• Energy Research
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Our paper analyzes the sources of labor productivity variation in U.S. bituminous coal surface mining from 1960 to 1976. The coal mining industry was among the first to experience a prolonged decline in labor productivity in the post-World War II period. In surface mining nationally, labor productivity in 1977 was 26.6 tons per worker-day, or 28 percent less than the peak of 36.7 tons per worker-day achieved in 1973. Moreover, in several major coal-producing states, the decline began much earlier and was more dramatic. For example, in West Virginia (the first state to experience declining productivity) the loss in productivity between 1965, the year in which productivity in the state peaked, and 1976 was nearly 52 percent. Eastern Kentucky experienced an even larger drop of 56 percent between 1967 and 1976. It was only the expansion of surface mining to western states in the 1970s that delayed the appearance of a national decline in productivity until the early 1970s. The industry has thus foreshadowed the labor productivity declines that subsequently occurred in other industries.

The biogas from waste has emerged as a realistic and reliable renewable energy proposition and can deliver social-economic benefits when integrated with local communities. In the last decade, the biogas sector in European countries has seen unprecedented growth due to favorable policy supports and perceived social-economic benefits. Among different biogas producing schemes, waste to biogas using anaerobic digestion is considered most environment friendly due to minimum carbon leakage and positive waste resource recycling impact. Many countries, including the UK, envision creating a circular economy utilizing Biogas from Waste (BfW) recycling potential. This paper aims to analyze the state of the UK’s BfW scheme through the lens of circular economy and discern areas that need attention to usher BfW potential in supporting a circular economy. The paper also discussed key challenges and barriers to create a local circular economy using the BfW scheme. Based on the analysis, it is observed that the BfW scheme in the UK is currently impeded due to lack cross-sectoral policy coherence, and far from contributing to a circular economy. Additionally, the UK's waste to energy concept is concentrated around incinerator-based systems without much attention on improving resource efficiency and waste recycling. This paper makes three recommendations to improve prospects of the BfW scheme in the UK (1) decentralized approach in the BfW scheme development, (2) considering bio-waste and digestate as value streams, and (3) creating a policy cohesiveness across multiple departments.

Abstract Rapid economic growth and accelerating urbanization in the past three decades have accelerated the exhaustion of China’s mineral resources. China is the world’s largest consumer and importer of nickel resources; therefore, a growing domestic demand will increase China’s import dependence and in turn make it potentially vulnerable to supply shortages. One hundred years from 1950 to 2050 were examined for China’s nickel utilization. Identified domestic nickel resources can only sustain China’s industries until 2017, but nickel will reach peak utilization around the year of 2020–2022. Given the 5% annual increase in applications and the growing importation of minerals in China, the carrying duration of nickel resources until 2020 will require a nickel-recycling rate of more than 90%. To sustain China’s nickel utilization, future strategies should foster three solutions: maintaining a high level of imports, adjusting the landscape of nickel applications, and shifting from virgin mining of geological minerals to urban mining of anthropogenic resources.

AbstractFiscal rules are necessary to protect monetary policy from the consequences of unsustainable or active fiscal policy for inflation. Monetary unions, such as the Economic and Monetary Union (EMU), require even stronger fiscal rules to avoid free riding by regional fiscal authorities on the common monetary policy. By contrast, in a fiscal federation, the federal government internalises the effect of active regional policies on the overall price level. Federal fiscal policy contributes to price stability either by enforcing fiscal rules or by adjusting its own stance. Following Canzoneri, Cumby and Diba (2001), we test whether federal and regional governments in Germany behave in an active or passive way. We find evidence of a spillover effect of unsustainable policies on other regions. The German federal government offsets the effect on the price level by running passive policies. The Bundesbank's prime objective of price stability is therefore endorsed by fiscal policy. The results have implications for the regulation of fiscal policies in the EMU.

Abstract Energy is indispensible in modern society and is one of the most important components of socio-economic development. Nepal is one of the least developed countries with more than 80% of its population residing in rural communities. Per capita energy usage – often viewed as a key index of the development – in the country is far less than the global average per capita energy usage. The energy sector is dominated by the traditional energy sources such as fuel woods, crop residues and animal dung mainly for domestic usage contributing to about 86% of the national energy consumption. Currently 40% of the population has access to electricity, and the rural electrification accounts for only 29%. The majority of rural populations are meeting their energy needs by burning biomass in traditional stoves which has several environmental and public health issues. Nearly all fossil-derived fuels consumed in the country are imported in a refined form, and the perpetual increase in petroleum imports has adversely impacted the existing fragile economy of the country. Despite a huge potential in harnessing various renewable energy resources such as hydropower, solar power, wind energy and biofuels/bioenergy, these resources have not been sustainably captured due to geographical, technical, political and economical reasons. This paper presents a brief account of Nepal's renewable energy resources and the current status of various renewable energy technologies (RETs) such as micro-hydro, solar power, wind energy, biofuel/bioenergy, improved cook stoves, and improved water mill. It also highlights the opportunities and barriers for the development of RETs. Finally this paper presents some recommendations for the promotion, development and implementation of RETs in the country.

A balance between industrial pollution and economic growth becomes a major policy issue to attain a sustainable society in the world. To discuss the problem from economics and business perspectives, this study proposes a new use of DEA (Data Envelopment Analysis) as a methodology for unified (operational and environmental) assessment. A unique feature of the proposed approach is that it separates outputs into desirable and undesirable categories. Such separation is important because energy industries usually produce both desirable and undesirable outputs. This study discusses how to unify the two types of outputs under natural and managerial disposability. The proposed DEA approach evaluates various organizations by the three efficiency measures such as OE (Operational Efficiency), UEN (Unified Efficiency under Natural disposability) and UENM (Unified Efficiency under Natural and Managerial disposability). An important feature of UENM is that it separates inputs into two categories and unifies them under the two disposability concepts in addition to the proposed output separation and unification. This study incorporates an amount of capital assets for technology innovation, as one of the two input group, into the measurement of UENM. Then, it compares UENM with the other two efficiency measures. This study is the first research effort in which DEA has an analytical capability to quantify the importance of investment on capital assets for technology innovation. To confirm the practicality of the proposed approach, this study applies the three efficiency measures to a data set regarding manufacturing and non-manufacturing industries of 47 prefectures in Japan. This study empirically confirms the validity of Porter hypothesis in Japanese manufacturing industries, so implying that environmental regulation has been effective for betterment on the performance of Japanese manufacturing industries. Another important finding is that the emission of greenhouse gases is a main source of unified inefficiency in the two groups of industries. Therefore, Japanese industries, examined in this study, need to make their efforts to reduce the greenhouse gas emissions and air pollution substances by investing in capital assets for technology innovation.

Brazil uses taxes, subsidies, and blending mandates as policy instruments to manage and stabilize its transportation fuel markets. The fuel sector has been very dynamic in recent years due to frequent policy adjustments and variable market conditions. In this paper, we use a price endogenous economic simulation model to analyze the impacts of such policy adjustments under various challenging conditions in the global ethanol and sugar markets. Our analysis specifically focuses on Brazilian producers' supply responses, consumers' driving demand and fuel choice, ethanol trade, land use, greenhouse gas emissions, and social welfare. The model results show that (i) under a low ethanol blending rate, conventional vehicles would be driven significantly less while flex-fuel and ethanol-dedicated vehicles would not be affected significantly; (ii) lowering the fuel taxes adversely affects the competitiveness of sugarcane ethanol against gasoline blends, thus lowering producers' surplus; and (iii) while a reduction in fuel taxes is advantageous in terms of overall social welfare, it has serious environmental impacts by increasing the GHG emissions from transportation fuels consumed in Brazil.

Does temperature affect economic performance? Has temperature always affected social welfare through its impact on physical and cognitive function? While many studies have explored the indirect links between climate and welfare (e.g. agricultural yield, violent conflict, or sea-level rise), few address the possibility of direct impacts operating through human physiology. This paper presents a model of labor supply under thermal stress, building on a longstanding physiological literature linking thermal stress to health and task performance. A key prediction is that effective labor supply – defined as a composite of labor hours, task performance, and effort – is decreasing in temperature deviations from the biological optimum. We use country-level panel data on population-weighted average temperature and income (1950-2005), to illustrate the potential magnitude of the effect. Using a fixed effects estimation strategy, we find that hotter-than-average years are associated with lower output per capita for already hot countries and higher output per capita for cold countries: approximately 3%-4% in both directions. We then use household data on air conditioning and heating expenditures from the US to provide further evidence in support of a physiologically based causal mechanism. This more direct causal link between climate and social welfare has important implications for both the economics of climate change and comparative development.