastructure,Environmental Economics&Policies,Montreal Protocol,Environmental Economics&Policies,Economic Theory&Research,Energy and Environment,Carbon Policy and Trading,Montreal Protocol

Uncertainty and the price for crude oil reserves

Innovations in futures, options, and derivative instruments permit active trading, speculating and hedging - linking markets for physical petroleum products with financial markets. These derivative markets continuously value petroleum delivered today and for future dates, providing a market price for inventories. Underground petroleum reserves are also an inventory defined by exploration surveys and development drilling. Thus, observable market information can be used to value these reserves. Option - valuation models can be used to price reserves using observable markets, but are dependent on unexplained convenience yields revealed by the term structure of futures prices. The authors apply a general inventory pricing model to petroleum inventories and generate an empirical model of the returns to storage for petroleum markets. They examine the determinants of the crude oil convenience yield using a stochastic control model. They specify optimal production and inventory conditions using a third-order cost function and estimate them using monthly observations. Their inventory arbitrage condition embodies the Hotelling principle and Kaldor's convenience yield, and includes a premium on the dispersion in crude oil prices. The empirical results suggest that returns to storage contain both a cost-reducing component and often sizable premiums associated with the dispersion of petroleum prices. Their findings suggest that crude oil markets differentiated by quality and location provide similar premiums. The premiums associated with the dispersion of petroleum prices may account for persistent backwardation in crude oil prices. This finding may also explain the wide discrepancies between Hotelling values and transaction prices found in previous studies.Economic Theory&Research,Environmental Economics&Policies,Markets and Market Access,Labor Policies,Payment Systems&Infrastructure,Oil Refining&Gas Industry,Environmental Economics&Policies,Access to Markets,Markets and Market Access,Economic Theory&Research

Substitution and technological change under carbon cap and trade : lessons from Europe

The use of carbon-intense fuels by the power sector contributes significantly to the greenhouse gas emissions of most countries. For this reason, the sector is often key to initial efforts to regulate emissions. But how long does it take before new regulatory incentives result in a switch to less carbon intense fuels? This study examines fuel switching in electricity production following the introduction of the European Union’s Emissions Trading System, a cap-and-trade regulatory framework for greenhouse gas emissions. The empirical analysis examines the demand for carbon permits, carbon based fuels, and carbon-free energy for 12 European countries using monthly data on fuel use, prices, and electricity generation. A short-run restricted cost function is estimated in which carbon permits, high-carbon fuels, and low-carbon fuels are variable inputs, conditional on quasi-fixed carbon-free energy production from nuclear, hydro, and renewable energy capacity. The results indicate that prices for permits and fuels affect the composition of inputs in a statistically significant way. Even so, the analysis suggests that the industry’s fuel-switching capabilities are limited in the short run as is the scope for introducing new technologies. This is because of the dominant role that past irreversible investments play in determining power-generating capacity. Moreover, the results suggest that, because the capacity for fuel substitution is limited, the impact of carbon emission limits on electricity prices can be significant if fuel prices increase together with carbon permit prices. The estimates suggest that for every 10 percent rise in carbon and fuel prices, the marginal cost of electric power generation increases by 8 percent in the short run. The European experience points to the importance of starting early down a low-carbon path and of policies that introduce flexibility in how emission reductions are achieved.Energy Production and Transportation,Energy and Environment,Environment and Energy Efficiency,Carbon Policy and Trading,Markets and Market Access

Groundwater geology of DeWitt, Piatt, and northern Macon Counties, Illinois

Contract report prepared for the Mahomet Valley Water AuthorityOpe

Wind-tunnel investigation of a flush airdata system at Mach numbers from 0.7 to 1.4

Flush pressure orifices installed on the nose section of a 1/7-scale model of the F-14 airplane were evaluated for use as a flush airdata system (FADS). Wing-tunnel tests were conducted in the 11- by 11-ft Unitary Wind Tunnel at NASA Ames Research Center. A full-scale FADS of the same configuration was previously tested using an F-14 aircraft at the Dryden Flight Research Facility of NASA Ames Research Center (Ames-Dryden). These tests, which were published, are part of a NASA program to assess accuracies of FADS for use on aircraft. The test program also provides data to validate algorithms for the shuttle entry airdata system developed at the NASA Langley Research Center. The wind-tunnel test Mach numbers were 0.73, 0.90, 1.05, 1.20, and 1.39. Angles of attack were varied in 2 deg increments from -4 deg to 20 deg. Sideslip angles were varied in 4 deg increments from -8 deg to 8 deg. Airdata parameters were evaluated for determination of free-stream values of stagnation pressure, static pressure, angle of attack, angle of sideslip, and Mach number. These parameters are, in most cases, the same as the parameters investigated in the flight test program. The basic FADS wind-tunnel data are presented in tabular form. A discussion of the more accurate parameters is included

Body Language and Sales

Utilizing professional sales competition videos taken from a university Sales program, the current study investigates the link between nonverbal gestures made by salespeople and performance scores given by professional sales recruiters watching their role plays. The results of this study may suggest a relationship between gesture use and perceptions of sales ability

Low Temperature Photoluminescence Characterization of Orbitally Grown CdZnTe

The II-VI ternary alloy CdZnTe is a technologically important material because of its use as a lattice matched substrate for HgCdTe based devices. The increasingly stringent requirements on performance that must be met by such large area infrared detectors also necessitates a higher quality substrate. Such substrate material is typically grown using the Bridgman technique. Due to the nature of bulk semiconductor growth, gravitationally dependent phenomena can adversely affect crystalline quality. The most direct way to alleviate this problem is by crystal growth in a reduced gravity environment. Since it requires hours, even days, to grow a high quality crystal, an orbiting space shuttle or space station provides a superb platform on which to conduct such research. For well over ten years NASA has been studying the effects of microgravity semiconductor crystal growth. This paper reports the results of photoluminescence characterization performed on an arbitrary grown CdZnTe bulk crystal

Geological and geophysical maps of the Illinois Basin-Ozark Dome region

Map 1. Land surface topography -- Map 2. Bedrock topography -- Map 3. Surficial geology with shaded relief -- Map 4. Bedrock geology with bedrock topography -- Map 5. Structure contours of the top of the Pennsylvanian Springfield Coal and Bevier Coal (Missouri) -- Map 6. Structure contours of the top of the Mississippian-Devonian New Albany Shale and correlatives -- Map 7. Structure contours of the top of the Ordovician Trenton Limestone (or equivalent) -- Map 8. Structure contours of the top of the Precambrian -- Map 9. Isostatic gravity anomaly -- Map 10. Magnetic anomaly -- Map 11. Fault and fold traces -- Map 12. Earthquake epicenters 1804-2014.Ope