Going beyond energy intensity to understand the energy metabolism of nations: The case of Argentina

The link between energy consumption and economic growth has been widely studied in the economic literature. Understanding this relationship is important from both an environmental and a socio-economic point of view, as energy consumption is crucial to economic activity and human environmental impact. This relevance is even higher for developing countries, since energy consumption per unit of output varies through the phases of development, increasing from an agricultural stage to an industrial one and then decreasing for certain service based economies. In the Argentinean case, the relevance of energy consumption to economic development seems to be particularly important. While energy intensity seems to exhibit a U-Shaped curve from 1990 to 2003 decreasing slightly after that year, total energy consumption increases along the period of analysis. Why does this happen? How can we relate this result with the sustainability debate? All these questions are very important due to Argentinean hydrocarbons dependence and due to the recent reduction in oil and natural gas reserves, which can lead to a lack of security of supply. In this paper we study Argentinean energy consumption pattern for the period 1990-2007, to discuss current and future energy and economic sustainability. To this purpose, we developed a conventional analysis, studying energy intensity, and a non conventional analysis, using the Multi-Scale Integrated Analysis of Societal and Ecosystem Metabolism (MuSIASEM) accounting methodology. Both methodologies show that the development process followed by Argentina has not been good enough to assure sustainability in the long term. Instead of improving energy use, energy intensity has increased. The current composition of its energy mix, and the recent economic crisis in Argentina, as well as its development path, are some of the possible explanations.Argentina, energy intensity; energy mix; economic development; societal metabolism, integrated analysis

CORRELATIONS BETWEEN OIL AND STOCK MARKETS: A WAVELET-BASED APPROACH

In a global economy, shocks occurring in one market can spill over to other markets. This paper investigates the impact of oil shocks and stock markets crashes on correlations between stock and oil markets. We test changes in correlations at different scales with non-overlapping confidence intervals based on estimated wavelet correlations. Contrary to other approaches, this method does not need adjustment for heteroskedasticity biases on the correlation coefficients. Our results show that oil shocks affect the correlation between both markets. The evidence on the change of correlation between stock markets after an oil shock is weaker; except in some specific cases during the Kuwait war and the OPEC cutback period. Conversely, we only find weak evidence that stock market crashes change the correlation between oil and stock markets. Overall, the evidence gives support to including oil as an asset class in asset allocation strategies.he authors acknowledge financial support from Financial Research Center–UNIDE and from the Spanish Ministry of Education and Science, research projects MTM2010-17323, ECO2011-25706, ECO2012-32401 and MTM2012-36163-C06-03

Why Catalonia will see its energy metabolism increase in the near future: an application of MuSIASEM

This paper applies the so-called Multi-Scale Integrated Analysis of Societal and Ecosystem Metabolism (MuSIASEM) to the economy of the Spanish region of Catalonia. By applying Georgescu-Roegen’s fund-flow model, it arrives at the conclusion that within a context of the end of cheap oil, the current development model based on the growth of low productivity sectors such as services and construction must change. The change is needed not only because of the increasing scarcity of affordable energy carriers, or because of the increasing environmental impact that the present development represents, but also because of an ageing population that demands labour productivity gains. This will imply industry requiring more energy consumption per worker in order to increase its productivity, and therefore its competitiveness. Thus, we conclude that energy intensity, and exosomatic energy metabolism of Catalonia will increase dramatically in the near future unless major conservation efforts are implemented in both the household and transport sectors.Catalonia, exosomatic energy, energy metabolism, economic development, hierarchical levels, multi-scale, integrated analysis

WP 55 - Part-time employment: A comparative analysis of Spain and the Netherlands

Most industrialized countries have seen part-time employment as a percentage of total employment increase in the last decade. This paper presents the results of a comparative study of part-time employment in Spain and the Netherlands. The project comprised a legal comparative study of the effectiveness of the normative solutions provided by the Dutch and Spanish legal orders regarding the protection of part-time workers and the promotion of part-time employment, with special attention paid to the gender dimension of part-time work in both countries; and an analysis, based on data extracted from the European Community Household Panel (1995-2001), of the determinants of part-time employment in both countries and an examination of the extent to which part-time jobs are used as stepping-stones to full-time positions. We found significant country differences regarding females’ decisions to take part-time jobs. We also found that, in general, Dutch females are not less likely than their male counterparts to increase the number of hours they work. However, this applies only to those females who are part of a couple or have children younger than 12 years. In Spain, females are 2.6 times less likely than their male counterparts to switch from a part-time to a full-time job. JEL classification: J22, J71, K31, K33Part-time employment, discrimination, gender differences, multinomial logit

Toward Partial Reorientation of Land Management for Sustainability in View of Material Circulation: Biophysical and Historical Analysis

This paper explores two major issues, from biophysical and historical viewpoints. We examine land management, which we define as the long-term fertility maintenance of land in relation to agriculture, fishery and forestry. We also explore humans’ positive role as agents aiming to reinforce harmonious materials circulation within the land. Liebig’s view on nature, agriculture and land, emphasizes the maintenance of long-term land fertility based on his agronomical thought that the circulation of matter in agricultural fields must be maintained with manure as much as possible. The thoughts of several classical economists, on nature, agriculture and land are reassessed from Liebig’s view point. Then, the land management problem is discussed at a much more fundamental level, to understand the necessary conditions for life in relation to land management. This point is analyzed in terms of two mechanisms: entropy disposal on the earth, and material circulation against gravitational field. Finally from the historical example of the metropolis of Edo, it is shown that there is yet another necessary condition for the sustainable management of land based on the creation of harmonious material cycles among cities, farm land, forests and surrounding sea areas in which humans play a vital role as agent.land management, material circulation, sustainability, Liebig, Edo

A Critical Analysis of Dimensions and Curve Fitting Practice in Economics

When dealing with sustainability we are concerned with the biophysical as well as the monetary aspects of economic and ecological interactions. This multidimensional approach requires that special attention is given to dimensional issues in relation to curve fitting practice in economics. Unfortunately, many empirical and theoretical studies in economics, as well as in ecological economics, apply dimensional numbers in exponential or logarithmic functions. We show that it is an analytical error to put a dimensional unit x into exponential functions ( a x ) and logarithmic functions ( x a log ). Secondly, we investigate the conditions of data sets under which a particular logarithmic specification is superior to the usual regression specification. This analysis shows that logarithmic specification superiority in terms of least square norm is heavily dependent on the available data set. The last section deals with economists’ “curve fitting fetishism”. We propose that a distinction be made between curve fitting over past observations and the development of a theoretical or empirical law capable of maintaining its fitting power for any future observations. Finally we conclude this paper with several epistemological issues in relation to dimensions and curve fitting practice in economics.dimensions, logarithmic function, curve fitting, logarithmic specification

Reconsideration of Dimensions and Curve Fitting Practice in Economics Elaborating on Georgescu-Roegen’s Economic Methodology

This paper is to examine the proper use of dimensions and curve fitting practices elaborating on Georgescu-Roegen’s economic methodology in relation to the three main concerns of his epistemological orientation. Section 2 introduces two critical issues in relation to dimensions and curve fitting practices in economics in view of Georgescu-Roegen’s economic methodology. Section 3 deals with the logarithmic function (ln z) and shows that z must be a dimensionless pure number, otherwise it is nonsensical. Several unfortunate examples of this analytical error are presented including macroeconomic data analysis conducted by a representative figure in this field. Section 4 deals with the standard Cobb-Douglas function. It is shown that the operational meaning cannot be obtained for capital or labor within the Cobb-Douglas function. Section 4 also deals with economists’ ?curve fitting fetishism?. Section 5 concludes this paper with several epistemological issues in relation to dimensions and curve fitting practices in economics.dimensions, logarithmic function, Nicholas Georgescu-Roegen, macroeconomics, Cobb-Douglas function, econometrics, curve fitting, transcendental production function

Direct 3D Tomographic Reconstruction and Phase-Retrieval of Far-Field Coherent Diffraction Patterns

We present an alternative numerical reconstruction algorithm for direct tomographic reconstruction of a sample refractive indices from the measured intensities of its far-field coherent diffraction patterns. We formulate the well-known phase-retrieval problem in ptychography in a tomographic framework which allows for simultaneous reconstruction of the illumination function and the sample refractive indices in three dimensions. Our iterative reconstruction algorithm is based on the Levenberg-Marquardt algorithm. We demonstrate the performance of our proposed method with simulation studies