Innovation Subsidies: Does the Funding Source Matter for Innovation Intensity and Performance? Empirical Evidence from Germany

In this paper we analyze the effect of European and national funding on innovation input and output at the firm level. In terms of innovation input, we do not find evidence that one policy crowds out the effect of the other. Instead, the policies are complements. In terms of output, we find that subsidy recipients are more active with respect to patenting. A citation analysis of patents reveals that the subsidy recipients file patents that are more valuable (in terms of forward citations) than those filed in the counterfactual situation of receiving no public support. These results suggest that public funding triggers socially beneficial research projects and that the co-existence of national and European policies does not lead to crowding-out effects when compared to a hypothetical world of a closed economy with no supplemental European policies.     

A review of the IEA/NEA Projected Costs of Electricity – 2015 edition

The IEA/NEA recently issued their eighth edition of the Study on the “Projected Costs of Generating Electricity” – 2015 edition. The Study is mainly concerned with calculating the levelised cost of electricity (LCOE). The LCOE calculations are based on a levelised average life time cost approach using the discounted cash flow (DCF) method. The analysis was this year, and for the first time, performed using three discount rates (3%, 7%, and 10%). The LCOE can serve as a tool for calculating the cost of different generation technologies. However the Study's usefulness is affected by its narrow base of a limited set of countries that are not necessarily representative. It ignored the negative role of subsidies and did not provide a methodology for selective application of the discount rates and costing of carbon. The global power generation scene is changing. Generation growth in OECD countries has become very limited; simultaneously there is rapid growth of varying renewables (VRE) generation which needs special criteria for assessing its system cost. All this demands a rethinking of the application and usefulness of the LCOE in future generation planning.     

Does remediation save lives? — On the cost of cleaning up arsenic-contaminated sites in Sweden

Sweden has only just begun remediation of its many contaminated sites, a process that will cost an estimated SEK 60,000 million (USD 9100 million). Although the risk assessment method, carried out by the Swedish EPA, is driven by health effects, it does not consider actual exposure. Instead, the sites are assessed based on divergence from guideline values. This paper uses an environmental medicine approach that takes exposure into account to analyse how cancer risks on and near arsenic-contaminated sites are implicitly valued in the remediation process. The results show that the level of ambition is high. At 23 contaminated sites, the cost per life saved varies from SEK 287 million to SEK 1,835,000 million, despite conservative calculations that in fact probably underestimate the costs. It is concluded that if environmental health risks are to be reduced, there are probably other areas where economic resources can be used more cost-effectively.     

The effects of the energy price reform on households consumption in Iran

The substantial subsidizing of energy prices over the years has led to high energy consumption, inefficiencies, fiscal pressures, and environmental problems in Iran. To address the increasing socio-economic problems associated with the energy subsidies, the government embarked on an aggressive energy price reform through which energy subsidies were removed and cash handouts were given to all households in 2010. In this paper, I analyze the effectiveness of the energy price reform in Iran by estimating energy demand elasticities for households in different income groups. I apply a two-stage consumer optimization model and estimate the system of energy expenditures shares using the household budget survey data for the period 2001–2008. The results show that the overall price elasticities of demand are small, but income elasticities are close to one. The results also indicate heterogeneous responses to energy price and income changes in different income groups. Specifically, the urban households show stronger response to price changes, but rural households, particularly mid-income households, to income changes. These findings suggest that the current policy of price increases would not solely be able to reduce energy consumption and, therefore, it should be geared towards increasing energy efficiency through a series of price and non-price measures.     

我国混合动力汽车经济激励政策的效果分析

本文在了解国外工业发达国家针对新能源汽车出台的经济激励政策的基础上,归纳了我国已出台的补贴政策。立足于国内新能源汽车产业处于起步阶段的实情,综合运用情景分析法、回归模型以及面板固定效应模型对预处理后的4个主要试点城市混合动力汽车市场份额数据进行定量分析,旨在预估一系列补贴政策未来可能产生的效果。在文中设定的4种情景下,中国混合动力汽车经济激励措施的效果都是显著的,值得继续推行。     

An Affinity-to-Commons Model of Public Support For Environmental Energy Policy

As atmospheric CO₂ continues to rise above 450 PPM, policymakers struggle with uncertainty concerning predictors of citizen support for environmental energy policies (EEPs) and preferences for their design, topics which have received limited attention in empirical literature. We present an original model of policy support based on citizens’ affinity-to-commons: pathways by which individuals enjoy natural public goods that in turn shape preferences between alternative policy mechanisms. We evaluate this model using a survey of southern California electricity customers, with results indicating the model's utility in predicting public support of EEP. Stronger community ties are associated with preferences for “pull”-type subsidies, whereas stronger connections to natural commons are linked to support for both “pull” and “push”-type sanctions. Findings have implications for coalition building as advocates may engender support for green energy policy by framing sanctions as protecting natural commons, and framing subsidies either in this same way and/or as producing benefits for communities.     

世界城市住房保障政策比较研究

住房保障是一个国际性大城市成熟稳定发展的基础.本文通过对纽约、伦敦和东京等世界城市住房保障政策的比较研究,认为保障性住房制度建设既是一个长期过程,不可能一蹴而就,同时又有一定的规律可循.我国可以借鉴吸收世界城市在住房保障方面的成功经验,通过加强政府对住房市场的宏观调控、完善灵活的住房金融政策、健全配套体系、加大房租补贴力度等措施,构建独具中国特色的住房保障新模式.     

Fiscal impacts of energy efficiency programmes—The example of solid wall insulation investment in the UK

Programmes supporting the installation of energy efficiency measures typically incur a cost in the form of subsidies as well as lost VAT income due to reduced energy consumption. Those costs are to some extent offset by the tax receipts and other revenue streams generated as a result of the activities promoted under the programme. In this paper we analyse the budgetary effects of energy efficiency programmes focusing on the example of solid wall insulation in the UK. Three distinct subsidy options have been defined and modelled for the purpose of this research including two policies with varying degrees of direct subsidy and a low interest loan scheme. Our analysis shows that a significant amount of the cost of a scheme funding solid wall insulation would be offset by increased revenues and savings. A loan scheme, due to the high leverage, achieves not only budget neutrality but generates additional revenue for the Exchequer.     

Estimating road transport fuel consumption in Ecuador

Road transport is one of the sectors with highest energy consumptions in the planet, with large dependence of fossil fuels, and contribution for global greenhouse gas emissions. Although, Latin America is not a high-energy consumer, its share in global consumption is expected to grow, especially in the transportation sector. This make essential for developing countries the adoption of better policies to identify the vehicle groups with largest fuel demands. The present study describes the VKT technique to disaggregate road transport energy consumption by vehicle type, applied to the road transportation system of Ecuador. It also describes the procedures performed to estimate the variables required to run the model, and some of the practical applications that be used to create public policies. Results show as the biggest fuel consumers the heavy-duty freight cargo, followed by light duty vehicles. The estimation of greenhouse gas emissions evidence that road transport released 14.3 million tons of CO₂ in 2012. When fuel consumption is compared by it costs, it can be confirmed that Ecuadorean Government covered, through subsidies, for 68% of the annual fuel costs of national road transport, demonstrating the importance of restructuring these expenditures in order to achieve an efficient road transport system.