Energy markets and the macroeconomy

The article looks at the energy markets from a macroeconomic perspective. It first describes the main trends in the production and consumption of energy. Belgium is characterised by a high degree of energy dependency, since it no longer has any fossil fuel resources and renewable energy is not yet well developed in the country. Moreover, its economy has a high energy intensity, due to specialisation in energy-intensive sectors and high consumption of energy products by Belgian households. The operation of the energy markets and the implications for the pricing of energy products is examined in a second part. The pass-through of fluctuations in the price of crude oil onto consumer prices of petrol, diesel and heating oil is both fast and full, in Belgium as well as in the neighbouring countries. However, because of the low level of excise duty on diesel and particularly on heating oil, consumer prices charged for these energy products in Belgium are more sensitive to fluctuations in the crude oil price. Also, the Belgian consumer price of gas and electricity reacts much faster than in neighbouring countries to fluctuations in prices on the international markets, since in other euro area countries, prices are adjusted less frequently than in Belgium and in some cases they are still subject to some form of regulation. More generally, despite liberalisation, the effective degree of competition on the gas and electricity markets is still very low, both in Belgium and in the other euro area countries. Finally, the impact of fluctuations in crude oil prices on inflation and economic activity is discussed. In addition to its high energy intensity and strong reactions of its energy consumer prices to oil price fluctuations, the Belgian economy’s sensitivity to oil shocks is heightened by the indexation mechanism it applies, even though the use of the health index partly neutralises the initial shock. However, that additional negative impact can be curbed by constant monitoring of Belgian competitiveness, as prescribed by a 1996 law on the promotion of employment and the safeguarding of competitiveness.energy markets, oil, inflation, pass-through, Belgium

An integrated eddy current detection and imaging system on a silicon chip

Eddy current probes have been used for many years for numerous sensing applications including crack detection in metals. However, these applications have traditionally used the eddy current effect in the form of a physically wound single or different probe pairs which of necessity must be made quite large compared to microelectronics dimensions. Also, the traditional wound probe can only take a point reading, although that point might include tens of individual cracks or crack arrays; thus, conventional eddy current probes are beset by two major problems: (1) no detailed information can be obtained about the crack or crack array; and (2) for applications such as quality assurance, a vast amount of time must be taken to scan a complete surface. Laboratory efforts have been made to fabricate linear arrays of single turn probes in a thick film format on a ceramic substrate as well as in a flexible cable format; however, such efforts inherently suffer from relatively large size requirements as well as sensitivity issues. Preliminary efforts to fully extend eddy current probing from a point or single dimensional level to a two dimensional micro-eddy current format on a silicon chip, which might overcome all of the above problems, are presented

The economic recovery plans

Economic recovery plans make up a important part of the wide-ranging package of measures that economic policy-makers worldwide have taken in response to the financial and economic crisis. More specifically, the EU Member States have either approved or announced fiscal measures to boost economic growth amounting to a total of 1.1 p.c. of GDP in 2009 and 0.7 p.c. of GDP in 2010 for the EU as a whole. In the United States, the cumulative budgetary cost of the recovery measures over 2009 and 2010 should reach 5.4 p.c. of GDP. However, fiscal support for economic activity through the automatic stabilisers is greater in the EU than in the US. A comparison of policy responses, as regards both the scope and composition of the recovery plans, shows that there are significant divergences amongst the EU Member States themselves. Differences in terms of the extent of the recovery plans are in accordance with the European economic recovery plan’s call for account to be taken of differences in initial budgetary positions when drafting the national plans. Moreover, the European recovery plans consist of a wide range of measures, which, on the whole, are quite evenly distributed over the revenue and expenditure sides of the equation. The growth-supporting measures may be able to ease the recession in the short term, but the impact they will have is uncertain and possibly even fairly limited. An optimum effect of the recovery plans on economic growth in the short term would only really be reached if a number of preconditions are met first. So it is clear that the growth-stimulating measures need to be timely, temporary and targeted, conditions that are not always met. Furthermore, the effectiveness of the measures taken is to a large extent determined by the reactions from private economic agents. In this respect, an essential precondition is for there to be no doubt about the sustainability of government finances over the long run. However, combined with the already weak budget positions that some countries had to start with, the economic recovery plans and the effect that the recession has on the budget situation via the relatively large automatic stabilisers have seriously affected the state of public finances in many countries.fiscal stimulus, financial and economic crisis, EERP (European Economic Recovery Plan

Interregional transfers and solidarity mechanisms via the government budget

The article examines transfers between regions via the central government budget, referring essentially to the regional household accounts published by the National Accounts Institute. It examines only the aspects concerning allocation between the regions of that part of government revenue and expenditure for which there is no direct counter-consideration. The Flemish Region is currently a net contributor to transfers between regions via the central government budget, whereas the Walloon Region is a net recipient. The Brussels Capital Region also makes a net contribution, though only a small one. These transfers between regions are due largely to variations in the contributions of each region to government revenues. In the case of households, the contribution of the Flemish Region exceeds that of the other two regions; for businesses, it is the Brussels Capital Region that makes the largest contribution. In addition, these transfers originate from the regional allocation of social benefits. Thus, unemployment benefits entail transfers from the Flemish Region to the Walloon Region and the Brussels Capital Region. In contrast, transfers between the regions via pensions currently favour the Flemish Region. In regard to health care expenditure, there are hardly any transfers between the regions at present. Projections also show the importance of both the expected demographic trends and labour market developments for the future pattern of transfers between regions. The influence of demographic trends is most favourable for the Brussels Capital Region and least favourable for the Flemish Region. This is likely to increase the net contribution from the former while the latter’s net contribution will decline, even if the current labour market divergences largely persist in the future. In contrast, in the event of full convergence of employment levels, the inter-regional transfers paid by the Flemish Region would actually disappear altogether, and the Brussels Capital Region would become the sole net contributor, though in that case the inter-regional transfers received by the Walloon Region would decline sharply. Finally, international comparison shows that transfers between regions are relatively small in Belgium, compared to what is seen in other EU Member States.regions, transfers, solidarity mechanisms

Retail Market Prices of Fonio Reveal The Demand For Quality Characteristics in Bamako, Mali

African consumers' expectations concerning the quality of food products are great. In spite of constrained budgets, we showed that market retail prices revealed quality preferences of the consumers and not just production costs. In very poor countries like Mali, food innovation is limited by the very low purchasing power of the population. However, technological food product or process innovations are possible and sometimes valuable. Demand driven innovation may lead to open new markets, opportunities for small and medium scale enterprises and to improve consumers' welfare. Based on this assumption, technical research was done to provide new food products. In this paper, we used both sensory tests and a hedonic price approach, to estimate the consumers' demand for different characteristics of fonio, a West African cereal, and showed that poor consumers have quality requirements and pay for them. We showed that the shadow price or hedonic price paid for quality characteristics is small but significant. A comparison between sensory tests and a market study showed a convergence between what people say they prefer and what they really pay for. Results were consistent and showed directions for technological improvement of the product and its production process. The partial least square method was used to estimate hedonic prices of the different modalities of fonio quality traits. This method was interesting since it solved the ordinary least square method's colinearity problems. ...French Abstract : Les attentes des consommateurs africains concernant la qualité de l'alimentation sont importantes malgré des budgets très contraints. Nous montrons ici que les prix de marchés révèlent des préférences qualitatives et non seulement des coûts de production. Dans des pays très pauvres comme le Mali, l'innovation technologique est limitée par le très faible pouvoir d'achat de la population. Cependant les innovations technologiques sont possibles et parfois payantes. L'innovation en réponse à une demande peut permettre d'ouvrir de nouveaux marchés, de donner des opportunités aux petites et moyennes entreprises et d'améliorer le bien-être des consommateurs. Sur la base de cette hypothèse, la recherche technologique s'applique à fournir de nouveaux produits. Dans cet article, en utilisant à la fois des tests de dégustation et une analyse des prix hédoniques, nous estimons la demande des consommateurs pour différentes caractéristiques du fonio, une céréale d'Afrique de l'Ouest. Nous montrons que des consommateurs pauvres ont des exigences de qualité et paient de fait pour les satisfaire. Nous montrons que les prix hédoniques ou shadow prices payés pour les caractéristiques qualitatives sont faibles mais significatifs. La comparaison des tests sensoriels et de l'étude de marché montre une convergence entre ce que les gens disent et ce pour quoi ils paient réellement. Les résultats sont cohérents et montrent des directions pour l'amélioration technologique des produits et des procédés de transformation. La méthode des moindres carrés ordinaires a été utilisée pour l'estimation des prix hédoniques des différentes modalités des attributs de qualité du fonio. Cette méthode est intéressante car elle résout les problèmes de colinéarité.FONIO; CEREAL; QUALITY; HEDONIC PRICES; PLS METHOD; EMPIRICAL INVESTIGATION

Physical environmental factors related to walking and cycling in older adults: the Belgian aging studies

<p>Abstract</p> <p>Background</p> <p>Socio-ecological models emphasize the relationship between the physical environment and physical activity (PA). However, knowledge about this relationship in older adults is limited. Therefore, the present study aims to investigate the relationship between area of residence (urban, semi-urban or rural) and older adults' walking and cycling for transportation and recreation. Additionally, relationships between several physical environmental factors and walking and cycling and possible moderating effects of area of residence, age and gender were studied.</p> <p>Methods</p> <p>Data from 48,879 Flemish older adults collected in 2004-2010 through peer research were analyzed. Walking, cycling and environmental perceptions were assessed using self-administered questionnaires. The Study Service of the Flemish Government provided objective data on municipal characteristics. Multilevel logistic regression analyses were applied.</p> <p>Results</p> <p>Urban participants were more likely to walk daily for transportation compared to rural (OR = 1.43; 95% CI = 1.22, 1.67) and semi-urban participants (OR = 1.32; 95% CI = 1.13, 1.54). Urban participants were less likely to cycle daily for transportation compared to semi-urban participants (OR = 0.72; 95% CI = 0.56, 0.92). Area of residence was unrelated to weekly recreational walking/cycling. Perceived short distances to services (ORs ranging from 1.04 to 1.19) and satisfaction with public transport (ORs ranging from 1.07 to 1.13) were significantly positively related to all walking/cycling behaviors. Feelings of unsafety was negatively related to walking for transportation (OR = 0.93, 95% CI = 0.91, 0.95) and recreational walking/cycling (OR = 0.95, 95% CI = 0.92, 0.97). In females, it was also negatively related to cycling for transportation (OR = 0.94, 95% CI = 0.90, 0.98).</p> <p>Conclusions</p> <p>Urban residents were more likely to walk for transportation daily compared to semi-urban and rural residents. Daily cycling for transportation was less prevalent among urban compared to semi-urban residents. Access to destinations appeared to be important for promoting both walking and cycling for transportation and recreation across all demographic subgroups. Additionaly, feelings of unsafety were associated with lower rates of walking for transportation and walking/cycling for recreation in all subgroups and cycling for transportation in females. No clear patterns emerged for other environmental factors.</p