Impact of Carbon Price Policies on U.S. Industry

This paper informs the discussion of carbon price policies by examining the potential for adverse impacts on domestic industries, with a focus on detailed sector-level analysis. The assumed policy scenario involves a unilateral economy-wide $10/ton CO2 charge without accompanying border tax adjustments or other complementary policies. Four modeling approaches are developed as a proxy for the different time horizons over which firms can pass through added costs, change input mix, adopt new technologies, and reallocate capital. Overall, we find that a readily identifiable set of industries experience particularly adverse impacts as measured by reduced output and that the relative burdens on different industries are remarkably consistent across the four time horizons. Output rebounds considerably over longer time horizons, and the adverse impacts on profits diminish even more rapidly in most cases. Over the short term employment losses mirror output declines, while gains in other industries fully offset the losses over the longer horizons. At the same time, leakage abroad is considerable in some sectors, particularly when reductions in exports are considered.carbon price, competitiveness, input-output analysis

Will the U.S. productivity resurgence continue?

U.S. productivity growth has accelerated in recent years, despite a series of negative economic shocks. An analysis of the sources of this growth over the 1995-2003 period suggests that the production and use of information technology account for a large share of the gains. The authors project that during the next decade, private sector productivity growth will continue at a rate of 2.6 percent per year, a significant increase from their 2002 projection of 2.2 percent growth.Productivity ; Information technology

Projecting productivity growth: lessons from the U.S. growth resurgence

Following the 1995-2000 period of more rapid output growth and lower inflation in the United States, economists have strenuously debated whether improvements in economic performance can be sustained. The recession that began in March 2001 intensified the debate, and the economic impacts of the events of September 11 have yet to be fully understood. Both factors add to the considerable uncertainties about future growth that currently face decision makers in both the public and private sectors. ; In this article, the authors analyze the sources of U.S. labor productivity growth in the post-1995 period and present projections for both output and labor productivity growth for the next decade. Despite the 2001 downward revisions to U.S. gross domestic product and software investment, the authors show that information technology (IT) played a substantial role in the U.S. productivity revival. The article then outlines a methodology for projecting trend output and productivity growth. The base-case projection puts the rate of trend productivity growth at 2.21 percent per year over the next decade with a range of 1.33 to 2.92 percent, reflecting fundamental uncertainties about the rate of technological progress in IT-production and investment patterns. The central projection is only slightly below the average growth rate of 2.36 percent during the 1995-2000 period.Productivity ; Technology ; Economic development

U. S. labor supply and demand in the long run

In this paper we model U.S. labor supply and demand in considerable detail in order to capture the enormous heterogeneity of the labor force and its evolution over the next 25 years. We represent labor supplies for a large number of demographic groups as responses to prices of leisure and consumption goods and services. The price of leisure is an after-tax wage rate, while the final prices of goods and services reflect the supply prices of the industries that produce them. By including demographic characteristics among the determinants of household preferences, we incorporate the expected demographic transition into our long-run projections of the U.S. labor market.Labor supply ; Labor market

Changes in China's energy intensity : origins and implications for long-term carbon emissions and climate policies

Since the economic reforms that began in 1978, China has experienced a dramatic decline in energy intensity but in 2002 it flattened out and even rose slightly. There have been considerable debates about the origins of this dramatic decline in energy intensity before the year 2000: is this decline mostly due to changes in the composition of economic activity? (structural change) or is it mostly due to changes in technology? (energy per ton of steel, for example). However, very few studies have examined the slightly rising energy intensity trend for the post-2000 period. In this report, we use a new time-series input-output data set from 1981– 2007 to decompose the reduction in energy use into technical change and various types of structural change, including changes in the quantity and composition of imports and exports. We use two different decomposition methodologies: Structural Decomposition Analysis (SDA) and Index Decomposition Analysis (IDA) methods. Based on these estimates of changes in energy intensity, we project Autonomous Energy Efficiency Improvement (AEEI) parameters in forecasting future capital, labor and energy input shares of output for each industry. We then construct a recursive-dynamic computable general equilibrium (CGE) model of the Chinese economy to analyze both command-and-control policies and carbon taxes, and provide policy recommendations on how China could pursue a more sustainable development trajectory to deal with greenhouse gas emissions

A Comparison of the Intrinsic Shapes of Two Different Types of Dwarf Galaxies: Blues Compact Dwarfs and Dwarf Ellipticals

We measure the apparent shapes for a sample of 62 blue compact dwarf galaxies (BCDs), and compare them with the apparent shapes for a sample of 80 dwarf elliptical galaxies (dEs). The BCDs are flatter, on average, than the dEs, but the difference is only marginally significant. We then use both non-parametric and parametric techniques to determine possible distributions of intrinsic shapes for the BCDs. The hypothesis that BCDs are oblate spheroids can be ruled out with a high confidence level ($> 99$), but the hypothesis that they are prolate spheroids cannot be excluded. The apparent shapes of BCDs are totally consistent with the hypothesis that they are triaxial ellipsoids. If the intrinsic axis ratios, $\beta$ and $\gamma$, are distributed according to a Gaussian with means $\beta_0$ and $\gamma_0$ and standard deviation $\sigma$, we find the best-fitting distribution for BCDs has $(\beta_0,\gamma_0,\sigma)= (0.66,0.55,0.16)$, while that for dEs has $(\beta_0,\gamma_0,\sigma)= (0.85,0.64,0.24)$. Our results are consistent with the hypothesis that BCDs have a close evolutionary relation with dEs.Comment: total 23 pages, 9 figures, and 1 Table, submitted to ApJ on Sep 19 1997. Email addresses: [email protected], [email protected], [email protected], [email protected], [email protected]