Implementing CDM Limits in the EU ETS: A Law and Economics Approach

The EU Emissions Trading Scheme (EU ETS) is the main instrument to reduce greenhouse gas emissions in Europe. Subject to a country specific limit, installations in the EU ETS can use EU allowances (EUA) and certified emissions reductions (CERs) generated through the Clean Development Mechanism (CDM) to fulfil their emission reduction target. The CDM encourages and finances emission reduction projects in developing countries. The basis for the implementation of a CDM usage limit is the supplementarity criteria, which was established to ensure that developed countries only cover part of their compliance obligations with emissions reductions abroad. The CDM limits are differentiated between EU member states to cater to the different levels of emission reduction ambitions, the progress made when the limits were established and the ability of the Member State to reduce emissions. The binding limits created substantial arbitrage rents, due to the CER-EUA spread in the range of 200 million Euro for the year 2008. This paper discusses different options for the allocation of this rent. The paper finds that making the right to use CERs tradable or the regulator precommitting to buying CERs at the level of the limit reduces the inefficiencies connected to the current regulation. Auctioning these CER usage rights furthermore shifts the rents created through the CER-EUA spread to the state. Both the EU ETS and the CDM are scrutinised by academics, industry and non-governmental institutions according to their efficiency and environmental effectiveness. The debate about wind-fall profits has shown that climate policies need to be designed carefully. In light of improving the EU ETS, the use of CDM and in light of upcoming regional emissions trading schemes in other developed economies, this paper shows how CDM limits can be designed more efficiently.Clean Development Mechanism, Emissions Trading, Climate Policy, Efficiency

ARMENIAN RURAL COOPERATIVES AND MARKETING: DAIRY SECTOR

Armenian milk marketing cooperatives provide several benefits, of which the increased opportunity for milk marketing is valued most by member farmers. During the cooperative action milk production has also increased due to seminars on cattle feeding, artificial insemination, sanitation programs, and support by cooperatives in feed procurement. Another benefit is that through pooling products of specified grade or quality, marketing cooperatives are better able to market milk to large-scale buyers than individual owners. Putting their efforts together cooperatives can move to distant markets and thus expand their sales opportunities. This is of paramount importance for those cooperatives that have a sole buyer. In addition to milk marketing, almost all of the cooperatives expressed desire to integrate themselves vertically in milk processing with the aim of capturing greater share of the consumers’ food expenditures. It’s worth mentioning that all managers stated the importance of seminars and educational tools to the success of their organizations. However, in their self-assessment lower ratings were noted in the areas of financial management, financial statement analysis, strategic planning, and higher scores were stated for business decision-making and cooperative principles. Our findings indicate that an opportunity exists to reinforce managers’ knowledge in the areas of cooperative principles, division of responsibility between managers and the Board, and financial management. The results of the research come to advocate for continuing cooperative business and extending their activities over other aspects of the agricultural sphere (technical service, agricultural production, etc.), thus enabling farmers to further integrate themselves in food marketing system and improve their incomes.agriculture, cooperation, cooperative, milk production, transition economy, Agribusiness, International Relations/Trade,

The Water Pricing Effects on the Water Use of the Hungarian Households

Hungary has remarkable surface and subsurface water resources which result in important comparative benefits. In Hungary, before the political change, the water prices were determined by the state. According to the underlying principles of the communism, the water prices were very low as well. After the political and economical change in Hungary, from 1990 the water market started to be oligopoly-like: today the water supply is managed by regional water-work companies which are operating under state coordinated frames (e.g. price allowance, state-fixed prices containing profit). The consequences of the changeover to the capitalism have several effects; there is a need for the validating of the real costs and the environmental aspects in the water prices. This new approach led to the increased water-prices. In this study, the reaction of the Hungarian households to the growing of the water-rates is examined. The research work is based on primary statistical data. The analysis shows that the water consumption is hardly decreased and the sparing of water became more important. The study overviews the Hungarian water consumption structure as well

Ideology and Symbolism of Traditional Architecture: A Case of House Structures and Social Stratification of the Villages of Chozuba and Runguzu, Chakhesang Naga

The social and cultural memories existing in the Naga oral histories relating to megalithic culture elucidates important information on the ideology of erecting megalithic monuments, social organization, rituals and their economic usages. The well-defined cultural values of erecting megalithic monuments also appear to have a relationship with craft specialization to the point of perpetuating the memory of a person who has gained a higher status. This paper discusses briefly the Feast of Merit that coincides with the stone dragging ceremony and the status men earn in terms of representations adorning their houses in the Chozuba and Runguzu villages of the Chakhesang tribe