An Agenda for Energy and Material Efficiency Policy – An Element of Technology Policy for a More Sustainable Use of Natural Resources

Discussions about the future options of the energy systems of industrialised countries are held almost exclusively in terms of alternative resources of energy supply and related technologies. This paper tries to broaden the view of the technological options by focusing on the technical and theoretical potentials of a more efficient use of energy and materials. Such options are generally overlooked since a more efficient use of energy resources tends to be assessed by its economic potential. This analysis starts from the basic human needs of an industrialised country which lead to the material and energy services that influence energy-related drivers. The analysis of the energy system's losses, from useful energy to final and primary energy and the analysis of a more efficient use of materials hint at huge technical and theoretical potentials for more efficient use of energy. This new agenda of the technology-based research of resource efficiency is labelled as the vision of the 2000 Watt per capita society. It may not only influence energy and material research and policy agendas, but also transform the present rather narrow-minded understanding of energy policy into a resource efficiency concept as part of an innovation policy oriented towards sustainable development. From this perspective, suggestions are made to extend the R&D energy and material policy agendas.Innovation policy, energy efficiency policy, material efficiency, R&D energy policy

International financial competitiveness and incentives to foreign direct investment

In this paper an index of financial competitiveness is calculated that corresponds to the market-to-book ratio of inward FDI stocks. For a panel of five advanced economies from 1980 to 2006 it is shown that price competitiveness, stable inflation rates and registered patents have a positive impact on the index. Institutional factors like EMU membership or Anglo-Saxon legislation also play a role. Financial competitiveness in turn encourages FDI inflows whereas it benefits fixed investment relative to M&A. There is also some evidence that an innovative environment accelerates investment decisions by promoting competition among investors. --Competitiveness,foreign direct investment,international integration

The location of diapycnal mixing and the meridional overturning circulation

The large-scale consequences of diapycnal mixing location are explored using an idealized threedimensional model of buoyancy-forced flow in a single hemisphere. Diapycnal mixing is most effective in supporting a strong meridional overturning circulation (MOC) if mixing occurs in regions of strong stratification, that is, in the low-latitude thermocline where diffusion causes strong vertical buoyancy fluxes. Where stratification is weak, such as at high latitudes, diapycnal mixing plays little role in determining MOC strength, consistent with weak diffusive buoyancy fluxes at these latitudes. Boundary mixing is more efficient than interior mixing at driving the MOC; with interior mixing the planetary vorticity constraint inhibits the communication of interior water mass properties and the eastern boundary. Mixing below the thermocline affects the abyssal stratification and upwelling profile, but does not contribute significantly to the MOC through the thermocline or the ocean’s meridional heat transport. The abyssal heat budget is dominated by the downward mass transport of buoyant water versus the spread of denser water tied to the properties of deep convection, with mixing of minor importance. These results are in contrast to the widespread expectation that the observed enhanced abyssal mixing can maintain the MOC; rather, they suggest that enhanced boundary mixing in the thermocline needs to be identified in observations

Trade balances of the central and east European EU member states and the role of foreign direct investment

Given the large trade and current account deficits in some of the new EU member states the development of their external economic situation plays a role in assessing their aptitude to enter the European Monetary Union. The empirical analysis with aggregated data indicates that in the eight central and east European EU member states FDI and trade are complementary. This result is confirmed by an FDI enhanced gravity model which makes use of sectoral data provided by the Bundesbank's micro database direct investment (MIDI). The net effect of FDI on the trade balance is ambiguous, but FDI in high-tech industries clearly stimulates exports more than imports. Technological spill-over and the conglomeration of human capital seem to be important factors for the export performance. Against this background the prospects for the Czech Republic, Hungary, Slovenia and the Slovak Republic look more favourable compared to the Baltic states. --foreign direct investment,trade balance,gravity model

The international integration of money markets in the central and east European accession countries: deviations from covered interest parity, capital controls and inefficiencies in the financial sector

Based on the concept of covered interest parity it is shown that the money markets in Poland, the Czech Republic, Hungary, and the Slovak Republic meanwhile display a high degree of international integration with the euro area. Integration has strengthened continuously in the review period of 1999 to mid 2002. The segmentation that could still be observed stems from both restrictions on the short-term movement of capital and the limited development of the financial sectors in the four accession countries. While almost all capital controls have since been removed and will no longer play a role after accession to the EU, the implementation and transmission of the single monetary policy within the Eurosystem will possibly be impeded, if the financial sectors in CEE are then still underdeveloped. -- Basierend auf dem Konzept der gedeckten Zinsparität wird gezeigt, dass die Geldmärkte in Polen, der Tschechischen Republik, Ungarn und der Slowakei inzwischen einen hohen Grad an internationaler Integration mit dem Euro-Raum aufweisen. Die Integration hat sich im Untersuchungszeitraum von 1999 bis Mitte 2002 kontinuierlich verstärkt. Für die noch zu beobachtende Segmentierung sind sowohl Beschränkungen des kurzfristigen Kapitalverkehrs als auch die geringe Entwicklung der Finanzsektoren in den Beitrittsländern verantwortlich. Während Kapitalverkehrskontrollen inzwischen fast vollständig abgebaut sind und nach einem EU-Beitritt keine Rolle mehr spielen werden, könnte innerhalb des Eurosystems die Implementierung und Transmission der gemeinsamen Geldpolitik beeinträchtigt werden, wenn die Finanzsektoren in Mittel- und Osteuropa noch unterentwickelt sind.

Determinants of current account developments in the central and east European EU member states - consequences for the enlargement of the euro area

The current accounts of most EU member states in central and eastern Europe have been showing growing deficits in recent years. According to panel estimates the deficits can be attributed primarily to factors characteristic for the stage of development, ie the relative income level and high capital building. The positive impact of a closing income gap, however, is largely compensated by real appreciation. The net effect of government budget deficits is rather small, since they are mostly financed by private saving. Further integration of the financial sector is likely to improve the current accounts. Although the current account positions do not require fundamental policy reversals, there are clear risks of exchange rate adjustments that should be reduced before entering the euro area. --current account,new EU member countries,catching-up process

Exploring the drivers behind automotive exports in OECD countries: An empirical analysis

The conceptual part of this paper ties the recently developed Lead Market concept to the international trade theory literature including neoclassical trade theory, new trade theory, neotechnological approaches and systems of innovation concepts. The empirical part explores the factors driving exports in the automotive sector in eight OECD countries between 1991 and 2008, explicitly accounting for possible Lead Market factors. Econometric results suggest that exports in the automotive sector are positively related to the general strength of a country in terms of exports, to higher GDP per capita and to a lower labour cost share in the automotive sector. However, domestic market size and R&D in the automotive sector do not exhibit statistically significant effects on exports. --lead markets,international trade,export potential,automotive industry

Exploring the factors driving automotive exports in OECD countries

Based on data for eight OECD countries this paper empirically explores the factors driving exports in the automotive sector between 1991 and 2008. The factors considered explicitly account for possible lead market effects which have recently been identified in the literature as relevant factors in studying the export potentials of certain technologies. Econometric results suggest that exports in the automotive sector are positively related to the general strength of a country in terms of exports, to higher GDP per capita and to a lower labour cost share in the automotive sector. However, domestic market size and R&D in the automotive sector appear to have no effect on exports. Hence, the results provide only limited rationale for policy intervention. --Lead markets,export potentials,automotive industry

Impact of geothermal heating on the global ocean circulation

The response of a global circulation model to a uniform geothermal heat flux of 50 mW m-2 through the sea floor is examined. If the geothermal heat input were transported upward purely by diffusion, the deep ocean would warm by 1.2°C. However, geothermal heating induces a substantial change in the deep circulation which is larger than previously assumed and subsequently the warming of the deep ocean is only a quarter of that suggested by the diffusive limit. The numerical ocean model responds most strongly in the Indo-Pacific with an increase in meridional overturning of 1.8 Sv, enhancing the existing overturning by approximately 25%