National Economic Problems

This thumbnail sketch of the over-all balance of the U. S. economy, as it shifted from peace to war and halfway back, Indicates how important for the economic health of a country Is its ability to produce goods and services; also, how important it Is from a point of view of its military capabilities. A significant fraction of our total income is devoted to purposes of defense, even in the present peacetime, and an overwhelmingly large pro­portion - during wartime

Preference symmetries, partial differential equations, and functional forms for utility

A discrete symmetry of a preference relation is a mapping from the domain of choice to itself under which preference comparisons are invariant; a continuous symmetry is a one-parameter family of such transformations that includes the identity; and a symmetry field is a vector field whose trajectories generate a continuous symmetry. Any continuous symmetry of a preference relation implies that its representations satisfy a system of PDEs. Conversely the system implies the continuous symmetry if the latter is generated by a field. Moreover, solving the PDEs yields the functional form for utility equivalent to the symmetry. This framework is shown to encompass a variety of representation theorems related to univariate separability, multivariate separability, and homogeneity, including the cases of Cobb–Douglas and CES utilityr. The work reported here was supported by a research fellowship from Nuffield College, Oxfor

A new and integrated hydro-economic accounting and analytical framework for water resources: A case study for North China

Water is a critical issue in China for a variety of reasons. China is poor of water resources with 2300 m3 of per capita availability, which is less than of the world average. This is exacerbated by regional differences; e.g. North China's water availability is only about 271 m3 of per capita value, which is only of the world's average. Furthermore, pollution contributes to water scarcity and is a major source for diseases, particularly for the poor. The Ministry of Hydrology [1997. China's Regional Water Bullets. Water Resource and Hydro-power Publishing House, Beijing, China] reports that about 65–80% of rivers in North China no longer support any economic activities. Previous studies have emphasized the amount of water withdrawn but rarely take water quality into consideration. The quality of the return flows usually changes; the water quality being lower than the water flows that entered the production process initially. It is especially important to measure the impacts of wastewater to the hydro-ecosystem. Thus, water consumption should not only account for the amount of water inputs but also the amount of water contaminated in the hydro-ecosystem by the discharged wastewater. In this paper we present a new accounting and analytical approach based on economic input–output modelling combined with a mass balanced hydrological model that links interactions in the economic system with interactions in the hydrological system. We thus follow the tradition of integrated economic–ecologic input–output modelling. Our hydro-economic accounting framework and analysis tool allows tracking water consumption on the input side, water pollution leaving the economic system and water flows passing through the hydrological system thus enabling us to deal with water resources of different qualities. Following this method, the results illustrate that North China requires 96% of its annual available water, including both water inputs for the economy and contaminated water that is ineligible for any uses

Distributed Control of Positive Systems

A system is called positive if the set of non-negative states is left invariant by the dynamics. Stability analysis and controller optimization are greatly simplified for such systems. For example, linear Lyapunov functions and storage functions can be used instead of quadratic ones. This paper shows how such methods can be used for synthesis of distributed controllers. It also shows that stability and performance of such control systems can be verified with a complexity that scales linearly with the number of interconnections. Several results regarding scalable synthesis and verfication are derived, including a new stronger version of the Kalman-Yakubovich-Popov lemma for positive systems. Some main results are stated for frequency domain models using the notion of positively dominated system. The analysis is illustrated with applications to transportation networks, vehicle formations and power systems

Scaling Behaviors of Weighted Food Webs as Energy Transportation Networks

Food webs can be regarded as energy transporting networks in which the weight of each edge denotes the energy flux between two species. By investigating 21 empirical weighted food webs as energy flow networks, we found several ubiquitous scaling behaviors. Two random variables $A_i$ and $C_i$ defined for each vertex $i$, representing the total flux (also called vertex intensity) and total indirect effect or energy store of $i$, were found to follow power law distributions with the exponents $\alpha\approx 1.32$ and $\beta\approx 1.33$, respectively. Another scaling behavior is the power law relationship, $C_i\sim A_i^\eta$, where $\eta\approx 1.02$. This is known as the allometric scaling power law relationship because $A_i$ can be treated as metabolism and $C_i$ as the body mass of the sub-network rooted from the vertex $i$, according to the algorithm presented in this paper. Finally, a simple relationship among these power law exponents, $\eta=(\alpha-1)/(\beta-1)$, was mathematically derived and tested by the empirical food webs

The contribution of Chinese exports to climate change

Within 5 years, China's CO2 emissions have nearly doubled, and China may already be the world's largest emitter of CO2. Evidence suggests that exports could be a main cause for the rise in Chinese CO2 emissions; however, no systematic study has analyzed this issue, especially over time. We find that in 2005, around one-third of Chinese emissions (1700 Mt CO2) were due to production of exports, and this proportion has risen from 12% (230 Mt) in 1987 and only 21% (760 Mt) as recently as 2002. It is likely that consumption in the developed world is driving this trend. A majority of these emissions have largely escaped the scrutiny of arguments over “carbon leakage” due to the current, narrow definition of leakage. Climate policies which would make the developed world responsible for China's export emissions have both benefits and costs, and must be carefully designed to achieve political consensus and equity. Whoever is responsible for these emissions, China's rapidly expanding infrastructure and inefficient coal-powered electricity system need urgent attention

Applying consumer responsibility principle in evaluating environmental load of carbon emissions

There is a need for a proper indicator in order to assess the environmental impact of international trade, therefore using the carbon footprint as an indicator can be relevant and useful. The aim of this study is to show from a methodological perspective how the carbon footprint, combined with input- output models can be used for analysing the impacts of international trade on the sustainable use of national resources in a country. The use of the input-output approach has the essential advantage of being able to track the transformation of goods through the economy. The study examines the environmental impact of consumption related to international trade, using the consumer responsibility principle. In this study the use of the carbon footprint and input-output methodology is shown on the example of the Hungarian consumption and the impact of international trade. Moving from a production- based approach in climate policy to a consumption-perspective principle and allocation, would also help to increase the efficiency of emission reduction targets and the evaluation of the ecological impacts of international trade

The drivers of Chinese CO2 emissions from 1980 to 2030

China's energy consumption doubled within the first 25 years of economic reforms initiated at the end of the 1970s, and doubled again in the past 5 years. It has resulted of a threefold CO2 emissions increase since early of 1980s. China's heavy reliance on coal will make it the largest emitter of CO2 in the world. By combining structural decomposition and input–output analysis we seek to assess the driving forces of China's CO2 emissions from 1980 to 2030. In our reference scenario, production-related CO2 emissions will increase another three times by 2030. Household consumption, capital investment and growth in exports will largely drive the increase in CO2 emissions. Efficiency gains will be partially offset the projected increases in consumption, but our scenarios show that this will not be sufficient if China's consumption patterns converge to current US levels. Relying on efficiency improvements alone will not stabilize China's future emissions. Our scenarios show that even extremely optimistic assumptions of widespread installation of carbon dioxide capture and storage will only slow the increase in CO2 emissions