WorldWideScience

Sample records for price subsidies estimated

  1. The economic cost of fuel price subsidies in Ghana

    Science.gov (United States)

    Ofori, Roland Oduro

    I adapt the Harberger formula for deadweight loss to develop approximations for the deadweight loss created by multiple fuel price subsidies. I also estimate the own-price, cross-price, and income elasticities of demand for gasoline and diesel in Africa. I use data on fuel prices and sales in combination with my formulas and elasticity estimates to calculate the deadweight loss of fuel price subsidies in Ghana from 2009 to 2014. I show that the average efficiency cost of the gasoline and diesel price subsidies in Ghana is 0.8% of fuel price subsidy transfers. This result stresses the futility of basing subsidy reforms on economic efficiency losses, which are relatively small due to very inelastic energy demand, and the need for such reforms to be motivated by the poor-targeting of subsidies to low-income households and the impact of subsidies on government debt-financing.

  2. Water and sanitation service delivery, pricing, and the poor: An empirical estimate of subsidy incidence in Nairobi, Kenya

    Science.gov (United States)

    Fuente, David; Gakii Gatua, Josephine; Ikiara, Moses; Kabubo-Mariara, Jane; Mwaura, Mbutu; Whittington, Dale

    2016-06-01

    The increasing block tariff (IBT) is among the most widely used tariffs by water utilities, particularly in developing countries. This is due in part to the perception that the IBT can effectively target subsidies to low-income households. Combining data on households' socioeconomic status and metered water use, this paper examines the distributional incidence of subsidies delivered through the IBT in Nairobi, Kenya. Contrary to conventional wisdom, we find that high-income residential and nonresidential customers receive a disproportionate share of subsidies and that subsidy targeting is poor even among households with a private metered connection. We also find that stated expenditure on water, a commonly used means of estimating water use, is a poor proxy for metered use and that previous studies on subsidy incidence underestimate the magnitude of the subsidy delivered through water tariffs. These findings have implications for both the design and evaluation of water tariffs in developing countries.

  3. A revisit of fossil-fuel subsidies in China: Challenges and opportunities for energy price reform

    International Nuclear Information System (INIS)

    Lin, Boqiang; Ouyang, Xiaoling

    2014-01-01

    Highlights: • We measure fossil-fuel subsidies and effects of subsidy removal in a systematic fashion during 2006–2010. • Fossil-fuel subsidies scale of China was CNY 881.94 billion in 2010, equivalent to 2.59% of GDP. • Impacts of removing subsidies on macroeconomic variables are examined by the CGE model. • Future policy should focus on designing transparent, targeted and efficient energy subsidies. - Abstract: Fossil-fuel subsidies contribute to the extensive growth of energy demand and the related carbon dioxide emissions in China. However, the process of energy price reform is slow, even though China faces increasing problems of energy scarcity and environmental deterioration. This paper focuses on analyzing fossil fuel subsidies in China by estimating subsidies scale and the implications for future reform. We begin by measuring fossil-fuel subsidies and the effects of subsidy removal in a systematic fashion during 2006–2010 using a price-gap approach. Results indicate that the oil price reform in 2009 significantly reduced China’s fossil-fuel subsidies and modified the subsidy structure. Fossil-fuel subsidies scale in China was 881.94 billion CNY in 2010, which was lower than the amount in 2006, equivalent to 2.59% of the GDP. The macro-economic impacts of removing fossil-fuel subsidies are then evaluated by the computable general equilibrium (CGE) model. Results demonstrate that the economic growth and employment will be negatively affected as well as energy demand, carbon dioxide and sulfur dioxide emissions. Finally, policy implications are suggested: first, risks of government pricing of energy are far from negligible; second, an acceptable macroeconomic impact is a criterion for energy price reform in China; third, the future energy policy should focus on designing transparent, targeted and efficient energy subsidies

  4. Analysis of Federal Subsidies: Implied Price of Carbon

    Energy Technology Data Exchange (ETDEWEB)

    D. Craig Cooper; Thomas Foulke

    2010-10-01

    For informed climate change policy, it is important for decision makers to be able to assess how the costs and benefits of federal energy subsidies are distributed and to be able to have some measure to compare them. One way to do this is to evaluate the implied price of carbon (IPC) for a federal subsidy, or set of subsidies; where the IPC is the cost of the subsidy to the U.S. Treasury divided by the emissions reductions it generated. Subsidies with lower IPC are more cost effective at reducing greenhouse gas emissions, while subsidies with a negative IPC act to increase emissions. While simple in concept, the IPC is difficult to calculate in practice. Calculation of the IPC requires knowledge of (i) the amount of energy associated with the subsidy, (ii) the amount and type of energy that would have been produced in the absence of the subsidy, and (iii) the greenhouse gas emissions associated with both the subsidized energy and the potential replacement energy. These pieces of information are not consistently available for federal subsidies, and there is considerable uncertainty in cases where the information is available. Thus, exact values for the IPC based upon fully consistent standards cannot be calculated with available data. However, it is possible to estimate a range of potential values sufficient for initial comparisons. This study has employed a range of methods to generate “first order” estimates for the IPC of a range of federal subsidies using static methods that do not account for the dynamics of supply and demand. The study demonstrates that, while the IPC value depends upon how the inquiry is framed and the IPC cannot be calculated in a “one size fits all” manner, IPC calculations can provide a valuable perspective for climate policy analysis. IPC values are most useful when calculated within the perspective of a case study, with the method and parameters of the calculation determined by the case. The IPC of different policy measures can

  5. Distributional incidence of green electricity price subsidies in China

    International Nuclear Information System (INIS)

    Wang, Feng; Zhang, Bing

    2016-01-01

    Distributional incidences are fundamental to environmental and energy policies, a condition that has led to controversies on the equity of environmental and energy policy. Using data from China's Urban Household Income and Expenditure Survey data from 2007, this study quantified the distributional effects of the green electricity price subsidy policy among Chinese urban household and compared its effects by using lifetime income and annual income to classify households, respectively. The results show that total electricity subsidies are mainly driven by indirect electricity subsidies. By using lifetime income to classify households, subsidies to households in the poorest two groups accounted for less than 10.2% of the total subsidies, whereas money distributed to households in the top two deciles reached 35.4%. The comparison using annual income to group households also demonstrated the similar impact of the green electricity price subsidy policy. China’s future market reforms should allow electricity prices to reflect pollution abatement costs. Additionally, a multi-step block electricity price schedule can reduce the regressivity of the policy. - Highlights: • We quantified the distributional effects of the green electricity price subsidy. • The distributional effects of different income groups were compared. • The poorest two groups accounted for less than 10.2% of the total subsidies. • The green electricity price subsidy policy benefited the rich at household level.

  6. How the removal of energy subsidy affects general price in China: A study based on input–output model

    International Nuclear Information System (INIS)

    Jiang, Zhujun; Tan, Jijun

    2013-01-01

    In China, most energy prices are controlled by the government and are under-priced, which means energy subsidies existing. Reforming energy subsidies have important implications for sustainable development through their effects on energy price, energy use and CO 2 emission. This paper applies a price-gap approach to estimate China's fossil-fuel related subsidies with the consideration of the external cost. Results indicate that the magnitude of subsidies amounted to CNY 1214.24 billion in 2008, equivalent to 4.04% of GDP of that year. Subsidies for oil products are the largest, followed by subsidies for the coal and electricity. Furthermore, an input–output model is used to analyze the impacts of energy subsidies reform on different industries and general price indexes. The findings show that removal of energy subsidies will have significant impact on energy-intensive industry, and consequently push up the general price level, yet with a small variation. Removing oil products subsidies will have the largest impact, followed by electricity, coal and natural gas. However, no matter which energy price increases, PPI is always the most affected, then GDP deflator, with CPI being the least. Corresponding compensation measures should be accordingly designed to offset the negative impact caused by energy subsidies reform. - Highlights: • China's fossil-fuel subsidies were CNY 1214.24 billion in 2008 including external cost. • Removing energy subsidies will have the largest impact on energy-intensity industry. • Removal of oil products subsidies will have the largest impact. • The effect of removing energy subsidies on general price is: PPI>GDP deflator>CPI

  7. Cross subsidy removal in electricity pricing in India

    International Nuclear Information System (INIS)

    Bhattacharyya, Ranajoy; Ganguly, Amrita

    2017-01-01

    In India electricity price for agriculture is cross subsidized by the industries. The Indian government has started a process through which the extent of cross subsidization is gradually being reduced. The idea is to replace the cross subsidization by 2030 and introduce a rate structure that will increase with the amount of electricity usage. This paper uses the Computable General Equilibrium framework to evaluate the ex-ante impact of these policy changes on the Indian economy. The paper finds that removal of cross subsidies will increase inflation particularly food inflation resulting in a decline in household incomes more so in rural areas. Replacing cross subsidies with a progressive rate structure will compensate for only a small part of the negative effects of the removal of cross subsidies. Four other policy options are also investigated targeting household incomes, food inflation and general inflation. Most of these options do not work as the required increase in budget deficit is unlikely to be bearable to the government. The only feasible option appears to be a direct price subsidy to agricultural sector: in this case food prices are held down, inflation is moderate and effect on household incomes is minimal. - Highlights: • Removal of cross subsidies in electricity sector will increase inflation in India. • Different policy options are investigated targeting household incomes, food inflation and general inflation. • Feasible option appears to be a direct price subsidy to agricultural sector.

  8. Does subsidy work? Price elasticity of demand for influenza vaccination among the elderly in Japan.

    Science.gov (United States)

    Kondo, Masahide; Hoshi, Shu-ling; Okubo, Ichiro

    2009-08-01

    Subsidy for influenza vaccination is often provided to the elderly in order to encourage them to receive a flu shot in developed countries. However, its effect on uptake rate, i.e., price elasticity of demand, has not been well studied. Japan's decentralised vaccination programme allows observation of various pairs in price and uptake rate of flu shots among the elderly by the municipality from 2001/2002 to 2004/2005 season. We combine our sample survey data (n=281), which monitor price, subsidy and uptake rate, with published data on local characteristics in order to estimate price elasticity of demand with panel model. We find price elasticity of demand for influenza vaccine: nearly zero in nationwide, nearly zero in urban area, and -1.07 in rural area. The results question the rationale for subsidy, especially in urban area. There are cases where maintaining or increasing the level of subsidy is not an efficient allocation of finite health care resources. When organising a vaccination programme, health manager should be careful about the balance between subsidy and other efforts in order to encourage the elderly to receive shots with price elasticity in mind.

  9. Energy efficiency subsidies with price-quality discrimination

    International Nuclear Information System (INIS)

    Nauleau, Marie-Laure; Giraudet, Louis-Gaëtan; Quirion, Philippe

    2015-01-01

    We compare various designs of energy efficiency subsidies in a market subject to both energy-use externalities and price-quality discrimination by a monopolist. We find that differentiated subsidies can establish the social optimum. Unlike per-quality regimes, ad valorem regimes generate downstream interferences: Subsidising of the high-end good leads the monopolist to reduce the quality of the low-end good. For this reason, ad valorem differentiated rates should always decrease with energy efficiency, a result seemingly at odds with actual practice. In contrast, with per-quality differentiated subsidies, the rates can increase if the externality is large enough relative to the market share of “low” type consumers. Contrary to differentiated subsidies, what we shall call single-instrument subsidies only achieve second-best outcomes. A uniform ad valorem subsidy should have a rate higher than that needed to specifically internalise energy-use externalities. Lastly, if, as is often observed in practice, only the high-end good is to be incentivised, a per-quality regime should be preferred to an ad valorem one. An ad valorem tax on the high-end good may even be preferred to an ad valorem subsidy if the externality is small enough and low-end consumers dominate the market.

  10. Petroleum Prices, Taxation and Subsidies in India

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2009-07-01

    The current Indian system of effectively subsidised petroleum product prices has significant implications for the emergence of India as a major global energy consumer, for the integrity of India's Central Government budget and for investment in India's growing oil and petroleum sector. This paper is part one of a broader study that looks at the current system of petroleum pricing and the macroeconomic, microeconomic, regional and global effects of this system.

  11. Petroleum Prices, Taxation and Subsidies in India

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2009-07-01

    The current Indian system of effectively subsidised petroleum product prices has significant implications for the emergence of India as a major global energy consumer, for the integrity of India's Central Government budget and for investment in India's growing oil and petroleum sector. This paper is part one of a broader study that looks at the current system of petroleum pricing and the macroeconomic, microeconomic, regional and global effects of this system.

  12. ANALYSIS OF EXCHANGE RATE LINKED SUBSIDIES FOR NON-PRICE EXPORT PROMOTION: THE CASE OF COTTON

    OpenAIRE

    Paudel, Laxmi; Adhikari, Murali; Houston, Jack E.; Kinnucan, Henry W.

    2002-01-01

    An equilibrium displacement framework was developed to evaluate the effect of exchange rate linked subsidies for non-price export promotion for US cotton. Study results show that an increase in promotion expenditure increased the dollar value and producer welfare of cotton growers. The gross gain to the domestic cotton producers from the exchange-rate linked subsidy scheme was positive. These evidences support exchange rate linked subsidies for US cotton export promotion.

  13. Study protocol: combining experimental methods, econometrics and simulation modelling to determine price elasticities for studying food taxes and subsidies (The Price ExaM Study).

    Science.gov (United States)

    Waterlander, Wilma E; Blakely, Tony; Nghiem, Nhung; Cleghorn, Christine L; Eyles, Helen; Genc, Murat; Wilson, Nick; Jiang, Yannan; Swinburn, Boyd; Jacobi, Liana; Michie, Jo; Ni Mhurchu, Cliona

    2016-07-19

    There is a need for accurate and precise food price elasticities (PE, change in consumer demand in response to change in price) to better inform policy on health-related food taxes and subsidies. The Price Experiment and Modelling (Price ExaM) study aims to: I) derive accurate and precise food PE values; II) quantify the impact of price changes on quantity and quality of discrete food group purchases and; III) model the potential health and disease impacts of a range of food taxes and subsidies. To achieve this, we will use a novel method that includes a randomised Virtual Supermarket experiment and econometric methods. Findings will be applied in simulation models to estimate population health impact (quality-adjusted life-years [QALYs]) using a multi-state life-table model. The study will consist of four sequential steps: 1. We generate 5000 price sets with random price variation for all 1412 Virtual Supermarket food and beverage products. Then we add systematic price variation for foods to simulate five taxes and subsidies: a fruit and vegetable subsidy and taxes on sugar, saturated fat, salt, and sugar-sweetened beverages. 2. Using an experimental design, 1000 adult New Zealand shoppers complete five household grocery shops in the Virtual Supermarket where they are randomly assigned to one of the 5000 price sets each time. 3. Output data (i.e., multiple observations of price configurations and purchased amounts) are used as inputs to econometric models (using Bayesian methods) to estimate accurate PE values. 4. A disease simulation model will be run with the new PE values as inputs to estimate QALYs gained and health costs saved for the five policy interventions. The Price ExaM study has the potential to enhance public health and economic disciplines by introducing internationally novel scientific methods to estimate accurate and precise food PE values. These values will be used to model the potential health and disease impacts of various food pricing policy

  14. Study protocol: combining experimental methods, econometrics and simulation modelling to determine price elasticities for studying food taxes and subsidies (The Price ExaM Study

    Directory of Open Access Journals (Sweden)

    Wilma E. Waterlander

    2016-07-01

    Full Text Available Abstract Background There is a need for accurate and precise food price elasticities (PE, change in consumer demand in response to change in price to better inform policy on health-related food taxes and subsidies. Methods/Design The Price Experiment and Modelling (Price ExaM study aims to: I derive accurate and precise food PE values; II quantify the impact of price changes on quantity and quality of discrete food group purchases and; III model the potential health and disease impacts of a range of food taxes and subsidies. To achieve this, we will use a novel method that includes a randomised Virtual Supermarket experiment and econometric methods. Findings will be applied in simulation models to estimate population health impact (quality-adjusted life-years [QALYs] using a multi-state life-table model. The study will consist of four sequential steps: 1. We generate 5000 price sets with random price variation for all 1412 Virtual Supermarket food and beverage products. Then we add systematic price variation for foods to simulate five taxes and subsidies: a fruit and vegetable subsidy and taxes on sugar, saturated fat, salt, and sugar-sweetened beverages. 2. Using an experimental design, 1000 adult New Zealand shoppers complete five household grocery shops in the Virtual Supermarket where they are randomly assigned to one of the 5000 price sets each time. 3. Output data (i.e., multiple observations of price configurations and purchased amounts are used as inputs to econometric models (using Bayesian methods to estimate accurate PE values. 4. A disease simulation model will be run with the new PE values as inputs to estimate QALYs gained and health costs saved for the five policy interventions. Discussion The Price ExaM study has the potential to enhance public health and economic disciplines by introducing internationally novel scientific methods to estimate accurate and precise food PE values. These values will be used to model the potential

  15. Effects of asymmetric medical insurance subsidy on hospitals competition under non-price regulation.

    Science.gov (United States)

    Wang, Chan; Nie, Pu-Yan

    2016-11-15

    Poor medical care and high fees are two major problems in the world health care system. As a result, health care insurance system reform is a major issue in developing countries, such as China. Governments should take the effect of health care insurance system reform on the competition of hospitals into account when they practice a reform. This article aims to capture the influences of asymmetric medical insurance subsidy and the importance of medical quality to patients on hospitals competition under non-price regulation. We establish a three-stage duopoly model with quantity and quality competition. In the model, qualitative difference and asymmetric medical insurance subsidy among hospitals are considered. The government decides subsidy (or reimbursement) ratios in the first stage. Hospitals choose the quality in the second stage and then support the quantity in the third stage. We obtain our conclusions by mathematical model analyses and all the results are achieved by backward induction. The importance of medical quality to patients has stronger influence on the small hospital, while subsidy has greater effect on the large hospital. Meanwhile, the importance of medical quality to patients strengthens competition, but subsidy effect weakens it. Besides, subsidy ratios difference affects the relationship between subsidy and hospital competition. Furthermore, we capture the optimal reimbursement ratio based on social welfare maximization. More importantly, this paper finds that the higher management efficiency of the medical insurance investment funds is, the higher the best subsidy ratio is. This paper states that subsidy is a two-edged sword. On one hand, subsidy stimulates medical demand. On the other hand, subsidy raises price and inhibits hospital competition. Therefore, government must set an appropriate subsidy ratio difference between large and small hospitals to maximize the total social welfare. For a developing country with limited medical resources

  16. Estimating Effective Subsidy Rates of Student Aid Programs

    OpenAIRE

    Stacey H. CHEN

    2008-01-01

    Every year millions of high school students and their parents in the US are asked to fill out complicated financial aid application forms. However, few studies have estimated the responsiveness of government financial aid schemes to changes in financial needs of the students. This paper identifies the effective subsidy rate (ESR) of student aid, as defined by the coefficient of financial needs in the regression of financial aid. The ESR measures the proportion of subsidy of student aid under ...

  17. Tax shift : eliminating subsidies and moving to full cost electricity pricing

    International Nuclear Information System (INIS)

    Gibbons, J.

    2008-01-01

    In order to ensure that Ontario's service needs are met at the lowest possible total cost, energy conservation and small-scale distributed generation options must be able to compete with large scale-centralized generation and transmission options on a level playing field. This report discussed how electricity is priced in Ontario. The report described the policies that subsidize coal and nuclear generation and promote excessive consumption of grid-supplied electricity. The report also presented an analysis of the impact of these subsidies and policies on Ontario's electricity consumption, electricity productivity, standard of living and air pollutant emissions. It described a practical strategy whereby these subsidies can be eliminated by recycling or shifting the monies currently spent on subsidies in a way that creates an incentive to reduce electricity consumption. It also described how full cost pricing could lead to a net financial benefit for residential customers as well as an adaptation strategy for businesses that would ensure that they remain competitive. Finally the report identified ten major subsidies that artificially reduce the cost of electricity in Ontario. These included below-market water royalty rates; corporate income tax revenue subsidy for nuclear debt; sales tax exemption; average cost pricing; and bulk metering. It was concluded that phasing out the subsidies for grid-supplied electricity and moving to full cost pricing will provide multiple benefits for Ontario. 36 refs., 5 tabs., 5 figs

  18. Price-Cost Ratios in Higher Education: Subsidy Structure and Policy Implications

    Science.gov (United States)

    Xie, Yan

    2010-01-01

    The diversity of US institutions of higher education is manifested in many ways. This study looks at that diversity from the economic perspective by studying the subsidy structure through the distribution of institutional price-cost ratio (PCR), defined as the sum of net tuition price divided by total supplier cost and equals to one minus…

  19. NON-PRICE PROMOTION IMPACTS ON COTTON AND SOYBEANS EXPORTS UNDER EXCHANGE RATE LINKED SUBSIDIES

    OpenAIRE

    Paudel, Laxmi; Adhikari, Murali; Houston, Jack E.; Kinnucan, Henry W.

    2003-01-01

    Issue of exchange rate-linked subsidies for non-price export promotion has recently emerged as an area of interest among marketing researchers because of fluctuating strength of US dollars and position of US agricultural goods in export markets. One solution to mitigate these impacts was to link the federal export promotion subsidies with the changing value of US dollars. In the study, an equilibrium displacement framework was developed to analyze the effectiveness of exchange rate-linked sub...

  20. Testing viability of cross subsidy using time-variant price elasticities of industrial demand for electricity: Indian experience

    International Nuclear Information System (INIS)

    Chattopadhyay, Pradip

    2007-01-01

    Indian electric tariffs are characterized by very high rates for industrial and commercial classes to permit subsidized electric consumption by residential and agricultural customers. We investigate the viability of this policy using monthly data for 1997-2003 on electric consumption by a few large industrial customers under the aegis of a small distribution company in the state of Uttar Pradesh. For a given price/cost ratio, it can be shown that if the cross-subsidizing class' electricity demand is sufficiently elastic, increasing the class' rates fail to recover incremental cross-subsidy necessary to support additional revenues for subsidized classes. This suboptimality is tested by individually estimating time-variant price-elasticities of demand for these industrial customers using Box-Cox and linear regressions. We find that at least for some of these customers, cross-subsidy was suboptimal prior to as late as October 2001, when rates were changed following reforms

  1. Testing viability of cross subsidy using time-variant price elasticities of industrial demand for electricity: Indian experience

    Energy Technology Data Exchange (ETDEWEB)

    Chattopadhyay, Pradip [New Hampshire Public Utilities Commission, 21 South Fruit Street, Suite 10, Concord NH 03301 (United States)]. E-mail: pradip.chattopadhyay@puc.nh.gov

    2007-01-15

    Indian electric tariffs are characterized by very high rates for industrial and commercial classes to permit subsidized electric consumption by residential and agricultural customers. We investigate the viability of this policy using monthly data for 1997-2003 on electric consumption by a few large industrial customers under the aegis of a small distribution company in the state of Uttar Pradesh. For a given price/cost ratio, it can be shown that if the cross-subsidizing class' electricity demand is sufficiently elastic, increasing the class' rates fail to recover incremental cross-subsidy necessary to support additional revenues for subsidized classes. This suboptimality is tested by individually estimating time-variant price-elasticities of demand for these industrial customers using Box-Cox and linear regressions. We find that at least for some of these customers, cross-subsidy was suboptimal prior to as late as October 2001, when rates were changed following reforms.

  2. Energy Prices, Tariffs, Taxes and Subsidies in Ukraine

    Energy Technology Data Exchange (ETDEWEB)

    Evans, Meredydd

    2007-04-01

    For many years, electricity, gas and district heating tariffs for residential consumers were very low in Ukraine; until recently, they were even lower than in neighbouring countries such as Russia. The increases in gas and electricity tariffs, implemented in 2006, are an important step toward sustainable pricing levels; however, electricity and natural gas (especially for households) are still priced below the long-run marginal cost. The problem seems even more serious in district heating and nuclear power. According to the Ministry of Construction, district heating tariffs, on average, cover about 80% of costs. Current electricity prices do not fully include the capital costs of power stations, which are particularly high for nuclear power. Although the tariff for nuclear electricity generation includes a small decommissioning charge, it has not been sufficient to accumulate necessary funds for nuclear plants decommissioning.

  3. Price Signals from Electricity Markets and Subsidy Schemes for Renewable Sources

    International Nuclear Information System (INIS)

    Sabolic, D.

    2013-01-01

    Increasing share of renewable generation itself gives rise to price risks on the electricity markets. Subsidy schemes, in general, additionally distort price signals produced by economic mechanisms of otherwise free markets. In the electricity industry, subsidy schemes, once designed merely to incentivize electricity system decarbonization in its kick-off phase, seem to have grown to such a volume, that they, too, started to profoundly interfere with the whole market structure, and to distort price signals that used to govern long-term development of an adequately structured generation system. This article was made as an attempt to discuss contemporary electricity system policies in relation to RES integration. The economic relations in the sector are growingly influenced, or sometimes even hard-handedly guided, by political institutions, rather than by economic interests of the investors, which may in turn cause considerable problems in achieving ultimate policy goals due to unsustainability of such an economic arrangement.(author)

  4. Telecommunications Policy Research Conference. Subsidies in Telephone Pricing Section. Papers.

    Science.gov (United States)

    Telecommunications Policy Research Conference, Inc., Washington, DC.

    Three papers consider the provision of telephone service to rural and/or low income customers. The first paper, "An Analysis of Telephone Penetration" (Alexander Belinfante), analyzes the relationship between telephone penetration (the proportion of households with phone service) and prices, household income, and other factors. This…

  5. Optimal price subsidies for appropriate malaria testing and treatment behaviour

    DEFF Research Database (Denmark)

    Hansen, K. S.; Lesner, T. H.; Østerdal, L. P.

    2016-01-01

    Background: Malaria continues to be a serious public health problem particularly in Africa. Many people infected with malaria do not access effective treatment due to high price. At the same time many individuals receiving malaria drugs do not suffer from malaria because of the common practice of...... seeking care for malaria in the private sector. © 2016 The Author(s)....

  6. The 'haves' and 'have nots'. Gasoline price subsidies great and small

    International Nuclear Information System (INIS)

    Anon.

    1991-01-01

    It is dramatic to compare national retail gasoline prices around the world in oil-rich, developing countries and oil-pore, developed countries. But a new Energy Detente study shows that countries less than 50% dependent upon oil imports, regardless of wealth, have comparatively low prices - and countries more than half dependent on oil imports have high prices. Internal market subsidies, it seems, are only a matter of degree. The 20 oil-producing countries consumed 130 gallon per capita per year, the non-oil countries 79 gallons. This double issue of ED contains the following: (1) the ED Refining Netback Data Series for the U.S. Gulf and West Coasts, Rotterdam; and Singapore as of September 6, and September 20, 1991; and (2) the ED Fuel Price/Tax Series for countries of both the Western and Eastern Hemispheres, September 1991 Edition. 6 figs., 10 tabs

  7. Impacts of the U.S. subsidy to soybeans on World prices, production and exports

    Directory of Open Access Journals (Sweden)

    Antônio Salazar P. Brandão

    2006-12-01

    Full Text Available This paper specifies and estimates an econometric model of the soybean market (grain, oil and meal to assess the effects of U.S. domestic support to soybeans on world soybean prices, production and exports. The model divides the world into five regions (modules: Argentina, Brazil, the European Union, the United States (US and the Rest of the World (ROW. There are interactions between the modules through the international prices and the net exports of each soybean product. The international prices of grain, oil and meal are endogenous and are determined equating net exports of the first four modules (Argentina, Brazil, European Union and the U.S. to net imports of the ROW. The analysis is conducted eliminating the U.S. domestic support to soybeans and simulating the impacts on the variables of interest. The simulations show a significant impact of the US subsidy to soybeans on world prices and net exports of the four selected regions.Este trabalho estima um modelo econométrico do mercado de soja e derivados com o objetivo de avaliar os efeitos das políticas de apoio interno dos Estados Unidos sobre os preços internacionais, sobre a produção e sobre as exportações. O modelo divide o mundo em cinco regiões: Argentina, Brasil, Estados Unidos, União Européia e Demais países. A interação entre as regiões ocorre através dos preços internacionais e pelas exportações líquidas em cada um dos mercados. Os preços internacionais dos três produtos são determinados igualando-se a soma das exportações líquidas das cinco regiões. A análise é feita eliminando o apoio doméstico nos Estados Unidos e simulando o impacto nas variáveis de interesse. As simulações mostram impactos significativos do subsídio americano sobre os preços internacionais e sobre as exportações líquidas de Argentina, Brasil, Estados Unidos e União Européia.

  8. Analyzing the Effects of the Iranian Energy Subsidy Reform Plan on Short- Run Marginal Generation Cost of Electricity Using Extended Input-Output Price Model

    Directory of Open Access Journals (Sweden)

    Zohreh Salimian

    2012-01-01

    Full Text Available Subsidizing energy in Iran has imposed high costs on country's economy. Thus revising energy prices, on the basis of a subsidy reform plan, is a vital remedy to boost up the economy. While the direct consequence of cutting subsidies on electricity generation costs can be determined in a simple way, identifying indirect effects, which reflect higher costs for input factors such as labor, is a challenging problem. In this paper, variables such as compensation of employees and private consumption are endogenized by using extended Input-Output (I-O price model to evaluate direct and indirect effects of electricity and fuel prices increase on economic subsectors. The determination of the short-run marginal generation cost of electricity using I-O technique with taken into account the Iranian targeted subsidy plan's influences is the main goal of this paper. Marginal cost of electricity, in various scenarios of price adjustment of energy, is estimated for three conventional categories of thermal power plants. Our results show that the raising the price of energy leads to an increase in the electricity production costs. Accordingly, the production costs will be higher than 1000 Rials per kWh until 2014 as predicted in the beginning of the reform plan by electricity suppliers.

  9. Assessing the potential effectiveness of food and beverage taxes and subsidies for improving public health: a systematic review of prices, demand and body weight outcomes.

    Science.gov (United States)

    Powell, L M; Chriqui, J F; Khan, T; Wada, R; Chaloupka, F J

    2013-02-01

    Taxes and subsidies are increasingly being considered as potential policy instruments to incentivize consumers to improve their food and beverage consumption patterns and related health outcomes. This study provided a systematic review of recent U.S. studies on the price elasticity of demand for sugar-sweetened beverages (SSBs), fast food, and fruits and vegetables, as well as the direct associations of prices/taxes with body weight outcomes. Based on the recent literature, the price elasticity of demand for SSBs, fast food, fruits and vegetables was estimated to be -1.21, -0.52, -0.49 and -0.48, respectively. The studies that linked soda taxes to weight outcomes showed minimal impacts on weight; however, they were based on existing state-level sales taxes that were relatively low. Higher fast-food prices were associated with lower weight outcomes particularly among adolescents, suggesting that raising prices would potentially impact weight outcomes. Lower fruit and vegetable prices were generally found to be associated with lower body weight outcomes among both low-income children and adults, suggesting that subsidies that would reduce the cost of fruits and vegetables for lower-socioeconomic populations may be effective in reducing obesity. Pricing instruments should continue to be considered and evaluated as potential policy instruments to address public health risks. © 2012 The Authors. obesity reviews © 2012 International Association for the Study of Obesity.

  10. Assessing the Potential Effectiveness of Food and Beverage Taxes and Subsidies for Improving Public Health: A Systematic Review of Prices, Demand and Body Weight Outcomes

    Science.gov (United States)

    Powell, Lisa M.; Chriqui, Jamie F.; Khan, Tamkeen; Wada, Roy; Chaloupka, Frank J.

    2012-01-01

    Taxes and subsidies are increasingly being considered as potential policy instruments to incentivize consumers to improve their food and beverage consumption patterns and related health outcomes. This study provided a systematic review of recent U.S. studies on the price elasticity of demand for sugar-sweetened beverages (SSBs), fast food and fruits and vegetables as well as the direct associations of prices/taxes with body weight outcomes. Based on the recent literature, the price elasticity of demand for SSBs, fast food, fruits and vegetables was estimated to be −1.21, −0.52, −0.49 and −0.48, respectively. The studies that linked soda taxes to weight outcomes showed minimal impacts on weight; however, they were based on existing state-level sales taxes that were relatively low. Higher fast-food prices were associated with lower weight outcomes particularly among adolescents suggesting that raising prices would potentially impact weight outcomes. Lower fruit and vegetable prices were generally found to be associated with lower body weight outcomes among both low-income children and adults suggesting that subsidies that would reduce the cost of fruits and vegetables for lower-socioeconomic populations may be effective in reducing obesity. Pricing instruments should continue to be considered and evaluated as potential policy instruments to address public health risks. PMID:23174017

  11. Heterogeneity in rebound effects: Estimated results and impact of China’s fossil-fuel subsidies

    International Nuclear Information System (INIS)

    Li, Ke; Lin, Boqiang

    2015-01-01

    Highlights: • Rebound effects for China’s sectors are estimated. • The input–output model is a suitable model to analysis energy rebound effects across sectors. • The impacts of fossil-fuel subsidies on rebound effects are evaluated. • Technological progress has varies impactions on energy conservation, thereby rebound effects. - Abstract: Improving energy efficiency through technological advancement has become a primary measure to achieve energy conservation targets in China. However, the existence of energy rebound effects may completely or partially offset energy savings associated with technological advancement. From sectors perspective, technological advancement is not a necessary condition for energy conservation for a given sector because of varied rates of technological advancement and dependence among sectors. Adopting the input–output model, this article presents a detailed analysis of energy rebound effects in China’s economy at the aggregate and sectoral level over 2006–2010. The results show that the aggregate sectors’ rebound effect is about 11.31%, which is larger than without considering the interaction among sectors (11.25%); and strongly suggests that technological advancement has varied impacts on energy conservation and rebound effects. Thus various strategies of technological advancement and incorporated mitigation measures are necessary for energy conservation across sectors. Furthermore, the current study confirms that China’s total value of fossil-fuel subsidies reached 160.23 billion US$ (constant 2005 price) in 2006–2010; and after removal of subsidies, the energy use is expected to save 411.35 million toe and the rebound effects for aggregate sectors become 10.64%. Finally, some relevant policy issues are discussed in depth

  12. Estimating the commodity market price of risk for energy prices

    International Nuclear Information System (INIS)

    Kolos, Sergey P.; Ronn, Ehud I.

    2008-01-01

    The purpose of this paper is to estimate the ''market price of risk'' (MPR) for energy commodities, the ratio of expected return to standard deviation. The MPR sign determines whether energy forward prices are upward- or downward-biased predictors of expected spot prices. We estimate MPRs using spot and futures prices, while accounting for the Samuelson effect. We find long-term MPRs generally positive and short-term negative, consistent with positive energy betas and hedging, respectively. In spot electricity markets, MPRs in Day-Ahead Prices agree with short-dated futures. Our results relate risk premia to informed hedging decisions, and futures prices to forecast/expected prices. (author)

  13. PRICE TRANSMISSION AND HOUSEHOLDS DEMAND ELASTICITY FOR FROZEN FISH UNDER FUEL SUBSIDY REFORM IN DELTA STATE, NIGERIA

    Directory of Open Access Journals (Sweden)

    Achoja Felix Odemero

    2013-07-01

    Full Text Available Fuel subsidy removal is assumed to translate to general increase in the cost of operating business such as fish marketing.The response of price of fish and corresponding demand elasticity are welfare issues worthy of investigation in Nigeria. The present study evaluates price transmission in fish marketing system by analysing the response of fish market indices to fuel subsidy reform in Nigeria. Primary data collected with structured questionnaire from purposively selected 78 frozen fish marketers, were analysed with descriptive statistics and regression model. A test of hypothesis shows a significant price transmission of about 100% (P < 0.05. Marketing cost increased by 31.8% and profitability dropped by 24.20%, confirming negative effect of new price regime. The result further revealed a 0.05% drop in quantity of frozen fish demanded by households. It was recommended that economic measures should be introduced by the government to cushion the effect of fuel policy removal.

  14. Fossil fuel subsidy reform in the WTO : Options for constraining dual pricing in the multilateral trading system

    NARCIS (Netherlands)

    Marhold, Anna

    2017-01-01

    Fossil fuel subsidies harm the environment, add to health hazards caused by air pollution, and delay the energy transition. Scholars and practitioners have therefore been exploring ways to reform and eliminate them. This paper discusses the practice of energy dual pricing in the broader context of

  15. Consistent Estimation of Pricing Kernels from Noisy Price Data

    OpenAIRE

    Vladislav Kargin

    2003-01-01

    If pricing kernels are assumed non-negative then the inverse problem of finding the pricing kernel is well-posed. The constrained least squares method provides a consistent estimate of the pricing kernel. When the data are limited, a new method is suggested: relaxed maximization of the relative entropy. This estimator is also consistent. Keywords: $\\epsilon$-entropy, non-parametric estimation, pricing kernel, inverse problems.

  16. Analyzing the impact of price subsidy on rice self-sufficiency level in Malaysia: A preliminary finding

    Science.gov (United States)

    Rahim, Farah Hanim Abdul; Abidin, Norhaslinda Zainal; Hawari, Nurul Nazihah

    2017-11-01

    The Malaysian government had targeted for the rice industry in the country to achieve 100% rice self-sufficiency where Malaysia's rice self-sufficiency level (SSL) is currently at 65% to 75%. Thus, the government had implemented few policies to increase the rice production in Malaysia in order to meet the growing demand of rice. In this paper, the effect of price support on the rice production system in Malaysia is investigated. This study utilizes the system dynamics approach of the rice production system in Malaysia where the complexity of the factor is interrelated and changed dynamically through time. Scenario analysis was conducted using system dynamics model by making changes on the price subsidy to see its effect on the rice production and rice SSL. The system dynamics model provides a framework for understanding the effect of price subsidy on the rice self-sufficiency level. The scenario analysis of the model shows that a 50% increase in the price subsidy leads to a substantial increase in demand as the rice price drops. Accordingly, the local production increases by 15%. However, the SSL slightly decreases as the local production is insufficient to meet the large demand.

  17. Impacts of government subsidies on pricing and performance level choice in Energy Performance Contracting: A two-step optimal decision model

    International Nuclear Information System (INIS)

    Lu, Zhijian; Shao, Shuai

    2016-01-01

    Highlights: • An ESCO optimal decision model considering governmental subsidies is proposed. • Optimal price and performance level are deduced via a two-stage model. • Demand, profit, and performance level increase with increasing subsidies. • ESCO’s market strategy should firstly focus on high energy consumption industries. • Governmental subsidies standard in different industries should be differentiated. - Abstract: Government subsidies generally play a crucial role in pricing and the choice of performance levels in Energy Performance Contracting (EPC). However, the existing studies pay little attention to how the Energy Service Company (ESCO) prices and chooses performance levels for EPC with government subsidies. To fill such a gap, we propose a joint optimal decision model of pricing and performance level in EPC considering government subsidies. The optimization of the model is achieved via a two-stage process. At the first stage, given a performance level, ESCOs choose the best price; and at the second stage, ESCOs choose the optimal performance level for the optimal price. Furthermore, we carry out a numerical analysis to illuminate such an optimal decision mechanism. The results show that both price sensitivity and performance level sensitivity have significant effects on the choice of performance levels with government subsidies. Government subsidies can induce higher performance levels of EPC, the demand for EPC, and the profit of ESCO. We suggest that ESCO’s market strategy should firstly focus on high energy consumption industries with government subsidies and that government subsidies standard adopted in different industries should be differentiated according to the market characteristics and energy efficiency levels of various industries.

  18. Comprehensive optimisation of China’s energy prices, taxes and subsidy policies based on the dynamic computable general equilibrium model

    International Nuclear Information System (INIS)

    He, Y.X.; Liu, Y.Y.; Du, M.; Zhang, J.X.; Pang, Y.X.

    2015-01-01

    Highlights: • Energy policy is defined as a complication of energy price, tax and subsidy policies. • The maximisation of total social benefit is the optimised objective. • A more rational carbon tax ranges from 10 to 20 Yuan/ton under the current situation. • The optimal coefficient pricing is more conducive to maximise total social benefit. - Abstract: Under the condition of increasingly serious environmental pollution, rational energy policy plays an important role in the practical significance of energy conservation and emission reduction. This paper defines energy policies as the compilation of energy prices, taxes and subsidy policies. Moreover, it establishes the optimisation model of China’s energy policy based on the dynamic computable general equilibrium model, which maximises the total social benefit, in order to explore the comprehensive influences of a carbon tax, the sales pricing mechanism and the renewable energy fund policy. The results show that when the change rates of gross domestic product and consumer price index are ±2%, ±5% and the renewable energy supply structure ratio is 7%, the more reasonable carbon tax ranges from 10 to 20 Yuan/ton, and the optimal coefficient pricing mechanism is more conducive to the objective of maximising the total social benefit. From the perspective of optimising the overall energy policies, if the upper limit of change rate in consumer price index is 2.2%, the existing renewable energy fund should be improved

  19. An optimal U.S. biodiesel fuel subsidy

    International Nuclear Information System (INIS)

    Wu Huiting; Colson, Gregory; Escalante, Cesar; Wetzstein, Michael

    2012-01-01

    Enhanced environmental quality, fuel security, and economic development, along with reduced prices of blended diesel, are often used as justifications for a U.S. federal excise tax exemption on biodiesel fuels. However, the possible effect of increased overall consumption of fuel in response to lower total prices, mitigating the environmental and fuel security benefits, are generally not considered. Taking this price response into account, the optimal U.S biodiesel subsidy is derived. Estimated values of the optimal subsidy are close to the recently expired subsidy, revealing the subsidy's environmental and security benefits. However, further positive environmental and security benefits from the biodiesel tax-exemption subsidy may be obtained if the subsidy is combined with a federal excise tax on petroleum diesel. - Highlights: ► Taking price response into account, the optimal theoretical U.S biodiesel subsidy is derived. ► Estimated values of the optimal subsidy are close to the recently expired subsidy, revealing the subsidy's environmental and security benefits. ► Further positive environmental and security benefits from the biodiesel tax-exemption subsidy may be obtained if the subsidy is combined with a federal excise tax on petroleum diesel.

  20. The effects of price competition and reduced subsidies for uncompensated care on hospital mortality.

    Science.gov (United States)

    Volpp, Kevin G M; Ketcham, Jonathan D; Epstein, Andrew J; Williams, Sankey V

    2005-08-01

    To determine whether hospital mortality rates changed in New Jersey after implementation of a law that changed hospital payment from a regulated system based on hospital cost to price competition with reduced subsidies for uncompensated care and whether changes in mortality rates were affected by hospital market conditions. State discharge data for New Jersey and New York from 1990 to 1996. Study Design. We used an interrupted time series design to compare risk-adjusted in-hospital mortality rates between states over time. We compared the effect sizes in markets with different levels of health maintenance organization penetration and hospital market concentration and tested the sensitivity of our results to different approaches to defining hospital markets. The study sample included all patients under age 65 admitted to New Jersey or New York hospitals with stroke, hip fracture, pneumonia, pulmonary embolism, congestive heart failure, hip fracture, or acute myocardial infarction (AMI). Mortality among patients in New Jersey improved less than in New York by 0.4 percentage points among the insured (p=.07) and 0.5 percentage points among the uninsured (p=.37). There was a relative increase in mortality for patients with AMI, congestive heart failure, and stroke, especially for uninsured patients with these conditions, but not for patients with the other four conditions we studied. Less competitive hospital markets were significantly associated with a relative decrease in mortality among insured patients. Market-based reforms may adversely affect mortality for some conditions but it appears the effects are not universal. Insured patients in less competitive markets fared better in the transition to price competition.

  1. Estimating Hedonic Prices for Stellenbosch wine

    OpenAIRE

    Sanja Lutzeyer

    2008-01-01

    This paper estimates a hedonic price function for Stellenbosch wines to determine the association between market value and different characteristics of these wines. In such a hedonic price function, the price of a bottle of wine is ascribed to the implicit value of its attributes. Besides contributing to both South African and international wine pricing literature, the benefits of developing a hedonic wine pricing model extend to numerous players in the wine industry. Consumers are provided w...

  2. Price subsidies and the market for mosquito nets in developing countries: A study of Tanzania's discount voucher scheme.

    Science.gov (United States)

    Gingrich, Chris D; Hanson, Kara; Marchant, Tanya; Mulligan, Jo-Ann; Mponda, Hadji

    2011-07-01

    This study uses a partial equilibrium simulation model to explore how price subsidies for insecticide-treated mosquito nets (ITNs) affect households' purchases of ITNs. The model describes the ITN market in a typical developing country and is applied to the situation in Tanzania, where the Tanzania National Voucher Scheme (TNVS) provides a targeted subsidy to vulnerable population groups by means of a discount voucher. The data for this study come from a nationally-representative household survey completed July-August 2006 covering over 4300 households in 21 districts. The simulation results show the impact of the voucher program on ITN coverage among target households, namely those that experienced the birth of a child. More specifically, the share of target households purchasing an ITN increased from 18 to 62 percent because of the discount voucher. The model also suggests that the voucher program could cause the retail ITN price to rise due to an overall increase in demand. As a result, ITN purchases by households without a voucher may actually decline. The simulation model suggests that additional increases toward the stated goal of 80 percent ITN coverage for pregnant women and children could best be achieved through a combination of "catch up" mass distribution programs and expanding the target group for the voucher program to cover additional households. The model can be employed in other countries considering use of a targeted price subsidy for ITNs, and could be adapted to assess the impact of subsidies for other public health commodities. Copyright © 2011 Elsevier Ltd. All rights reserved.

  3. Estimating the Impact of US Agriculture Subsidies on Greenhouse Gas Emissions

    Science.gov (United States)

    Eshel, G.; Martin, P. A.

    2006-12-01

    It has been proposed in the popular media that US agricultural subsidies contribute deleteriously to both the American diet and environment. In this view, subsidies render mostly corn-based, animal products and sweeteners artificically cheap, leading to enhanced consumption. Problems accompanying this structure mentioned include enhanced meat, fat and sugar consumption and the associated enhancement of obesity, cardiovascular diseases, type II diabetes and possible various types of cancer, as well as air, soil and water pollution. Often overlooked in these discussions is the potential enhancement of greenhouse gas emissions accompanying this policy-based steering of food consumption toward certain products at the expense of others, possibly more nutritionally and environmentally benign. If such enhancements are in fact borne out by data, the policies that give rise to them will prove to constitute government-sponsored enhancement of greenhouse gas emissions, in contrast to any climate change mitigation efforts. If so, they represent low- hanging fruits in the national effort to reduce greenhouse gas emissions which may one day be launched. Agriculture subsidies impact the emissions of CO2 (by direct energy consumption), nitrous oxide (by land use alteration and manure management), and methane (by ruminant digestion and manure treatment). Quantifying the impacts of agricultural subsidies is complicated by many compounding and conflicting effects (many related to human behavior rather than the natural sciences) and the relatively short data timeseries. For example, subsidy policies change over time, certain subsidy types are introduced or eliminated, food preferences change as nutritional understanding (or propaganda) shift, etc. Despite the difficulties, such quantification is crucial to better estimate the overall effect and variability of dietary choices on greenhouse gas emissions, and ultimately minimize environmental impacts. In this study, we take preliminary

  4. Input subsidies and demand for improved maize : relative prices and household heterogeneity matter!

    OpenAIRE

    Holden, Stein Terje

    2013-01-01

    This study uses simple non-separable farm household models calibrated to household, market, farming and policy context conditions in Central and Southern Malawi. The models are used to simulate how household characteristics, design and access to input subsidies affect the demand for improved maize seeds; how increasing land scarcity affects the cropping system and demand for improved maize; and how access to improved maize seeds affects household welfare with varying access to input subsidies...

  5. Estimating the Impact of Means-tested Subsidies under Treatment Externalities with Application to Anti-Malarial Bednets

    DEFF Research Database (Denmark)

    Bhattacharya, Debopam; Dupas, Pascaline; Kanaya, Shin

    and its neighbors. Using experimental data from Kenya where subsidies were randomized, coupled with GPS-based location information, we show how to estimate aggregate ITN use resulting from means-tested subsidies in the presence of such spatial spillovers. Accounting for spillovers introduces infinite......-dimensional estimated regressors corresponding to continuously distributed location coordinates and makes the inference problem novel. We show that even if individual ITN use unambiguously increases with increasing incidence of subsidy in the neighborhood, ignoring spillovers may over- or under-predict overall ITN use...... resulting from a specific targeting rule, depending on the resulting aggregate incidence of subsidy. Applying our method to the Kenyan data, we find that (i) individual ITN use rises with neighborhood subsidy-rates, (ii) under means-testing, predicted ITN use is a convex increasing function of the subsidy...

  6. What would be the effects of a carbon tax in Japan: an historic analysis of subsidies and fuel pricing on the iron & steel, chemical, and machinery industries

    Directory of Open Access Journals (Sweden)

    Takako Wakiyama

    2016-06-01

    Full Text Available This study examines how a carbon tax could affect industrial-related carbon dioxide (CO2 emissions in Japan. Rather than forecasting the effects of a tax, the paper employs a time-series autoregressive moving average (ARMA model to determine how past subsidies and fuel price changes affected investments in energy and carbon intensity in Japan’s iron & steel, chemical, and machinery industries from 1993 to 2004. The results suggest the impacts varied greatly across industries. In the iron & steel industry, subsidies and price changes produced negligible effects on investments in energy and carbon intensity. This may be because existing iron & steel technologies have long lifetimes and substantial replacement costs. It may also be because the few large companies dominating the industry were relatively immune to subsidy provisions and pricing changes. In the chemical industry, subsidies and fuel prices gave rise to investments that improved carbon and energy intensity. This may be because the industry has relatively higher operation costs that could be cut easily given financial incentives. In the machinery industry, two of three fuel price changes (oil and gas, but not subsidy provisions, yielded improvements in carbon and energy intensity. This may reflect the heterogeneity of companies and products comprising the industry. Overall, the study underscores that policymakers need to tailor the rates and revenue recycling provisions of a carbon tax to an industry’s unique features to stimulate CO2 reductions.

  7. Pricing, subsidies, and the poor : demand for improved water services in Central America

    OpenAIRE

    Walker, Ian; Ordonez, Fidel; Serrano, Pedro; Halpern, Jonathan

    2000-01-01

    Reformulating tariff and subsidy policies is central to improving water and sanitation services in developing countries. The traditional model of state enterprise service provision, coupled with residential tariffs set well below the cost of service, has generally delivered unsatisfactory results. Low internal generation of funds has impeded expansion of networks into poor communities and ...

  8. Analysis on PV system sales price and subsidy through buy-back which make photovoltaics cost-competitive by 2030 in Japan

    International Nuclear Information System (INIS)

    Endo, E.; Ichinohe, M.

    2004-01-01

    The purpose of this paper is to analyze PV system sales price and subsidy through buy-back which make photovoltaics cost-competitive against other energy technologies and make the target for PV capacity achievable by 2030 in Japan under expected carbon tax. For the analysis energy system of Japan is modeled by using MARKAL. According to the results of analysis, under 6000 JPY/t-C carbon tax, photovoltaics needs subsidy for a while even if we taking both fuel savings and Green Credit into account. For attaining the national target for PV capacity in 2010, photovoltaics needs more expensive buy-back than that in present, but after 2010 necessary buy-back decreases gradually. If 120 JPY/W PV system sales price is attained by 2030, photovoltaics becomes cost-competitive without any supports. Subsidy through buy-back becomes almost need not in 2030, if we can reduce it less than 170 JPY/W. The total subsidy meets peak in 2025. It is much more than ongoing subsidy to capital cost of PV systems, but annual revenue of the assumed carbon tax can afford enough the annual total subsidy. This means if photovoltaics can attain the PV system sales price, we should support it for a while by spending carbon tax revenue effectively and efficiently. (authors)

  9. The impact of power market reforms on electricity price-cost margins and cross-subsidy levels: A cross country panel data analysis

    International Nuclear Information System (INIS)

    Erdogdu, Erkan

    2011-01-01

    One of the main expectations from power market reform has been a reduction in both price-cost margins and cross-subsidy levels between industrial and residential consumers. This paper focuses on this issue by looking at the impact of the electricity industry reforms on residential and industrial electricity price-cost margins and their effect on cross-subsidy levels between consumer groups. Using panel data for 63 developed and developing countries covering the period 1982-2009, empirical models are developed and analyzed. The research findings suggest that there is no uniform pattern for the impact of reform process as a whole on price-cost margins and cross-subsidy levels. Each individual reform step has different impact on price-cost margins and cross-subsidy levels for each consumer and country group. Our findings imply that reform steps have different impacts in different countries, which supports the idea reform prescription for a specific country cannot easily and successfully be transferred to another one. So, transferring the formal and economic structure of a successful power market in a developed country to developing countries is not a sufficient condition for good economic performance of the electricity industries in developing countries. Furthermore, the study suggests that power consumption, income level and country-specific features constitute other important determinants of electricity price-cost margins and cross-subsidy levels. - Research highlights: → The paper focuses on the impact of power market reforms on price-cost margins and cross-subsidy levels. → Using panel data for 63 countries for the period 1982-2009, empirical models are developed and analyzed. → We found that each individual reform step has different impact for each consumer and country group. → We conclude that reform prescription for a specific country cannot easily be transferred to another one.

  10. Estimating Hedonic Price Indices for Ground Vehicles

    Science.gov (United States)

    2015-06-01

    I N S T I T U T E F O R D E F E N S E A N A L Y S E S Estimating Hedonic Price Indices for Ground Vehicles (Presentation) David M. Tate Stanley...gathering and maintaining the data needed , and completing and reviewing the collection of information. Send comments regarding this burden estimate or any...currently valid OMB control number. 1. REPORT DATE JUN 2015 2. REPORT TYPE 3. DATES COVERED 4. TITLE AND SUBTITLE Estimating Hedonic Price

  11. Decommissioning Cost Estimating -The ''Price'' Approach

    International Nuclear Information System (INIS)

    Manning, R.; Gilmour, J.

    2002-01-01

    Over the past 9 years UKAEA has developed a formalized approach to decommissioning cost estimating. The estimating methodology and computer-based application are known collectively as the PRICE system. At the heart of the system is a database (the knowledge base) which holds resource demand data on a comprehensive range of decommissioning activities. This data is used in conjunction with project specific information (the quantities of specific components) to produce decommissioning cost estimates. PRICE is a dynamic cost-estimating tool, which can satisfy both strategic planning and project management needs. With a relatively limited analysis a basic PRICE estimate can be produced and used for the purposes of strategic planning. This same estimate can be enhanced and improved, primarily by the improvement of detail, to support sanction expenditure proposals, and also as a tender assessment and project management tool. The paper will: describe the principles of the PRICE estimating system; report on the experiences of applying the system to a wide range of projects from contaminated car parks to nuclear reactors; provide information on the performance of the system in relation to historic estimates, tender bids, and outturn costs

  12. Analysing oil-production subsidies

    Science.gov (United States)

    Steenblik, Ronald

    2017-11-01

    Understanding how subsidies affect fossil-fuel investment returns and production is crucial to commencing new reforms. New analysis on the impact of subsidies on US crude-oil producers finds that, at recent oil prices of around US50 per barrel, tax preferences and other subsidies push nearly half of new oil investments into profitability.

  13. Targeting health subsidies through a non-price mechanism: A randomized controlled trial in Kenya

    Science.gov (United States)

    Dupas, Pascaline; Hoffmann, Vivian; Kremer, Michael; Zwane, Alix Peterson

    2016-01-01

    Free provision of preventive health products can dramatically increase access in low income countries. A cost concern about free provision is that some recipients may not use the product, wasting resources (over-inclusion). Yet charging a price to screen out non-users may screen out poor people who need and would use the product (over-exclusion). We report on a randomized controlled trial of a screening mechanism that combines the free provision of chlorine solution for water treatment with a small non-monetary cost (household vouchers that need to be redeemed monthly in order). Relative to a non-voucher free distribution program, this mechanism reduces the quantity of chlorine procured by 60 percentage points, but reduces the share of households whose stored water tests positive for chlorine residual by only one percentage point, dramatically improving the tradeoff between over-inclusion and over-exclusion. PMID:27563091

  14. Environmental Harm of Hidden Subsidies: Global Warming and Acidification

    Energy Technology Data Exchange (ETDEWEB)

    Beers, Cees van (Dept. of Innovation Economics and Management, Delft Univ. of Technology, Delft (Netherlands)). E-mail: c.p.vanbeers@tudelft.nl; Bergh, Jeroen C.J.M. van den (Inst. for Environmental Science and Technology, and Dept. of Economics and Economic History, Univ. Autonoma de Barcelona, Bellaterra (Spain))

    2009-10-15

    We investigate environmental impacts of off-budget or indirect subsidies, which, unlike on-budget subsidies, are not visible in government budgets. Such subsidies have received little attention in economic and environmental research, even though they may be at least as important from an environmental perspective as on-budget subsidies. We offer a typology of indirect subsidies. Next, we estimate the magnitude of these subsidies and their impact on greenhouse gas (GHG) and acidifying emissions for the agriculture, energy, and transport sectors in The Netherlands. The calculations are based on a model approach that translates a particular subsidy into price and quantity changes using empirical elasticities, followed by environmental effect estimates using pollution-intensity parameters. The various environmental pollution effects are aggregated into environmental indicators. The results show, among others, that GHG emissions caused by off-budget subsidies contribute to more than 30% of the policy targets specified by the Kyoto Protocol for CO{sub 2} emissions reduction by The Netherlands. Reforming or removing off-budget subsidies may thus be an important strategy of effective climate policy

  15. Electricity subsidies in low-cost jurisdictions : the case of British Columbia

    International Nuclear Information System (INIS)

    Pineau, P.O.

    2008-01-01

    This article reviewed the concept of energy subsidies and estimated their significance to residential consumers in British Columbia. It cautioned that energy subsidies provided to electricity consumers create artificially low electricity prices that result in inefficient consumption levels to the detriment of the environment. An estimate of the indirect subsidies was presented along with an evaluation of potential consumption reduction scenarios if market prices were used. The author argued that subsidies, which are customary in developed countries where electricity use is high, tend to help higher-income households. An evaluation of the distribution of this subsidy across income groups showed that high-income households, which use more electricity than lower-income households, receive more than $500 per year in subsidy through regulated low electricity prices, whereas low-income households get approximately $200. This subsidy is estimated at $489 million per year in British Columbia. The author suggested that profits could be increased by $432 million by setting residential electricity prices nearer to the regional export price. This profit could be realized even after allowing for a direct transfer payment program that compensates low-income households for the higher prices. In addition, such a measure would reduce residential electricity consumption in the province by 25 per cent

  16. The estimation of risk-premium implicit in oil prices

    International Nuclear Information System (INIS)

    Luis, J.B.

    2001-01-01

    The futures price can be seen as the sum of the expected value of the underlying asset price and a risk-premium. In order to disentangle these two components of the futures price, one can try to model the relationship between spot and futures prices, in order to obtain a closed expression for the risk-premium, or to use information from spot and option prices to estimate risk-aversion functions. Given the high volatility of the ratios between futures and spot prices, we opted for the latter, estimating risk-neutral and subjective probability density functions, respectively, from observed option and spot prices. looking at the prices of Brent and West Texas Intermediate light/sweet crude oil options, the obtained evidence suggests that risk-aversion is typically very low for levels near the futures prices. However, due to price volatility and, consequently, to the tails of distribution, the risk-aversion functions are badly behaved in extreme prices and futures prices do not anticipate sharp movements in oil spot prices. Therefore, futures oil prices seem to be useful in forecasting spot prices only when moderate price changes occur. (author)

  17. Improving energy consumption structure: A comprehensive assessment of fossil energy subsidies reform in China

    International Nuclear Information System (INIS)

    Liu Wei; Li Hong

    2011-01-01

    Fossil energy subsidies reform would be an effective way to improve the energy consumption structure; however, the reform needs to be assessed comprehensively beforehand as it would exert uncertain impacts on economy, society and environment. In this paper, we use price-gap approach to estimate the fossil energy subsidies of China, then establish CGE model that contains pollutant emissions accounts and CO 2 emissions account to stimulate the fossil energy subsidies reform under different scenarios, and the environmental economic analysis concept is introduced to monetize the pollutant reduction benefits. Furthermore, we analyze the possibility and scope of improving the energy consumption structure from the perspective of technical and economic analysis. Analytical results show that the energy consumption structure could be improved by different extent by removing coal or oil subsidies, while the economic and social indexes will be influenced distinctively. Meanwhile, the effects of cutting coal subsidies are more feasible than that of cutting oil subsidies overall. It is recommended to implement fossil energy subsidies gradually, cut the coal first and then cut oil subsidies successively. - Research highlights: → This paper estimates the scale of fossil energy subsidies of China in 2007 with price-gap approach. → We establish a Social Accounting Matrix and a CGE model extended with pollutant accounts. → We simulate the impacts of removing or cutting subsidies under three different scenarios. → We discuss the possibility and potential of improving energy consumption structure.

  18. Are subsidies for biodiesel economically efficient?

    International Nuclear Information System (INIS)

    Wassell, Charles S.; Dittmer, Timothy P.

    2006-01-01

    Biodiesel produces less pollution than petrodiesel; however, it is more expensive and will only be a viable alternative if market prices of the products are comparable. This paper examines whether the external benefits from biodiesel use justify subsidies required for adoption outside of niche alternative fuel markets. The authors establish a range of subsidies required to make biodiesel a viable substitute for petrodiesel. Published estimates of the emissions reductions from biodiesel and the dollar benefits of unit reductions in emissions are used to compute a per-gallon external benefit from use of biodiesel, versus petrodiesel. Under conservative estimates of the benefits from biodiesel use in non-road equipment, the external benefits outweigh the required subsidies.(JEL Q48, Q42, H2)

  19. Set-Asides and Subsidies in Auctions

    OpenAIRE

    Susan Athey; Dominic Coey; Jonathan Levin

    2011-01-01

    Set-asides and subsidies are used extensively in government procurement and natural resource sales. We analyze these policies in an empirical model of U.S. Forest Service timber auctions. The model fits the data well both within the sample of unrestricted sales where we estimate the model, and when we predict (out of sample) bidder entry and prices for small business set-asides. Our estimates suggest that restricting entry to small businesses substantially reduces efficiency and revenue, alth...

  20. Parameter estimation of electricity spot models from futures prices

    NARCIS (Netherlands)

    Aihara, ShinIchi; Bagchi, Arunabha; Imreizeeq, E.S.N.; Walter, E.

    We consider a slight perturbation of the Schwartz-Smith model for the electricity futures prices and the resulting modified spot model. Using the martingale property of the modified price under the risk neutral measure, we derive the arbitrage free model for the spot and futures prices. We estimate

  1. DEVELOPMENT MANAGEMENT TRANSFER PRICING BY APPLICATION OF THE INTERVAL ESTIMATES

    Directory of Open Access Journals (Sweden)

    Elena B. Shuvalova

    2013-01-01

    Full Text Available The article discusses the application of the method of interval estimation of conformity of the transaction price the market price. A comparative analysis of interval and point estimate. Identified the positive and negative effects of using interval estimation.

  2. Business Subsidies in Canada Comprehensive Estimates for the Government of Canada and the Four Largest Provinces

    Directory of Open Access Journals (Sweden)

    John Lester

    2018-01-01

    Full Text Available Business subsidies in Canada: the “winner” is Alberta; the loser is the taxpayer The federal government and the four largest provinces in Canada spend about $29 billion a year on business subsidies, delivered through program spending, the tax system, government business enterprises and direct investments by government. These subsidies represent almost half of the corporate income tax revenue collected by the five jurisdictions. Surprisingly, given its reputation as a bastion of free enterprise, Alberta is the most prolific subsidizer. In the 2014-15 fiscal year, per person subsidies were $640 in Alberta, about $100 ahead of the next most generous jurisdiction, Québec. Alberta has probably added to its “lead” through measures introduced in the October 2015 Fiscal Update and the 2016 budget. Alberta also stands out by having the least transparent public reporting of business subsidies. What motivates governments to subsidize business? Abstracting from cynical efforts to win votes, business subsidies have two broad objectives: to improve economic performance and to achieve a social objective by supporting specific firms, industries or regions. On average in the five jurisdictions, the split between the two categories is about 70-30 in favour of economic development measures. Assessing value for money from programs with a social objective is subjective, but measures intended to improve economic performance should be assessed on their ability to raise real income. Business subsidies can only raise real income if markets fail to allocate labour and capital to their best uses. The classic case is R&D. When a firm undertakes R&D, some of the knowledge created inevitably spills over to the benefit other firms. Firms are focused on their own benefits and costs when deciding how much to spend on R&D, not the benefits received by other firms, so society has an interest in encouraging additional R&D. While markets generally do a good job allocating

  3. Use of Hedonic Prices to Estimate Capitalization Rate

    OpenAIRE

    Gaetano Lisi

    2015-01-01

    In this paper, a model of income capitalization is developed where hedonic prices play a key role in estimating the going-in capitalization rate. Precisely, the hedonic functions for rental and selling prices are introduced into a basic model of income capitalization. From the modified model, it is possible to derive a direct relationship between hedonic prices and capitalization rate. An advantage of the proposed approach is that estimation of the capitalization rate can be made without cons...

  4. List prices vs. bargain prices: which solution to estimate consumer price indices?

    OpenAIRE

    Carlo De Gregorio

    2010-01-01

    Alternative approaches to CPI surveys are here evaluated, in markets where final prices are based on some sort of price listing. Three types of surveys are compared: local surveys (LOC), with small samples and a local price collection; list price surveys (LIS), with huge samples and centralised collection; mixed surveys (MXD), in which LOC and LIS are jointly used. Based on a multiplicative pricing model, some conditions are derived to establish the relative efficiency of these approaches. Th...

  5. Estimation of mean-reverting oil prices: a laboratory approach

    International Nuclear Information System (INIS)

    Bjerksund, P.; Stensland, G.

    1993-12-01

    Many economic decision support tools developed for the oil industry are based on the future oil price dynamics being represented by some specified stochastic process. To meet the demand for necessary data, much effort is allocated to parameter estimation based on historical oil price time series. The approach in this paper is to implement a complex future oil market model, and to condense the information from the model to parameter estimates for the future oil price. In particular, we use the Lensberg and Rasmussen stochastic dynamic oil market model to generate a large set of possible future oil price paths. Given the hypothesis that the future oil price is generated by a mean-reverting Ornstein-Uhlenbeck process, we obtain parameter estimates by a maximum likelihood procedure. We find a substantial degree of mean-reversion in the future oil price, which in some of our decision examples leads to an almost negligible value of flexibility. 12 refs., 2 figs., 3 tabs

  6. The association between price, competition, and demand factors on private sector anti-malarial stocking and sales in western Kenya: considerations for the AMFm subsidy

    Science.gov (United States)

    2013-01-01

    Background Households in sub-Saharan Africa are highly reliant on the retail sector for obtaining treatment for malaria fevers and other illnesses. As donors and governments seek to promote the use of artemisinin combination therapy in malaria-endemic areas through subsidized anti-malarials offered in the retail sector, understanding the stocking and pricing decisions of retail outlets is vital. Methods A survey of all medicine retailers serving Bungoma East District in western Kenya was conducted three months after the launch of the AMFm subsidy in Kenya. The survey obtained information on each anti-malarial in stock: brand name, price, sales volume, outlet characteristics and GPS co-ordinates. These data were matched to household-level data from the Webuye Health and Demographic Surveillance System, from which population density and fever prevalence near each shop were determined. Regression analysis was used to identify the factors associated with retailers’ likelihood of stocking subsidized artemether lumefantrine (AL) and the association between price and sales for AL, quinine and sulphadoxine-pyrimethamine (SP). Results Ninety-seven retail outlets in the study area were surveyed; 11% of outlets stocked subsidized AL. Size of the outlet and having a pharmacist on staff were associated with greater likelihood of stocking subsidized AL. In the multivariable model, total volume of anti-malarial sales was associated with greater likelihood of stocking subsidized AL and competition was important; likelihood of stocking subsidized AL was considerably higher if the nearest neighbour stocked subsidized AL. Price was a significant predictor of sales volume for all three types of anti-malarials but the relationship varied, with the largest price sensitivity found for SP drugs. Conclusion The results suggest that helping small outlets overcome the constraints to stocking subsidized AL should be a priority. Competition between retailers and prices can play an important

  7. Subsidy Agreements

    OpenAIRE

    Kyle Bagwell; Robert W. Staiger

    2004-01-01

    International disputes over subsidies are increasingly disrupting the world trading system. The creation of the WTO was nearly prevented by disputes in the Uruguay Round of GATT negotiations over the issue of negotiating disciplines on agricultural subsidies, an issue which continues to plague the ongoing Doha Round of WTO negotiations. Ongoing disputes over subsidies that violate existing WTO rules have led to the largest amount of authorized retaliation in GATT/WTO history. Yet the internat...

  8. Estimating commercial property prices: an application of cokriging with housing prices as ancillary information

    Science.gov (United States)

    Montero-Lorenzo, José-María; Larraz-Iribas, Beatriz; Páez, Antonio

    2009-12-01

    A vast majority of the recent literature on spatial hedonic analysis has been concerned with residential property values, with only very few examples of studies focused on commercial property prices. The dearth of studies can be attributed to some of the challenges faced in the analysis of commercial properties, in particular the scarcity of information compared to residential transactions. In order to address this issue, in this paper we propose the use of cokriging and housing prices as ancillary information to estimate commercial property prices. Cokriging takes into account the spatial autocorrelation structure of property prices, and the use of more abundant information on housing prices helps to improve the accuracy of property value estimates. A case study of Toledo in Spain, a city for which commercial activity stemming from tourism is one of the key elements of the economy in the city, demonstrates that substantial accuracy and precision gains can be obtained from the use of cokriging.

  9. Estimating Drug Costs: How do Manufacturer Net Prices Compare with Other Common US Price References?

    Science.gov (United States)

    Mattingly, T Joseph; Levy, Joseph F; Slejko, Julia F; Onwudiwe, Nneka C; Perfetto, Eleanor M

    2018-05-12

    Drug costs are frequently estimated in economic analyses using wholesale acquisition cost (WAC), but what is the best approach to develop these estimates? Pharmaceutical manufacturers recently released transparency reports disclosing net price increases after accounting for rebates and other discounts. Our objective was to determine whether manufacturer net prices (MNPs) could approximate the discounted prices observed by the U.S. Department of Veterans Affairs (VA). We compared the annual, average price discounts voluntarily reported by three pharmaceutical manufacturers with the VA price for specific products from each company. The top 10 drugs by total sales reported from company tax filings for 2016 were included. The discount observed by the VA was determined from each drug's list price, reported as WAC, in 2016. Descriptive statistics were calculated for the VA discount observed and a weighted price index was calculated using the lowest price to the VA (Weighted VA Index), which was compared with the manufacturer index. The discounted price as a percentage of the WAC ranged from 9 to 74%. All three indexes estimated by the average discount to the VA were at or below the manufacturer indexes (42 vs. 50% for Eli Lilly, 56 vs. 65% for Johnson & Johnson, and 59 vs. 59% for Merck). Manufacturer-reported average net prices may provide a close approximation of the average discounted price granted to the VA, suggesting they may be a useful proxy for the true pharmacy benefits manager (PBM) or payer cost. However, individual discounts for products have wide variation, making a standard discount adjustment across multiple products less acceptable.

  10. Analysis of gasoline and diesel prices and subsidies in Mexico, 2007-2011; Analisis de los precios y de los subsidios a las gasolinas y el diesel en Mexico, 2007-2011

    Energy Technology Data Exchange (ETDEWEB)

    Tepach M, Reyes [LXI legislatura, Camara de Diputados (Mexico)

    2011-07-15

    Beginning in December 2009, the federal government reinitiated monthly changes in gasoline and diesel prices in order to reduce subsidies, shifting responsibility to the nation's consumers. From December 2009 to July 2011, Premium gasoline rose from 9.57 to 10.38 pesos per liter, Regular gasoline (Magna) increased from 7.77 to 9.32 pesos per liter and diesel from 8.16 to 9.68 pesos per liter. Gasoline and diesel subsidies in the year 2011 had the following behavior: in December 2009, Premium gasoline in Mexico was 27 cents per liter more expensive than in the United States, and in July 2011 it was 1.12 pesos less expensive per liter in our country. For Regular (Magna) gasoline in December 2009 a subsidy of 64 cents per liter was maintained, and in July 2011 it was 1.33 pesos less expensive per liter in our country. Finally, the subsidy for Diesel was maintained at 1 peso per liter in December 2009, increasing 2.11 pesos per liter in July 2011 with respect to the price observed in the United States. The monetary estimate of income losses by the gasoline industry due to these price differences was 41,421.27 million pesos (mp) during 2010, corresponding to -21,246.55 mp for Regular, 597.22 mp for Premium and -20,771.94 mp for Diesel. For the period January to July 2011, the total income loss experienced by the industry was 48,976.19 mp, corresponding to -28,400.9 mp for Regular, -1,707.6 mp for Premium and -18,867.8 for Diesel. Note that 57.99% of the loss in income was generated through the consumption of Regular gasoline since demand by automobiles continues to be high in the country; Premium was 3.49% and Diesel represented 38.52% of the total subsidy. With regard to the fiscal impact of the subsidy for gasoline and Diesel, during fiscal year 2007 and 2008, there was a transfer to the consumers of 48,324 and 217,609.1 mp, respectively. In fiscal year 2009, a positive balance was collected in IEPS of 3,203.1 mp in federal public funds. For fiscal year 2010 the

  11. Introducing taxes, subsidies or both: the effects of various food pricing strategies in a web-based supermarket randomized trial.

    Science.gov (United States)

    Waterlander, Wilma E; Steenhuis, Ingrid H M; de Boer, Michiel R; Schuit, Albertine J; Seidell, Jacob C

    2012-05-01

    Fiscal policies may form a solution in improving dietary intake. This study aimed to examine the effectiveness of varying taxing and subsiding schemes to stimulate healthier food purchases. A randomized controlled trial with three levels of price reduction on healthy foods (no; 25%; 50%)×three levels of price increase on unhealthy foods (5%; 10%; 25%) factorial design was used. 150 participants were randomized into one of nine conditions and were asked to purchase groceries at a web-based supermarket. Data were collected in the Netherlands in January-February 2010 and analyzed using analysis of covariance. Subjects receiving 50% discount purchased significantly more healthy foods than subjects receiving no (mean difference=6.62 items, pprice increases on unhealthy foods were found. Price decreases are effective in stimulating healthy food purchases, but the proportion of healthy foods remains unaffected. Price increases up to 25% on unhealthier products do not significantly affect food purchases. Future studies are important to validate these results in real supermarkets and across different countries. Copyright © 2012 Elsevier Inc. All rights reserved.

  12. Estimating Price Elasticity using Market-Level Appliance Data

    Energy Technology Data Exchange (ETDEWEB)

    Fujita, K. Sydny [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)

    2015-08-04

    This report provides and update to and expansion upon our 2008 LBNL report “An Analysis of the Price Elasticity of Demand for Appliances,” in which we estimated an average relative price elasticity of -0.34 for major household appliances (Dale and Fujita 2008). Consumer responsiveness to price change is a key component of energy efficiency policy analysis; these policies influence consumer purchases through price both explicitly and implicitly. However, few studies address appliance demand elasticity in the U.S. market and public data sources are generally insufficient for rigorous estimation. Therefore, analysts have relied on a small set of outdated papers focused on limited appliance types, assuming long-term elasticities estimated for other durables (e.g., vehicles) decades ago are applicable to current and future appliance purchasing behavior. We aim to partially rectify this problem in the context of appliance efficiency standards by revisiting our previous analysis, utilizing data released over the last ten years and identifying additional estimates of durable goods price elasticities in the literature. Reviewing the literature, we find the following ranges of market-level price elasticities: -0.14 to -0.42 for appliances; -0.30 to -1.28 for automobiles; -0.47 to -2.55 for other durable goods. Brand price elasticities are substantially higher for these product groups, with most estimates -2.0 or more elastic. Using market-level shipments, sales value, and efficiency level data for 1989-2009, we run various iterations of a log-log regression model, arriving at a recommended range of short run appliance price elasticity between -0.4 and -0.5, with a default value of -0.45.

  13. The economics of agricultural subsidies

    NARCIS (Netherlands)

    Bosch, R.A.

    1985-01-01

    PART ONE

    1. Agricultural subsidies have been defined as a government induced change of relative prices of goods, services and factors of production in the agricultural sector. These agricultural price changes may result from a large number of different government measures varying

  14. Stock price estimation using ensemble Kalman Filter square root method

    Science.gov (United States)

    Karya, D. F.; Katias, P.; Herlambang, T.

    2018-04-01

    Shares are securities as the possession or equity evidence of an individual or corporation over an enterprise, especially public companies whose activity is stock trading. Investment in stocks trading is most likely to be the option of investors as stocks trading offers attractive profits. In determining a choice of safe investment in the stocks, the investors require a way of assessing the stock prices to buy so as to help optimize their profits. An effective method of analysis which will reduce the risk the investors may bear is by predicting or estimating the stock price. Estimation is carried out as a problem sometimes can be solved by using previous information or data related or relevant to the problem. The contribution of this paper is that the estimates of stock prices in high, low, and close categorycan be utilized as investors’ consideration for decision making in investment. In this paper, stock price estimation was made by using the Ensemble Kalman Filter Square Root method (EnKF-SR) and Ensemble Kalman Filter method (EnKF). The simulation results showed that the resulted estimation by applying EnKF method was more accurate than that by the EnKF-SR, with an estimation error of about 0.2 % by EnKF and an estimation error of 2.6 % by EnKF-SR.

  15. Demand for pneumococcal vaccination under subsidy program for the elderly in Japan.

    Science.gov (United States)

    Kondo, Masahide; Yamamura, Mariko; Hoshi, Shu-Ling; Okubo, Ichiro

    2012-09-12

    Vaccination programs often organize subsidies and public relations in order to obtain high uptake rates and coverage. However, effects of subsidies and public relations have not been studied well in the literature. In this study, the demand function of pneumococcal vaccination among the elderly in Japan is estimated, incorporating effects of public relations and subsidy. Using a data from a questionnaire survey sent to municipalities, the varying and constant elasticity models were applied to estimate the demand function. The response variable is the uptake rate. Explanatory variables are: subsidy supported shot price, operating years of the program, target population size for vaccination, shot location intensity, income and various public relations tools. The best model is selected by c-AIC, and varying and constant price elasticities are calculated from estimation results. The vaccine uptake rate and the shot price have a negative relation. From the results of varying price elasticity, the demand for vaccination is elastic at municipalities with a shot price higher than 3,708 JPY (35.7 USD). Effects of public relations on the uptake rate are not found. It can be suggested that municipalities with a shot price higher than 3,708 JPY (35.7 USD) could subsidize more and reduce price to increase the demand for vaccination. Effects of public relations are not confirmed in this study, probably due to measurement errors of variables used for public relations, and studies at micro level exploring individual's response to public relations would be required.

  16. Incidence and impact: The regional variation of poverty effects due to fossil fuel subsidy reform

    International Nuclear Information System (INIS)

    Rentschler, Jun

    2016-01-01

    Since fossil fuel subsidy reforms can induce significant distributional shifts and price shocks, effective compensation and social protection programs are crucial. Based on the statistical simulation model by Araar and Verme (2012), this study estimates the regional variability of direct welfare effects of removing fuel subsidies in Nigeria. Uncompensated subsidy removal is estimated to increase the national poverty rate by 3–4% on average. However, uniform cash compensation that appears effective at the national average, is found to fail to mitigate price shocks in 16 of 37 states – thus putting livelihoods (and public support for reforms) at risk. States that are estimated to incur the largest welfare shocks, coincide with hotspots of civil unrest following Nigeria's 2012 subsidy reform attempt. The study illustrates how regionally disaggregated compensation can be revenue neutral, and maintain or reduce pre-reform poverty rates in all states. Overall, it highlights the importance of understanding differences in vulnerability, and designing tailored social protection schemes which ensure public support for subsidy reforms. - Highlights: •Fossil fuel subsidy reforms can induce significant distributional shifts and price shocks. •There is significant regional variation of a reform's effects on poverty rates. •Compensation is key to protect livelihoods and win public support for reform. •Compensation schemes must be carefully tailored to account for regional variation.

  17. Estimating price elasticities when there is smuggling: the sensitivity of smoking to price in Canada.

    Science.gov (United States)

    Gruber, Jonathan; Sen, Anindya; Stabile, Mark

    2003-09-01

    A central parameter for evaluating tax policies is the price elasticity of demand for cigarettes. But in many countries this parameter is difficult to estimate reliably due to widespread smuggling, which significantly biases estimates using legal sales data. An excellent example is Canada, where widespread smuggling in the early 1990s, in response to large tax increases, biases upwards the response of legal cigarette sales to price. We surmount this problem through two approaches: excluding the provinces and years where smuggling was greatest; and using household level expenditure data on smoking. These two approaches yield a tightly estimated elasticity in the range of -0.45 to -0.47. We also show that the sensitivity of smoking to price is much larger among lower income Canadians. In the context of recent behavioral models of smoking, whereby higher taxes reduce unwanted smoking among price sensitive populations, this finding suggests that cigarette taxes may not be as regressive as previously suggested. Finally, we show that price increases on cigarettes do not increase, and may actually decrease, consumption of alcohol; as a result, smuggling of cigarettes may have raised consumption of alcohol as well.

  18. Is rooftop solar PV at socket parity without subsidies?

    International Nuclear Information System (INIS)

    Hagerman, Shelly; Jaramillo, Paulina; Morgan, M. Granger

    2016-01-01

    Installations of rooftop solar photovoltaic (PV) technology in the United States have increased dramatically in recent years, in large part because of state and federal subsidies. In the future, such subsidies may be reduced or eliminated. From the homeowner's perspective, solar PV is competitive when it can produce electricity at a cost equivalent to the retail electricity rate, a condition sometimes referred to as “socket parity”. In assessing the economic viability of residential solar PV, most existing literature considers only a few locations and fails to consider the differences in PV system cost and electricity prices that exist across the U.S. We combined insolation data from more than 1000 locations, installation costs by region, and county-level utility rates to provide a more complete economic assessment of rooftop solar PV across the U.S. We calculated the break-even electricity prices and evaluated the reductions in installed costs needed to reach socket parity. Among the scenarios considered, we estimate that only Hawaii has achieved socket parity without the use of subsidies. With subsidies, six states reach socket parity, yet widespread parity is still not achieved. We find that high installation costs and financing rates are two of the largest barriers to socket parity. - Highlights: • We evaluate the economic viability of residential rooftop solar PV across the U.S. • Widespread socket parity has not been achieved in the U.S. without subsidies. • Net metering may be critical for the economic viability of rooftop solar PV.

  19. Option Price Estimations and Speculative Trading In Knowledge Society

    Directory of Open Access Journals (Sweden)

    Ovidiu TURCOANE

    2012-01-01

    Full Text Available Derivatives market has known an enormous and continuous development from the late 1970s, thanks to the most celebrated Black-Scholes-Merton formula. The impact on global economy is also tremendous, but due to the high leverage of speculative option trading there is a perpetual danger of economic collapse. This paper gives a short description of knowledge society and proposes methods for option price estimation based on implied volatility, skewness and kurtosis. ‘Free-lunch’ is hardly achievable if one predicts the option price using the knowledgeable information from the market and there is almost impossible to speculate, rather than to hedge, when trading option.

  20. ISSUES ON USING PRICE INDICES FOR ESTIMATING GDP AND ITS COMPONENTS AT CONSTANT PRICES ACCORDING TO SNA METHODOLOGY

    Directory of Open Access Journals (Sweden)

    K. Prykhodko

    2014-06-01

    Full Text Available The article examines requirements and methodological approaches to the calculation of price indices (deflators in the national accounts. It gives estimation for the level and dynamics of price indicators. It proposes on improving the calculation of price indices (deflators in the national accounts of Ukraine.

  1. Citation analysis of the Brazilian tourism journals: subsidies for the es-timation of impact factors

    Directory of Open Access Journals (Sweden)

    Glauber Eduardo de Oliveira Santos

    2017-01-01

    Full Text Available This paper presents the analysis of all references made by articles published at the four major Brazilian tourism journals. A total of 28,767 references in the 1,254 articles published since the first volume of each journal until the end of 2014. References were analyzed with respect to their type (journal, book, thesis, conference paper and others, place of publishing (Brazil or other countries and authorship. For the references of scientific articles, the names of these specific vehicles were identified. The results indicate the most cited authors, books, articles and journals. Impact factors of journals and the h-index of Hirsch (2005 of authors were also estimated. Moreover, techniques of social network analysis were applied to the representation of the relationships between authors and journals, besides estimating complex centrality indexes for these agents. The results also indicate some tendencies of change in the actual scenario arising from the strengthening of new authors and journals.

  2. Premium Pricing In Health Insurance By Nelson- Aalen Estimator

    OpenAIRE

    Istikaanah, Najmah

    2011-01-01

    In this paper the using of Nelson Aalen estimators are presented to estimate transition probabilities of multistate model. Based on discrete time Markov, we will get transition matrices?é?á which the elements are transition probabilities from Nelson Aalen estimator. Because of the data that used in the construction of transition matrices are person?óÔé¼Ôäós health histories, then it can be seen as a morbidity value, which can be used to premium pricing.?é?á

  3. Estimating Structural Models of Corporate Bond Prices in Indonesian Corporations

    Directory of Open Access Journals (Sweden)

    Lenny Suardi

    2014-08-01

    Full Text Available This  paper  applies  the  maximum  likelihood  (ML  approaches  to  implementing  the structural  model  of  corporate  bond,  as  suggested  by  Li  and  Wong  (2008,  in  Indonesian corporations.  Two  structural  models,  extended  Merton  and  Longstaff  &  Schwartz  (LS models,  are  used  in  determining  these  prices,  yields,  yield  spreads  and  probabilities  of default. ML estimation is used to determine the volatility of irm value. Since irm value is unobserved variable, Duan (1994 suggested that the irst step of ML estimation is to derive the likelihood function for equity as the option on the irm value. The second step is to ind parameters such as the drift and volatility of irm value, that maximizing this function. The irm value itself is extracted by equating the pricing formula to the observed equity prices. Equity,  total  liabilities,  bond  prices  data  and  the  irm's  parameters  (irm  value,  volatility of irm value, and default barrier are substituted to extended Merton and LS bond pricing formula in order to valuate the corporate bond.These models are implemented to a sample of 24 bond prices in Indonesian corporation during  period  of  2001-2005,  based  on  criteria  of  Eom,  Helwege  and  Huang  (2004.  The equity  and  bond  prices  data  were  obtained  from  Indonesia  Stock  Exchange  for  irms  that issued equity and provided regular inancial statement within this period. The result shows that both models, in average, underestimate the bond prices and overestimate the yields and yield spread. ";} // -->activate javascript

  4. Estimating the Competitive Storage Model with Trending Commodity Prices

    OpenAIRE

    Gouel , Christophe; LEGRAND , Nicolas

    2017-01-01

    We present a method to estimate jointly the parameters of a standard commodity storage model and the parameters characterizing the trend in commodity prices. This procedure allows the influence of a possible trend to be removed without restricting the model specification, and allows model and trend selection based on statistical criteria. The trend is modeled deterministically using linear or cubic spline functions of time. The results show that storage models with trend are always preferred ...

  5. Estimation of a hedonic pricing model for Medigap insurance.

    Science.gov (United States)

    Robst, John

    2006-12-01

    This paper uses a unique database to examine premiums paid by beneficiaries for Medigap supplemental coverage. Average premiums charged by insurers are reported, as well as premiums by enrollee age and gender, and additional policy characteristics. Marginal prices for Medigap benefits are estimated using hedonic price regressions. In addition, the paper considers how additional policy characteristics and geographic differences in the use and cost of medical care affect premiums. A comprehensive database on premiums paid by beneficiaries for newly issued Medigap policies in the year 2000 along with state-level characteristics. Hedonic pricing equations are used to estimate implicit prices for Medigap benefits. The Centers for Medicare & Medicaid Services contracted for the creation of a detailed database on Medigap premiums. Data were collected in three stages. First, letters were sent directly to insurers requesting premium data. Second, letters were directly to state insurance commissioner's offices requesting premium data. Last, each state insurance commissioner's office was visited to collect missing data. With the exceptions of the part B deductible and drug benefit, Medigap supplemental insurance is priced consistent with the actuarial value of benefits offered under the standardized plans. Premiums vary substantially based on rating method, whether the policy is guaranteed issue, Medigap Select, or explicitly for smokers. Premiums increase with enrollee age, but do not vary between men and women. The relationship between premiums and enrollee age varies across rating methods. Attained-age policies show the strongest relationship between age and premiums, while community-rated premiums, by definition, do not vary with age. Medigap supplemental insurance premiums are higher in states with poorer health, greater utilization, and greater managed care penetration. Despite the high cost, Medigap plans are generally priced in accordance with the actuarial value of

  6. Estimation of a Hedonic Pricing Model for Medigap Insurance

    Science.gov (United States)

    Robst, John

    2006-01-01

    Objective This paper uses a unique database to examine premiums paid by beneficiaries for Medigap supplemental coverage. Average premiums charged by insurers are reported, as well as premiums by enrollee age and gender, and additional policy characteristics. Marginal prices for Medigap benefits are estimated using hedonic price regressions. In addition, the paper considers how additional policy characteristics and geographic differences in the use and cost of medical care affect premiums. Data Sources/Study Setting A comprehensive database on premiums paid by beneficiaries for newly issued Medigap policies in the year 2000 along with state-level characteristics. Study Design Hedonic pricing equations are used to estimate implicit prices for Medigap benefits. Data Collection/Extraction Methods The Centers for Medicare & Medicaid Services contracted for the creation of a detailed database on Medigap premiums. Data were collected in three stages. First, letters were sent directly to insurers requesting premium data. Second, letters were directly to state insurance commissioner's offices requesting premium data. Last, each state insurance commissioner's office was visited to collect missing data. Principal Findings With the exceptions of the part B deductible and drug benefit, Medigap supplemental insurance is priced consistent with the actuarial value of benefits offered under the standardized plans. Premiums vary substantially based on rating method, whether the policy is guaranteed issue, Medigap Select, or explicitly for smokers. Premiums increase with enrollee age, but do not vary between men and women. The relationship between premiums and enrollee age varies across rating methods. Attained-age policies show the strongest relationship between age and premiums, while community-rated premiums, by definition, do not vary with age. Medigap supplemental insurance premiums are higher in states with poorer health, greater utilization, and greater managed care

  7. Price elasticity estimates for tobacco products in India.

    Science.gov (United States)

    John, Rijo M

    2008-05-01

    The tax base of tobacco in India is heavily dependent on about 14% of tobacco users, who smoke cigarettes. Non-cigarette tobacco products accounting for 85% of the tobacco consumption contributes only 15% of the total tobacco taxes. Though taxation is an important tool to regulate consumption of tobacco, there have been no estimates of price elasticities for different tobacco products in India to date, which can guide tax policy on tobacco. This paper, for the first time in India, examines the price elasticity of demand for bidis, cigarettes and leaf tobacco at the national level using a representative cross-section of households. This study found that own-price elasticity estimates of different tobacco products in India ranged between -0.4 to -0.9, with bidis (an indigenous hand-rolled smoked tobacco preparation in India) and leaf tobacco having elasticities close to unity. Cigarettes were the least price elastic of all. With some assumptions, it is shown that the tax on bidis can be increased to Rs. 100 per 1000 sticks compared with the current Rs. 14 and the tax on an average cigarette can be increased to Rs. 3.5 per stick without any fear of losing revenue. The paper argues that the current system of taxing cigarettes in India based on the presence of filters and the length of cigarettes has no justification on health grounds, and should be abolished, if reducing tobacco consumption and the consequent disease burden is one of the objectives of tobacco taxation policy. It also argues that attempts to regulate tobacco use without effecting significant tax increases on bidis may not produce desired results.

  8. Impact of Alaskan gas subsidy

    International Nuclear Information System (INIS)

    George, R.R.

    2002-01-01

    This report provides the Government of the Northwest Territories (GNWT) with an assessment of the impact of the Alaska natural gas tax credit proposed and passed in the United States Senate energy bill. In particular, Purvin and Gertz evaluated the impact of the Alaskan gas subsidy on potential Mackenzie Delta/Beaufort Sea production as well as existing and future production from other areas including Western Canada, the Rocky Mountains in the United States, and the Gulf Coast. The mechanisms through which other producing areas are affected were described and the typical volumetric impact is presented using gas models developed by Purvin and Gertz. The GNWT wants to maximize the benefits of Arctic gas development for its constituents but believes that its interests will be negatively impacted by subsidized Alaskan gas which will be applied for the period beginning in 2010. The tax credit sets a floor price of $3.25 (US)/MMBtu. Purvin and Gertz concludes that the Alaskan gas subsidy would produce a misallocation of resources and distort the continental North American natural gas market. It would encourage over investment in Alaskan gas production because the credit works as a false signal to the privileged few that divert resources from higher value activities to lower value activities. The winners of the Alaskan gas subsidy would be Alaskan producers and the Alaskan economy. The losers would be other resource owners, producers, and American taxpayers because they would finance the subsidy through a tax credit mechanism. There would be an overall loss to the economy because of sub-optimal allocation of resources. In addition, producers in existing producing areas such as the Mackenzie Delta/Beaufort Sea region would face lower market prices as a result of the subsidy, thereby reducing their investments. It was concluded that the Alaskan gas subsidy is counterproductive from the perspective of a secure continental supply of natural gas. 1 tab., 2 figs

  9. Methodological proposals for estimating the price of climate in France

    Science.gov (United States)

    Joly, D.; Brossard, T.; Cardot, H.; Cavailhes, J.; Hilal, M.; Wavresky, P.

    2009-09-01

    A current project linking economists, geographers and mathematicians evaluates the price of climate in France. The economic data are mainly from housing surveys conducted by the INSEE. It consists in a total of 9,640 buyers of single-detached houses, 2,658 buyers of apartments, 3,447 tenants of single-detached houses and 8,615 tenants of apartments. Each transaction is located in space by X-Y geographical coordinates. The climatic data are derived from the Meteo-France data base (normal 1970-2000). They are related to (1) mean annual temperature, (2) mean temperature for January and July, (3) number of days with temperatures of less than -5 °C in January and more than 30 °C in July, (4) mean monthly rainfall, (5) rainfall in January and July, (6) number of days' precipitation in January and July. These data are recorded by a network of scattered weather stations. A raster GIS composed by ten data layers derived from a DEM and remote sensing images at 250 m resolution is used to initiate interpolations. Four types of interpolation techniques were tested. First we used regressions between climatic data (variables to be explained) and explanatory variables stored into the GIS. Second we used ordinary kriging; third a double step method linking regression and then kriging of the regression residuals. Finally we used a local interpolation method. Based on standard deviation values obtained by cross validation and R² values, the comparison between the four methods shows that the last one reduces the residuals to the minimum and explains the maximum of variance. It was retained in our project to compute continuous field of the climatic data. The predicted values are then merged with the housing survey data. We use the hedonic price method (Rosen, 1974) to determine the price of climatic attributes, which are capitalized in land rents. Three econometric methods are used: a fixed-effects model estimated by OLS or PLS method and a mixed model with random intercepts. The

  10. Study on Comparison of Bidding and Pricing Behavior Distinction between Estimate Methods

    Science.gov (United States)

    Morimoto, Emi; Namerikawa, Susumu

    The most characteristic trend on bidding and pricing behavior distinction in recent years is the increasing number of bidders just above the criteria for low-price bidding investigations. The contractor's markup is the difference between the bidding price and the execution price. Therefore, the contractor's markup is the difference between criteria for low-price bidding investigations price and the execution price in the public works bid in Japan. Virtually, bidder's strategies and behavior have been controlled by public engineer's budgets. Estimation and bid are inseparably linked in the Japanese public works procurement system. The trial of the unit price-type estimation method begins in 2004. On another front, accumulated estimation method is one of the general methods in public works. So, there are two types of standard estimation methods in Japan. In this study, we did a statistical analysis on the bid information of civil engineering works for the Ministry of Land, Infrastructure, and Transportation in 2008. It presents several issues that bidding and pricing behavior is related to an estimation method (several estimation methods) for public works bid in Japan. The two types of standard estimation methods produce different results that number of bidders (decide on bid-no bid strategy) and distribution of bid price (decide on mark-up strategy).The comparison on the distribution of bid prices showed that the percentage of the bid concentrated on the criteria for low-price bidding investigations have had a tendency to get higher in the large-sized public works by the unit price-type estimation method, comparing with the accumulated estimation method. On one hand, the number of bidders who bids for public works estimated unit-price tends to increase significantly Public works estimated unit-price is likely to have been one of the factors for the construction companies to decide if they participate in the biddings.

  11. Estimating the common trend rate of inflation for consumer prices and consumer prices excluding food and energy prices

    OpenAIRE

    Michael T. Kiley

    2008-01-01

    I examine the common trend in inflation for consumer prices and consumer prices excluding prices of food and energy. Both the personal consumption expenditure (PCE) indexes and the consumer price indexes (CPI) are examined. The statistical model employed is a bivariate integrated moving average process; this model extends a univariate model that fits the data on inflation very well. The bivariate model forecasts as well as the univariate models. The results suggest that the relationship betwe...

  12. Estimating inpatient hospital prices from state administrative data and hospital financial reports.

    Science.gov (United States)

    Levit, Katharine R; Friedman, Bernard; Wong, Herbert S

    2013-10-01

    To develop a tool for estimating hospital-specific inpatient prices for major payers. AHRQ Healthcare Cost and Utilization Project State Inpatient Databases and complete hospital financial reporting of revenues mandated in 10 states for 2006. Hospital discharge records and hospital financial information were merged to estimate revenue per stay by payer. Estimated prices were validated against other data sources. Hospital prices can be reasonably estimated for 10 geographically diverse states. All-payer price-to-charge ratios, an intermediate step in estimating prices, compare favorably to cost-to-charge ratios. Estimated prices also compare well with Medicare, MarketScan private insurance, and the Medical Expenditure Panel Survey prices for major payers, given limitations of each dataset. Public reporting of prices is a consumer resource in making decisions about health care treatment; for self-pay patients, they can provide leverage in negotiating discounts off of charges. Researchers can also use prices to increase understanding of the level and causes of price differentials among geographic areas. Prices by payer expand investigational tools available to study the interaction of inpatient hospital price setting among public and private payers--an important asset as the payer mix changes with the implementation of the Affordable Care Act. © Published 2013. This article is a U.S. Government work and is in the public domain in the USA.

  13. Technology adoption subsidies. An experiment with managers

    International Nuclear Information System (INIS)

    Aalbers, Rob; Van der Heijden, Eline; Potters, Jan; Van Soest, Daan; Vollebergh, Herman

    2009-01-01

    We evaluate the impact of technology adoption subsidies on investment behavior in an individual choice experiment. In a laboratory setting professional managers are confronted with an intertemporal decision problem in which they have to decide whether or not to search for, and possibly adopt, a new technology. Technologies differ in the per-period benefits they yield, and their purchase price increases with the per-period benefits provided. We introduce a subsidy on the more expensive technologies (that also yield larger per-period benefits), and find that the subsidy scheme induces agents to search for and adopt these more expensive technologies even though the subsidy itself is too small to render these technologies profitable. We speculate that the result is driven by the positive connotation (affect) that the concept 'subsidy' invokes. (author)

  14. Technology adoption subsidies. An experiment with managers

    Energy Technology Data Exchange (ETDEWEB)

    Aalbers, Rob [Netherlands Bureau for Economic Policy Analysis, P.O. Box 80510, 2508 GM The Hague (Netherlands); Van der Heijden, Eline; Potters, Jan [CentER and Department of Economics, Tilburg University, P.O. Box 90153, 5000 LE Tilburg (Netherlands); Van Soest, Daan [Department of Spatial Economics/IVM, VU University, De Boelelaan 1105, 1081 HV Amsterdam (Netherlands); Vollebergh, Herman [Tinbergen Institute, Erasmus University Rotterdam and Netherlands Environmental Assessment Agency, P.O. Box 303, 3720 AH Bilthoven (Netherlands)

    2009-05-15

    We evaluate the impact of technology adoption subsidies on investment behavior in an individual choice experiment. In a laboratory setting professional managers are confronted with an intertemporal decision problem in which they have to decide whether or not to search for, and possibly adopt, a new technology. Technologies differ in the per-period benefits they yield, and their purchase price increases with the per-period benefits provided. We introduce a subsidy on the more expensive technologies (that also yield larger per-period benefits), and find that the subsidy scheme induces agents to search for and adopt these more expensive technologies even though the subsidy itself is too small to render these technologies profitable. We speculate that the result is driven by the positive connotation (affect) that the concept 'subsidy' invokes. (author)

  15. Subsidy policy and the enlargement of choice

    International Nuclear Information System (INIS)

    Srinivasan, Sunderasan

    2009-01-01

    Development is the enlargement of people's choices. Optimal subsidy policy is intended to create the right incentives for each of the value chain participants. This paper contends that the interest subsidy offered by the Indian federal Ministry of New and Renewable Energy for solar thermal systems, through mainstream banking channels is superior in intent and outcome compared to the capital subsidy as currently offered for solar PV systems, routed through government controlled delivery channels. The interest subsidy enhances innovation, improves service delivery and expands the range of product available to consumers enjoying a wide range of endowments, thus leading to more inclusive development. The simple monopoly model developed by Atkinson [Atkinson AB. Capabilities, exclusion and the supply of goods. In: Basu K, Pattanaik P, Suzumura K, editor, Choice, Welfare and Development. Oxford University Press; 1995] is applied to the context of solar home systems to demonstrate price reduction and choice expansion in a liberalized market, facilitated by an interest subsidy scheme. (author)

  16. Global energy subsidies: An analytical taxonomy

    International Nuclear Information System (INIS)

    McKitrick, Ross

    2017-01-01

    Governments around the world have pledged to eliminate or sharply reduce subsidies to energy firms in order to increase economic efficiency and reduce environmental externalities. Yet definitions of subsidies vary widely and, as a result, estimates of their global magnitude vary by orders of magnitude. I review why energy subsidies are so difficult to define and measure. I show why some non-standard measures are very poor proxies for subsidy costs and in fact may vary inversely with them. In particular, recent attempts to treat unpriced externalities as subsidies yield especially misleading results. In general, energy subsidies as conventionally understood do exist but only comprise a small portion of some very large recently-reported estimates, the bulk of which are indirect measures that may have little connection with actual costs to governments or allocational inefficiencies. - Highlights: • Estimates of national and global energy subsidies vary widely. • Microeconomic tools help clarify the various definitions in use. • Some indirect measures are invalid as proxies for normal subsidy costs. • Distorting subsidies do exist but are likely on the low end of some recent reports.

  17. Estimated generic prices of cancer medicines deemed cost-ineffective in England: a cost estimation analysis.

    Science.gov (United States)

    Hill, Andrew; Redd, Christopher; Gotham, Dzintars; Erbacher, Isabelle; Meldrum, Jonathan; Harada, Ryo

    2017-01-20

    The aim of this study was to estimate lowest possible treatment costs for four novel cancer drugs, hypothesising that generic manufacturing could significantly reduce treatment costs. This research was carried out in a non-clinical research setting using secondary data. There were no human participants in the study. Four drugs were selected for the study: bortezomib, dasatinib, everolimus and gefitinib. These medications were selected according to their clinical importance, novel pharmaceutical actions and the availability of generic price data. Target costs for treatment were to be generated for each indication for each treatment. The primary outcome measure was the target cost according to a production cost calculation algorithm. The secondary outcome measure was the target cost as the lowest available generic price; this was necessary where export data were not available to generate an estimate from our cost calculation algorithm. Other outcomes included patent expiry dates and total eligible treatment populations. Target prices were £411 per cycle for bortezomib, £9 per month for dasatinib, £852 per month for everolimus and £10 per month for gefitinib. Compared with current list prices in England, these target prices would represent reductions of 74-99.6%. Patent expiry dates were bortezomib 2014-22, dasatinib 2020-26, everolimus 2019-25 and gefitinib 2017. The total global eligible treatment population in 1 year is 769 736. Our findings demonstrate that affordable drug treatment costs are possible for novel cancer drugs, suggesting that new therapeutic options can be made available to patients and doctors worldwide. Assessing treatment cost estimations alongside cost-effectiveness evaluations is an important area of future research. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/.

  18. Medicare Part D: Are Insurers Gaming the Low Income Subsidy Design?

    Science.gov (United States)

    Decarolis, Francesco

    2015-04-01

    This paper shows how in Medicare Part D insurers' gaming of the subsidy paid to low-income enrollees distorts premiums and raises the program cost. Using plan-level data from the first five years of the program, I find multiple instances of pricing strategy distortions for the largest insurers. Instrumental variable estimates indicate that the changes in a concentration index measuring the manipulability of the subsidy can explain a large share of the premium growth observed between 2006 and 2011. Removing this distortion could reduce the cost of the program without worsening consumer welfare.

  19. The impacts of removing energy subsidies on economy-wide rebound effects in China: An input-output analysis

    International Nuclear Information System (INIS)

    Li, Ke; Jiang, Zhujun

    2016-01-01

    Facing with the increasing contradiction of economic growth, energy scarcity and environmental deterioration, energy conservation and emissions abatement have been ambitious targets for the Chinese government. Improving energy efficiency through technological advancement is a primary measure to achieve these targets. However, the existence of energy rebound effects may completely or partially offset energy savings associated with technological advancement. This paper adopted a modified input-output model to estimate the economy-wide energy rebound effects across China's economic sectors with the consideration of energy subsidies. The empirical results show that the aggregate rebound effect of China is about 1.9% in 2007–2010, thus technological advancement significantly restrains energy consumption increasing. Removing energy subsidies will cause the aggregate rebound effect declines to 1.53%. Specifically, removing subsidies for coal and nature gas can reduce the rebound effects signifcantly, while removing the subsidies for oil products has a small impact on rebound effect. The existence of rebound effects implies that technological advancement should be cooperated with energy price reform so as to achieve the energy saving target. In addition, the government should consider the diversity of economic sectors and energy types when design the reform schedule. - Highlights: • Rebound effects with the consideration of energy subsidies are estimated in China. • When considering the interactions among sectors, the aggregate rebound effect become small. • Removing subsidies will reduce energy consumption, thereby declining the rebound effects. • Removing subsidies for different energy types has varies effects on rebound effect.

  20. The economics of gasoline subsidy cost reduction policy: Case study of Indonesia

    Science.gov (United States)

    Akimaya, Muhammad I.

    A gasoline subsidy distorts the gasoline market with the resulting inefficiencies and takes substantial revenues that arguably could be spent elsewhere with a better impact on economic growth. Governments with such subsidies are aware of their cost yet face difficulties in removing the policy because of strong resistance from the public. This thesis discusses in three essays the problem faced by the government in removing the gasoline subsidy and provides an alternative policy in reducing the subsidy cost applied to the case of Indonesia. In the first essay, we examine the decision-making process from the government's perspective that has an objective of generating savings to fund other programs while maintaining political power, and the influence that the general population has over the decision. Despite the immense literature on political power, there has yet to be any research that mathematically models the decision-making process of a government with influences from the general population. Under the benchmark scenario, the equilibrium strategy is to keep the subsidy intact. However, the results are found to be very sensitive to the magnitude of the shift in political power as well as the preferences of both the government and the people. In the second essay, we estimate the cross-price elasticity of regular gasoline with respect to premium gasoline price. The importance of such knowledge is to accurately determine the impact of fuel pricing policy that tends to have different rates of tax or subsidy depending on the grade of gasoline. Using data on the Mexican gasoline market, regular gasoline demand is estimated with an Autoregressive Distributed Lag (ARDL) model. Endogeneity of the price and structural break are also investigated. The cross-price elasticities between regular and premium gasoline is found to be -0.895, which confirms high substitutability among gasoline with different grades. In the third essay, we look at the unique case of Indonesia that

  1. Are tax subsidies for private medical insurance self-financing? Evidence from a microsimulation model.

    Science.gov (United States)

    López Nicolás, Angel; Vera-Hernández, Marcos

    2008-09-01

    This paper develops an empirical strategy to estimate whether subsidies to private medical insurance are self-financing in countries where public and private insurance coexist and the latter covers the same treatments as the former. We construct a simulation routine based on a micro-econometric discrete choice model that allows us to evaluate the impact of premium changes on the utilization of outpatient and inpatient health care services. As an application, we estimate the budgetary effects of scrapping a subsidy from the purchase of individual private policies, using micro-data from Catalonia. Our results suggest that the subsidy is not self-financing. This result is driven by the fact that private medical insurance holders make concurrent use of public and private services, and by the price inelasticity of the demand for private policies.

  2. Estimating customer preferences for new pricing products. Final report

    International Nuclear Information System (INIS)

    Goett, A.A.

    1998-10-01

    This report summarizes the results of a review of various methods to analyze customer preferences for electric service pricing products. The purpose of this study was to evaluate different techniques for analyzing preferences for electric service and pricing products in a competitive retail electricity market. In this market, competing providers will offer a variety of electric services under different price structures, and customers will face the decision of choosing a single electric service provider and pricing plan. The service and price characteristics that utilities offer will largely determine their market shares and profitability. Understanding preferences will be critical to quantifying the effects of service and pricing attributes on market share and profitability in the deregulated retail electricity market

  3. Federal Subsidies and the Housing GSEs

    National Research Council Canada - National Science Library

    2001-01-01

    .... Congressman Baker also asked that CBO extend the estimate to include the Federal Home Loan Banks and to update its estimate of the portion of the subsidy that the government-sponsored enterprises (OSEs) retain. Congressman John M...

  4. Government subsidies and demand for petroleum products in Iran

    International Nuclear Information System (INIS)

    Salehi-Isfahani, D.

    1996-08-01

    Like most other petroleum-exporting countries Iran subsidizes domestic consumption of refined products. Real product prices have declined for the past 25 years while the rest of the world has adjusted to higher energy prices. In this paper I describe the market for petroleum products in Iran and estimate demand functions for the four main refined petroleum products. My results indicate that price elasticities of demand are larger than previously thought. Particular attention is paid to the kerosene market where price subsidy is the largest, and where rationing in the 1980s requires taking into account the working of the black market. The results indicate that price increases can stem the rise in consumption. Forecasts show that, allowing for modest economic growth, increases that bring domestic prices to the level of world prices in fifteen years, will stabilize consumption at its current level. But increases that merely keep real prices constant will double consumption in the same period. This is significant in light of the fact that Iran's production capacity has stayed constant in the last five years and exports are under increasing pressure from domestic consumers of refined products. (UK)

  5. Estimating deficit probabilities with price-responsive demand in contract-based electricity markets

    International Nuclear Information System (INIS)

    Galetovic, Alexander; Munoz, Cristian M.

    2009-01-01

    Studies that estimate deficit probabilities in hydrothermal systems have generally ignored the response of demand to changing prices, in the belief that such response is largely irrelevant. We show that ignoring the response of demand to prices can lead to substantial over or under estimation of the probability of an energy deficit. To make our point we present an estimation of deficit probabilities in Chile's Central Interconnected System between 2006 and 2010. This period is characterized by tight supply, fast consumption growth and rising electricity prices. When the response of demand to rising prices is acknowledged, forecasted deficit probabilities and marginal costs are shown to be substantially lower

  6. Option-Based Estimation of the Price of Co-Skewness and Co-Kurtosis Risk

    DEFF Research Database (Denmark)

    Christoffersen, Peter; Fournier, Mathieu; Fournier, Mathieu

    -neutral second moments, and the price of co-kurtosis risk corresponds to the spread between the physical and the risk-neutral third moments. The option-based estimates of the prices of risk lead to reasonable values of the associated risk premia. An out-of-sample analysis of factor models with co-skewness and co......We show that the prices of risk for factors that are nonlinear in the market return are readily obtained using index option prices. We apply this insight to the price of co-skewness and co-kurtosis risk. The price of co-skewness risk corresponds to the spread between the physical and the risk......-kurtosis risk indicates that the new estimates of the price of risk improve the models performance. Models with higher-order market moments also robustly outperform standard competitors such as the CAPM and the Fama-French model....

  7. Option-Based Estimation of the Price of Co-Skewness and Co-Kurtosis Risk

    DEFF Research Database (Denmark)

    Christoffersen, Peter; Fournier, Mathieu; Jacobs, Kris

    -neutral second moments, and the price of co-kurtosis risk corresponds to the spread between the physical and the risk-neutral third moments. The option-based estimates of the prices of risk lead to reasonable values of the associated risk premia. An out-of-sample analysis of factor models with co-skewness and co......We show that the prices of risk for factors that are nonlinear in the market return are readily obtained using index option prices. We apply this insight to the price of co-skewness and co-kurtosis risk. The price of co-skewness risk corresponds to the spread between the physical and the risk......-kurtosis risk indicates that the new estimates of the price of risk improve the models' performance. Models with higher-order market moments also robustly outperform standard competitors such as the CAPM and the Fama-French model....

  8. Estimating organic, local, and other price premiums in the Hawaii fluid milk market.

    Science.gov (United States)

    Loke, Matthew K; Xu, Xun; Leung, PingSun

    2015-04-01

    With retail scanner data, we applied hedonic price modeling to explore price premiums for organic, local, and other product attributes of fluid milk in Hawaii. Within the context of revealed preference, this analysis of organic and local attributes, under a single unified framework, is significant, as research in this area is deficient in the existing literature. This paper finds both organic and local attributes delivered price premiums over imported, conventional, whole fluid milk. However, the estimated price premium for organic milk (24.6%) is significantly lower than findings in the existing literature. Likewise, the price premium for the local attribute is estimated at 17.4%, again substantially lower compared with an earlier, stated preference study in Hawaii. Beyond that, we estimated a robust price premium of 19.7% for nutritional benefits claimed. The magnitude of this estimated coefficient reinforces the notion that nutrition information on food is deemed beneficial and valuable. Finally, package size measures the influence of product weight. With each larger package size, the estimate led to a corresponding larger price discount. This result is consistent with the practice of weight discounting that retailers usually offer with fresh packaged food. Additionally, we estimated a fairly high Armington elasticity of substitution, which suggests a relatively high degree of substitution between local and imported fluid milk when their relative price changes. Overall, this study establishes price premiums for organic, local, and nutrition benefits claimed for fluid milk in Hawaii. Copyright © 2015 American Dairy Science Association. Published by Elsevier Inc. All rights reserved.

  9. HEDONIC PRICE FUNCTION ESTIMATION FOR MOBILE PHONE IN IRAN

    Directory of Open Access Journals (Sweden)

    Sayed Mahdi Mostafavi

    2013-01-01

    Full Text Available The aim of this paper is the survey of mobile price determinants by hedonic model. We have applied the hedonic price model for mobile phone market in Iran in the year of 2008. The brands conclude NOKIA, QTEK, HTC, MOTOROLA, SONY ERICSSON and SAMSUNG that comprise 193 types of handset mobile phone. The results show that in the hedonic function, the maximum amount of parameters of hedonic price function related to the following variables respectively: touch screen, hands free and connectivity tools, and the minimum amount of them are belonged to clarification of monitor images, phone volume and phone memory. Moreover, except Motorola brand the type of brand has not a significant parameter in the hedonic price function.

  10. Price elasticity estimation of electricity demand in France

    International Nuclear Information System (INIS)

    Bourbonnais, Regis; Keppler, Jan Horst

    2013-10-01

    On request of the French Union of Electricity (UFE), the authors have carried out a series of econometric statistical tests in order to determine the price elasticity of electricity demand in France. The results obtained are all solid and realistic

  11. Estimation of several political action effects of energy prices

    Directory of Open Access Journals (Sweden)

    Andrew B. Whitford

    2016-01-01

    Full Text Available One important effect of price shocks in the United States has been increased political attention paid to the structure and performance of oil and natural gas markets, along with some governmental support for energy conservation. This article describes how price changes helped lead to the emergence of a political agenda accompanied by several interventions, as revealed through Granger causality tests on change in the legislative agenda.

  12. Demystifying patient price estimates. The advantages of transparency.

    Science.gov (United States)

    Kane, Cheri S; Harvey, Gayla

    2015-05-01

    With the increase of high-deductible health plans, more consumers want to know the cost of their health care before they purchase services. A healthcare organization should formulate transparent price policies that: Fit with its intentions, processes, and goals. Ensure consumers are thoroughly educated about their financial responsibilities. Include the use of consumer pricing tools that help patients feel like empowered consumers. Reflect an enterprisewide culture of transparency.

  13. Childcare Prices and Maternal Employment: a Meta-Analysis

    NARCIS (Netherlands)

    Akgündüz, Y.E.; Plantenga, J.

    2015-01-01

    The literature estimates for labor force participation elasticity with regards to child care prices are extensive and varying. While some estimates imply substantial gains from child care subsidies, others find insignif-icant effects. Determining the reasons for the variance in the results and the

  14. Child care prices and maternal employment : A meta-analysis

    NARCIS (Netherlands)

    Akgunduz, Yusuf Emre; Plantenga, Janneke

    The literature estimates for labor force participation elasticity with regard to child care prices are extensive and varying. While some estimates imply substantial gains from child care subsidies, others find insignificant effects. To determine the causes of the variance, this paper reviews and

  15. Censored Quantile Instrumental Variable Estimates of the Price Elasticity of Expenditure on Medical Care.

    Science.gov (United States)

    Kowalski, Amanda

    2016-01-02

    Efforts to control medical care costs depend critically on how individuals respond to prices. I estimate the price elasticity of expenditure on medical care using a censored quantile instrumental variable (CQIV) estimator. CQIV allows estimates to vary across the conditional expenditure distribution, relaxes traditional censored model assumptions, and addresses endogeneity with an instrumental variable. My instrumental variable strategy uses a family member's injury to induce variation in an individual's own price. Across the conditional deciles of the expenditure distribution, I find elasticities that vary from -0.76 to -1.49, which are an order of magnitude larger than previous estimates.

  16. In-Kind Export Subsidies for Processed and Bulk Goods

    OpenAIRE

    Philip L. Paarlberg

    1996-01-01

    This research analyzes the interaction between a bulk commodity and a processed good under in-kind export subsidies. An in-kind export subsidy lowers the export price of the good on which it is paid. The other price changes are ambiguous. A numerical model for U.S. wheat and flour illustrates these conditions. Given the parameters of the model, an in-kind payment using wheat lowers flour prices and the export price of wheat. The U.S. domestic wheat price rises. When flour is used for the paym...

  17. Estimation of Iranian price elasticities of residential electricity demand

    Directory of Open Access Journals (Sweden)

    Yeganeh Mousavi Jahromi

    2014-06-01

    Full Text Available This paper presents a study to determine demand for electricity in city of Yazd, Iran over the period of 1998-2008. Using vector error correction model (VECM based on seasonal information, the study determines that electricity has no elasticity in short term in household expenditure. Therefore, government policy on increasing price of electricity will not influence demand. However, electricity maintains elasticity over the long-term period and an increase on price of electricity could motivate consumers to reduce their consumption by purchasing energy efficient facilities. Therefore, any governmental strategy to increase price may have positive impact on economy. The study also detects a positive and meaningful relationship between temperature and electricity consumption.

  18. Estimating the Exchange Rate Pass-Through to Prices in Mexico

    OpenAIRE

    Josué Fernando Cortés Espada

    2013-01-01

    This paper estimates the magnitude of the exchange rate pass-through to consumer prices in Mexico. Moreover, it analyzes if the pass-through dynamics have changed in recent years. In particular, it uses a methodology that generates results consistent with the hierarchy implicit in the cpi. The results suggest that the exchange rate pass-through to the general price level is low and not statistically significant. However, the pass-through is positive and significant for goods prices. Furthermo...

  19. An estimation of the exchange rate pass-through to prices in Mexico

    OpenAIRE

    Josué Fernando Cortés Espada

    2013-01-01

    This paper estimates the magnitude of the exchange rate pass-through to consumer prices in Mexico. Moreover, it analyzes if the pass-through dynamics have changed in recent years. In particular, it uses a methodology that generates results consistent with the hierarchy implicit in the CPI. The results suggest that the exchange rate pass-through to the general price level is low and not statistically significant. However, the pass-through is positive and significant for goods prices. Furthermo...

  20. Developing a module for estimating climate warming effects on hydropower pricing in California

    International Nuclear Information System (INIS)

    Guégan, Marion; Uvo, Cintia B.; Madani, Kaveh

    2012-01-01

    Climate warming is expected to alter hydropower generation in California through affecting the annual stream-flow regimes and reducing snowpack. On the other hand, increased temperatures are expected to increase hydropower demand for cooling in warm periods while decreasing demand for heating in winter, subsequently altering the annual hydropower pricing patterns. The resulting variations in hydropower supply and pricing regimes necessitate changes in reservoir operations to minimize the revenue losses from climate warming. Previous studies in California have only explored the effects of hydrological changes on hydropower generation and revenues. This study builds a long-term hydropower pricing estimation tool, based on artificial neural network (ANN), to develop pricing scenarios under different climate warming scenarios. Results suggest higher average hydropower prices under climate warming scenarios than under historical climate. The developed tool is integrated with California's Energy-Based Hydropower Optimization Model (EBHOM) to facilitate simultaneous consideration of climate warming on hydropower supply, demand and pricing. EBHOM estimates an additional 5% drop in annual revenues under a dry warming scenario when climate change impacts on pricing are considered, with respect to when such effects are ignored, underlining the importance of considering changes in hydropower demand and pricing in future studies and policy making. - Highlights: ► Addressing the major gap in previous climate change and hydropower studies in California. ► Developing an ANN-based long-term hydropower price estimation tool. ► Estimating climate change effects on hydropower demand and pricing in California. ► Investigating the sensitivity of hydropower operations to future price changes. ► Underlining the importance of consideration of climate change impacts on electricity pricing.

  1. HEDONIC ESTIMATION OF HOUSING MARKET PRICES IN TURKEY

    OpenAIRE

    YAYAR, Rüştü; DEMİR, Derya

    2015-01-01

    In this study, there has been aimed to determine the factors that affect the price of flats in the housing sector in Turkey with a hedonic pricing model. According to the model results, the house’s having residential swimming pool, a jacuzzi and a water tank, its being a duplex, its central heating system, its being closer to the center, the size of the house, the bathroom floor’s being vinyl or PVC, being closer to banking services and compulsory education services,  its having  cable TV, te...

  2. The environmental effect of subsidies for clean technologies

    International Nuclear Information System (INIS)

    De Vries, F.P.; Nentjes, A.

    2001-01-01

    Environmental subsidies for clean technology result in a larger diffusion of such technology. However, as a result emissions can increase in imperfect markets for products. When several companies compete each other with clean and dirty technologies, production and emission will rise because of price competition.This effect will be even larger in case subsidies are applied. Therefore, subsidies are not advisable for every market. In this article an evolutionary game theory has been used with respect to the diffusion of environment-friendly innovation of products and the role of environmental policy instruments (in particular subsidies). 7 refs

  3. A model to Estimate the Implicit Values of Housing Attributes by Applying the Hedonic Pricing Method

    Directory of Open Access Journals (Sweden)

    TD Randeniya

    2017-05-01

    Full Text Available Many scholars focused on the location based attributes rather than the non-location factors in decision making on land prices. Further, new research studies have identified the importance of the non-location attributes with the location factors. Many studies suggest that, many attributes exist which affects the housing price. Since the attributes involved and dominant for a particular case differs from one situation to the other, there cannot be an exact list of attributes. Yet, identification of factors that determine housing price and their relationships and the level of influence have poorly understood in planning and property development in the context of Sri Lanka. This study attempts to address what make householders to decide on housing price and application of hedonic pricing approach to estimate the implicit price of housing attributes in context of Sri Lanka. A sample study of selected fifty (50 single house transactions in Maharagama urban neighborhood area has been utilized to illustrate the applicability of the hedonic pricing model. As a methodology, correlation analysis has been carried out to study the degree of relationship between the housing price and the independent variables. The attributes which correlate with housing prices, the study identified the most significant attributes. A model was developed to estimate the future house price by applying the pricing model which is incorporated with these attributes. A hedonic house price model derived from multiple liner regression analysis was developed for the purpose. The findings reveal that six attributes as design type of the house, distance to the local road, quality of Infrastructure, garden size, number of the bed rooms and property age are contributed to estimate the implicit value of Housing property. The model developed would be used to identify implicit values of houses located in urban neighborhood area of Sri Lanka.

  4. Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China

    Directory of Open Access Journals (Sweden)

    Chuxiong Deng

    2018-04-01

    Full Text Available The efficiency and effects analysis of a new pricing mechanism would have significant policy implications for the further design of a pricing mechanism in an emerging market. Unlike most of the existing literature, which focuses on the impacts to the macro-economy, this paper firstly uses an econometrics model to discuss the efficiency of the new pricing mechanism, and then establishes an augmented Phillips curve to estimate the impact of pricing reform on inflation in China. The results show that: (1 the new pricing mechanism would strengthen the linkage between Chinese oil prices and international oil prices; (2 oil price adjustments are still inadequate in China. (3 The lag in inflation is the most important factor that affects inflation, while the impact of the Chinese government’s price adjustments on inflation is limited and insignificant. In order to improve the efficiency of the petroleum products pricing mechanism and shorten lags, government should shorten the adjustment period and diminish the fluctuation threshold.

  5. Option Price Estimates for Water Quality Improvements: A Contingent Valuation Study for the Monongahela River (1985)

    Science.gov (United States)

    This paper presents the findings from a contingent valuation survey designed to estimate the option price bids for the improved recreation resulting from enhanced water quality in the Pennsylvania portion of the Monongahela River.

  6. Fossil fuel subsidies in Latin America: the challenge of a perverse incentives structure

    International Nuclear Information System (INIS)

    Carlino, Hernan; Carlino, Micaela

    2015-11-01

    Fossil fuel subsidies have considerable negative, environmental, economic, and social effects. The reform of the fossil fuel subsidy regime in Latin America and the Caribbean allows us to benefit from the favourable economic, fiscal, social and environmental impacts resulting from the removal of the existing subsidies. The change in the incentives structure for the energy system also facilitates the development of renewable energy, contributing to removing the investment barriers put in place by the current incentives and freeing up fiscal resources that can be re-routed into social policies and help fulfil sustainable development objectives. Despite the benefits of removing the subsidies, experiences in LAC demonstrate that there are substantial barriers standing in the way of subsidy reform, from a wide-reaching social base, that limit the room for the reforms, often causing delays or neutralising them completely. Although the drive for reform has gained impetus both in the region and on a global scale, it is necessary to define a careful reform strategy that protects the most vulnerable groups from potential negative impacts, and which clearly communicates the favourable effects of the various stages of the reforms, eliminating the price distortions that result from wasteful consumption and the inefficient allocation of resources. The reduction in greenhouse gas emissions due to the removal of fossil fuel subsidies is considerable, according to global and regional estimates. The 2015 agreement should promote and facilitate the reforms by recognising their importance, providing technical support for quantifying the impacts, and supplying funding for the transformation processes implied by these reforms. Implementing a work program on the reform of the subsidy regime within the framework of the Convention, with technical and methodological components, should facilitate reforms on a global scale

  7. Sports Subsidies Soar. Commentary

    Science.gov (United States)

    Toma, J. Douglas

    2010-01-01

    Doug Lederman's article, "Sports Subsidies Soar," discusses the issue on institutional subsidies for sports program. His article invites an obvious question: why are so many universities willing to subsidize athletics through either a direct transfer of institutional funds, assessing a dedicated student fee, or a combination of these? This…

  8. Robust Estimation and Forecasting of the Capital Asset Pricing Model

    NARCIS (Netherlands)

    G. Bian (Guorui); M.J. McAleer (Michael); W.-K. Wong (Wing-Keung)

    2013-01-01

    textabstractIn this paper, we develop a modified maximum likelihood (MML) estimator for the multiple linear regression model with underlying student t distribution. We obtain the closed form of the estimators, derive the asymptotic properties, and demonstrate that the MML estimator is more

  9. Robust Estimation and Forecasting of the Capital Asset Pricing Model

    NARCIS (Netherlands)

    G. Bian (Guorui); M.J. McAleer (Michael); W.-K. Wong (Wing-Keung)

    2010-01-01

    textabstractIn this paper, we develop a modified maximum likelihood (MML) estimator for the multiple linear regression model with underlying student t distribution. We obtain the closed form of the estimators, derive the asymptotic properties, and demonstrate that the MML estimator is more

  10. Use of Bayesian Estimates to determine the Volatility Parameter Input in the Black-Scholes and Binomial Option Pricing Models

    Directory of Open Access Journals (Sweden)

    Shu Wing Ho

    2011-12-01

    Full Text Available The valuation of options and many other derivative instruments requires an estimation of exante or forward looking volatility. This paper adopts a Bayesian approach to estimate stock price volatility. We find evidence that overall Bayesian volatility estimates more closely approximate the implied volatility of stocks derived from traded call and put options prices compared to historical volatility estimates sourced from IVolatility.com (“IVolatility”. Our evidence suggests use of the Bayesian approach to estimate volatility can provide a more accurate measure of ex-ante stock price volatility and will be useful in the pricing of derivative securities where the implied stock price volatility cannot be observed.

  11. The estimation of time-varying risks in asset pricing modelling using B-Spline method

    Science.gov (United States)

    Nurjannah; Solimun; Rinaldo, Adji

    2017-12-01

    Asset pricing modelling has been extensively studied in the past few decades to explore the risk-return relationship. The asset pricing literature typically assumed a static risk-return relationship. However, several studies found few anomalies in the asset pricing modelling which captured the presence of the risk instability. The dynamic model is proposed to offer a better model. The main problem highlighted in the dynamic model literature is that the set of conditioning information is unobservable and therefore some assumptions have to be made. Hence, the estimation requires additional assumptions about the dynamics of risk. To overcome this problem, the nonparametric estimators can also be used as an alternative for estimating risk. The flexibility of the nonparametric setting avoids the problem of misspecification derived from selecting a functional form. This paper investigates the estimation of time-varying asset pricing model using B-Spline, as one of nonparametric approach. The advantages of spline method is its computational speed and simplicity, as well as the clarity of controlling curvature directly. The three popular asset pricing models will be investigated namely CAPM (Capital Asset Pricing Model), Fama-French 3-factors model and Carhart 4-factors model. The results suggest that the estimated risks are time-varying and not stable overtime which confirms the risk instability anomaly. The results is more pronounced in Carhart’s 4-factors model.

  12. Welfare implication of reforming energy consumption subsidies

    International Nuclear Information System (INIS)

    Breton, Michèle; Mirzapour, Hossein

    2016-01-01

    Reforming energy consumption subsidies, in particular for fossil fuels, has been frequently referred to as a quick-win policy to enhance environmental mitigation. In addition, the removal of such subsidies may release a sizeable portion of a country's national budget for use on more productive targets. One of the most recognized challenges of such reform is “selling” the new energy prices to citizens, particularly those with a more fragile purchasing power. Several empirical and technical studies have prescribed that the reform might be supported by a direct compensation mechanism in order to ensure feasibility. This is what was done during the recent energy subsidy reform in Iran. However, the compensation mechanism implemented in Iran's reform was successful at the beginning, but did not proceed as expected. This has raised questions about the feasibility and sustainability of the direct compensation mechanism, and even of the reform policy itself. In this paper, we consider a stylized model where direct compensation is the instrument proposed to restore consumers’ utility against increased energy prices. We find that, when prices of Other Goods are affected by the announced reform policy, the feasibility of a subsidy reform critically depends on the value of certain parameters: the initial subsidization rate, the share of energy in the consumers’ bundle, and the energy portion of price of Other Goods. - Highlights: • A model of energy subsidy reform with direct compensation is proposed. • Feasibility of the reform is related to three key parameters. • An illustrative example using data from the recent Iranian reform is discussed.

  13. Estimating household fuel oil/kerosine, natural gas, and LPG prices by census region

    International Nuclear Information System (INIS)

    Poyer, D.A.; Teotia, A.P.S.

    1994-08-01

    The purpose of this research is to estimate individual fuel prices within the residential sector. The data from four US Department of Energy, Energy Information Administration, residential energy consumption surveys were used to estimate the models. For a number of important fuel types - fuel oil, natural gas, and liquefied petroleum gas - the estimation presents a problem because these fuels are not used by all households. Estimates obtained by using only data in which observed fuel prices are present would be biased. A correction for this self-selection bias is needed for estimating prices of these fuels. A literature search identified no past studies on application of the selectivity model for estimating prices of residential fuel oil/kerosine, natural gas, and liquefied petroleum gas. This report describes selectivity models that utilize the Dubin/McFadden correction method for estimating prices of residential fuel oil/kerosine, natural gas, and liquefied petroleum gas in the Northeast, Midwest, South, and West census regions. Statistically significant explanatory variables are identified and discussed in each of the models. This new application of the selectivity model should be of interest to energy policy makers, researchers, and academicians

  14. Estimation of demand response to energy price signals in energy consumption behaviour in Beijing, China

    International Nuclear Information System (INIS)

    He, Y.X.; Liu, Y.Y.; Xia, T.; Zhou, B.

    2014-01-01

    Highlights: • Demand response to energy price signals in energy consumption in Beijing is studied. • The electricity price is of great importance to Beijing’s energy market stability. • Industrial sectors have a large electricity self-elasticity and cross-elasticity. • When consuming electricity, customers pay more attention to natural gas price. • Analysis of demand response to energy price can provide guidance to energy policies. - Abstract: The energy price system in Beijing has not fully exploited customers’ price elasticity, and has a negative impact on achieving the goals of energy saving. This paper analyses the response behaviours of different customers to typical energy prices. As for electricity self-elasticity, the range of the primary, secondary, tertiary industry and residents are −0.026 to −0.033, −0.045 to −0.059, −0.035 to −0.047 and −0.024 to −0.032, respectively. As regards self-elasticity on coal, the range of the primary, secondary, tertiary industry and residents are −0.030 to −0.037, −0.066 to −0.093, −0.055 to −0.072 and −0.034 to −0.051, respectively. The self-elasticities on oil and natural gas are very weak. As for cross-elasticity, when consuming electricity and oil, customers mainly focus on the prices of natural gas, which are 0.185 and 0.112. When consuming coal and natural gas, customers are concerned about the electricity prices, and their cross-elasticities are 0.03 and 0.36, respectively. The estimation of demand response to energy price signals in energy consumption behaviours can provide a decision support for formulating rational energy price policies

  15. The economic cost of low domestic product prices in OPEC Member Countries

    International Nuclear Information System (INIS)

    Guerer, N.; Ban, J.

    2000-01-01

    The present state of subsidies on major oil products (gasoline, kerosene, diesel and fuel oil) in OPEC Member Countries is analysed, in order to quantify their economic cost, keeping in mind the importance of reforming or gradually removing subsidies as one of the crucial economic challenges facing many Member Countries. The paper begins with a general definition and description of subsidies, then discusses briefly the key issues in reforming/removing them, with the potential benefits. Following a section on subsidy level estimations in recent years, the subsidy implications in terms of the accruing budget burden and foregone revenues from additional export potential are presented. This is together with some arguments supporting the process of adjustment towards internationally competitive prices for oil products as an inescapable development for Member Countries; this should progress in gradual, but firm steps. (author)

  16. Estimation of Gasoline Price Elasticities of Demand for Automobile Fuel Efficiency in Korea: A Hedonic Approach

    Energy Technology Data Exchange (ETDEWEB)

    Lee, Sung Tae [Sungkyunkwan University, Seoul (Korea); Lee, Myunghun [Keimyung University, Taegu (Korea)

    2001-03-01

    This paper estimates the gasoline price elasticities of demand for automobile fuel efficiency in Korea to examine indirectly whether the government policy of raising fuel prices is effective in inducing less consumption of fuel, relying on a hedonic technique developed by Atkinson and Halvorsen (1984). One of the advantages of this technique is that the data for a single year, without involving variation in the price of gasoline, is sufficient in implementing this study. Moreover, this technique enables us to circumvent the multicollinearity problem, which had reduced reliability of the results in previous hedonic studies. The estimated elasticities of demand for fuel efficiency with respect to the price of gasoline, on average, is 0.42. (author). 30 refs., 3 tabs.

  17. The Welfare Effects of Price Advertising with Basket Shopping: Structural Estimates from Supermarket Promotions

    DEFF Research Database (Denmark)

    Gao, Cixiu

    2015-01-01

    This paper empirically examines welfare effects of the informative price advertising in the supermarket retail industry, using structural estimation approaches and individual scanner data. Supermarket retailers use promotions (advertised price cuts) to announce sales as a competing instrument...... promotion intensities are socially excessive. Moreover, the welfare implications are determined by the two opposite effects of price advertising: (1) the informing and therefore welfare-improving effect, and (2) the welfare-harming effect that higher transportation costs incur when promotions are used....... Using a spatial model that accounts for consumer shopping behavior and retailer pricing behavior, I structurally estimate consumer demand and the marginal costs of promotion, following the discrete choice literature and moment inequality approach. The simulation results numerically show that the private...

  18. A Generalized Schwartz Model for Energy Spot Prices - Estimation using a Particle MCMC Method

    DEFF Research Database (Denmark)

    Lunde, Asger; Brix, Anne Floor; Wei, Wei

    structure. Instead of using various filtering techniques for splitting the two factors, as often found in the literature, we estimate the model in one step using an adaptive MCMC method with a Rao-Blackwellized particle filter. We fit the model to UK natural gas spot prices and investigate the importance......We propose an energy spot price model featuring a two-factor price process and a two-component stochastic volatility process. The first factor in the price process captures the normal variations; the second accounts for spikes. The two-component volatility allows for a flexible autocorrelation...... of spikes and stochastic volatility. We find that the inclusion of stochastic volatility is crucial and that it strongly impacts the jump intensity in the spike process. Furthermore, our estimation method enables us to consider both continuous and purely jump-driven volatility processes, and thereby assess...

  19. Impacts of removing fuel import subsidies in Nigeria on poverty

    International Nuclear Information System (INIS)

    Siddig, Khalid; Aguiar, Angel; Grethe, Harald; Minor, Peter; Walmsley, Terrie

    2014-01-01

    The petroleum sector contributes substantially to the Nigerian economy; however, the potential benefits are diminished due to the existence of significant subsidies on imports of petroleum products. Subsidies on imported petroleum products are considered to be an important instrument for keeping fuel prices, and hence the cost of living, low. The costs of these subsidies, however, has risen dramatically in recent years due to increased volatility in world petroleum and petroleum product prices and increased illegal exportation of subsidized petroleum products into neighboring countries. Removing the subsidy on fuel is one of the most contentious socio-economic policy issues in Nigeria today. In this paper, an economy-wide framework is used to identify the impact of removing the fuel subsidy on the Nigerian economy and investigates how alternative policies might be used to meet socio-economic objectives related to fuel subsidies. The results show that while a reduction in the subsidy generally results in an increase in Nigerian GDP, it can have a detrimental impact on household income, and in particular on poor households. Accompanying the subsidy reduction with income transfers aimed at poor households or domestic production of petroleum products can alleviate the negative impacts on household income. - Highlights: • Subsidies on imported fuel compromise the contribution of crude oil in Nigeria. • Fuel subsidies benefit households, but harm the economy. • We use an economy-wide model to identify the impact of removing the fuel subsidy. • We simulate scenarios that target the poor and promote fuel's domestic production

  20. Estimating oil price 'Value at Risk' using the historical simulation approach

    International Nuclear Information System (INIS)

    Cabedo, J.D.; Moya, I.

    2003-01-01

    In this paper we propose using Value at Risk (VaR) for oil price risk quantification. VaR provides an estimation for the maximum oil price change associated with a likelihood level, and can be used for designing risk management strategies. We analyse three VaR calculation methods: the historical simulation standard approach, the historical simulation with ARMA forecasts (HSAF) approach. developed in this paper, and the variance-covariance method based on autoregressive conditional heteroskedasticity models forecasts. The results obtained indicate that HSAF methodology provides a flexible VaR quantification, which fits the continuous oil price movements well and provides an efficient risk quantification. (author)

  1. Estimating oil price 'Value at Risk' using the historical simulation approach

    International Nuclear Information System (INIS)

    David Cabedo, J.; Moya, Ismael

    2003-01-01

    In this paper we propose using Value at Risk (VaR) for oil price risk quantification. VaR provides an estimation for the maximum oil price change associated with a likelihood level, and can be used for designing risk management strategies. We analyse three VaR calculation methods: the historical simulation standard approach, the historical simulation with ARMA forecasts (HSAF) approach, developed in this paper, and the variance-covariance method based on autoregressive conditional heteroskedasticity models forecasts. The results obtained indicate that HSAF methodology provides a flexible VaR quantification, which fits the continuous oil price movements well and provides an efficient risk quantification

  2. Estimating the Break-Even Price for Forest Protection in Central Kalimantan

    OpenAIRE

    Yamamoto, Yuki; Takeuchi, Kenji

    2011-01-01

    This paper estimates the break-even price in Central Kalimantan province, Indonesia and evaluates the effectiveness of a REDD+ mechanism in this area. On the basis of data collected through a field survey, we found that the break-even price is $17.14 per ton of carbon or $4.68 per ton of carbon dioxide. The figure can be even lower when we take the peat thickness of the area into account. Our analysis shows that the current level of carbon price can provide adequate compensation for Indonesia...

  3. Estimating the Price Elasticity of Demand for Different Levels of Alcohol Consumption among Young Adults

    OpenAIRE

    Vinish Shrestha

    2015-01-01

    Understanding the effect of higher alcohol prices on alcohol demand according to one’s level of alcohol consumption is crucial while evaluating the effectiveness of using alcohol taxes as an alcohol-control medium. In this study, I estimate the differential responses to alcohol prices on alcohol demand for young adults by asking whether heavy drinkers are more responsive to higher alcohol prices than light and moderate drinkers. To conduct the analysis, I use the data from the National Long...

  4. Price elasticity of demand for crude oil: estimates for 23 countries

    International Nuclear Information System (INIS)

    Cooper, J.C.B.

    2003-01-01

    This paper uses a multiple regression model derived from an adaptation of Nerlove's partial adjustment model to estimate both the short-run and long-run elasticities of demand for crude oil in 23 countries. The estimates so obtained confirm that the demand for crude oil internationally is highly insensitive to changes in price. (author)

  5. Energy subsidies in California's electricity market deregulation

    International Nuclear Information System (INIS)

    Ritschel, Alexander; Smestad, G.P.

    2003-01-01

    Deregulation and re-regulation of California's electricity market not only failed in terms of anticipated cost reductions, improved customer service and higher competition, it also led to the introduction of various additional energy subsidies. This paper analyzes California's electricity market deregulation process from a subsidy viewpoint. Under deregulation in California, investor-owned utilities were not allowed to pass their energy procurement costs fully on to their customers, and therefore subsequently, and inevitably, ran into severe financial problems. Such retail price regulation is an energy subsidy that is both economically and environmentally unfavorable, because it veils true price signals to electricity consumers and, in this way, discourages energy conservation. Other policies implemented in California that represent perverse energy subsidies are the purchase of power by the state of California, the suspension of retail competition, and the potential misuse of money from the recovery of stranded costs. Many interventions implemented by the state to smooth out the impacts of the energy crisis insulated electricity consumers from market realities, supported the existing structure of California's electricity market, which is predominantly based on fossil fuels, and suppressed market incentives to improve energy conservation

  6. Unit Price and Cost Estimation Equations through Items Percentage of Construction Works in a Desert Area

    Directory of Open Access Journals (Sweden)

    Kadhim Raheem

    2015-02-01

    Full Text Available This research will cover different aspects of estimating process of construction work in a desert area. The inherent difficulties which accompany the cost estimating of the construction works in desert environment in a developing country, will stem from the limited information available, resources scarcity, low level of skilled workers, the prevailing severe weather conditions and many others, which definitely don't provide a fair, reliable and accurate estimation. This study tries to present unit price to estimate the cost in preliminary phase of a project. Estimations are supported by developing mathematical equations based on the historical data of maintenance, new construction of managerial and school projects. Meanwhile, the research has determined the percentage of project items, in such a remote environment. Estimation equations suitable for remote areas have been formulated. Moreover, a procedure for unite price calculation is concluded.

  7. Price

    International Nuclear Information System (INIS)

    Anon.

    1991-01-01

    The price terms in wheeling contracts very substantially, reflecting the differing conditions affecting the parties contracting for the service. These terms differ in the manner in which rates are calculated, the formulas used, and the philosophy underlying the accord. For example, and EEI study found that firm wheeling rates ranged from 20 cents to $1.612 per kilowatt per month. Nonfirm rates ranged from .15 mills to 5.25 mills per kilowatt-hour. The focus in this chapter is on cost-based rates, reflecting the fact that the vast majority of existing contracts are based on rate designs reflecting embedded costs. This situation may change in the future, but, for now, this fact can't be ignored

  8. Estimating cross-price elasticity of e-cigarettes using a simulated demand procedure.

    Science.gov (United States)

    Grace, Randolph C; Kivell, Bronwyn M; Laugesen, Murray

    2015-05-01

    Our goal was to measure the cross-price elasticity of electronic cigarettes (e-cigarettes) and simulated demand for tobacco cigarettes both in the presence and absence of e-cigarette availability. A sample of New Zealand smokers (N = 210) completed a Cigarette Purchase Task to indicate their demand for tobacco at a range of prices. They sampled an e-cigarette and rated it and their own-brand tobacco for favorability, and indicated how many e-cigarettes and regular cigarettes they would purchase at 0.5×, 1×, and 2× the current market price for regular cigarettes, assuming that the price of e-cigarettes remained constant. Cross-price elasticity for e-cigarettes was estimated as 0.16, and was significantly positive, indicating that e-cigarettes were partially substitutable for regular cigarettes. Simulated demand for regular cigarettes at current market prices decreased by 42.8% when e-cigarettes were available, and e-cigarettes were rated 81% as favorably as own-brand tobacco. However when cigarettes cost 2× the current market price, significantly more smokers said they would quit (50.2%) if e-cigarettes were not available than if they were available (30.0%). Results show that e-cigarettes are potentially substitutable for regular cigarettes and their availability will reduce tobacco consumption. However, e-cigarettes may discourage smokers from quitting entirely as cigarette price increases, so policy makers should consider maintaining a constant relative price differential between e-cigarettes and tobacco cigarettes. © The Author 2014. Published by Oxford University Press on behalf of the Society for Research on Nicotine and Tobacco. All rights reserved. For permissions, please e-mail: journals.permissions@oup.com.

  9. Pay less, consume more? The price elasticity of home care for the disabled elderly in France.

    Science.gov (United States)

    Roquebert, Quitterie; Tenand, Marianne

    2017-09-01

    Little is known about the price sensitivity of demand for home care of the disabled elderly. We partially fill this knowledge gap by using administrative data on the beneficiaries of the main French home care subsidy program in a department and exploiting interindividual variation in provider prices. We address the potential endogeneity of prices by taking advantage of the unequal spatial coverage of providers and instrumenting price by the number of municipalities served by a provider. We estimate a price elasticity of around -0.4 that is significantly different from both 0 and -1. This less than proportionate response of consumption to price has implications for the efficiency and redistributive impact of variation in the level of copayments in home care subsidy schemes. Copyright © 2017 John Wiley & Sons, Ltd.

  10. What Factors Affect the Prices of Low-Priced U.S. Solar PV Systems?

    Energy Technology Data Exchange (ETDEWEB)

    Nemet, Gregory F. [Univ. of Wisconsin, Madison, WI (United States); Mercator Research Inst. on Global Commons and Climate Change, Berlin (Germany); O' Shaughnessy, Eric [National Renewable Energy Lab. (NREL), Golden, CO (United States); Wiser, Ryan [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Darghouth, Naïm R. [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Barbose, Galen [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Gillingham, Ken [Yale Univ., New Haven, CT (United States); Rai, Varun [Univ. of Texas, Austin, TX (United States)

    2016-08-01

    The price of solar PV systems has declined rapidly, yet there are some much lower-priced systems than others. This study explores the factors leading some systems to be so much lower priced than others. Using a data set of 42,611 residential-scale PV systems installed in the U.S. in 2013, we use quantile regressions to estimate the importance of factors affecting the installed prices for low-priced (LP) systems (those at the 10th percentile) in comparison to median-priced systems. We find that the value of solar to consumers–a variable that accounts for subsidies, electric rates, and PV generation levels–is associated with lower prices for LP systems but higher prices for median priced systems. Conversely, systems installed in new home construction are associated with lower prices at the median but higher prices for LP. Other variables have larger cost-reducing effects on LP than on median priced systems: systems installed in Arizona and Florida, as well as commercial and thin film systems. In contrast, the following have a smaller effect on prices for LP systems than median priced systems: tracking systems, self-installations, systems installed in Massachusetts, the system size, and installer experience. These results highlight the complex factors at play that lead to LP systems and shed light into how such LP systems can come about.

  11. Estimating the price elasticity of expenditure for prescription drugs in the presence of non-linear price schedules: an illustration from Quebec, Canada.

    Science.gov (United States)

    Contoyannis, Paul; Hurley, Jeremiah; Grootendorst, Paul; Jeon, Sung-Hee; Tamblyn, Robyn

    2005-09-01

    The price elasticity of demand for prescription drugs is a crucial parameter of interest in designing pharmaceutical benefit plans. Estimating the elasticity using micro-data, however, is challenging because insurance coverage that includes deductibles, co-insurance provisions and maximum expenditure limits create a non-linear price schedule, making price endogenous (a function of drug consumption). In this paper we exploit an exogenous change in cost-sharing within the Quebec (Canada) public Pharmacare program to estimate the price elasticity of expenditure for drugs using IV methods. This approach corrects for the endogeneity of price and incorporates the concept of a 'rational' consumer who factors into consumption decisions the price they expect to face at the margin given their expected needs. The IV method is adapted from an approach developed in the public finance literature used to estimate income responses to changes in tax schedules. The instrument is based on the price an individual would face under the new cost-sharing policy if their consumption remained at the pre-policy level. Our preferred specification leads to expenditure elasticities that are in the low range of previous estimates (between -0.12 and -0.16). Naïve OLS estimates are between 1 and 4 times these magnitudes. (c) 2005 John Wiley & Sons, Ltd.

  12. The International Effects of U.S. Farm Subsidies

    OpenAIRE

    Eric O'N. Fisher; Harry de Gorter

    1992-01-01

    Using dynamic programming, this paper examines effects of farm subsidies on U.S. exports of corn, cotton, rice, and wheat. The six policy simulations described here explore alternative proposals in the current round of the General Agreement on Tariffs and Trade. The analysis leads to two conclusions. First, abolishing domestic subsidies lowers world prices of these crops. Second, imposing tighter supply controls may not actually decrease exports in the short run.

  13. FUTURE FOSSIL FUEL PRICE IMPACTS ON NDC ACHIEVEMENT; ESTIMATION OF GHG EMISSIONS AND MITIGATION COSTS

    Directory of Open Access Journals (Sweden)

    Yosuke Arino

    2017-12-01

    Full Text Available The Shale Revolution in the US, a supply-side innovation in oil and gas production, has been dramatically changing the world’s fossil fuel energy markets – leading to a decrease in oil, gas and coal prices. Some projections suggest that low fossil fuel prices might continue at least over the next few decades. Uncertainty in fossil fuel prices might affect the levels of emission reductions expected from submitted nationally determined contributions (NDCs and/or influence the difficulty of achieving the NDCs. This paper evaluated the impact of different (high, medium, and low fossil fuel prices, sustained through to 2050, on worldwide GHG emissions reductions and associated costs (mainly marginal abatement costs (MACs. Total global GHG emissions were estimated to be 57.5-61.5 GtCO2eq by 2030, with the range shown reflecting uncertainties about fossil fuel prices and the target levels of several NDCs (i.e., whether their upper or lower targets were adopted. It was found that lower fuel prices not only diminished the environmental effectiveness of global NDCs but also widened regional differences of marginal and total abatement costs, thereby generating more room for carbon leakage. One possible policy direction in terms of abatement efficiency, fairness and environmental effectiveness would be to require countries with low marginal and total abatement costs but having a major influence on global GHG emissions (such as China and India to increase their mitigation efforts, especially in a low-fuelprice world.

  14. Estimating consumer willingness to pay a price premium for Alaska secondary wood products.

    Science.gov (United States)

    Geoffrey H. Donovan; David L. Nicholls

    2003-01-01

    Dichotomous choice contingent valuation survey techniques were used to estimate mean willingness to pay (WTP) a price premium for made-in-Alaska secondary wood products. Respondents were asked to compare two superficially identical end tables, one made in China and one made in Alaska. The surveys were administered at home shows in Anchorage, Fairbanks, and Sitka in...

  15. Using Hedonic price model to estimate effects of flood on real ...

    African Journals Online (AJOL)

    Distances were measured in metres from the centroid of the building to the edge of the river and roads using Global Positioning System. The result of the estimation shows that property located within the floodplain are lowers in value by an average of N 493, 408 which represents 6.8 percent reduction in sales price for an ...

  16. Pricing stock options under stochastic volatility and interest rates with efficient method of moments estimation

    NARCIS (Netherlands)

    Jiang, George J.; Sluis, Pieter J. van der

    1999-01-01

    While the stochastic volatility (SV) generalization has been shown to improve the explanatory power over the Black-Scholes model, empirical implications of SV models on option pricing have not yet been adequately tested. The purpose of this paper is to first estimate a multivariate SV model using

  17. The Relationship between Child Care Subsidies and Children's Cognitive Development

    Science.gov (United States)

    Hawkinson, Laura E.; Griffen, Andrew S.; Dong, Nianbo; Maynard, Rebecca A.

    2013-01-01

    Child care subsidies help low-income families pay for child care while parents work or study. Few studies have examined the effects of child care subsidy use on child development, and no studies have done so controlling for prior cognitive skills. We use rich, longitudinal data from the ECLS-B data set to estimate the relationship between child…

  18. Energy pricing policy in Iran

    International Nuclear Information System (INIS)

    Davood Manzoor

    1995-01-01

    Low energy prices in Iran do not reflect economic costs. Further distortions exist in the tariff structures of most energy sources and in their relative prices. Price reform is a key policy element for achieving increased energy conservation and economic substitution. Subsidies should be made transparent and explained by the Government, and, when eliminated, they could be compensated by target measures or direct subsidies for low income households. Price reforms are under way, with some caution though, because of possible political and inflationary consequences. In order to better understand the need for price reforms a brief analysis of the current energy pricing policy is provided there. (author)

  19. Effects of Health-Related Food Taxes and Subsidies on Mortality from Diet-Related Disease in New Zealand: An Econometric-Epidemiologic Modelling Study.

    Science.gov (United States)

    Ni Mhurchu, Cliona; Eyles, Helen; Genc, Murat; Scarborough, Peter; Rayner, Mike; Mizdrak, Anja; Nnoaham, Kelechi; Blakely, Tony

    2015-01-01

    Health-related food taxes and subsidies may promote healthier diets and reduce mortality. Our aim was to estimate the effects of health-related food taxes and subsidies on deaths prevented or postponed (DPP) in New Zealand. A macrosimulation model based on household expenditure data, demand elasticities and population impact fractions for 18 diet-related diseases was used to estimate effects of five tax and subsidy regimens. We used price elasticity values for 24 major commonly consumed food groups in New Zealand, and food expenditure data from national Household Economic Surveys. Changes in mortality from cardiovascular disease, cancer, diabetes and other diet-related diseases were estimated. A 20% subsidy on fruit and vegetables would result in 560 (95% uncertainty interval, 400 to 700) DPP each year (1.9% annual all-cause mortality). A 20% tax on major dietary sources of saturated fat would result in 1,500 (950 to 2,100) DPP (5.0%), and a 20% tax on major dietary sources of sodium would result in 2,000 (1300 to 2,700) DPP (6.8%). Combining taxes on saturated fat and sodium with a fruit and vegetable subsidy would result in 2,400 (1,800 to 3,000) DPP (8.1% mortality annually). A tax on major dietary sources of greenhouse gas emissions would generate 1,200 (750 to 1,700) DPP annually (4.0%). Effects were similar or greater for Maori and low-income households in relative terms. Health-related food taxes and subsidies could improve diets and reduce mortality from diet-related disease in New Zealand. Our study adds to the growing evidence base suggesting food pricing policies should improve population health and reduce inequalities, but there is still much work to be done to improve estimation of health impacts.

  20. Effects of Health-Related Food Taxes and Subsidies on Mortality from Diet-Related Disease in New Zealand: An Econometric-Epidemiologic Modelling Study.

    Directory of Open Access Journals (Sweden)

    Cliona Ni Mhurchu

    Full Text Available Health-related food taxes and subsidies may promote healthier diets and reduce mortality. Our aim was to estimate the effects of health-related food taxes and subsidies on deaths prevented or postponed (DPP in New Zealand.A macrosimulation model based on household expenditure data, demand elasticities and population impact fractions for 18 diet-related diseases was used to estimate effects of five tax and subsidy regimens. We used price elasticity values for 24 major commonly consumed food groups in New Zealand, and food expenditure data from national Household Economic Surveys. Changes in mortality from cardiovascular disease, cancer, diabetes and other diet-related diseases were estimated.A 20% subsidy on fruit and vegetables would result in 560 (95% uncertainty interval, 400 to 700 DPP each year (1.9% annual all-cause mortality. A 20% tax on major dietary sources of saturated fat would result in 1,500 (950 to 2,100 DPP (5.0%, and a 20% tax on major dietary sources of sodium would result in 2,000 (1300 to 2,700 DPP (6.8%. Combining taxes on saturated fat and sodium with a fruit and vegetable subsidy would result in 2,400 (1,800 to 3,000 DPP (8.1% mortality annually. A tax on major dietary sources of greenhouse gas emissions would generate 1,200 (750 to 1,700 DPP annually (4.0%. Effects were similar or greater for Maori and low-income households in relative terms.Health-related food taxes and subsidies could improve diets and reduce mortality from diet-related disease in New Zealand. Our study adds to the growing evidence base suggesting food pricing policies should improve population health and reduce inequalities, but there is still much work to be done to improve estimation of health impacts.

  1. Robust estimation and forecasting of the long-term seasonal component of electricity spot prices

    International Nuclear Information System (INIS)

    Nowotarski, Jakub; Tomczyk, Jakub; Weron, Rafał

    2013-01-01

    We present the results of an extensive study on estimation and forecasting of the long-term seasonal component (LTSC) of electricity spot prices. We consider a battery of over 300 models, including monthly dummies and models based on Fourier or wavelet decomposition combined with linear or exponential decay. We find that the considered wavelet-based models are significantly better in terms of forecasting spot prices up to a year ahead than the commonly used monthly dummies and sine-based models. This result questions the validity and usefulness of stochastic models of spot electricity prices built on the latter two types of LTSC models. - Highlights: • First comprehensive study on the forecasting of the long-term seasonal components • Over 300 models examined, including commonly used and new approaches • Wavelet-based models outperform sine-based and monthly dummy models. • Validity of stochastic models built on sines or monthly dummies is questionable

  2. Innovation subsidies versus consumer subsidies: A real options analysis of solar energy

    International Nuclear Information System (INIS)

    Torani, Kiran; Rausser, Gordon; Zilberman, David

    2016-01-01

    Given the interest in the commercialization of affordable, clean energy technologies, we examine the prospects of solar photovoltaics (PV). We consider the question of how to transition to a meaningful percentage of solar energy in a sustainable manner and which policies are most effective in accelerating adoption. This paper develops a stochastic dynamic model of the adoption of solar PV in the residential and commercial sector under two sources of uncertainty – the price of electricity and cost of solar. The analytic results suggest that a high rate of innovation may delay adoption of a new technology if the consumer has rational price expectations. We simulate the model across alternative rates technological change, electricity prices, subsidies and carbon taxes. It is shown that there will be a displacement of incumbent technologies and a widespread shift towards solar PV in under 30 years – and that this can occur without consumer incentives and carbon pricing. We show that these policies have a modest impact in accelerating adoption, and that they may not be an effective part of climate policy. Instead, results demonstrate that further technological change is the crucial determinant and main driver of adoption. Further, results indicate that subsidies and taxes become increasingly ineffective with higher rates of technological change. - Highlights: •Stochastic dynamic model of solar PV adoption under two sources of uncertainty. •Simulation across electricity prices, technical change, subsidies and CO_2 taxes. •Rate of technical change indicates shift to solar in 25–28 years without incentives. •Modest impact of consumer subsidies and CO_2 taxes (up to $150/ton CO_2) in adoption. •R&D support/further technological change is the main driver of adoption of solar.

  3. Estimating Price Elasticity of Demand for Motor Fuel in the Transport Sectors

    Directory of Open Access Journals (Sweden)

    Olga Vasilyevna Mazurova

    2015-03-01

    Full Text Available Modeling of long-term forecasts of prices and demand on regional energy markets requires accounting for the future changes in the interactions between the greater economy and its energy sector, along with the possible emergence of new factors and specific regional features determining those interactions. The proposed approach allows the study of a correlation between demand and prices for motor fuel, taking into account the competition of energy carriers, the dynamics of energy prices, resource constraints, the use of new technologies and the uncertainty of input data. The main feature of the proposed approach is the combined estimation of the price elasticity of demand for motor fuel with optimization of fuel supply in the region. Thus the author determined elasticity of demand based on the comparison of economic efficiency of the use of different fuels. The study includes results of experimental calculations and forecasted price according to demand for motor fuel in freight transportation for the expected development conditions of the Far Eastern federal district

  4. Estimated Effects of Different Alcohol Taxation and Price Policies on Health Inequalities: A Mathematical Modelling Study.

    Directory of Open Access Journals (Sweden)

    Petra S Meier

    2016-02-01

    Full Text Available While evidence that alcohol pricing policies reduce alcohol-related health harm is robust, and alcohol taxation increases are a WHO "best buy" intervention, there is a lack of research comparing the scale and distribution across society of health impacts arising from alternative tax and price policy options. The aim of this study is to test whether four common alcohol taxation and pricing strategies differ in their impact on health inequalities.An econometric epidemiological model was built with England 2014/2015 as the setting. Four pricing strategies implemented on top of the current tax were equalised to give the same 4.3% population-wide reduction in total alcohol-related mortality: current tax increase, a 13.4% all-product duty increase under the current UK system; a value-based tax, a 4.0% ad valorem tax based on product price; a strength-based tax, a volumetric tax of £0.22 per UK alcohol unit (= 8 g of ethanol; and minimum unit pricing, a minimum price threshold of £0.50 per unit, below which alcohol cannot be sold. Model inputs were calculated by combining data from representative household surveys on alcohol purchasing and consumption, administrative and healthcare data on 43 alcohol-attributable diseases, and published price elasticities and relative risk functions. Outcomes were annual per capita consumption, consumer spending, and alcohol-related deaths. Uncertainty was assessed via partial probabilistic sensitivity analysis (PSA and scenario analysis. The pricing strategies differ as to how effects are distributed across the population, and, from a public health perspective, heavy drinkers in routine/manual occupations are a key group as they are at greatest risk of health harm from their drinking. Strength-based taxation and minimum unit pricing would have greater effects on mortality among drinkers in routine/manual occupations (particularly for heavy drinkers, where the estimated policy effects on mortality rates are as

  5. Estimated Effects of Different Alcohol Taxation and Price Policies on Health Inequalities: A Mathematical Modelling Study

    Science.gov (United States)

    Meier, Petra S.; Holmes, John; Angus, Colin; Ally, Abdallah K.; Meng, Yang; Brennan, Alan

    2016-01-01

    Introduction While evidence that alcohol pricing policies reduce alcohol-related health harm is robust, and alcohol taxation increases are a WHO “best buy” intervention, there is a lack of research comparing the scale and distribution across society of health impacts arising from alternative tax and price policy options. The aim of this study is to test whether four common alcohol taxation and pricing strategies differ in their impact on health inequalities. Methods and Findings An econometric epidemiological model was built with England 2014/2015 as the setting. Four pricing strategies implemented on top of the current tax were equalised to give the same 4.3% population-wide reduction in total alcohol-related mortality: current tax increase, a 13.4% all-product duty increase under the current UK system; a value-based tax, a 4.0% ad valorem tax based on product price; a strength-based tax, a volumetric tax of £0.22 per UK alcohol unit (= 8 g of ethanol); and minimum unit pricing, a minimum price threshold of £0.50 per unit, below which alcohol cannot be sold. Model inputs were calculated by combining data from representative household surveys on alcohol purchasing and consumption, administrative and healthcare data on 43 alcohol-attributable diseases, and published price elasticities and relative risk functions. Outcomes were annual per capita consumption, consumer spending, and alcohol-related deaths. Uncertainty was assessed via partial probabilistic sensitivity analysis (PSA) and scenario analysis. The pricing strategies differ as to how effects are distributed across the population, and, from a public health perspective, heavy drinkers in routine/manual occupations are a key group as they are at greatest risk of health harm from their drinking. Strength-based taxation and minimum unit pricing would have greater effects on mortality among drinkers in routine/manual occupations (particularly for heavy drinkers, where the estimated policy effects on

  6. Estimated Effects of Different Alcohol Taxation and Price Policies on Health Inequalities: A Mathematical Modelling Study.

    Science.gov (United States)

    Meier, Petra S; Holmes, John; Angus, Colin; Ally, Abdallah K; Meng, Yang; Brennan, Alan

    2016-02-01

    While evidence that alcohol pricing policies reduce alcohol-related health harm is robust, and alcohol taxation increases are a WHO "best buy" intervention, there is a lack of research comparing the scale and distribution across society of health impacts arising from alternative tax and price policy options. The aim of this study is to test whether four common alcohol taxation and pricing strategies differ in their impact on health inequalities. An econometric epidemiological model was built with England 2014/2015 as the setting. Four pricing strategies implemented on top of the current tax were equalised to give the same 4.3% population-wide reduction in total alcohol-related mortality: current tax increase, a 13.4% all-product duty increase under the current UK system; a value-based tax, a 4.0% ad valorem tax based on product price; a strength-based tax, a volumetric tax of £0.22 per UK alcohol unit (= 8 g of ethanol); and minimum unit pricing, a minimum price threshold of £0.50 per unit, below which alcohol cannot be sold. Model inputs were calculated by combining data from representative household surveys on alcohol purchasing and consumption, administrative and healthcare data on 43 alcohol-attributable diseases, and published price elasticities and relative risk functions. Outcomes were annual per capita consumption, consumer spending, and alcohol-related deaths. Uncertainty was assessed via partial probabilistic sensitivity analysis (PSA) and scenario analysis. The pricing strategies differ as to how effects are distributed across the population, and, from a public health perspective, heavy drinkers in routine/manual occupations are a key group as they are at greatest risk of health harm from their drinking. Strength-based taxation and minimum unit pricing would have greater effects on mortality among drinkers in routine/manual occupations (particularly for heavy drinkers, where the estimated policy effects on mortality rates are as follows: current tax

  7. Subsidies to Increase Remote Pollution?

    Science.gov (United States)

    Kliestikova, Jana; Krizanova, Anna; Corejova, Tatiana; Kral, Pavol; Spuchlakova, Erika

    2018-04-01

    During the last decade, Central Europe became a cynosure for the world for its unparalleled public support for renewable energy. For instance, the production of electricity from purpose-grown biomass received approximately twice the amount in subsidies as that produced from biowaste. Moreover, the guaranteed purchase price of electricity from solar panels was set approximately five times higher than that from conventional sources. This controversial environmental donation policy led to the devastation of large areas of arable land, a worsening of food availability, unprecedented market distortions, and serious threats to national budgets, among other things. Now, the first proposals to donate the purchase price of electric vehicles (and related infrastructure) from national budgets have appeared for public debate. Advocates of these ideas argue that they can solve the issue of electricity overproduction, and that electric vehicles will reduce emissions in cities. However, our analysis reveals that, as a result of previous scandals, environmental issues have become less significant to local citizens. Given that electric cars are not yet affordable for most people, in terms of local purchasing power, this action would further undermine national budgets. Furthermore, while today's electromobiles produce zero pollution when operated, their sum of emissions (i.e. global warming potential) remains much higher than that of conventional combustion engines. Therefore, we conclude that the mass usage of electromobiles could result in the unethical improvement of a city environment at the expense of marginal regions.

  8. Estimating Multivariate Exponentail-Affine Term Structure Models from Coupon Bound Prices using Nonlinear Filtering

    DEFF Research Database (Denmark)

    Baadsgaard, Mikkel; Nielsen, Jan Nygaard; Madsen, Henrik

    2000-01-01

    An econometric analysis of continuous-timemodels of the term structure of interest rates is presented. A panel of coupon bond prices with different maturities is used to estimate the embedded parameters of a continuous-discrete state space model of unobserved state variables: the spot interest rate...... noise term should account for model errors. A nonlinear filtering method is used to compute estimates of the state variables, and the model parameters are estimated by a quasimaximum likelihood method provided that some assumptions are imposed on the model residuals. Both Monte Carlo simulation results...

  9. HMM filtering and parameter estimation of an electricity spot price model

    International Nuclear Information System (INIS)

    Erlwein, Christina; Benth, Fred Espen; Mamon, Rogemar

    2010-01-01

    In this paper we develop a model for electricity spot price dynamics. The spot price is assumed to follow an exponential Ornstein-Uhlenbeck (OU) process with an added compound Poisson process. In this way, the model allows for mean-reversion and possible jumps. All parameters are modulated by a hidden Markov chain in discrete time. They are able to switch between different economic regimes representing the interaction of various factors. Through the application of reference probability technique, adaptive filters are derived, which in turn, provide optimal estimates for the state of the Markov chain and related quantities of the observation process. The EM algorithm is applied to find optimal estimates of the model parameters in terms of the recursive filters. We implement this self-calibrating model on a deseasonalised series of daily spot electricity prices from the Nordic exchange Nord Pool. On the basis of one-step ahead forecasts, we found that the model is able to capture the empirical characteristics of Nord Pool spot prices. (author)

  10. Energy subsidies in Argentina lead to inequalities and low thermal efficiency

    International Nuclear Information System (INIS)

    Gonzalez, A. D.

    2009-01-01

    Natural gas is the main energy resource for buildings in Argentina. Since 2002, subsidies have kept the prices of this fuel between 9 and 26 times lower than regular prices in other countries. The lowest prices are the result of climate-related subsidies. In cold areas, heating uses several times more energy than locations in Europe with a similar climate. A potential for consumption reductions of up to 70% suggests a very low building thermal performance. The main barriers to finding a solution are the heavy subsidies and public unawareness. Users, government officials, and construction professionals do not identify the very low thermal efficiency. Energy policies to encourage improvements are proposed. (author)

  11. Estimating the Impact of Low-Income Universal Service Programs

    OpenAIRE

    Daniel A. Ackerberg; David R. DeRemer; Michael H. Riordan; Gregory L. Rosston; Bradley S. Wimmer

    2013-01-01

    This policy study uses U.S. Census microdata to evaluate how subsidies for universal telephone service vary in their impact across low-income racial groups, gender, age, and home ownership. Our demand specification includes both the subsidized monthly price (Lifeline program) and the subsidized initial connection price (Linkup program) for local telephone service. Our quasi-maximum likelihood estimation controls for location differences and instruments for price endogeneity. The microdata all...

  12. Subsidy modes, waste cooking oil and biofuel: Policy effectiveness and sustainable supply chains in China

    International Nuclear Information System (INIS)

    Zhang, Huiming; Li, Lianshui; Zhou, Peng; Hou, Jianmin; Qiu, Yueming

    2014-01-01

    Many countries are concerned with the waste-to-energy for economic development and societal welfare. This paper constructs a dynamic game model that, for the first time compares the incentive effects of four common subsidy modes on waste cooking oil supply for biofuel refining and sales of waste cooking oil refined products. The model considers the impact of preferential tax treatment, a raw material subsidy, a sales subsidy and an investment subsidy on the profits of biofuel enterprises and waste cooking oil recyclers. Results indicate that common approaches adopted in developed economies such as raw material price subsidies and finished products sales subsidies increase the profits of both biofuel enterprises and recyclers. On the contrary, investment subsidies, which are relatively common in some regions of China, increase the profits of recyclers, while reducing revenues achieved by biofuel enterprises. To promote the supply chain, policy should give priority to raw material price subsidies and finished products sales subsidies, and for investment subsidies, however, the government should be cautious

  13. Estimating local, organic, and other price premiums of shell eggs in Hawaii.

    Science.gov (United States)

    Loke, Matthew K; Xu, Xun; Leung, PingSun

    2016-05-01

    Hedonic modeling and retail scanner data were utilized to investigate the influence of local, organic, nutrition benefits, and other attributes of shell eggs on retail price premium in Hawaii. Within a revealed preference framework, the analysis of local and organic attributes, simultaneously, under a single unified setting is important, as such work is highly deficient in the published literature. This paper finds high to moderate price premiums in four key attributes of shell eggs - organic (64%), local (40%), nutrition benefits claimed (33%), and brown shell (18.4%). Large and extra-large sized eggs also experience price premiums over medium sized eggs. With each larger packing size, the estimated coefficients were negative, indicating a price discount, relative to the baseline packing size. However, there is no evidence to support the overwhelming influence of "local" over "organic", as hypothesized in other research work. Overall, the findings in this paper suggest industry producers and retailers should highlight and market effusively the primary attributes of their shell eggs, including "local", to remain competitive in the marketplace. Effective communication channels are crucial to delivering the product information, capturing the attention of consumers, and securing retail sales. © 2016 Poultry Science Association Inc.

  14. The role of efficiency estimates in regulatory price reviews: Ofgem's approach to benchmarking electricity networks

    International Nuclear Information System (INIS)

    Pollitt, Michael

    2005-01-01

    Electricity regulators around the world make use of efficiency analysis (or benchmarking) to produce estimates of the likely amount of cost reduction which regulated electric utilities can achieve. This short paper examines the use of such efficiency estimates by the UK electricity regulator (Ofgem) within electricity distribution and transmission price reviews. It highlights the place of efficiency analysis within the calculation of X factors. We suggest a number of problems with the current approach and make suggestions for the future development of X factor setting. (author)

  15. Recommendation on the Dutch MEP subsidy 2006 for cogeneration

    International Nuclear Information System (INIS)

    Harmsen, R.

    2005-11-01

    The results of an analysis of the impact of the Dutch subsidy scheme 'MEP' (environmental quality of electric power generation) on the cost-effectiveness of CHP (combined heat and power production) plants. The MEP scheme provides a reward for the CO2 reduction by CHP plants and offers therefore an incentive for energy efficient operation. In 2006 the MEP subsidy is available for CHP plants that started their operation after 1 January 1997. The subsidy will be differentiated based on CHP type and power capacity. Main outcome of the report is a subsidy advise, which complies with the European Community Guidelines on Aid for Environmental Protection. Based on the subsidy advise a budget for the CHP MEP scheme has been estimated [nl

  16. Statistical model for forecasting uranium prices to estimate the nuclear fuel cycle cost

    Energy Technology Data Exchange (ETDEWEB)

    Kim, Sung Ki; Ko, Won Il; Nam, Hyoon [Nuclear Fuel Cycle Analysis, Korea Atomic Energy Research Institute, Daejeon (Korea, Republic of); Kim, Chul Min; Chung, Yang Hon; Bang, Sung Sig [Korea Advanced Institute of Science and Technology, Daejeon (Korea, Republic of)

    2017-08-15

    This paper presents a method for forecasting future uranium prices that is used as input data to calculate the uranium cost, which is a rational key cost driver of the nuclear fuel cycle cost. In other words, the statistical autoregressive integrated moving average (ARIMA) model and existing engineering cost estimation method, the so-called escalation rate model, were subjected to a comparative analysis. When the uranium price was forecasted in 2015, the margin of error of the ARIMA model forecasting was calculated and found to be 5.4%, whereas the escalation rate model was found to have a margin of error of 7.32%. Thus, it was verified that the ARIMA model is more suitable than the escalation rate model at decreasing uncertainty in nuclear fuel cycle cost calculation.

  17. Statistical model for forecasting uranium prices to estimate the nuclear fuel cycle cost

    International Nuclear Information System (INIS)

    Kim, Sung Ki; Ko, Won Il; Nam, Hyoon; Kim, Chul Min; Chung, Yang Hon; Bang, Sung Sig

    2017-01-01

    This paper presents a method for forecasting future uranium prices that is used as input data to calculate the uranium cost, which is a rational key cost driver of the nuclear fuel cycle cost. In other words, the statistical autoregressive integrated moving average (ARIMA) model and existing engineering cost estimation method, the so-called escalation rate model, were subjected to a comparative analysis. When the uranium price was forecasted in 2015, the margin of error of the ARIMA model forecasting was calculated and found to be 5.4%, whereas the escalation rate model was found to have a margin of error of 7.32%. Thus, it was verified that the ARIMA model is more suitable than the escalation rate model at decreasing uncertainty in nuclear fuel cycle cost calculation

  18. Reducing fuel subsidies and the implication on fiscal balance and poverty in Indonesia: A simulation analysis

    International Nuclear Information System (INIS)

    Dartanto, Teguh

    2013-01-01

    There is an urgent need for phasing out fuel subsidies in Indonesia due to a severe budget deficit and a worsening of income distribution. Fuel subsidies, of which almost 72% are enjoyed by the 30% of the richest income groups, have consumed on average 63.8% of the total subsidies between 1998 and 2013. This paper aims at evaluating the relationship between existing fuel subsidies and fiscal balance and at analysing the poverty impact of phasing out fuel subsidies. Applying a CGE-microsimulation, this study found that removing 25% of fuel subsidies increases the incidence of poverty by 0.259 percentage points. If this money were fully allocated to government spending, the poverty incidence would decrease by 0.27 percentage points. Moreover, the 100% removal of fuel subsidies and the reallocation of 50% of them to government spending, transfers and other subsidies could decrease the incidence of poverty by 0.277 percentage points. However, these reallocation policies might not be effective in compensating for the adverse impacts of the 100% removal of fuel subsidies if economic agents try to seek profit through mark-up pricing over the increase of production costs. - Highlights: ► Massive fuel subsidies reduce fiscal spaces used to alleviate poverty in Indonesia. ► Indonesia can avoid a budget deficit by 78% cutting of fuel subsidies. ► A CGE-microsimulation is applied to analyse the impacts of fuel subsidy reallocation. ► The 50% of reallocation fuel subsidies decreases the poverty by 0.277 percentage points. ► Mark-up pricing done by economic agents reduces the effectiveness of reallocation

  19. Carbon Emission Reduction with Regard to Retailer’s Fairness Concern and Subsidies

    Directory of Open Access Journals (Sweden)

    Linghong Zhang

    2018-04-01

    Full Text Available This paper considers the impact of consumer environmental awareness (CEA, retailer’s fairness concern, and government subsidies on the two echelon supply chain with one manufacturer and one retailer. The manufacturer produces green products with carbon emission reduction. The government provides two types of alternative subsidies: a fixed subsidy (referred to as an F-type subsidy or a discount subsidy (referred to as a D-type subsidy to encourage the manufacturer to produce a product with a high carbon emission reduction rate. We aim to provide optimal solutions to the manufacturer and the retailer with regard to the retailer’s fairness concern and government subsidies; thus we discuss four decision scenarios: the benchmark model without the fairness concern and subsidy, the model with the retailer’s fairness concern, the model with fairness concern and the F-type subsidy, and the model with fairness concern and the D-type subsidy. We provide explicit solutions and numerical examples of the optimal carbon emission reduction rate, wholesale price, and retail price. Our study has four main findings: firstly, high consumer environmental awareness will benefit both the manufacturer and the retailer in the above four scenarios; secondly, the fairness concern and subsidy have a counter effect on the optimal strategies (the subsidy could alleviate the negative influence caused by retailer’s fairness concern; thirdly, the government could subsidize the retailer when there is unfairness in the supply chain so that the manufacturer could produce a product with lower carbon emission; finally, using the subsidy related to the environmental quality will be more helpful for improving environment quality, especially when the government has a budget constraint.

  20. What Happens to Patterns of Food Consumption when Food Prices Change? Evidence from A Systematic Review and Meta-Analysis of Food Price Elasticities Globally.

    Science.gov (United States)

    Cornelsen, Laura; Green, Rosemary; Turner, Rachel; Dangour, Alan D; Shankar, Bhavani; Mazzocchi, Mario; Smith, Richard D

    2015-12-01

    Recent years have seen considerable interest in examining the impact of food prices on food consumption and subsequent health consequences. Fiscal policies targeting the relative price of unhealthy foods are frequently put forward as ways to address the obesity epidemic. Conversely, various food subsidy interventions are used in attempts to reduce levels of under-nutrition. Information on price elasticities is essential for understanding how such changes in food prices affect food consumption. It is crucial to know not only own-price elasticities but also cross-price elasticities, as food substitution patterns may have significant implications for policy recommendations. While own-price elasticities are common in analyses of the impact of food price changes on health, cross-price effects, even though generally acknowledged, are much less frequently included in analyses, especially in the public health literature. This article systematically reviews the global evidence on cross-price elasticities and provides combined estimates for seven food groups in low-income, middle-income and high-income countries alongside previously estimated own-price elasticities. Changes in food prices had the largest own-price effects in low-income countries. Cross-price effects were more varied and depending on country income level were found to be reinforcing, undermining or alleviating own-price effects. Copyright © 2014 John Wiley & Sons, Ltd.

  1. Sustainable energy policy: the impact of government subsidies on ethanol as a renewable fuel

    Science.gov (United States)

    Osuagwu, Denis Ahamarula

    The United States Congress passed the Energy Policy Act of 1978 to promote ethanol production and reduce American dependence on foreign oil. The provision of subsidies in the act is indicative of the importance of energy in the economy. America needs a national energy policy that is economically, socially, and environmentally sustainable. Considering the importance of these needs, this study examines (a) the implementation of the Energy Policy Act of 1978 in regard to government subsidies and its effect on ethanol production, (b) the effect of gasoline consumption and cost on ethanol production, (c) the effect of corn production and price on ethanol fuel, and (d) the role of mandates and global crises on ethanol production. Secondary qualitative and quantitative data collected from various sources in 1978 through 2005 study the effect of ethanol subsidies on ethanol production. An autoregression error model is used to estimate the relevance of the explanatory variables on variations in ethanol production. The following are major study findings: (1) there is a positive correlation between corn production and ethanol production, is statistically significant; (2) government subsidies have a statistically significant positive correlation with ethanol production; (3) oil import has a statistically significant positive correlation with ethanol production, but has not contributed to a reduction the quantity of imported oil; (4) the price of corn has a statistically significant inverse relationship with ethanol production; (5) though not statistically significant, the price per barrel of oil is inversely related to ethanol production; (6) the budget surplus or deficit is associated with ethanol production; and (7) advocacy and lobbying for renewable fuel have encouraged support of ethanol production. The findings also show that global crises in the oil producing regions tend to influence the passage of favorable legislation for ethanol production. Furthermore, the

  2. State of the art in the estimation of energy prices in the spot market

    International Nuclear Information System (INIS)

    Botero B, Sergio; Cano C, Jovan A

    2007-01-01

    Since the start energy markets deregulation in the world, several spot market (short term) price prediction methods have been developed? this article identifies and compares the main methods of prediction used in Colombia and other international markets. With this review it is possible to determine the state of the knowledge in the specific subject and then to look for the development of new forecasting techniques that can contribute to the solution of this problem. The prediction horizon is something that must be taken into account in the review of the several techniques, given that both the magnitude of the final model of estimation, and the time series treatment type, depend on this horizon.

  3. APPLYING ARTIFICIAL NEURAL NETWORK OPTIMIZED BY FIREWORKS ALGORITHM FOR STOCK PRICE ESTIMATION

    Directory of Open Access Journals (Sweden)

    Khuat Thanh Tung

    2016-04-01

    Full Text Available Stock prediction is to determine the future value of a company stock dealt on an exchange. It plays a crucial role to raise the profit gained by firms and investors. Over the past few years, many methods have been developed in which plenty of efforts focus on the machine learning framework achieving the promising results. In this paper, an approach based on Artificial Neural Network (ANN optimized by Fireworks algorithm and data preprocessing by Haar Wavelet is applied to estimate the stock prices. The system was trained and tested with real data of various companies collected from Yahoo Finance. The obtained results are encouraging.

  4. Nigeria’s Petroleum Subsidy: In Whose Interest is it?

    Directory of Open Access Journals (Sweden)

    Emmanuel Olusegun Stober

    2016-03-01

    Full Text Available Subsidy has been defined as any government intervention, in cash or kind, to private sector producers or consumers for which the government receives no equivalent compensation in return. Fuel subsidy has been a growing liability to Nigeria’s budgets, in a systematic fashion for almost four decades, hence creating vested interest. The exponential growth of cost of fuel subsidy is due to the rising cost of crude oil in the international market, exchange rate volatility and the population growth of Nigeria which resulted in increased petroleum consumption; the combination of these three variables therefore made the cost of the fuel subsidy unsustainable. Understanding the current fuel subsidies magnitude is critical for advancing reform because it underscores the potential socio-economic benefits to be realized. In addition to the burden that fuel subsidy is placing on the national budget, keeping petroleum below the market value has discouraged additional investment in Nigeria’s oil sector, because the visibility of recovering the investment under the artificially low price structure is uncertain.

  5. Non-cooperative and cooperative solutions of government subsidy on public transportation

    Directory of Open Access Journals (Sweden)

    Husniah Hennie

    2018-01-01

    Full Text Available The paper deals with two models of government subsidy given to a public transport operator: (i the subsidy for buying bus from an appointed public transport manufacturer, and (ii the subsidy for reimbursing reduced ticket price for passengers. The models are developed to determine the maximum profit for both the public transport operator and the manufacturer. Since we consider two parties – the public transport operator and the manufacturer of the bus, then we use game theoretical approach by considering non-cooperative and cooperative solutions. Furthermore, since the bus is repairable we consider virtual age to model the preventive maintenance and we consider minimal repair to model the corrective maintenance. We analyse both type of subsidy models and give some numerical examples which show the effects of different subsidies to the profit of operator and manufacturer. The result of the numerical examples indicates that reducing ticket price would give a higher profit both to the operator and the manufacturer.

  6. Emissions leakage and subsidies for pollution abatement. Pay the polluter or the supplier of the remedy?

    Energy Technology Data Exchange (ETDEWEB)

    Fischer, Carolyn; Greaker, Mads; Rosendahl, Knut Einar

    2012-07-01

    Asymmetric regulation of a global pollutant between countries can alter the competitiveness of industries and lead to emissions leakage. For most types of pollution, abatement technologies are available for firms to produce with lower emissions. However, the suppliers of those technologies tend to be less than perfectly competitive, particularly when both emissions regulations and advanced technologies are new. In this context of twin market failures, we consider the relative effects and desirability of subsidies for abatement technology. We find a more robust recommendation for upstream subsidies than for downstream subsidies. Downstream subsidies tend to increase global abatement technology prices, reduce pollution abatement abroad and increase emission leakage. On the contrary, upstream subsidies reduce abatement technology prices, and hence also emissions leakage.(Author)

  7. Simulating the Effects of Various Pricing Scenarios on Water Tariff System

    Directory of Open Access Journals (Sweden)

    saeid Yazdani

    2015-03-01

    Full Text Available Water demand management policies and water pricing tools have important effects on optimal water allocation. An important water pricing policy is determining suitable water tariffs for urban water uses. In this regard, the emphasis laid by the targeted subsidy law on water pricing based on supply cost will have a great impact on the price of water and on water resources management. Based on these considerations, the present study was designed and conducted in 2010-2011 to identify proper water prices for Golestan Province under the targeted subsidy law. For this purpose, the economic value of water as veiwed by urban users was estimated using the contingent valuation method. In a second stage, the average cost approach was employed to determine the cost of water production from surface and ground water resources from the viewpoint of suppliers. Finally, the present water tariffs, the economic value of water, and the average cost of water production obtained in the previous sategs were compared to evaluate various scenarios of water pricing under the targeted subsidy law. Based on our findings, a stepwise water pricing system that strikes a balance between the economic value of water and water production cost is recommended for implementation in order achieve simultaneous improvements in both water demand and supply management.

  8. The potential impact of food taxes and subsidies on cardiovascular disease and diabetes burden and disparities in the United States.

    Science.gov (United States)

    Peñalvo, José L; Cudhea, Frederick; Micha, Renata; Rehm, Colin D; Afshin, Ashkan; Whitsel, Laurie; Wilde, Parke; Gaziano, Tom; Pearson-Stuttard, Jonathan; O'Flaherty, Martin; Capewell, Simon; Mozaffarian, Dariush

    2017-11-27

    Fiscal interventions are promising strategies to improve diets, reduce cardiovascular disease and diabetes (cardiometabolic diseases; CMD), and address health disparities. The aim of this study is to estimate the impact of specific dietary taxes and subsidies on CMD deaths and disparities in the US. Using nationally representative data, we used a comparative risk assessment to model the potential effects on total CMD deaths and disparities of price subsidies (10%, 30%) on fruits, vegetables, whole grains, and nuts/seeds and taxes (10%, 30%) on processed meat, unprocessed red meats, and sugar-sweetened beverages. We modeled two gradients of price-responsiveness by education, an indicator of socioeconomic status (SES), based on global price elasticities (18% greater price-responsiveness in low vs. high SES) and recent national experiences with taxes on sugar-sweetened beverages (65% greater price-responsiveness in low vs. high SES). Each price intervention would reduce CMD deaths. Overall, the largest proportional reductions were seen in stroke, followed by diabetes and coronary heart disease. Jointly altering prices of all seven dietary factors (10% each, with 18% greater price-responsiveness by SES) would prevent 23,174 (95% UI 22,024-24,595) CMD deaths/year, corresponding to 3.1% (95% UI 2.9-3.4) of CMD deaths among Americans with a lower than high school education, 3.6% (95% UI 3.3-3.8) among high school graduates/some college, and 2.9% (95% UI 2.7-3.5) among college graduates. Applying a 30% price change and larger price-responsiveness (65%) in low SES, the corresponding reductions were 10.9% (95% UI 9.2-10.8), 9.8% (95% UI 9.1-10.4), and 6.7% (95% UI 6.2-7.6). The latter scenario would reduce disparities in CMD between Americans with lower than high school versus a college education by 3.5 (95% UI 2.3-4.5) percentage points. Modest taxes and subsidies for key dietary factors could meaningfully reduce CMD and improve US disparities.

  9. Environmental effects of indirect subsidies

    International Nuclear Information System (INIS)

    Van Beers, C.P.; De Moor, A.P.G.; Van den Bergh, J.C.J.M.; Oosterhuis, F.H.

    2003-01-01

    The aim of the study on the title subject is to develop a transparent integrated method to determine and analyze the environmental impacts of indirect subsidies, applied in the sectors agriculture, energy, mobility, and tourism. From the results it appears that the hazardous effects of subsidies are big. Examples are milk, the regulating energy levy, and kerosene [nl

  10. Implementation of Equilibrium-Price Model to the Estimation of Import Inflation

    Directory of Open Access Journals (Sweden)

    Yadulla Hasanli

    2015-04-01

    Full Text Available This study aims at investigating the the import inflationary processes as a result of feedbacks of mutual economic relations of World countries. It is used Equilibrium Price Model to estimate the import inflationary processes in CIS countries. The study investigates the further results regarding the import inflationary processes in the CIS countries on the scenario of increasing the Value Added norm in Russia. As well as by standpoint of economic growth and price stability, the recent revaluation of US dollar in the World and its impacts to total output of other countries have been investigated in details. In other words due to revaluation of the US dollar, if the final product decreases in USA, this decreasing impact how to be transmitted to the world countries have been estimated by the Input-Output Table in this study as well. The work is fulfilled on the Input-Output data for the year 2011. This study assumes theoretical and practical importance in defining the monetary policy.

  11. Estimating the system price of redox flow batteries for grid storage

    Science.gov (United States)

    Ha, Seungbum; Gallagher, Kevin G.

    2015-11-01

    Low-cost energy storage systems are required to support extensive deployment of intermittent renewable energy on the electricity grid. Redox flow batteries have potential advantages to meet the stringent cost target for grid applications as compared to more traditional batteries based on an enclosed architecture. However, the manufacturing process and therefore potential high-volume production price of redox flow batteries is largely unquantified. We present a comprehensive assessment of a prospective production process for aqueous all vanadium flow battery and nonaqueous lithium polysulfide flow battery. The estimated investment and variable costs are translated to fixed expenses, profit, and warranty as a function of production volume. When compared to lithium-ion batteries, redox flow batteries are estimated to exhibit lower costs of manufacture, here calculated as the unit price less materials costs, owing to their simpler reactor (cell) design, lower required area, and thus simpler manufacturing process. Redox flow batteries are also projected to achieve the majority of manufacturing scale benefits at lower production volumes as compared to lithium-ion. However, this advantage is offset due to the dramatically lower present production volume of flow batteries compared to competitive technologies such as lithium-ion.

  12. Effects of beverage alcohol price and tax levels on drinking: a meta-analysis of 1003 estimates from 112 studies.

    Science.gov (United States)

    Wagenaar, Alexander C; Salois, Matthew J; Komro, Kelli A

    2009-02-01

    We conducted a systematic review of studies examining relationships between measures of beverage alcohol tax or price levels and alcohol sales or self-reported drinking. A total of 112 studies of alcohol tax or price effects were found, containing 1003 estimates of the tax/price-consumption relationship. Studies included analyses of alternative outcome measures, varying subgroups of the population, several statistical models, and using different units of analysis. Multiple estimates were coded from each study, along with numerous study characteristics. Using reported estimates, standard errors, t-ratios, sample sizes and other statistics, we calculated the partial correlation for the relationship between alcohol price or tax and sales or drinking measures for each major model or subgroup reported within each study. Random-effects models were used to combine studies for inverse variance weighted overall estimates of the magnitude and significance of the relationship between alcohol tax/price and drinking. Simple means of reported elasticities are -0.46 for beer, -0.69 for wine and -0.80 for spirits. Meta-analytical results document the highly significant relationships (P price measures and indices of sales or consumption of alcohol (aggregate-level r = -0.17 for beer, -0.30 for wine, -0.29 for spirits and -0.44 for total alcohol). Price/tax also affects heavy drinking significantly (mean reported elasticity = -0.28, individual-level r = -0.01, P prices and taxes are related inversely to drinking. Effects are large compared to other prevention policies and programs. Public policies that raise prices of alcohol are an effective means to reduce drinking.

  13. Cost and price estimate of Brayton and Stirling engines in selected production volumes

    Science.gov (United States)

    Fortgang, H. R.; Mayers, H. F.

    1980-01-01

    The methods used to determine the production costs and required selling price of Brayton and Stirling engines modified for use in solar power conversion units are presented. Each engine part, component and assembly was examined and evaluated to determine the costs of its material and the method of manufacture based on specific annual production volumes. Cost estimates are presented for both the Stirling and Brayton engines in annual production volumes of 1,000, 25,000, 100,000 and 400,000. At annual production volumes above 50,000 units, the costs of both engines are similar, although the Stirling engine costs are somewhat lower. It is concluded that modifications to both the Brayton and Stirling engine designs could reduce the estimated costs.

  14. Levelized cost of electricity (LCOE) of renewable energies and required subsidies in China

    International Nuclear Information System (INIS)

    Ouyang, Xiaoling; Lin, Boqiang

    2014-01-01

    The development and utilization of renewable energy (RE), a strategic choice for energy structural adjustment, is an important measure of carbon emissions reduction in China. High cost is a main restriction element for large-scale development of RE, and accurate cost estimation of renewable power generation is urgently necessary. This is the first systemic study on the levelized cost of electricity (LCOE) of RE in China. Results indicate that feed-in-tariff (FIT) of RE should be improved and dynamically adjusted based on the LCOE to provide a better support of the development of RE. The current FIT in China can only cover the LCOE of wind (onshore) and solar photovoltaic energy (PV) at a discount rate of 5%. Subsidies to renewables-based electricity generation, except biomass energy, still need to be increased at higher discount rates. Main conclusions are drawn as follows: (1) Government policy should focus on solving the financing problem of RE projects because fixed capital investment exerts considerable influence over the LCOE; and (2) the problem of high cost could be solved by providing subsidies in the short term and more importantly, by reforming electricity price in the mid-and long-term to make the RE competitive. - Highlights: • Levelized cost of electricity (LCOE) of renewable energies is systemically studied. • Renewable power generation costs are estimated based on data of 17 power plants. • Required subsidies for renewable power generation are calculated. • Electricity price reform is the long-term strategy for solving problem of high cost

  15. Development of an evolutionary fuzzy expert system for estimating future behavior of stock price

    Science.gov (United States)

    Mehmanpazir, Farhad; Asadi, Shahrokh

    2017-03-01

    The stock market has always been an attractive area for researchers since no method has been found yet to predict the stock price behavior precisely. Due to its high rate of uncertainty and volatility, it carries a higher risk than any other investment area, thus the stock price behavior is difficult to simulation. This paper presents a "data mining-based evolutionary fuzzy expert system" (DEFES) approach to estimate the behavior of stock price. This tool is developed in seven-stage architecture. Data mining is used in three stages to reduce the complexity of the whole data space. The first stage, noise filtering, is used to make our raw data clean and smooth. Variable selection is second stage; we use stepwise regression analysis to choose the key variables been considered in the model. In the third stage, K-means is used to divide the data into sub-populations to decrease the effects of noise and rebate complexity of the patterns. At next stage, extraction of Mamdani type fuzzy rule-based system will be carried out for each cluster by means of genetic algorithm and evolutionary strategy. In the fifth stage, we use binary genetic algorithm to rule filtering to remove the redundant rules in order to solve over learning phenomenon. In the sixth stage, we utilize the genetic tuning process to slightly adjust the shape of the membership functions. Last stage is the testing performance of tool and adjusts parameters. This is the first study on using an approximate fuzzy rule base system and evolutionary strategy with the ability of extracting the whole knowledge base of fuzzy expert system for stock price forecasting problems. The superiority and applicability of DEFES are shown for International Business Machines Corporation and compared the outcome with the results of the other methods. Results with MAPE metric and Wilcoxon signed ranks test indicate that DEFES provides more accuracy and outperforms all previous methods, so it can be considered as a superior tool for

  16. Subsidy Competition for FDI: Fierce or Weak?

    OpenAIRE

    Tomáš Havránek

    2009-01-01

    The objective of this paper is to empirically assess the recently introduced models of subsidy competition based on the classical oligopoly theories, using both cross-sectional and panel data. Three crucial scenarios (including coordination, weak competition, and fierce competition) are tested employing OLS, iteratively re-weighted least squares, fixed effects, and Blundell-Bond estimator. The results suggest that none of the scenarios can be strongly supported—although there is some weak sup...

  17. Do Canadian electricity prices reflect costs?

    International Nuclear Information System (INIS)

    Jaccard, M.

    1993-01-01

    In an article by Cairns and Heyes (1993), it is argued that electricity pricing in Canada diverges from cost due to inter-class rate design that results in cross-subsidies, subsidized cost of capital, intra-class rate design that lacks time-of-use pricing, and failure to collect differential rent. Some problems with the key components of the initial assumption that prices diverge from cost are examined. The premise that inter-class rate design results in cross-subsidies may be correct, but is difficult to test since unregulated crown utilities are not required to make the necessary information public. Cairns and Heyes are on firmer ground in their assertion that provincial government backing of utility debts leads to lower costs of capital than would otherwise occur. Quebec and British Columbia governments have recently undertaken revenue collection initiatives justified under the rationale of addressing this situation. However, there are problems with the assumption that lack of time-of-use pricing indicates cost/price divergence, since such pricing is especially relevant in capacity-critical systems. Most hydroelectric systems are energy-critical and time-of-use differentials are not appropriate. Finally, recent evidence suggests reassessing the differential rent assumptions of the 1980s. The economic rents estimated in that period may be more accurately described as windfall rents existing in the short term while markets adjust to erratic fuel prices and cost changes in nuclear and hydro energy. There may be good economic efficiency arguments against short-term rent collection strategies involving erratic price adjustments. 1 ref

  18. Limited emission reductions from fuel subsidy removal except in energy-exporting regions

    Science.gov (United States)

    Jewell, Jessica; McCollum, David; Emmerling, Johannes; Bertram, Christoph; Gernaat, David E. H. J.; Krey, Volker; Paroussos, Leonidas; Berger, Loïc; Fragkiadakis, Kostas; Keppo, Ilkka; Saadi, Nawfal; Tavoni, Massimo; van Vuuren, Detlef; Vinichenko, Vadim; Riahi, Keywan

    2018-02-01

    Hopes are high that removing fossil fuel subsidies could help to mitigate climate change by discouraging inefficient energy consumption and levelling the playing field for renewable energy. In September 2016, the G20 countries re-affirmed their 2009 commitment (at the G20 Leaders’ Summit) to phase out fossil fuel subsidies and many national governments are using today’s low oil prices as an opportunity to do so. In practical terms, this means abandoning policies that decrease the price of fossil fuels and electricity generated from fossil fuels to below normal market prices. However, whether the removal of subsidies, even if implemented worldwide, would have a large impact on climate change mitigation has not been systematically explored. Here we show that removing fossil fuel subsidies would have an unexpectedly small impact on global energy demand and carbon dioxide emissions and would not increase renewable energy use by 2030. Subsidy removal would reduce the carbon price necessary to stabilize greenhouse gas concentration at 550 parts per million by only 2-12 per cent under low oil prices. Removing subsidies in most regions would deliver smaller emission reductions than the Paris Agreement (2015) climate pledges and in some regions global subsidy removal may actually lead to an increase in emissions, owing to either coal replacing subsidized oil and natural gas or natural-gas use shifting from subsidizing, energy-exporting regions to non-subsidizing, importing regions. Our results show that subsidy removal would result in the largest CO2 emission reductions in high-income oil- and gas-exporting regions, where the reductions would exceed the climate pledges of these regions and where subsidy removal would affect fewer people living below the poverty line than in lower-income regions.

  19. Limited emission reductions from fuel subsidy removal except in energy-exporting regions.

    Science.gov (United States)

    Jewell, Jessica; McCollum, David; Emmerling, Johannes; Bertram, Christoph; Gernaat, David E H J; Krey, Volker; Paroussos, Leonidas; Berger, Loïc; Fragkiadakis, Kostas; Keppo, Ilkka; Saadi, Nawfal; Tavoni, Massimo; van Vuuren, Detlef; Vinichenko, Vadim; Riahi, Keywan

    2018-02-07

    Hopes are high that removing fossil fuel subsidies could help to mitigate climate change by discouraging inefficient energy consumption and levelling the playing field for renewable energy. In September 2016, the G20 countries re-affirmed their 2009 commitment (at the G20 Leaders' Summit) to phase out fossil fuel subsidies and many national governments are using today's low oil prices as an opportunity to do so. In practical terms, this means abandoning policies that decrease the price of fossil fuels and electricity generated from fossil fuels to below normal market prices. However, whether the removal of subsidies, even if implemented worldwide, would have a large impact on climate change mitigation has not been systematically explored. Here we show that removing fossil fuel subsidies would have an unexpectedly small impact on global energy demand and carbon dioxide emissions and would not increase renewable energy use by 2030. Subsidy removal would reduce the carbon price necessary to stabilize greenhouse gas concentration at 550 parts per million by only 2-12 per cent under low oil prices. Removing subsidies in most regions would deliver smaller emission reductions than the Paris Agreement (2015) climate pledges and in some regions global subsidy removal may actually lead to an increase in emissions, owing to either coal replacing subsidized oil and natural gas or natural-gas use shifting from subsidizing, energy-exporting regions to non-subsidizing, importing regions. Our results show that subsidy removal would result in the largest CO 2 emission reductions in high-income oil- and gas-exporting regions, where the reductions would exceed the climate pledges of these regions and where subsidy removal would affect fewer people living below the poverty line than in lower-income regions.

  20. Estimation of stochastic volatility with long memory for index prices of FTSE Bursa Malaysia KLCI

    Energy Technology Data Exchange (ETDEWEB)

    Chen, Kho Chia; Kane, Ibrahim Lawal; Rahman, Haliza Abd [Department of Mathematical Sciences, Faculty of Science, Universiti Teknologi Malaysia, 81310, Johor Bahru (Malaysia); Bahar, Arifah [UTM Centre for Industrial and Applied Mathematics (UTM-CIAM), Universiti Teknologi Malaysia, 81310, Johor Bahru and Department of Mathematical Sciences, Faculty of Science, Universiti Teknologi Malaysia, 81310, Johor Bahru (Malaysia); Ting, Chee-Ming [Center for Biomedical Engineering, Universiti Teknologi Malaysia, 81310, Johor Bahru (Malaysia)

    2015-02-03

    In recent years, modeling in long memory properties or fractionally integrated processes in stochastic volatility has been applied in the financial time series. A time series with structural breaks can generate a strong persistence in the autocorrelation function, which is an observed behaviour of a long memory process. This paper considers the structural break of data in order to determine true long memory time series data. Unlike usual short memory models for log volatility, the fractional Ornstein-Uhlenbeck process is neither a Markovian process nor can it be easily transformed into a Markovian process. This makes the likelihood evaluation and parameter estimation for the long memory stochastic volatility (LMSV) model challenging tasks. The drift and volatility parameters of the fractional Ornstein-Unlenbeck model are estimated separately using the least square estimator (lse) and quadratic generalized variations (qgv) method respectively. Finally, the empirical distribution of unobserved volatility is estimated using the particle filtering with sequential important sampling-resampling (SIR) method. The mean square error (MSE) between the estimated and empirical volatility indicates that the performance of the model towards the index prices of FTSE Bursa Malaysia KLCI is fairly well.

  1. Estimation of stochastic volatility with long memory for index prices of FTSE Bursa Malaysia KLCI

    Science.gov (United States)

    Chen, Kho Chia; Bahar, Arifah; Kane, Ibrahim Lawal; Ting, Chee-Ming; Rahman, Haliza Abd

    2015-02-01

    In recent years, modeling in long memory properties or fractionally integrated processes in stochastic volatility has been applied in the financial time series. A time series with structural breaks can generate a strong persistence in the autocorrelation function, which is an observed behaviour of a long memory process. This paper considers the structural break of data in order to determine true long memory time series data. Unlike usual short memory models for log volatility, the fractional Ornstein-Uhlenbeck process is neither a Markovian process nor can it be easily transformed into a Markovian process. This makes the likelihood evaluation and parameter estimation for the long memory stochastic volatility (LMSV) model challenging tasks. The drift and volatility parameters of the fractional Ornstein-Unlenbeck model are estimated separately using the least square estimator (lse) and quadratic generalized variations (qgv) method respectively. Finally, the empirical distribution of unobserved volatility is estimated using the particle filtering with sequential important sampling-resampling (SIR) method. The mean square error (MSE) between the estimated and empirical volatility indicates that the performance of the model towards the index prices of FTSE Bursa Malaysia KLCI is fairly well.

  2. Estimation of stochastic volatility with long memory for index prices of FTSE Bursa Malaysia KLCI

    International Nuclear Information System (INIS)

    Chen, Kho Chia; Kane, Ibrahim Lawal; Rahman, Haliza Abd; Bahar, Arifah; Ting, Chee-Ming

    2015-01-01

    In recent years, modeling in long memory properties or fractionally integrated processes in stochastic volatility has been applied in the financial time series. A time series with structural breaks can generate a strong persistence in the autocorrelation function, which is an observed behaviour of a long memory process. This paper considers the structural break of data in order to determine true long memory time series data. Unlike usual short memory models for log volatility, the fractional Ornstein-Uhlenbeck process is neither a Markovian process nor can it be easily transformed into a Markovian process. This makes the likelihood evaluation and parameter estimation for the long memory stochastic volatility (LMSV) model challenging tasks. The drift and volatility parameters of the fractional Ornstein-Unlenbeck model are estimated separately using the least square estimator (lse) and quadratic generalized variations (qgv) method respectively. Finally, the empirical distribution of unobserved volatility is estimated using the particle filtering with sequential important sampling-resampling (SIR) method. The mean square error (MSE) between the estimated and empirical volatility indicates that the performance of the model towards the index prices of FTSE Bursa Malaysia KLCI is fairly well

  3. Government Subsidy for Remanufacturing or Carbon Tax Rebate: Which Is Better for Firms and a Low-Carbon Economy

    Directory of Open Access Journals (Sweden)

    Tong Shu

    2017-01-01

    Full Text Available The government as a policy maker wishing to promote remanufacturing and proper disposal of hazardous old products which are harmful to environment has taken many actions, ranging from carbon regulation and financial incentives such as trade-in subsidy. However, carbon tax can result in loss of profit for firms to some degree, so the government has to give other subsidy to balance the profits and carbon emission. Thus, this article investigates two subsidy mechanisms: remanufacturing subsidy or tax rebate. The optimal pricing and production decision under these policies are examined. Our results show that carbon tax has a great impact on pricing strategies. Trade-in subsidy can encourage customers to replace their existing products with new and remanufactured products. Both remanufacture subsidy and tax rebate are beneficial to manufacturer and can further promote remanufacturing development.

  4. Estimated effect of alcohol pricing policies on health and health economic outcomes in England: an epidemiological model.

    Science.gov (United States)

    Purshouse, Robin C; Meier, Petra S; Brennan, Alan; Taylor, Karl B; Rafia, Rachid

    2010-04-17

    Although pricing policies for alcohol are known to be effective, little is known about how specific interventions affect health-care costs and health-related quality-of-life outcomes for different types of drinkers. We assessed effects of alcohol pricing and promotion policy options in various population subgroups. We built an epidemiological mathematical model to appraise 18 pricing policies, with English data from the Expenditure and Food Survey and the General Household Survey for average and peak alcohol consumption. We used results from econometric analyses (256 own-price and cross-price elasticity estimates) to estimate effects of policies on alcohol consumption. We applied risk functions from systemic reviews and meta-analyses, or derived from attributable fractions, to model the effect of consumption changes on mortality and disease prevalence for 47 illnesses. General price increases were effective for reduction of consumption, health-care costs, and health-related quality of life losses in all population subgroups. Minimum pricing policies can maintain this level of effectiveness for harmful drinkers while reducing effects on consumer spending for moderate drinkers. Total bans of supermarket and off-license discounting are effective but banning only large discounts has little effect. Young adult drinkers aged 18-24 years are especially affected by policies that raise prices in pubs and bars. Minimum pricing policies and discounting restrictions might warrant further consideration because both strategies are estimated to reduce alcohol consumption, and related health harms and costs, with drinker spending increases targeting those who incur most harm. Policy Research Programme, UK Department of Health. Copyright 2010 Elsevier Ltd. All rights reserved.

  5. A pharmacoeconomic modeling approach to estimate a value-based price for new oncology drugs in Europe.

    Science.gov (United States)

    Dranitsaris, George; Ortega, Ana; Lubbe, Martie S; Truter, Ilse

    2012-03-01

    Several European governments have recently mandated price cuts in drugs to reduce health care spending. However, such measures without supportive evidence may compromise patient care because manufacturers may withdraw current products or not launch new agents. A value-based pricing scheme may be a better approach for determining a fair drug price and may be a medium for negotiations between the key stakeholders. To demonstrate this approach, pharmacoeconomic (PE) modeling was used from the Spanish health care system perspective to estimate a value-based price for bevacizumab, a drug that provides a 1.4-month survival benefit to patients with metastatic colorectal cancer (mCRC). The threshold used for economic value was three times the Spanish per capita GDP, as recommended by the World Health Organization (WHO). A PE model was developed to simulate outcomes in mCRC patients receiving chemotherapy ± bevacizumab. Clinical data were obtained from randomized trials and costs from a Spanish hospital. Utility estimates were determined by interviewing 24 Spanish oncology nurses and pharmacists. A price per dose of bevacizumab was then estimated using a target threshold of € 78,300 per quality-adjusted life year gained, which is three times the Spanish per capita GDP. For a 1.4-month survival benefit, a price of € 342 per dose would be considered cost effective from the Spanish public health care perspective. The price may be increased to € 733 or € 843 per dose if the drug were able to improve patient quality of life or enhance survival from 1.4 to 3 months. This study demonstrated that a value-based pricing approach using PE modeling and the WHO criteria for economic value is feasible and perhaps a better alternative to government mandated price cuts. The former approach would be a good starting point for opening dialog between European government payers and the pharmaceutical industry.

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

    International Nuclear Information System (INIS)

    Moshiri, Saeed

    2015-01-01

    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. - Highlights: • The effectiveness of the recent energy price reform in Iran is analyzed. • Energy demand elasticities for households in different income groups are estimated. • A two-stage optimization model was applied to estimate the system of equations using micro-data for 2001–2008. • The price elasticities are small and income elasticities rather large, but responses are heterogeneous. • A price and non-price reform policy package is needed for different income groups and regions

  7. Converting Energy Subsidies to Investments: Scaling-Up Deep Energy Retrofit in Residential Sector of Ukraine

    Science.gov (United States)

    Denysenko, Artur

    After collapse of the Soviet Union, Ukraine inherited vast and inefficient infrastructure. Combination of historical lack of transparency, decades without reforms, chronical underinvestment and harmful cross-subsidization resulted in accumulation of energy problems, which possess significant threat to economic prosperity and national security. High energy intensity leads to excessive use of energy and heavy reliance on energy import to meet domestic demand. Energy import, in turn, results in high account balance deficit and heavy burden on the state finances. A residential sector, which accounts for one third of energy consumption and is the highest consumer of natural gas, is particularly challenging to reform. This thesis explores energy consumption of the residential sector of Ukraine. Using energy decomposition method, recent changes in energy use is analyzed. Energy intensity of space heating in the residential sector of Ukraine is compared with selected EU member states with similar climates. Energy efficiency potential is evaluated for whole residential sector in general and for multistory apartment buildings connected to the district heating in particular. Specifically, investments in thermal modernization of multistory residential buildings will result in almost 45TWh, or 3.81 Mtoe, of annual savings. Required investments for deep energy retrofit of multistory buildings is estimated as much as $19 billion in 2015 prices. Experience of energy subsidy reforms as well as lessons from energy retrofit policy from selected countries is analyzed. Policy recommendations to turn energy subsidies into investments in deep energy retrofit of residential sector of Ukraine are suggested. Regional dimension of existing energy subsidies and capital subsidies required for energy retrofit is presented.

  8. Estimating the Impact of Raising Prices and Eliminating Discounts on Cigarette Smoking Prevalence in the United States.

    Science.gov (United States)

    Marynak, Kristy L; Xu, Xin; Wang, Xu; Holmes, Carissa Baker; Tynan, Michael A; Pechacek, Terry

    2016-01-01

    The average retail price per pack of cigarettes is less than $6, which is substantially lower than the $10 per-pack target established in 2014 by the Surgeon General to reduce the smoking rate. We estimated the impact of three cigarette pricing scenarios on smoking prevalence among teens aged 12-17 years, young adults aged 18-25 years, and adults aged ≥26 years, by state: (1) $0.94 federal tax increase on cigarettes, as proposed in the fiscal year 2017 President's budget; (2) $10 per-pack retail price, allowing discounts; and (3) $10 per-pack retail price, eliminating discounts. We conducted Monte Carlo simulations to generate point estimates of reductions in cigarette smoking prevalence by state. We found that each price scenario would substantially reduce cigarette smoking prevalence. A $10 per-pack retail price eliminating discounts could result in 637,270 fewer smokers aged 12-17 years; 4,186,954 fewer smokers aged 18-25 years; and 7,722,460 fewer smokers aged ≥26 years. Raising cigarette prices and eliminating discounts could substantially reduce cigarette smoking prevalence as well as smoking-related death and disease.

  9. The Role of Inflation and Price Escalation Adjustments in Properly Estimating Program Costs: F-35 Case Study

    Science.gov (United States)

    2016-03-01

    standard practice is to deflate costs to constant dollars (the dependent variable in the analogous regression) using a previously determined price ...I N S T I T U T E F O R D E F E N S E A N A L Y S E S IDA Document D-5489 March 2016 The Role of Inflation and Price Escalation Adjustments in...DFARS 252.227-7013 (a)(16) [Jun 2013]. The Role of Inflation and Price Escalation Adjustments in Properly Estimating Program Costs: F-35 Case Study

  10. Price estimation and economic evaluation of the production cost of red wines produced by immobilized cells on dried raisin berries

    Directory of Open Access Journals (Sweden)

    Argiris Tsakiris

    2011-02-01

    Full Text Available Argiris Tsakiris1, Kiriaki Sotirakoglou2, Panagiotis Kandylis3, Panagiotis Kaldis1, Constantina Tzia4, Yiannis Kourkoutas31Department of Oenology and Beverage Technology, Faculty of Food Technology and Nutrition, Technological Educational Institute of Athens, Athens, Greece; 2Department of Mathematics and Statistics, Agricultural University of Athens, Athens, Greece; 3Applied Microbiology and Molecular Biotechnology Research Group, Department of Molecular Biology and Genetics, Democritus University of Thrace, Alexandroupolis, Greece; 4Laboratory of Food Chemistry and Technology, School of Chemical Engineering, National Technical University of Athens, Athens, GreeceAbstract: The aim of the study was initially to estimate the price of red wines produced by immobilized cells on dried raisin berries and subsequently to investigate whether the estimated price was sufficient to counterbalance the increased investment and operational costs required for industrial application of the novel biotechnological process. Price estimation of the experimental wines was based on the correlation of sensory quality, determined by a group of trained tasters, and the price of commercial wines available in a certain market. Application of principal component analysis (PCA provided improved results over simple and exponential regression analysis, as only a part of the relationship between the two variables was represented (68.4% and 75.3%, respectively. However, with PCA the total variance explained by the two components was 100%. Taste was more important than aroma in determining sensory quality, and wine price was mainly affected by sensory quality rather than wine age in the Greek market. The total increase of production cost was estimated to be €0.032/bottle, which is significantly lower than the increase of €2.08/bottle price estimated by PCA for the red wines produced by immobilized cells, due to the improved aromatic potential compared with wines produced by

  11. Analysis of the effectiveness of fertilizer subsidy policy and its effect on rice production in Karanganyar Regency

    Science.gov (United States)

    Mulyadiana, A. T.; Marwanti, S.; Rahayu, W.

    2018-03-01

    The research aims to know the factors which affecting rice production, and to know the effectiveness of fertilizer subsidy policy on rice production in Karanganyar Regency. The fertilizer subsidy policy was based on four indicators of fertilizer subsidy namely exact price, exact place, exact time, and exact quantity. Data was analyzed using descriptive quantitative and qualitative and multiple linear regression. The result of research showed that fertilizer subsidy policy in Karanganyar Regency evaluated from four indicators was not effective because the distribution of fertilizer subsidy to farmers still experience some mistakes. The result of regression analysis showed that production factors such as land area, use of urea fertilizer, use of NPK fertilizer, and effectiveness of fertilizer subsidy policy had positive correlation and significant influence on rice production, while labor utilization and use of seeds factors had no significant effect on rice production in Karanganyar Regency. This means that if the fertilizer subsidy policy is more effective, rice production is also increased.

  12. Simulating progressive social transfers. Gas subsidies and solidarity bonds in Ecuador

    International Nuclear Information System (INIS)

    Cuesta, J.; Ponce, J.; Leon, M.

    2004-02-01

    After two decades of neglect, social expending has become a cornerstone in the current fight against poverty in Ecuador. Ecuador is presently considering the elimination of regressive gas subsidies and the shift of these resources into pro-poor targeted Solidarity Bonds. Great distributive gains are expected from this reform. There are, however, a number of considerations that may prevent this policy shift from obtaining substantial poverty and equality gains. Despite their regressivity, implicit gas subsidies still represent a considerable proportion of total household consumption among poor households. Also, solidarity bonds siphon off a substantial share of their total benefits to middle income groups. This paper estimates the redistributive consequences of policy reforms on gas subsidies and solidarity bonds in Ecuador. A simulation methodology estimates both direct and indirect (labour-driven) distributive effects of four alternative scenarios: (1) total elimination of gas subsidies; (2) selective elimination of gas subsidies among non-poor households; (3) total elimination of gas subsidies and shift of resources to solidarity bonds targeted to the poor; (4) selective elimination of gas subsidies and shift of resources to solidarity bonds targeted to the poor. Estimates confirm that the redistributive gains from these reforms are rather small both for poverty and inequality. Incentives to work following the elimination of subsidies compensate, or even outdo, immediate poverty rises. Also, the elimination of gas subsidies without further expansion of subsidy bonds will unambiguously increase poverty in Ecuador between one and one and a half percent points

  13. Estimation of Relative Economic Weights of Hanwoo Carcass Traits Based on Carcass Market Price

    Science.gov (United States)

    Choy, Yun Ho; Park, Byoung Ho; Choi, Tae Jung; Choi, Jae Gwan; Cho, Kwang Hyun; Lee, Seung Soo; Choi, You Lim; Koh, Kyung Chul; Kim, Hyo Sun

    2012-01-01

    The objective of this study was to estimate economic weights of Hanwoo carcass traits that can be used to build economic selection indexes for selection of seedstocks. Data from carcass measures for determining beef yield and quality grades were collected and provided by the Korean Institute for Animal Products Quality Evaluation (KAPE). Out of 1,556,971 records, 476,430 records collected from 13 abattoirs from 2008 to 2010 after deletion of outlying observations were used to estimate relative economic weights of bid price per kg carcass weight on cold carcass weight (CW), eye muscle area (EMA), backfat thickness (BF) and marbling score (MS) and the phenotypic relationships among component traits. Price of carcass tended to increase linearly as yield grades or quality grades, in marginal or in combination, increased. Partial regression coefficients for MS, EMA, BF, and for CW in original scales were +948.5 won/score, +27.3 won/cm2, −95.2 won/mm and +7.3 won/kg when all three sex categories were taken into account. Among four grade determining traits, relative economic weight of MS was the greatest. Variations in partial regression coefficients by sex categories were great but the trends in relative weights for each carcass measures were similar. Relative economic weights of four traits in integer values when standardized measures were fit into covariance model were +4:+1:−1:+1 for MS:EMA:BF:CW. Further research is required to account for the cost of production per unit carcass weight or per unit production under different economic situations. PMID:25049531

  14. The cost of domestic energy prices to Saudi Arabia

    International Nuclear Information System (INIS)

    Alyousef, Yousef; Stevens, Paul

    2011-01-01

    The issue of subsidies on domestic energy prices has moved up the policy agenda, most recently as a result of the G20 commitment in September 2009 to phase out such subsidies. However, what constitutes a 'subsidy' is complex and controversial. The IEA in its last World Energy Outlook claimed that Saudi Arabia was second in the world in terms of its levels of subsidy on domestic energy prices. However, because Saudi Arabia is a price maker in the international oil market, the methodology used by the IEA is seriously flawed. This paper explains the problems with the methodology for computing subsidies and explains the correct method in the case of Saudi Arabia. It then attempts to measure the levels of subsidy in Saudi Arabia using this methodology. However, while it converts the IEA's 'subsidy' of $23 billion into a net 'profit' of $5.7 billion, it goes on to point out that the current low price regime is causing problems for Saudi Arabia. - Highlights: → How to define energy subsidies in the context of Saudi Arabia as the price maker for international oil prices? → How far do the low domestic energy price in Saudi Arabia represent subsidized prices? → What are the costs and benefits of low/subsidized domestic energy prices in Saudi Arabia? → What policy options are available to offset the very poor record of energy efficiency in Saudi Arabia?

  15. Estimating temporary and permanent stock price innovations on Croatian capital market

    Directory of Open Access Journals (Sweden)

    Tihana Škrinjarić

    2014-03-01

    Full Text Available This paper evaluates the size and duration of temporary and permanent stock price innovations on Croatian capital market in the structural VAR (vector autoregression framework with Blanchard and Quah (1989 decomposition. The purpose is to identify the effects of temporary price innovations in order to determine to which extent future stock prices can be predicted. Temporary components present in stock prices are explained throughout the mean-reversion hypothesis. This means that stock prices deviate from the fundamental values, but they will revert to their mean. In that way, to some extent, it is possible to predict future price movements. The results show that for the observed period from January 2000 to September 2013, temporary innovations account for only 2.62% of price variability over a two-year horizon. This means that forecasting the future movements of stock prices on Zagreb Stock Exchange is a difficult task.

  16. Estimating the volatility of electricity prices: The case of the England and Wales wholesale electricity market

    International Nuclear Information System (INIS)

    Tashpulatov, Sherzod N.

    2013-01-01

    Price fluctuations that partially comove with demand are a specific feature inherent to liberalized electricity markets. The regulatory authority in Great Britain, however, believed that sometimes electricity prices were significantly higher than what was expected and, therefore, introduced price-cap regulation and divestment series. In this study, I analyze how the introduced institutional changes and regulatory reforms affected the dynamics of daily electricity prices in the England and Wales wholesale electricity market during 1990–2001. This research finds that the introduction of price-cap regulation did achieve the goal of lowering the price level at the cost of higher price volatility. Later, the first series of divestments is found to be successful at lowering price volatility, which however happens at the cost of a higher price level. Finally, this study also documents that the second series of divestments was more successful at lowering both the price level and volatility. - Author-Highlights: • The impact of regulation on the dynamics of electricity prices is examined. • Price-cap regulation has decreased the level at the cost of higher volatility. • The first series of divestments has reversed the trade-off. • The reversed trade-off is explained as an indication of tacit collusion. • The second series of divestments is found generally successful

  17. Multifamily Tax Subsidy Income Limits

    Data.gov (United States)

    Department of Housing and Urban Development — Multifamily Tax Subsidy Projects (MTSP) Income Limits were developed to meet the requirements established by the Housing and Economic Recovery Act of 2008 (Public...

  18. Subsidies for renewable energy?

    International Nuclear Information System (INIS)

    Skytte, K.; Grenaa Jensen, S.; Morthorst, P.E.; Olsen, O.J.

    2004-01-01

    Ambitious Danish and European energy and environment objectives make a point of using renewable energy sources in the electricity supply. Denmark has been leading country in successful development and commercialization of wind turbines and is as yet one of the leading manufacturers of the world. Danish governments have successfully invested a lot in this development. Other countries have spent more money without achieving a similar success. The questions are why things have gone so well in Denmark and if the Danish success can be repeated for other renewable energy technologies. The starting point of this book is that a political decision on subsidizing the developmental process of a specific technology not in itself guarantees that the technology will turn out reliable and efficient enough to compete successfully in a liberalized electricity market. An understanding of this development is necessary in order to affect a technological development. This book goes through the development of different renewable energy technologies and two theories used for discussing the technological development: experience curves and innovation theory. Based on the discussions and a description of causal relations, an analytical model for different phases of renewable energy technologies' developmental progress and technological life cycle is made. The model is used for evaluating the subsidies for chosen renewable technologies in Denmark. With wind energy as example an analysis of what went well or badly, what might be done and which actions might be efficient is made. (BA)

  19. Dampak Pemberian Subsidi Produksi Terhadap Keseimbangan Pasar pada Pasar Persaingan Sempurna dan Pasar Monopoli

    Directory of Open Access Journals (Sweden)

    Hardiani Hardiani

    2015-12-01

    Full Text Available Abstract. This study aimed to analyze: (1 the impact of subsidies on the market equilibriumin perfect competition and monopoly markets (2 the impact of subsidies on the efficiency of markets, surplus buyer-seller on the market perfect competition and monopoly market. Research using method of experimental economics. The simulated market in the form of a a perfectly competitive market with goods subsidized and non-subsidized goods; b a monopoly market with goods subsidized and non-subsidized goods. Data were analyzed at each simulation and the market structure of each type of goods. The result showed that: (1 Empirical equilibrium price higher than the market monopoly of perfect competition and the higher the subsidy conditions than non-subsidized either on transaction systems double action or decentralization; (2 market with subsidized monopoly has a level of market efficiency is better than a perfectly competitive market both with and without subsidies; (3 The allocation of the surplus on the market almost entirely monopoly enjoyed by the seller. In contrast to the perfectly competitive market, relatively more surplus enjoyed by the buyer, but the difference is not too great. Keywords: experimental economics, monopoly market, perfect competition market, subsidies   Abstrak. Penelitian ini bertujuan untuk menganalisis: (1 dampak subsidi terhadap keseimbangan pasar pada pasar persaingan sempurna dan pasar monopoli (2 dampak subsidi terhadap efisiensi pasar, surplus pembeli-penjual pada pasar persaingan sempurna dan pasar monopoli. Penelitian menggunakan metode percobaan ekonomi. Pasar disimulasi dalam bentuk a pasar persaingan sempurna dengan barang non subsidi dan barang subsidi desentralisasi; b pasar monopoli dengan barang non subsidi dan barang subsidi desentralisasi. Data yang diperoleh dianalisis pada masing-masing simulasi struktur pasar  dan pada masing-masing jenis barang. Dari hasil penelitian didapatkan bahwa: (1 Harga keseimbangan

  20. Estimating Demand and Cross-Price Elasticity for Very Low Nicotine Content (VLNC) Cigarettes Using a Simulated Demand Task.

    Science.gov (United States)

    Tucker, Megan R; Laugesen, Murray; Grace, Randolph C

    2017-03-03

    Very Low Nicotine Content (VLNC) cigarettes might be useful as part of a tobacco control strategy, but relatively little is known about their acceptability as substitutes for regular cigarettes. We compared subjective effects and demand for regular cigarettes and Very Low Nicotine Content (VLNC) cigarettes, and estimated cross-price elasticity for VLNC cigarettes, using simulated demand tasks. 40 New Zealand smokers sampled a VLNC cigarette and completed Cigarette Purchase Tasks to indicate their demand for regular cigarettes and VLNC cigarettes at a range of prices, and a cross-price task indicating how many regular cigarettes and VLNC cigarettes they would purchase at 0.5x, 1x, and 2x the current market price for regular cigarettes, assuming the price of VLNC cigarettes remained constant. They also rated the subjective effects of the VLNC cigarette and their usual-brand regular cigarettes. Cross-price elasticity for VLNC cigarettes was estimated as 0.24 and was significantly positive, indicating that VLNC cigarettes are partially substitutable for regular cigarettes. VLNC cigarettes were rated as less satisfying and psychologically rewarding than regular cigarettes, but this was unrelated to demand or substitutability. VLNC cigarettes are potentially substitutable for regular cigarettes. Their availability may reduce tobacco consumption, nicotine intake and addiction; making it easier for smokers to quit. VLNC cigarettes share the behavioural and sensory components of smoking whilst delivering negligible levels of nicotine. Although smokers rated VLNCs as less satisfying than regular cigarettes, smokers said they would increase their consumption of VLNCs as the price of regular cigarettes increased, if VLNCs were available at a lower price. This suggests that VLNCs are partially substitutable for regular cigarettes. VLNCs can be part of an effective tobacco control strategy, by reducing nicotine dependence and improving health and financial outcomes for smokers

  1. FACTORS INFLUENCING THE ACCURACY OF PRE-CONTRACT STAGE ESTIMATION OF FINAL CONTRACT PRICE IN NEW ZEALAND

    Directory of Open Access Journals (Sweden)

    Cong Ji

    2014-12-01

    Full Text Available Establishing and prioritising the factors that may influence the final contract price when responding to a call for tenders is crucial for proper risk analysis and reliable forecasting; it could make or mar the ability to achieve expected profit margin in an era of lump sum fixed price contracts where clients often contest variation claims. In New Zealand, these factors have not been researched; hence estimators rely only on judgement to ‘guess-estimate’ in their price forecasting. This study aimed to fill the knowledge gap by investigating the priority factors. 150 responses from professional members of the New Zealand Institute of Quantity Surveyors were analysed using multi-attribute method. Results showed thirty-seven factors which could influence the final contract price; the three most influential being poor tender documentation, complexity of design & construction, and completeness of project information. Other factors relating to project, client and contractor characteristics, design consultants and tendering conditions, estimating practice and external factors were reported. Concordance analysis indicated high level of agreement amongst survey participants in the rank-ordering of the relative importance of the identified factors. The findings could assist quantity surveyors to prepare more reliable contract price estimates at the pre-contract stage. It would also improve construction-stage cost control.

  2. Effect of subsidies to fossil fuel companies on United States crude oil production

    Science.gov (United States)

    Erickson, Peter; Down, Adrian; Lazarus, Michael; Koplow, Doug

    2017-11-01

    Countries in the G20 have committed to phase out `inefficient' fossil fuel subsidies. However, there remains a limited understanding of how subsidy removal would affect fossil fuel investment returns and production, particularly for subsidies to producers. Here, we assess the impact of major federal and state subsidies on US crude oil producers. We find that, at recent oil prices of US50 per barrel, tax preferences and other subsidies push nearly half of new, yet-to-be-developed oil investments into profitability, potentially increasing US oil production by 17 billion barrels over the next few decades. This oil, equivalent to 6 billion tonnes of CO2, could make up as much as 20% of US oil production through 2050 under a carbon budget aimed at limiting warming to 2 °C. Our findings show that removal of tax incentives and other fossil fuel support policies could both fulfil G20 commitments and yield climate benefits.

  3. Estimating the price elasticity for demand for electricity by sector in South Africa

    Directory of Open Access Journals (Sweden)

    Roula Inglesi-Lotz

    2011-12-01

    Full Text Available This paper analyses electricity consumption patterns in South Africa in an attempt to understand and identify the roots of the current electricity crisis. This is done by investigating various economic sectors’ responses to price changes using panel data for the period 1993–2004. Positive and statistically significant price elasticities over this period were found for the transport (rail and commercial sectors while there are positive, but small and statistically insignificant responses to price changes in the agriculture and mining sectors. Only the industrial sector responded to changes in electricity prices according to theory, namely illustrating negative demand elasticities. This sector, however, dominates electricity consumption resulting in aggregate demand elasticities that are negative. These results explain, in part, the current electricity crisis. Given the historic low level of electricity prices in conjunction with, on the whole, a real price decline, i.e. price increases lower than the inflation rate; there was no major incentive to reduce electricity consumption and/or to be efficient. This result supports the notion that prices do have an important signalling effect in the economy. Hence, the electricity prices should be considered not only from an economic growth or social vantage point, but also from a supply and technocratic perspective, which includes environmental factors such as CO2-emissions. Prices should not be determined without considering the system-wide implications thereof.

  4. Financial subsidies to the Australian fossil fuel industry

    International Nuclear Information System (INIS)

    Riedy, Chris; Diesendorf, Mark

    2003-01-01

    A common claim during international greenhouse gas reduction negotiations has been that domestic emissions cuts will harm national economies. This argument fails to consider the distorting effect of existing financial subsidies and associated incentives to fossil fuel production and consumption provided by governments in most developed countries. These subsidies support a fossil fuel energy sector that is the major contributor to global greenhouse gas emissions and conflict with attempts to expand the role of sustainable energy technologies. Reform of these types of subsidies has the potential to provide substantial gains in economic efficiency as well as reductions in carbon dioxide emissions--a 'no regrets' outcome for the economy and the environment. This paper examines financial subsidies to fossil fuel production and consumption in Australia and estimates the magnitude of the subsidies. Subsidies and associated incentives to fossil fuel production and consumption in Australia are similar to those in the United States and the other countries that have pushed for increased 'flexibility' during international negotiations

  5. Global climate change, energy subsidies and national carbon taxes

    International Nuclear Information System (INIS)

    Larsen, B.; Shah, A.

    1995-01-01

    In the previous chapter of the book it is indicated that fossil-fuel burning is one of the main environmental culprits. Nevertheless, many countries continue to subsidize fossil fuels. In this chapter estimates of subsidies to energy and energy complements in OECD and non-OECD countries are provided. The authors conclude that the removal of energy subsidies in OECD countries on the order of US$30 billion annually (primarily in the US and Germany) and subsidies to complements on the order of US$50-90 (United States) are likely to have only little impact on CO-emissions. In contrast, the removal of energy subsidies of US$270-330 billion in non-OECD countries could substantially curb the growth of global CO 2 emissions, equivalent to the impact of a carbon tax on the order of US$60-70 per ton in the OECD countries. Nonetheless, even with the removal of energy subsidies, the growth in CO 2 emissions in non-OECD countries is projected to increase by 80% from the year 1990 to 2010. Furthermore, it is shown that the introduction of a revenue-neutral national carbon tax, in addition to energy subsidy removal, can yield significant health benefits from the reduction in local pollution. The authors note that carbon taxes are considerably less regressive relative to lifetime income or annual consumption expenditures than to annual income. 7 tabs., 23 refs

  6. Optimal subsidy policy for accelerating the diffusion of green products

    Directory of Open Access Journals (Sweden)

    Hongguang Peng

    2013-06-01

    Full Text Available Purpose: We consider a dynamic duopoly market in which two firms respectively produce green products and conventional products. The two types of product can substitute each other in some degree. Their demand rates depend on not only prices but the consumers’ increasing environmental awareness. Too high initial cost relative to conventional products becomes one of the major obstacles that hinder the adoption of green products. The government employs subsidy policy to trigger the adoption of green products. The purpose of the paper is to explore the optimal subsidy strategy to fulfill the government’s objective. Design/methodology/approach: We suppose the players in the game employ open-loop strategies, which make sense since the government generally cannot alter his policy for political and economic purposes. We take a differential game approach and use backward induction to analyze the firms’ pricing strategy under Cournot competition, and then focus upon a Stackelberg equilibrium to find the optimal subsidy strategy of the government. Findings: The results show that the more remarkable the energy or environmental performance, or the bigger the initial cost of green products, the higher the subsidy level should be. Due to the increasing environmental awareness and the learning curve, the optimal subsidy level decreases over time. Research limitations/implications: In our model several simplifying assumptions are made to keep the analysis more tractable. In particular, we have assumed only one type of green product. In reality several types of product with different energy or environmental performances exist. Our research can be extended in future work to take into account product differentiation on energy or environmental performance and devise a discriminatory subsidy policy accordingly. Originality/value: In the paper we set the objective of the government as minimizing the total social cost induced by the energy consumption or

  7. Consequences of Food Safety Abolishing Energy Subsidies on Iranian Meat

    Directory of Open Access Journals (Sweden)

    F. Fathi

    2016-10-01

    Full Text Available Introduction: Policies of the Fifth Five-year Socio Economic Development Plan on Iran emphasize on improving factors such as air quality and food security, reduction of the risks and infections that threatens health as well as to change dietary patterns by improving food composition and safety. To this end, the government required to support measures to increase production of animal protein obtained from livestock and poultry. The Iranian targeted subsidy plan started in 2010 which increased energy prices significantly. The increase in energy price after start of targeted subsidies included gasoline (3.6-6.2 times, Kerosene (5.4 times, gas oil (8.1-18.9 and fuel oil (18.8. In terms of supply of animal protein, meat has an important role in nutrition and a major share in family food expenditure so that the willingness to consume it has been obvious in the country's consumer culture. On the other hand, according to international standards, every individual needs 70 grams of protein a day (for average body weight of 70 kg. About one-quarter of this amount (about 25 g should be animal protein. With commence the second phase of a targeted subsidy plan, it is important to get familiar with the effects of this policy on the livestock and poultry industry. A change in livestock prices due to increased production and transport costs have increased the consumer price and have led to changes in the intake of animal protein and calories. With introduction of this plan and recognition of its need in the country, there has been a need to investigate the effects of increasing energy prices on the livestock and poultry industries and to quantify the effects of these policies. This study is trying to investigate the effects of the increase in energy prices for beef, sheep and poultry meat prices, including on a farm and retail prices under various scenarios, the amount of demand and supply and ultimately the effects on food security in Iran. Materials and

  8. Estimation of Cost Pass Through to Michigan Consumers in the ADM Price Fixing Case

    OpenAIRE

    Cotterill, Ronald W.

    1998-01-01

    This report analyzes the economic impact of price fixing in the wet corn milling industry on consumers in the State of Michigan. Two of the companies who produce citric acid have pleaded guilty to fixing its price. In this report we assume that price fixing also occurred among HFCS producers. Given the structure of the corn wet milling industry and the direct purchaser industries, the overcharge is essentially uniform across buyers and selling arrangements. We develop an actual economic model...

  9. On the demand for prescription drugs: heterogeneity in price responses.

    Science.gov (United States)

    Skipper, Niels

    2013-07-01

    This paper estimates the price elasticity of demand for prescription drugs using an exogenous shift in consumer co-payment caused by a reform in the Danish subsidy scheme for the general public. Using purchasing records for the entire Danish population, I show that the average price response for the most commonly used drug yields demand elasticities in the range of -0.36 to -0.5. The reform is shown to affect women, the elderly, and immigrants the most. Furthermore, this paper shows significant heterogeneity in the price response over different types of antibiotics, suggesting that the price elasticity of demand varies considerably even across relatively similar drugs. Copyright © 2012 John Wiley & Sons, Ltd.

  10. Environmental taxes and subsidies 2002

    International Nuclear Information System (INIS)

    Anon.

    2003-01-01

    The statistics presents statements of environmental taxes for the period 1970 - 2002 and statements of environmentally related subsidies for the years 1996 - 2002. Environmental taxes are a concept for pollution, energy, transportation, and resource related taxes. The State's revenue from environmental taxes have increased from 4,0 billions DKK in 1970 to 65,7 billions DKK in 2002. The environmental taxes' part of the GNP has increased from 3,2 % in 1970 to 4,8 % in 2002. The part of the environmental taxes of the total taxes and tariffs has increased from 8,2 % in 1970 to 9,8 % in 2002. >From 2001 to 2002 the environmental taxes increased with 5,6 %, primarily because the taxes in the transportation sector increased with 13,5 % due to more new cars. The pollution taxes increased with 6 % while the environmental taxes for energy increased with only 0,8 %. In 2002 the energy related taxes amounted to 54 %, the transport related taxes to 39 %, and pollution and resource related taxes amounted to 7 % of the total environmental taxes. The public environmentally related subsidies to companies and households has been on a stable level of a little more than 10 billions DKK through the latest years. The energy related subsidies have, however, been transferred to transport related subsidies, i.e. primarily subsidies to the public transport. (ln)

  11. Estimates of price and income elasticity in Greece. Greek debt crisis transforming cigarettes into a luxury good: an econometric approach

    Science.gov (United States)

    Tarantilis, Filippos; Athanasakis, Kostas; Zavras, Dimitris; Vozikis, Athanassios; Kyriopoulos, Ioannis

    2015-01-01

    Objective During the past decades, smoking prevalence in Greece was estimated to be near or over 40%. Following a sharp fall in cigarette consumption, as shown in current data, our objective is to assess smokers’ sensitivity to cigarette price and consumer income changes as well as to project health benefits of an additional tax increase. Methods Cigarette consumption was considered as the dependent variable, with Weighted Average Price as a proxy for cigarette price, gross domestic product as a proxy for consumers’ income and dummy variables reflecting smoking restrictions and antismoking campaigns. Values were computed to natural logarithms and regression was performed. Then, four scenarios of tax increase were distinguished in order to calculate potential health benefits. Results Short-run price elasticity is estimated at −0.441 and short-run income elasticity is estimated at 1.040. Antismoking campaigns were found to have a statistically significant impact on consumption. Results indicate that, depending on the level of tax increase, annual per capita consumption could fall by at least 209.83 cigarettes; tax revenue could rise by more than €0.74 billion, while smokers could be reduced by up to 530 568 and at least 465 smoking-related deaths could be averted. Conclusions Price elasticity estimates are similar to previous studies in Greece, while income elasticity estimates are far greater. With cigarettes regarded as a luxury good, a great opportunity is presented for decisionmakers to counter smoking. Increased taxation, along with focused antismoking campaigns, law reinforcement (to ensure compliance with smoking bans) and intensive control for smuggling could invoke a massive blow to the tobacco epidemic in Greece. PMID:25564137

  12. Determining the best forecasting method to estimate unitary charges price indexes of PFI data in central region Peninsular Malaysia

    Science.gov (United States)

    Ahmad Kamaruddin, Saadi Bin; Md Ghani, Nor Azura; Mohamed Ramli, Norazan

    2013-04-01

    The concept of Private Financial Initiative (PFI) has been implemented by many developed countries as an innovative way for the governments to improve future public service delivery and infrastructure procurement. However, the idea is just about to germinate in Malaysia and its success is still vague. The major phase that needs to be given main attention in this agenda is value for money whereby optimum efficiency and effectiveness of each expense is attained. Therefore, at the early stage of this study, estimating unitary charges or materials price indexes in each region in Malaysia was the key objective. This particular study aims to discover the best forecasting method to estimate unitary charges price indexes in construction industry by different regions in the central region of Peninsular Malaysia (Selangor, Federal Territory of Kuala Lumpur, Negeri Sembilan, and Melaka). The unitary charges indexes data used were from year 2002 to 2011 monthly data of different states in the central region Peninsular Malaysia, comprising price indexes of aggregate, sand, steel reinforcement, ready mix concrete, bricks and partition, roof material, floor and wall finishes, ceiling, plumbing materials, sanitary fittings, paint, glass, steel and metal sections, timber and plywood. At the end of the study, it was found that Backpropagation Neural Network with linear transfer function produced the most accurate and reliable results for estimating unitary charges price indexes in every states in central region Peninsular Malaysia based on the Root Mean Squared Errors, where the values for both estimation and evaluation sets were approximately zero and highly significant at p Malaysia. The estimated price indexes of construction materials will contribute significantly to the value for money of PFI as well as towards Malaysian economical growth.

  13. Estimates of price and income elasticity in Greece. Greek debt crisis transforming cigarettes into a luxury good: an econometric approach.

    Science.gov (United States)

    Tarantilis, Filippos; Athanasakis, Kostas; Zavras, Dimitris; Vozikis, Athanassios; Kyriopoulos, Ioannis

    2015-01-05

    During the past decades, smoking prevalence in Greece was estimated to be near or over 40%. Following a sharp fall in cigarette consumption, as shown in current data, our objective is to assess smokers' sensitivity to cigarette price and consumer income changes as well as to project health benefits of an additional tax increase. Cigarette consumption was considered as the dependent variable, with Weighted Average Price as a proxy for cigarette price, gross domestic product as a proxy for consumers' income and dummy variables reflecting smoking restrictions and antismoking campaigns. Values were computed to natural logarithms and regression was performed. Then, four scenarios of tax increase were distinguished in order to calculate potential health benefits. Short-run price elasticity is estimated at -0.441 and short-run income elasticity is estimated at 1.040. Antismoking campaigns were found to have a statistically significant impact on consumption. Results indicate that, depending on the level of tax increase, annual per capita consumption could fall by at least 209.83 cigarettes; tax revenue could rise by more than €0.74 billion, while smokers could be reduced by up to 530 568 and at least 465 smoking-related deaths could be averted. Price elasticity estimates are similar to previous studies in Greece, while income elasticity estimates are far greater. With cigarettes regarded as a luxury good, a great opportunity is presented for decisionmakers to counter smoking. Increased taxation, along with focused antismoking campaigns, law reinforcement (to ensure compliance with smoking bans) and intensive control for smuggling could invoke a massive blow to the tobacco epidemic in Greece. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://group.bmj.com/group/rights-licensing/permissions.

  14. Estimating the Own-Price Elasticity for Irrigation Water in the Musi Catchment of India

    NARCIS (Netherlands)

    Hellegers, P.J.G.J.; Davidson, B.

    2011-01-01

    As irrigation water is an input into a production process, its demand must be ‘derived’. According to theory, a derived demand schedule should be downward sloping and dependent on the outputs produced from it, the prices of other inputs and the price of the water itself. Problems arise when an

  15. Estimating the Volatility of Cocoa Price Return with ARCH and GARCH Models

    Directory of Open Access Journals (Sweden)

    Lya Aklimawati

    2013-08-01

    Full Text Available Dynamics of market changing as a result of market liberalization have an impact on agricultural commodities price fluctuation. High volatility on cocoa price movement reflect its price and market risk. Because of price and market uncertainty, the market players face some difficulties to make a decision in determining business development. This research was conducted to 1 understand the characteristics of cocoa price movement in cocoa futures trading, and 2analyze cocoa price volatility using ARCH and GARCH type model. Research was carried out by direct observation on the pattern of cocoa price movement in the futures trading and volatility analysis based on secondary data. The data was derived from Intercontinental Exchange ( ICE Futures U.S. Reports. The analysis result showed that GARCH is the best model to predict the value of average cocoa price return volatility, because it meets criteria of three diagnostic checking, which are ARCH-LM test, residual autocorrelation test and residual normality test. Based on the ARCH-LM test, GARCH (1,1did not have heteroscedasticity, because p-value  2 (0.640139and F-statistic (0.640449 were greater than 0.05. Results of residual autocorrelation test indicated that residual value of GARCH (1,1 was random, because the statistic value of Ljung-Box (LBon the 36 th lag is smaller than the statistic value of  2. Whereas, residual normality test concluded the residual of GARCH (1,1 were normally distributed, because AR (29, MA (29, RESID (-1^2, and GARCH (-1 were significant at 5% significance level. Increasing volatility value indicate high potential risk. Price risk can be reduced by managing financial instrument in futures trading such as forward and futures contract, and hedging. The research result also give an insight to the market player for decision making and determining time of hedging. Key words: Volatility, price, cocoa, GARCH, risk, futures trading

  16. Estimating the own-price elasticity of demand for irrigation water in the Musi catchment of India

    Science.gov (United States)

    Davidson, Brian; Hellegers, Petra

    2011-10-01

    SummaryAs irrigation water is an input into a production process, its demand must be 'derived'. According to theory, a derived demand schedule should be downward sloping and dependent on the outputs produced from it, the prices of other inputs and the price of the water itself. Problems arise when an attempt is made to estimate the demand for irrigation water and the resulting own-price elasticity of demand, as the uses to which water is put are spatially, temporarily and geographically diverse. Because water is not generally freely traded, what normally passes for an estimate of the own-price elasticity of demand for irrigation water is usually a well argued assumption or an estimate that is derived from a simulation model of a hypothesized producer. Such approaches tend to provide an inadequate explanation of what is an extremely complex and important relationship. An adequate explanation of the relationship between the price and the quantity demanded of water should be one that not only accords with the theoretical expectations, but also accounts for the diversity of products produced from water (which includes the management practices of farmers), the seasons in which it is used and over the region within which it is used. The objective in this article is to present a method of estimating the demand curve for irrigation water. The method uses actual field data which is collated using the Residual Method to determine the value of the marginal product of water deployed over a wide range of crops, seasons and regions. These values of the marginal products, all which must lie of the input demand schedule for water, are then ordered from the highest value to the lowest. Then, the amount of irrigation water used for each product, in each season and in each region is cumulatively summed over the range of uses according to the order of the values of the marginal products. This data, once ordered, is then used to econometrically estimate the demand schedule from which

  17. The Role of Inflation and Price Escalation Adjustments in Properly Estimating Program Costs: F-35 Case Study

    Science.gov (United States)

    2016-04-30

    qÜáêíÉÉåíÜ=^ååì~ä= ^Åèìáëáíáçå=oÉëÉ~êÅÜ= póãéçëáìã= qÜìêëÇ~ó=pÉëëáçåë= sçäìãÉ=ff= = The Role of Inflation and Price Escalation Adjustments in Properly...The Role of Inflation and Price Escalation Adjustments in Properly Estimating Program Costs: F-35 Case Study Stanley Horowitz, Assistant Division...Graduate School of Engineering and Management, Air Force Institute of Technology Cost and Price Collaboration Venkat Rao, Professor, Defense

  18. Does Renewable Energy Still Need Subsidy

    Directory of Open Access Journals (Sweden)

    Dr. Eng. Mohamed Mostafa El Khayat

    2017-12-01

    Full Text Available For many decades, it has been stated that renewable energy, RE, needs subsidy, otherwise it will not be able to compete or sustain. For a certain level, this statement was valid. In this period, the investment costs for both wind and photovoltaic, PV, were high. In other words, production costs of both of them reached around 7.0 and 13.0 Cent US$ per kWh. On the other hand, oil and natural gas, NG, prices were low; i.e. less than US$ 30.0 per oil barrel and around US$ 4.0 per million British thermal unit, MMBTU, of NG. Also, policies of promoting RE were limited; almost there are two main policies, Feed-in-Tariff, FiT, in limited developed countries and international tenders. As a result, investment in RE was usually led by developed countries and minor share from the developing countries. This was the scene of RE before around 10 years. Nowadays, the scene of RE totally differs. Starting from the policies side, through auctions in both solar and wind energies, new records of prices have been reached. In numbers, in the field of wind energy Morocco and Egypt already signed contracts with prices lower than 4.0 US$ Cents/kWh. For PV, there is a dramatic devaluation in the prices. Now we are speaking for less than 0.7 million US$ per MW for turnkey projects. As a result, during the last couple of years, the global RE market witnessed a bundle of an outstanding prices, El-Sewihan Project at Abu Dhabi, 2.42 US$ Cent/kWh. Mexico and Dubai projects, 3.6 and 3.0 US$ Cent/kWh. Few days ago, Dubai Electricity and Water Authority, DEWA, received $9.45 cents per kilowatt-hour for its 200MW concentrated solar power (CSP plant. All these figures, and others, gave us important messages; 1 Despite low prices of oil and NG, RE is able to compete and offer outstanding prices, 2 Wind and PV technologies do not need any kind of subsidy, rather than they need a real free market to compete, 3 CSP is a low hanging fruit and it will witness a frog-leap during the

  19. Estimating the cost of improving service quality in water supply: A shadow price approach for England and wales.

    Science.gov (United States)

    Molinos-Senante, María; Maziotis, Alexandros; Sala-Garrido, Ramón

    2016-01-01

    Service quality to customers is an aspect that cannot be ignored in the performance assessment of water companies. Nowadays water regulators introduce awards or penalties to incentivize companies to improve service quality to customers when setting prices. In this study, the directional distance function is employed to estimate the shadow prices of variables indicating the lack of service quality to customers in the water industry i.e., written complaints, unplanned interruptions and properties below the reference level. To calculate the shadow price of each undesirable output for each water company, it is needed to ascribe a reference price for the desirable output which is the volume of water delivered. An empirical application is carried out for water companies in England and Wales. Hence, the shadow price of each undesirable output is expressed both as a percentage of the price of the desirable output and in pence per cubic meter of water delivered The estimated results indicate that on average, each additional written complaint that needs to be dealt with by the water company includes a service quality cost of 0.399p/m(3). As expected, when looking at the other service quality variables which involve network repair or replacement, these values are considerably higher. On average, the water company must spend an extra 0.622p/m(3) to prevent one unplanned interruption and 0.702p/m(3) to avoid one water pressure below the reference level. The findings of this study are of great importance for regulated companies and regulators as it has been illustrated that improvements in the service quality in terms of customer service could be challenging and therefore ongoing investments will be required to address these issues. Copyright © 2015 Elsevier B.V. All rights reserved.

  20. Estimating the volatility of electricity prices: the case of the England and Wales wholesale electricity market

    Czech Academy of Sciences Publication Activity Database

    Tashpulatov, Sherzod N.

    2013-01-01

    Roč. 60, September (2013), s. 81-90 ISSN 0301-4215 Institutional support: PRVOUK-P23 Keywords : conditional volatility * electricity prices * regulation Subject RIV: AH - Economics Impact factor: 2.696, year: 2013

  1. Estimating the volatility of electricity prices: the case of the England and Wales wholesale electricity market

    Czech Academy of Sciences Publication Activity Database

    Tashpulatov, Sherzod N.

    2013-01-01

    Roč. 60, September (2013), s. 81-90 ISSN 0301-4215 Institutional support: RVO:67985998 Keywords : conditional volatility * electricity prices * regulation Subject RIV: AH - Economics Impact factor: 2.696, year: 2013

  2. Evaluating Pricing Strategy Using e-Commerce Data: Evidence and Estimation Challenges

    OpenAIRE

    Ghose, Anindya; Sundararajan, Arun

    2006-01-01

    As Internet-based commerce becomes increasingly widespread, large data sets about the demand for and pricing of a wide variety of products become available. These present exciting new opportunities for empirical economic and business research, but also raise new statistical issues and challenges. In this article, we summarize research that aims to assess the optimality of price discrimination in the software industry using a large e-commerce panel data set gathered from Amazon.com. We describ...

  3. Estimating core inflation : the role of oil price shocks and imported inflation

    OpenAIRE

    Bjørnland, Hilde Christiane

    1997-01-01

    This paper calculates core inflation, by imposing long run restrictions on a structural vector autoregression (VAR) model containing the growth rate of output, inflation and oil prices. Core inflation is identified as that component in inflation that has no long run effect on output. No restrictions are placed on the response of output and inflation to the oil price shocks. The analysis is applied to Norway and the United Kingdom, both oil producing OECD countries. A model that ...

  4. Analyzing Subsidies in Microsoft Excel

    Science.gov (United States)

    Mixon, J. Wilson, Jr.

    2005-01-01

    Applying the budget line/indifference curve apparatus to policy issues reveals important and sometimes counterintuitive policy implications. Also, it provides practice in using the apparatus. The author applies these tools to subsidies. The analysis follows textbook treatments but is extended at some points. In particular, the present analysis…

  5. Estimating the Value of Price Risk Reduction in Energy Efficiency Investments in Buildings

    Directory of Open Access Journals (Sweden)

    Pekka Tuominen

    2017-10-01

    Full Text Available This paper presents a method for calculating the value of price risk reduction to a consumer that can be achieved with investments in energy efficiency. The value of price risk reduction is discussed to some length in general terms in the literature reviewed but, so far, no methodology for calculating the value has been presented. Here we suggest such a method. The problem of valuating price risk reduction is approached using a variation of the Black–Scholes model by considering a hypothetical financial instrument that a consumer would purchase to insure herself against unexpected price hikes. This hypothetical instrument is then compared with an actual energy efficiency investment that reaches the same level of price risk reduction. To demonstrate the usability of the method, case examples are calculated for typical single-family houses in Finland. The results show that the price risk entailed in household energy consumption can be reduced by a meaningful amount with energy efficiency investments, and that the monetary value of this reduction can be calculated. It is argued that this often-overlooked benefit of energy efficiency investments merits more consideration in future studies.

  6. Investigation of Welfare Impacts of Targeting Subsidies on Fishery Households in Fars Province

    Directory of Open Access Journals (Sweden)

    seyed nemat mousavi

    2015-05-01

    Full Text Available Pisciculture, especially in countries which are unable to develop their marine resources, is a desired to provide part of their food and protein needs. This study aims at investigating welfare impacts of energy subsidy removal on fish producers in Fars province. To achieve the objective, cross-sectional data obtained from fish producers of Fars Province in 2010 was used. Cost, input demand and production functions were estimated using the collected data. The findings showed that in Fars Province removing fuel subsidies is led to decreased demand for fuel and production as well as a reduction in producers' revenue. As a result of that, in Fars Province benefits from fish are reduced by0.16 percent .The results also showed that food is the most important input in the fish production.a10 percent increases in food consumption is expected to raise the fish production by 4.8 percent. On the other hand, a 50 percent increase in the energy price will reduce the energy consumption by 9.5 percent, and as a result of that, the production and the benefit will be reduced by 0.057% (0.036 tons and 0.06%, respectively. Regarding the importance of food in production, it is suggested to focus on improving the food productivity.

  7. Getting a grip on tariffs and subsidies

    International Nuclear Information System (INIS)

    Mitchell, C.

    1993-01-01

    The tariff and subsidy support available for windpower producers in Denmark, the Netherlands, Germany and the U.K. is compared. Tariffs and subsidies, along with the availability of finance, are important supportive factors in the development of wind energy in Europe. The available tariffs, subsidies and financing mechanisms available in a country determines how the wind energy programme develops. (author)

  8. Cross-subsidy in electricity tariffs: evidence from India

    International Nuclear Information System (INIS)

    Chattopadhyay, P.

    2004-01-01

    The recent reforms in India have been equated to the reduction of cross-subsidization in electricity tariffs. Examining the usefulness of cross subsidies in electricity tariffs in India, I have argued that they are prone to considerable inefficiencies and should be discontinued. I have also formally examined the viability of above-cost tariffs in the industrial sector to allow subsidized domestic and agricultural consumption. Finally, I have used data from a distribution company in the state of Uttar Pradesh, India to estimate industrial demand for electricity and have found that the policy of cross-subsidy may have indeed gone overboard in India. (author)

  9. How Are Property Investment Returns Determined? : Estimating the Micro-Structure of Asset Prices, Property Income, and Discount Rates

    OpenAIRE

    Shimizu, Chihiro

    2014-01-01

    How exactly should one estimate property investment returns? Investors in property aim to maximize capital gains from price increases and income generated by the property. How are the returns on investment in property determined based on its characteristics, and what kind of market characteristics does it have? Focusing on the Tokyo commercial property market and residential property market, the purpose of this paper was to break down and measure the micro-structure of property investment ret...

  10. Gasoline prices, gasoline consumption, and new-vehicle fuel economy: Evidence for a large sample of countries

    International Nuclear Information System (INIS)

    Burke, Paul J.; Nishitateno, Shuhei

    2013-01-01

    Countries differ considerably in terms of the price drivers pay for gasoline. This paper uses data for 132 countries for the period 1995–2008 to investigate the implications of these differences for the consumption of gasoline for road transport. To address the potential for simultaneity bias, we use both a country's oil reserves and the international crude oil price as instruments for a country's average gasoline pump price. We obtain estimates of the long-run price elasticity of gasoline demand of between − 0.2 and − 0.5. Using newly available data for a sub-sample of 43 countries, we also find that higher gasoline prices induce consumers to substitute to vehicles that are more fuel-efficient, with an estimated elasticity of + 0.2. Despite the small size of our elasticity estimates, there is considerable scope for low-price countries to achieve gasoline savings and vehicle fuel economy improvements via reducing gasoline subsidies and/or increasing gasoline taxes. - Highlights: ► We estimate the determinants of gasoline demand and new-vehicle fuel economy. ► Estimates are for a large sample of countries for the period 1995–2008. ► We instrument for gasoline prices using oil reserves and the world crude oil price. ► Gasoline demand and fuel economy are inelastic with respect to the gasoline price. ► Large energy efficiency gains are possible via higher gasoline prices

  11. Distributional effects of subsidy removal and implementation of carbon taxes in Mexican households

    International Nuclear Information System (INIS)

    Rosas-Flores, Jorge Alberto; Bakhat, Mohcine; Rosas-Flores, Dionicio; Fernández Zayas, José Luis

    2017-01-01

    This paper presents a microsimulation using data from the National Households Income and Expenditure Survey (NHIES) from 1994 to 2010 to determine the distributional effects of the price changes arising from energy and environmental policies and their impact on Mexican households. We reported simulations of several changes in energy prices as a result of partial or total energy subsidy removal, including carbon tax. In order to examine whether the subsidy mechanism and carbon tax tend to be progressive or regressive, we evaluated the households' burden in different income levels. These simulations respond to the need for an assessment of economic and environmental impacts of energy subsidies in Mexico. This is of great importance for Mexico because of effort that has been taken in the development of energy policies, and the rising interest of the Mexican government in mitigating carbon dioxide (CO_2) emissions and their concomitant environmental damage. - Highlights: • The results indicate that subsidies in electricity are progressive (indeed less progressive for LPG). • Some regression evidence is shown in gasoline subsidies, that is, low-income households benefit less from the subsidies than do high-income households. • The analysis demonstrates that a hypothetical CO_2 tax is regressive in LPG and progressive in the case of gasoline.

  12. Estimated market prices of electric energy: agroenergy cooperative case study: NERAM (Model for Electric Power Enterprise in Isolated Communities in the Amazon - NERAM) Project; Estimativa do preco de comercializacao da energia eletrica - estudo de caso: cooperativa de agroenergia - Projeto NERAM (Modelo de Negocio de Energia Eletrica em Comunidades Isoladas na Amazonia)

    Energy Technology Data Exchange (ETDEWEB)

    Pedreira, Adriana Coli; Souza, Rubem Cesar Rodrigues; Xavier, Diogo Jackson Cajueiro; Freitas, Katriana Tavares de [Universidade Federal do Amazonas (CDEAM/UFAM), Manaus, AM (Brazil). Centro de Desenvolvimento Energetico Amazonico], Email: cdeam@ufam.edu.br

    2006-07-01

    The objective of this article is to estimate the cost of commercialization of the electricity generated from the acai seeds, under different commercial societies, namely agricultural cooperative, cooperative for rural electrification and independent producer of electricity. In the case of cooperative agriculture, the main products would be the acai pulp, among others, while the electricity would be a sub product resulting from the utilization of the residues from the process. For the other two arrangements, the electricity would be the main product, with differences in fees, taxes and financial structure between them. The taxes and fees associated with each one of the societies are considered for the estimates of energy costs. The results are presented as a variation of the electricity costs (Reais/MWh) over the load factor variation and are compared to the prices practiced for the bulk energy market for the independent producer in the Amazon region. All the results are presented with and without the subsidy for electricity. This study is part of the mark of the project {sup M}odel for Electric Power Enterprise in Isolated Communities in the Amazon - NERAM{sup ,} financed by the National Council for Scientific and Technological Development - CNPq, that contemplates the universal access to electric-power services and the idea of Integrated Planning of Resources (PIR) for isolated systems. The results appear for the need of subsidies and they present smaller costs for the sceneries that use the cooperatives, especially the cooperative of rural electrification. (author)

  13. Research on a Microgrid Subsidy Strategy Based on Operational Efficiency of the Industry Chain

    Directory of Open Access Journals (Sweden)

    Yong Long

    2018-05-01

    Full Text Available Government subsidy is a powerful tool to motivate the development of a new energy industry. At the early stage of microgrid development, for the sake of the cost and benefit issue, it is necessary for the government to subsidize so as to support and promote the development of microgrids. However, a big challenge in practice is how to optimize the operational efficiency of the microgrid industry chain with varying targets and methods of subsidy. In order to explore this problem, we construct a subsidy model based on the microgrid industry chain, involving government, investor, operator, equipment supplier, and user. Through calculation and solution of this model, we obtain price and return indicators of each microgrid industry chain participant when the subsidy target differs. Based on that, we contrast and compare the optimal subsidy strategy and influencing factors when operational efficiency indicators vary. Finally, we validate and analyze this model with numerical analysis and discuss the impact of development stage, technological level, and change in subsidy amount on the operational efficiency of the microgrid industry chain and on the returns of each participant. This result is of great significance to subsidy practice for microgrids and the development of microgrids.

  14. Global progress and backsliding on gasoline taxes and subsidies

    Science.gov (United States)

    Ross, Michael L.; Hazlett, Chad; Mahdavi, Paasha

    2017-01-01

    To reduce greenhouse gas emissions in the coming decades, many governments will have to reform their energy policies. These policies are difficult to measure with any precision. As a result, it is unclear whether progress has been made towards important energy policy reforms, such as reducing fossil fuel subsidies. We use new data to measure net taxes and subsidies for gasoline in almost all countries at the monthly level and find evidence of both progress and backsliding. From 2003 to 2015, gasoline taxes rose in 83 states but fell in 46 states. During the same period, the global mean gasoline tax fell by 13.3% due to faster consumption growth in countries with lower taxes. Our results suggest that global progress towards fossil fuel price reform has been mixed, and that many governments are failing to exploit one of the most cost-effective policy tools for limiting greenhouse gas emissions.

  15. Taxes and Subsidies for Improving Diet and Population Health in Australia: A Cost-Effectiveness Modelling Study.

    Directory of Open Access Journals (Sweden)

    Linda J Cobiac

    2017-02-01

    Full Text Available An increasing number of countries are implementing taxes on unhealthy foods and drinks to address the growing burden of dietary-related disease, but the cost-effectiveness of combining taxes on unhealthy foods and subsidies on healthy foods is not well understood.Using a population model of dietary-related diseases and health care costs and food price elasticities, we simulated the effect of taxes on saturated fat, salt, sugar, and sugar-sweetened beverages and a subsidy on fruits and vegetables, over the lifetime of the Australian population. The sizes of the taxes and subsidy were set such that, when combined as a package, there would be a negligible effect on average weekly expenditure on food (<1% change. We evaluated the cost-effectiveness of the interventions individually, then determined the optimal combination based on maximising net monetary benefit at a threshold of AU$50,000 per disability-adjusted life year (DALY. The simulations suggested that the combination of taxes and subsidy might avert as many as 470,000 DALYs (95% uncertainty interval [UI]: 420,000 to 510,000 in the Australian population of 22 million, with a net cost-saving of AU$3.4 billion (95% UI: AU$2.4 billion to AU$4.6 billion; US$2.3 billion to the health sector. Of the taxes evaluated, the sugar tax produced the biggest estimates of health gain (270,000 [95% UI: 250,000 to 290,000] DALYs averted, followed by the salt tax (130,000 [95% UI: 120,000 to 140,000] DALYs, the saturated fat tax (97,000 [95% UI: 77,000 to 120,000] DALYs, and the sugar-sweetened beverage tax (12,000 [95% UI: 2,100 to 21,000] DALYs. The fruit and vegetable subsidy (-13,000 [95% UI: -44,000 to 18,000] DALYs was a cost-effective addition to the package of taxes. However, it did not necessarily lead to a net health benefit for the population when modelled as an intervention on its own, because of the possible adverse cross-price elasticity effects on consumption of other foods (e.g., foods high in

  16. Effect of food prices on the prevalence of obesity among young adults.

    Science.gov (United States)

    Han, E; Powell, L M

    2011-03-01

    To examine the extent to which various food prices were associated with the obesity status of young adults. Retrospective cohort study of 6537 men and 5324 women in the USA using panel data from the Monitoring the Future Surveys (1992-2003), which were merged with two food-at-home and one food-away-from-home price measures from the American Chamber of Commerce Researchers Association. Longitudinal individual random effect and fixed effect models were estimated. This study found that food prices did not have a significant effect on the prevalence of obesity among young female adults. For young adult men, an individual random effect estimator suggested that a 10% increase in the price of fast food was associated with a 13.2% decrease in the probability of obesity, but this effect lost its economic and statistical significance once individual fixed effects were controlled for in the estimation. Overall, the results imply that observed time-varying individual characteristics, such as working status, marital status and school enrolment status, may over-ride the effect of changes in food prices for young adults. More research employing longitudinal data is necessary to determine if food subsidies or taxes, particularly soft drink and fast food taxes or subsidies for fruit and vegetables, could be effective policy measures to curtail the increasing prevalence of obesity among young adults. Copyright © 2010 The Royal Society for Public Health. Published by Elsevier Ltd. All rights reserved.

  17. Estimating the price elasticity of beer: meta-analysis of data with heterogeneity, dependence, and publication bias.

    Science.gov (United States)

    Nelson, Jon P

    2014-01-01

    Precise estimates of price elasticities are important for alcohol tax policy. Using meta-analysis, this paper corrects average beer elasticities for heterogeneity, dependence, and publication selection bias. A sample of 191 estimates is obtained from 114 primary studies. Simple and weighted means are reported. Dependence is addressed by restricting number of estimates per study, author-restricted samples, and author-specific variables. Publication bias is addressed using funnel graph, trim-and-fill, and Egger's intercept model. Heterogeneity and selection bias are examined jointly in meta-regressions containing moderator variables for econometric methodology, primary data, and precision of estimates. Results for fixed- and random-effects regressions are reported. Country-specific effects and sample time periods are unimportant, but several methodology variables help explain the dispersion of estimates. In models that correct for selection bias and heterogeneity, the average beer price elasticity is about -0.20, which is less elastic by 50% compared to values commonly used in alcohol tax policy simulations. Copyright © 2013 Elsevier B.V. All rights reserved.

  18. Creative pricing strategies for medical services.

    Science.gov (United States)

    Tellis, G J

    1987-01-01

    This paper discusses the strategic role of the pricing of medical services. Strategic pricing is a creative process that can be a vital means of defining marketing segments, differentiating services, and gaining a competitive advantage. The central issue in strategic pricing is creatively using the principle of cross-subsidies or shared economies over consumer groups, service sets, or competitors. This principle yields a rich set of pricing strategies that can be used in response to various environments.

  19. Estimating Price Effects in an Almost Ideal Demand Model of Outbound Thai Tourism to East Asia

    NARCIS (Netherlands)

    C-L. Chang (Chia-Lin); T. Khamkaew (Tanchanok); M.J. McAleer (Michael)

    2010-01-01

    textabstractThis paper analyzes the responsiveness of Thai outbound tourism to East Asian destinations, namely China, Hong Kong, Japan, Taiwan and Korea, to changes in effective relative price of tourism, total real total tourism expenditure, and one-off events. The nonlinear and linear Almost Ideal

  20. Performance/price estimates for cortex-scale hardware: a design space exploration.

    Science.gov (United States)

    Zaveri, Mazad S; Hammerstrom, Dan

    2011-04-01

    In this paper, we revisit the concept of virtualization. Virtualization is useful for understanding and investigating the performance/price and other trade-offs related to the hardware design space. Moreover, it is perhaps the most important aspect of a hardware design space exploration. Such a design space exploration is a necessary part of the study of hardware architectures for large-scale computational models for intelligent computing, including AI, Bayesian, bio-inspired and neural models. A methodical exploration is needed to identify potentially interesting regions in the design space, and to assess the relative performance/price points of these implementations. As an example, in this paper we investigate the performance/price of (digital and mixed-signal) CMOS and hypothetical CMOL (nanogrid) technology based hardware implementations of human cortex-scale spiking neural systems. Through this analysis, and the resulting performance/price points, we demonstrate, in general, the importance of virtualization, and of doing these kinds of design space explorations. The specific results suggest that hybrid nanotechnology such as CMOL is a promising candidate to implement very large-scale spiking neural systems, providing a more efficient utilization of the density and storage benefits of emerging nano-scale technologies. In general, we believe that the study of such hypothetical designs/architectures will guide the neuromorphic hardware community towards building large-scale systems, and help guide research trends in intelligent computing, and computer engineering. Copyright © 2010 Elsevier Ltd. All rights reserved.

  1. Estimating the economic value of cultural ecosystem services in an urbanizing area using hedonic pricing

    Science.gov (United States)

    Heather A. Sander; Robert G. Haight

    2012-01-01

    A need exists to increase both knowledge and recognition of the values associated with ecosystem services and amenities. This article explores the use of hedonic pricing as a tool for eliciting these values. We take a case study approach, valuing several services provided by ecosystems, namely aesthetic quality (views), access to outdoor recreation, and the benefits...

  2. Estimates of the price of hydrogen as a medium for wind and solar sources

    International Nuclear Information System (INIS)

    Bockris, John O'M.; Veziroglu, T. Nejat

    2007-01-01

    The rejection of hydrogen as a solution to global warming by becoming the medium of wind and solar was made when gasoline was priced at $1/gallon. From wind, H 2 would now cost (by electrolysis of water and steam) less than $3 for an amount equivalent in energy to that in a gallon of gasoline ('equivalent'). From solar photovoltaics (pv), H 2 would be sinking in price between $8 toward $5 equivalent as the efficiency of solar pv increases toward 20%. Solar thermal's present prices offer about one-half the solar pv prices. Prediction of the maximum of the delivery rate of world oil is [Laherre's Oil Production Forecast, 1950-2150. Reprinted with permission from correspondence with William Horvath, U.S. Department of Energy, March 29, 2001] 2010. Future energy sources will develop inexhaustible energies from wind, solar, geothermal, tidal, and wave sources. The common media will be hydrogen and electricity. These sources yield energy at around one-half the cost of nuclear fission. Growing corn to make alcohol involves a net loss of energy and need for a heating mechanism. It may increase the Greenhouse. (author)

  3. Survey-based estimates of biases in consumer price indices during transition: evidence from Romania

    Czech Academy of Sciences Publication Activity Database

    Filer, Randall K.; Hanousek, Jan

    2002-01-01

    Roč. 30, č. 3 (2002), s. 476-487 ISSN 0147-5967 Institutional research plan: CEZ:AV0Z7085904 Keywords : price * inflation * transition * Romania Subject RIV: AH - Economics Impact factor: 0.806, year: 2002 http://dx.doi.org/10.1006/jcec.2002.1784

  4. Estimating the impact of extreme events on crude oil price. An EMD-based event analysis method

    International Nuclear Information System (INIS)

    Zhang, Xun; Wang, Shouyang; Yu, Lean; Lai, Kin Keung

    2009-01-01

    The impact of extreme events on crude oil markets is of great importance in crude oil price analysis due to the fact that those events generally exert strong impact on crude oil markets. For better estimation of the impact of events on crude oil price volatility, this study attempts to use an EMD-based event analysis approach for this task. In the proposed method, the time series to be analyzed is first decomposed into several intrinsic modes with different time scales from fine-to-coarse and an average trend. The decomposed modes respectively capture the fluctuations caused by the extreme event or other factors during the analyzed period. It is found that the total impact of an extreme event is included in only one or several dominant modes, but the secondary modes provide valuable information on subsequent factors. For overlapping events with influences lasting for different periods, their impacts are separated and located in different modes. For illustration and verification purposes, two extreme events, the Persian Gulf War in 1991 and the Iraq War in 2003, are analyzed step by step. The empirical results reveal that the EMD-based event analysis method provides a feasible solution to estimating the impact of extreme events on crude oil prices variation. (author)

  5. Estimating the impact of extreme events on crude oil price. An EMD-based event analysis method

    Energy Technology Data Exchange (ETDEWEB)

    Zhang, Xun; Wang, Shouyang [Institute of Systems Science, Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190 (China); School of Mathematical Sciences, Graduate University of Chinese Academy of Sciences, Beijing 100190 (China); Yu, Lean [Institute of Systems Science, Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190 (China); Lai, Kin Keung [Department of Management Sciences, City University of Hong Kong, Tat Chee Avenue, Kowloon (China)

    2009-09-15

    The impact of extreme events on crude oil markets is of great importance in crude oil price analysis due to the fact that those events generally exert strong impact on crude oil markets. For better estimation of the impact of events on crude oil price volatility, this study attempts to use an EMD-based event analysis approach for this task. In the proposed method, the time series to be analyzed is first decomposed into several intrinsic modes with different time scales from fine-to-coarse and an average trend. The decomposed modes respectively capture the fluctuations caused by the extreme event or other factors during the analyzed period. It is found that the total impact of an extreme event is included in only one or several dominant modes, but the secondary modes provide valuable information on subsequent factors. For overlapping events with influences lasting for different periods, their impacts are separated and located in different modes. For illustration and verification purposes, two extreme events, the Persian Gulf War in 1991 and the Iraq War in 2003, are analyzed step by step. The empirical results reveal that the EMD-based event analysis method provides a feasible solution to estimating the impact of extreme events on crude oil prices variation. (author)

  6. Long-term climate policy implications of phasing out fossil fuel subsidies

    International Nuclear Information System (INIS)

    Schwanitz, Valeria Jana; Piontek, Franziska; Bertram, Christoph; Luderer, Gunnar

    2014-01-01

    It is often argued that fossil fuel subsidies hamper the transition towards a sustainable energy supply as they incentivize wasteful consumption. We assess implications of a subsidy phase-out for the mitigation of climate change and the low-carbon transformation of the energy system, using the global energy–economy model REMIND. We compare our results with those obtained by the International Energy Agency (based on the World Energy Model) and by the Organization for Economic Co-Operation and Development (OECD-Model ENV-Linkages), providing the long-term perspective of an intertemporal optimization model. The results are analyzed in the two dimensions of subsidy phase-out and climate policy scenarios. We confirm short-term benefits of phasing-out fossil fuel subsidies as found in prior studies. However, these benefits are only sustained to a small extent in the long term, if dedicated climate policies are weak or nonexistent. Most remarkably we find that a removal of fossil fuel subsidies, if not complemented by other policies, can slow down a global transition towards a renewable based energy system. The reason is that world market prices for fossil fuels may drop due to a removal of subsidies. Thus, low carbon alternatives would encounter comparative disadvantages. - Highlights: • We assess implications of phasing out fossil fuel subsidies on the mitigation of climate change. • The removal of subsidies leads to a net-reduction in the use of energy. • Emission reductions contribute little to stabilize greenhouse gases at 450 ppm if not combined with climate policies. • Low carbon alternatives may encounter comparative disadvantages due to relative price changes at world markets

  7. Cheaper by the Dozen: Using Sibling Discounts at Catholic Schools to Estimate the Price Elasticity of Private School Attendance. NBER Working Paper No. 15461

    Science.gov (United States)

    Dynarski, Susan; Gruber, Jonathan; Li, Danielle

    2009-01-01

    The effect of vouchers on sorting between private and public schools depends upon the price elasticity of demand for private schooling. Estimating this elasticity is empirically challenging because prices and quantities are jointly determined in the market for private schooling. We exploit a unique and previously undocumented source of variation…

  8. Fossil fuel subsidy reform: lessons from the Indonesian case

    International Nuclear Information System (INIS)

    Savatic, Filip

    2016-10-01

    Global assessments of consumption and the Indonesian case show the relevance of non-household consumers of subsidized energy products. As shown in this study, understanding in more nuance how reforms affect them has the potential to improve the reforms that will be developed by policy-makers worldwide. Further study can reinforce the many benefits of successful reform for the countries and societies slowly turning away from these policies of the past. Estimates regarding the amount of public funds utilized to subsidize the production or consumption of fossil fuels are staggering. For 2011, they range from $83 billion in OECD member states, to nearly $4.1 trillion worldwide if environmental externalities are considered. Numerous studies have demonstrated that subsidies repress economic growth, undermine energy sector investment, increase public debt, benefit wealthy citizens over the poor, instigate a rise in illicit activities, and engender greater global and local pollution. The negative effects of fossil fuel subsidies have led numerous governments to reform their energy policies. There has also been a growing international consensus in favor of reform. While the components of successful reform programs have been identified through past case studies, the nature of reforms adopted by several governments that target non-households have not been systematically examined. Since the late 1990s, the Indonesian government has implemented numerous reforms of its fossil fuel subsidies, including measures targeting household as well as non-household energy consumption. In doing so, it has incurred significant fiscal savings. However, an innovative budgetary analysis reveals that households receive a minority, and a declining share, of fossil fuel subsidy funds. This is the case despite the fact that subsidies were implemented to ensure poor households have access to cheap energy. These findings demonstrate the need to consider non-household sectors in the design of fossil

  9. Government subsidies for the Chinese photovoltaic industry

    International Nuclear Information System (INIS)

    Xiong, Yongqing; Yang, Xiaohan

    2016-01-01

    Since 2009, the subsidy for large-scale photovoltaic (PV) power plants had been launched, which effectively promoted the development of PV industry. At the same time, negative effects, like serious oversupply of PV industry, were brought about by these large scale governmental subsidies. Although governmental subsidy strongly supports the China PV companies, few of them have competitiveness in the global market. This dramatically conflictive phenomenon attracted many researchers’ attentions in recent years. However, investigations on the best entry and exit occasions of governmental subsidies for the PV industry were rarely reported in previous studies. Therefore, based on the existing division method of enterprise development model, classification of 72 PV companies listed in Shanghai and Shenzhen Stock Exchanges in China was firstly carried out in this paper. This is followed by studying the influence of governmental subsidies on the indexes of different stages of enterprise development. Finally, a conclusion was drawn that the governmental subsidies at Early Exploratory Stage can maximize the social and economic effects, suggesting the best entry occasion, and subsidies at Intermediate Stage and Mature Stage have little effects on its turnover and aggravate the overcapacity of PV supply, suggesting a suitable exit occasion. - Highlights: • Enterprise development stages were determined based on net revenue. • Subsidy effects on PV companies at different developing stages were studied. • The occasion to provide subsidy at different developing stages was investigated. • Z-score formula method was used to find the best exit occasion of subsidy.

  10. Effectiveness of Subsidies in Technology Adoption: A Case Study Involving Reverse Osmosis (RO Membrane Technology

    Directory of Open Access Journals (Sweden)

    Nur Laili

    2016-12-01

    Full Text Available Adoption of new technologies is a process that involves technological learning and penetration of new products into the market. Within the process of new technologies adoption, government usually intervened by providing incentives, in order to support the technology adoption to be succeed. This paper examines the effectiveness of incentives for the sustainability of reverse osmosis (RO membrane technology adoption. The study conducted through single case study on SWRO installation in Mandangin Island, East Java, Indonesia. Results of case study indentify the existence of government incentive in the form of direct subsidies to decrease the price of clean water. Although successful in reducing the price of water, but effectiveness of the subsidy on the sustainability of SWRO is still low, which is operates only 30% in a year. Further analysis shows that these subsidies actually be counter-productive to the sustainability of SWRO installation.

  11. Electricity structure and the impact on pricing, trade and the environment

    International Nuclear Information System (INIS)

    Pineau, P.O.

    2007-01-01

    The feasibility of integrating different electricity markets was discussed along with the benefits that can be derived. It was noted that some important differences in Canadian electricity markets create distortions that are harmful both economically and environmentally. Indirect subsidies provided to electricity consumers in British Columbia, Saskatchewan, Manitoba and Quebec result in inefficient consumption levels and in missed opportunities to reduce greenhouse gas (GHG) emissions. The structure of the Canadian electricity sector is characterized by public ownership and decentralization at the provincial level. The impact that this structure has on pricing policies, independent planning and environmental strategies was discussed. Alberta and Ontario have an hourly spot market fixing the market price for electricity, but all the other provinces use a pricing policy based on average cost, including a return on investment. This article also addressed the issue of electric generating units (EGUs) within each province and and their role in meeting provincial electricity demands. It was shown that electricity prices do not reflect the value of the resource across Canada. It was cautioned that subsidies create low electricity prices that result in inefficient consumption levels, thereby preventing clean hydropower to be exported to market-based provinces as a substitute to diesel, natural gas or coal-fuelled EGUs. An estimate of the indirect subsidies was presented in this article along with an analysis of possible consumption reduction scenarios if market prices were used. Carbon dioxide-equivalent emissions reductions that could be obtained if the saved energy was entirely exported were also estimated. Transmission issues involved in exporting electricity were also reviewed. It was argued that once strong financial incentives are in place to induce change, then economic and environmental gains will be proven. 9 tabs., 3 figs

  12. ACFAC: a cash flow analysis code for estimating product price from an industrial operation

    International Nuclear Information System (INIS)

    Delene, J.G.

    1980-04-01

    A computer code is presented which uses a discountted cash flow methodology to obtain an average product price for an industtrial process. The general discounted cash flow method is discussed. Special code options include multiple treatments of interest during construction and other preoperational costs, investment tax credits, and different methods for tax depreciation of capital assets. Two options for allocating the cost of plant decommissioning are available. The FORTRAN code listing and the computer output for a sample problem are included

  13. The Impact of Measurement Error on Estimates of the Price Reaction to USDA Crop Reports

    OpenAIRE

    Aulerich, Nicole M.; Irwin, Scott H.; Nelson, Carl H.

    2007-01-01

    This paper investigates the impact of USDA crop production reports in corn and soybean futures markets. The analysis is based on all corn and soybean production reports released over 1970-2006. The empirical analysis compares the typical OLS event study approach to the new Identification by Censoring (ITC) technique. Corn and soybean production reports are analyzed both separately and together for impact in corn and soybean futures prices. ITC proves to be the more useful method because it av...

  14. Estimating the Performance of Random Forest versus Multiple Regression for Predicting Prices of the Apartments

    Directory of Open Access Journals (Sweden)

    Marjan Čeh

    2018-05-01

    Full Text Available The goal of this study is to analyse the predictive performance of the random forest machine learning technique in comparison to commonly used hedonic models based on multiple regression for the prediction of apartment prices. A data set that includes 7407 records of apartment transactions referring to real estate sales from 2008–2013 in the city of Ljubljana, the capital of Slovenia, was used in order to test and compare the predictive performances of both models. Apparent challenges faced during modelling included (1 the non-linear nature of the prediction assignment task; (2 input data being based on transactions occurring over a period of great price changes in Ljubljana whereby a 28% decline was noted in six consecutive testing years; and (3 the complex urban form of the case study area. Available explanatory variables, organised as a Geographic Information Systems (GIS ready dataset, including the structural and age characteristics of the apartments as well as environmental and neighbourhood information were considered in the modelling procedure. All performance measures (R2 values, sales ratios, mean average percentage error (MAPE, coefficient of dispersion (COD revealed significantly better results for predictions obtained by the random forest method, which confirms the prospective of this machine learning technique on apartment price prediction.

  15. PRICE AND PRICING STRATEGIES

    OpenAIRE

    SUCIU Titus

    2013-01-01

    In individual companies, price is one significant factor in achieving marketing success. In many purchase situations, price can be of great importance to customers. Marketers must establish pricing strategies that are compatible with the rest of the marketing mix. Management should decide whether to charge the same price to all similar buyers of identical quantities of a product (a one-price strategy) or to set different prices (a flexible price strategy). Many organizations, especially retai...

  16. Production Functions for Water Delivery Systems: Analysis and Estimation Using Dual Cost Function and Implicit Price Specifications

    Science.gov (United States)

    Teeples, Ronald; Glyer, David

    1987-05-01

    Both policy and technical analysis of water delivery systems have been based on cost functions that are inconsistent with or are incomplete representations of the neoclassical production functions of economics. We present a full-featured production function model of water delivery which can be estimated from a multiproduct, dual cost function. The model features implicit prices for own-water inputs and is implemented as a jointly estimated system of input share equations and a translog cost function. Likelihood ratio tests are performed showing that a minimally constrained, full-featured production function is a necessary specification of the water delivery operations in our sample. This, plus the model's highly efficient and economically correct parameter estimates, confirms the usefulness of a production function approach to modeling the economic activities of water delivery systems.

  17. Modeling of the Maximum Entropy Problem as an Optimal Control Problem and its Application to Pdf Estimation of Electricity Price

    Directory of Open Access Journals (Sweden)

    M. E. Haji Abadi

    2013-09-01

    Full Text Available In this paper, the continuous optimal control theory is used to model and solve the maximum entropy problem for a continuous random variable. The maximum entropy principle provides a method to obtain least-biased probability density function (Pdf estimation. In this paper, to find a closed form solution for the maximum entropy problem with any number of moment constraints, the entropy is considered as a functional measure and the moment constraints are considered as the state equations. Therefore, the Pdf estimation problem can be reformulated as the optimal control problem. Finally, the proposed method is applied to estimate the Pdf of the hourly electricity prices of New England and Ontario electricity markets. Obtained results show the efficiency of the proposed method.

  18. Fossil fuel subsidies and the new EU Climate and Energy Governance Mechanism

    International Nuclear Information System (INIS)

    Sartor, Oliver; Spencer, Thomas

    2016-07-01

    There is currently no dedicated process to track the extent of fossil fuel subsidies, nor to ensure that Member States phase them out. This situation is inconsistent with the European Union's stated decarbonization and energy efficiency dimensions under the Energy Union. The EU is therefore in need of an alternative process for tracking and ensuring the phase-out of fossil fuel subsidies by the Member States. The new Energy Union governance mechanism presents an opportunity for creating this alternative. Providing the right price signals is essential part of the policy mix that is needed to achieve Europe's climate policy goals. Phasing out fossil fuel subsidies in the EU is an important part of aligning energy prices with the EU's climate and energy goals. Depending on how they are measured, combined fossil fuel subsidies in the EU range from 39 to over euro 200 billion per annum (European Commission, 2014). They therefore constitute a significant source of incoherence between the EU's climate mitigation and fiscal policies for energy. However, there has recently been mixed progress in addressing fossil fuel subsidies in Europe. For instance, under the Europe 2020 Strategy, Member States had committed to begin developing plans for phasing out fossil fuel subsidies by 2020. Progress on implementing these plans was supposed to be monitored under the European Semester. However, the decision was taken to remove the focus on energy and fossil fuel subsidies from the European Semester in 2015. As yet, no new system for governing the phase-out of fossil fuel subsidies has been advanced, leaving the question of fossil fuel subsidy reform in limbo. The advent of the EU's Energy Union project creates an opportunity for putting the phase-out of fossil fuel subsidies back on track in Europe. This could be done by including requirements for national goal setting on specific kinds of fossil fuel subsidies in a dedicated sub-section of the National Climate and Energy Plans

  19. Prices and Price Setting

    NARCIS (Netherlands)

    R.P. Faber (Riemer)

    2010-01-01

    textabstractThis thesis studies price data and tries to unravel the underlying economic processes of why firms have chosen these prices. It focuses on three aspects of price setting. First, it studies whether the existence of a suggested price has a coordinating effect on the prices of firms.

  20. Calibration of CIR processes to CVA data and applications to estimation of Market Price of Risk

    DEFF Research Database (Denmark)

    Hvolby, Thomas; Christensen, Bent Jesper; Høg, Esben

    2018-01-01

    We present a rigorous framework for CDS valuation and calibration to market quotes on single-name CDSs and methods of calculating the market price of risk (MPR) on such markets. We use the results of MPR for bond markets, and thus the MPR corresponds to the survival probabilities, which is a non......-tradable asset. Further, we present a set-up for numerical valuation of triparty CDS agreements, where two default risky parties trade a CDS with a third entity as reference credit....

  1. Estimation of Hedonic Single-Family House Price Function Considering Neighborhood Effect Variables

    Directory of Open Access Journals (Sweden)

    Chihiro Shimizu

    2014-05-01

    Full Text Available In the formulation of hedonic models, in addition to locational factors and building structures which affect the house prices, the generation of the omitted variable bias is thought to occur in cases when local environmental variables and the individual characteristics of house buyers are not taken into consideration. However, since it is difficult to obtain local environmental information in a small neighborhood unit and to observe individual characteristics of house buyers, these variables have not been sufficiently considered in previous studies. We demonstrated that non-negligible levels of omitted variable bias are generated if these variables are not considered.

  2. Estimating Price Volatility Structure in Iran’s Meat Market: Application of General GARCH Models

    Directory of Open Access Journals (Sweden)

    Z. Rasouli Birami

    2016-10-01

    Full Text Available Introduction: Over the past few years, the price volatility of agricultural products and food markets has attracted attention of many researchers and policy makers. This growing attention was started from the food price crisis in 2007 and 2008 when major agricultural products faced accelerated price increases and then rapidly decreased. This paper focused on the price volatility of major commodities related to three market levels of Iran’s meat market, including hay (the input level, calf and sheep (the wholesale level and beef and mutton (the retail level. In particular, efforts will made to find more appropriate models for explaining the behavior of volatility of the return series and to identify which return series are more volatile. The effects of good and bad news on the volatility of prices in each return series will also be studied. Materials and Methods: Different GARCH type models have been considered the best for modeling volatility of return series. Nonlinear GARCH models were introduced to capture the effect of good and bad news separately. The paper uses some GARCH type models including GARCH, Exponential GARCH (EGARCH, GJR-GARCH, Threshold GARCH (TGARCH, Simple Asymmetric GARCH (SAGARCH, Power GARCH (PGARCH, Non-linear GARCH (NGARCH, Asymmetric Power GARCH (APGARCH and Non-linear Power GARCH (NPGARCH to model the volatility of hay, calf, sheep, beef and mutton return series. The data on hay, calf, sheep, and beef and mutton monthly prices are published by Iran’s livestock support firm. The paper uses monthly data over the sample period of the May 1992 to the March 2014. Results and Discussion: Descriptive statistics of the studied return series show evidence of skewness and kurtosis. The results here show that all the series has fat tails. The significant p-values for the Ljung-Box Q-statistics mean that the auto-correlation exists in the squared residuals. The presence of unit roots in the return series is confirmed by the

  3. Using stated preference methods to design cost-effective subsidy programs to induce technology adoption: an application to a stove program in southern Chile.

    Science.gov (United States)

    Gómez, Walter; Salgado, Hugo; Vásquez, Felipe; Chávez, Carlos

    2014-01-01

    We study the design of an economic incentive based program - a subsidy - to induce adoption of more efficient technology in a pollution reduction program in southern Chile. Stated preferences methods, contingent valuation (CV), and choice experiment (CE) are used to estimate the probability of adoption and the willingness to share the cost of a new technology by a household. The cost-effectiveness property of different subsidy schemes is explored numerically for different regulatory objectives. Our results suggest that households are willing to participate in voluntary programs and to contribute by paying a share of the cost of adopting more efficient technologies. We find that attributes of the existing and the new technology, beyond the price, are relevant determinant factors of the participation decision and payment. Limited access to credit markets for low income families can be a major barrier for an effective implementation of these types of programs. Variations in the design of the subsidy and on the regulator's objective and constraints can have significant impact on the level and the cost of reduction of aggregate emissions achieved. Copyright © 2013 Elsevier Ltd. All rights reserved.

  4. Fertilizer procurement, distribution and subsidy policies in Nigeria ...

    African Journals Online (AJOL)

    Open Access DOWNLOAD FULL TEXT ... subsidy at source, and subsidy at source including transportation subsidy to delivery points. It was recommended that the National Fertilizer Company of Nigeria (NAFCON) Onne, Port Harcourt should ...

  5. A welfare perspective on Nordic media subsidies

    DEFF Research Database (Denmark)

    Kammer, Aske

    2016-01-01

    Subsidies constitute a prominent media-policy instrument, serving to correct media-market failures. However, because they interfere in the market, and because the commercial media market is under structural pressure in the digital age, there is much debate about the role of media subsidies. Within...

  6. Child Care Subsidies and Child Development

    Science.gov (United States)

    Herbst, Chris M.; Tekin, Erdal

    2010-01-01

    Child care subsidies are an important part of federal and state efforts to move welfare recipients into employment. One of the criticisms of the current subsidy system, however, is that it overemphasizes work and does little to encourage parents to purchase high-quality child care. Consequently, there are reasons to be concerned about the…

  7. Redistribution and Education Subsidies are Siamese Twins

    NARCIS (Netherlands)

    Bovenberg, A.L.; Jacobs, B.

    2001-01-01

    We develop a model of human capital formation with endogenous labor supply and heterogeneous agents to explore the optimal level of education subsidies along with the optimal progressive schedule of the labor income tax and optimal capital income taxes.Subsidies on education ensure efficiency in

  8. 42 CFR 423.780 - Premium subsidy.

    Science.gov (United States)

    2010-10-01

    ...) MEDICARE PROGRAM VOLUNTARY MEDICARE PRESCRIPTION DRUG BENEFIT Premiums and Cost-Sharing Subsidies for Low... 42 Public Health 3 2010-10-01 2010-10-01 false Premium subsidy. 423.780 Section 423.780 Public...-service plans or 1876 cost plans) in a PDP region in the reference month. (ii) Premium amounts. The...

  9. Estimating the shadow prices of SO2 and NOx for U.S. coal power plants: A convex nonparametric least squares approach

    International Nuclear Information System (INIS)

    Mekaroonreung, Maethee; Johnson, Andrew L.

    2012-01-01

    Weak disposability between outputs and pollutants, defined as a simultaneous proportional reduction of both outputs and pollutants, assumes that pollutants are byproducts of the output generation process and that a firm can “freely dispose” of both by scaling down production levels, leaving some inputs idle. Based on the production axioms of monotonicity, convexity and weak disposability, we formulate a convex nonparametric least squares (CNLS) quadratic optimization problem to estimate a frontier production function assuming either a deterministic disturbance term consisting only of inefficiency, or a composite disturbance term composed of both inefficiency and noise. The suggested methodology extends the stochastic semi-nonparametric envelopment of data (StoNED) described in Kuosmanen and Kortelainen (2011). Applying the method to estimate the shadow prices of SO 2 and NO x generated by U.S. coal power plants, we conclude that the weak disposability StoNED method provides more consistent estimates of market prices. - Highlights: ► Develops methodology to estimate shadow prices for SO 2 and NO x in the U.S. coal power plants. ► Extends CNLS and StoNED methods to include the weak disposability assumption. ► Estimates the range of SO 2 and NO x shadow prices as 201–343 $/ton and 409–1352 $/ton. ► StoNED method provides more accurate estimates of shadow prices than deterministic frontier.

  10. Government Resource Subsidy and its Spillover Effects: Evidence from the Excessive Oil Consumption in China

    Directory of Open Access Journals (Sweden)

    Rattaphon Wuthisatian

    2014-05-01

    Full Text Available The paper aims at analyzing the consecutive consequences of government resource subsidies in a particular industry, which can lead to the excessive oil consumption by other sectors and end users. To fully illustrate the investigation, we use the subsidies in Chinese steel production as a case study and a beginning point to develop theoretical and empirical models to examine the spillover effects, going from steel industry to a rapidly increase of overall country’s oil consumption. The theoretical model applies the market equilibrium concept to demonstrate a relationship among three economic sectors; steel industry, automobile, and households. Particularly, the government subsidies in Chinese steel production will enable the steel firms to obtain resource inputs at the lower price, making the output price of steels cheaper than the market price. As steel is a required input in automobile industry, this cheaper price of steels will induce the automotive firms to increase their production capacity, producing more cars and selling them at the cheaper price, which eventually results in the excessive usage of oil and gasoline by individuals. Using the data during the period of 1980-2012, the empirical analysis involves OLS regression and cointegration test to approve the validity of the theoretical model, which emphasizes on the strong relationship between Chinese oil consumption and steel production.

  11. Forest Carbon Sequestration Subsidy and Carbon Tax as Part of China’s Forestry Policies

    Directory of Open Access Journals (Sweden)

    Jinhua Liu

    2017-02-01

    Full Text Available Forestry is an effective strategy for climate change mitigation. However, forestry activities not only sequester carbon but also release CO2. It is therefore important to formulate carbon subsidy and carbon taxation policies on the basis of the price of carbon. In this study, a forestry-based Computable General Equilibrium (CGE model was built by using input-output data of China in 2014 to construct a Social Accounting Matrix (SAM. The model simulates different carbon price scenarios and was used to explore the effects of carbon subsidy and carbon taxation policies on the forestry economy. The main results can be summarized as follows: When the carbon price is low, the implementation of the policy increases forestry output and causes forest product prices to rise. When the carbon price is high, the carbon tax will produce an inhibitory effect, and output and prices will decline. With the constant rise of the carbon price, value addition will decrease, with flow to other industries. For the carbon sequestration policy, there is a reasonable carbon price range bound. In light of these results, relevant policies are proposed.

  12. An evaluation of the impact of reducing energy subsidies on living expenses of households

    International Nuclear Information System (INIS)

    Saboohi, Y.

    2001-01-01

    A policy of subsidizing energy has been pursued in the Islamic Republic of Iran to help the poor and to utilize the relative advantages of the country. But it has been realized that energy subsidy has led to market distortion and welfare loss. Hence, elimination of energy subsidy is considered as a crucial matter. Changes in energy policy are hindered by the uncertainty on the impact of reducing energy subsidy on the living expenses of population. In the present article the distribution of resources through energy subsidy is evaluated; and the direct and indirect effect of eliminating energy subsidies on the living expenses is estimated with the help of an analytical tool that has been developed. It is then concluded that additional financial resources obtained from reduction of energy subsidies could be allocated for compensating the decrease in purchasing power of households. The results of analysis reveal that more egalitarian distribution of resources and helping the poor could be achieved through implementation of a progressive policy of social security that is supported by financial resources available from elimination of energy subsidies. (author)

  13. Green roof adoption in atlanta, georgia: the effects of building characteristics and subsidies on net private, public, and social benefits.

    Science.gov (United States)

    Mullen, Jeffrey D; Lamsal, Madhur; Colson, Greg

    2013-10-01

    This research draws on and expands previous studies that have quantified the costs and benefits associated with conventional roofs versus green roofs. Using parameters from those studies to define alternative scenarios, we estimate from a private, public, and social perspective the costs and benefits of installing and maintaining an extensive green roof in Atlanta, GA. Results indicate net private benefits are a decreasing function of roof size and vary considerably across scenarios. In contrast, net public benefits are highly stable across scenarios, ranging from $32.49 to $32.90 m(-2). In addition, we evaluate two alternative subsidy regimes: (i) a general subsidy provided to every building that adopts a green roof and (ii) a targeted subsidy provided only to buildings for which net private benefits are negative but net public benefits are positive. In 6 of the 12 general subsidy scenarios the optimal public policy is not to offer a subsidy; in 5 scenarios the optimal subsidy rate is between $20 and $27 m(-2); and in 1 scenario the optimal rate is $5 m(-2). The optimal rate with a targeted subsidy is between $20 and $27 m(-2) in 11 scenarios and no subsidy is optimal in the twelfth. In most scenarios, a significant portion of net public benefits are generated by buildings for which net private benefits are positive. This suggests a policy focused on information dissemination and technical assistance may be more cost-effective than direct subsidy payments.

  14. Freemium Pricing

    DEFF Research Database (Denmark)

    Runge, Julian; Wagner, Stefan; Claussen, Jörg

    Firms commonly run field experiments to improve their freemium pricing schemes. However, they often lack a framework for analysis that goes beyond directly measurable outcomes and focuses on longer term profit. We aim to fill this gap by structuring existing knowledge on freemium pricing...... into a stylized framework. We apply the proposed framework in the analysis of a field experiment that contrasts three variations of a freemium pricing scheme and comprises about 300,000 users of a software application. Our findings indicate that a reduction of free product features increases conversion as well...... as viral activity, but reduces usage – which is in line with the framework’s predictions. Additional back-of-the-envelope profit estimations suggest that managers were overly optimistic about positive externalities from usage and viral activity in their choice of pricing scheme, leading them to give too...

  15. A decarbonization strategy for the electricity sector: New-source subsidies

    International Nuclear Information System (INIS)

    Johnson, Kenneth C.

    2010-01-01

    An expedient phase-out of carbon emissions in the electricity sector could be facilitated by imposing carbon fees and applying the revenue exclusively to subsidize new, low-carbon generation sources. Since there would initially be no 'new sources', fees would be substantially zero at the outset of the program. Nevertheless, the program would immediately create high price incentives for low-carbon capacity expansion. Fees would increase as new, low-carbon sources gain market share, but price competition from a growing, subsidized clean-energy industry would help maintain moderate retail electricity prices. Subsidies would automatically phase out as emitting sources become obsolete.

  16. Competitive Pricing by a Price Leader

    OpenAIRE

    Abhik Roy; Dominique M. Hanssens; Jagmohan S. Raju

    1994-01-01

    We examine the problem of pricing in a market where one brand acts as a price leader. We develop a procedure to estimate a leader's price rule, which is optimal given a sales target objective, and allows for the inclusion of demand forecasts. We illustrate our estimation procedure by calibrating this optimal price rule for both the leader and the follower using data on past sales and prices from the mid-size sedan segment of the U.S. automobile market. Our results suggest that a leader-follow...

  17. Estimated Nutritive Value of Low-Price Model Lunch Sets Provided to Garment Workers in Cambodia

    Directory of Open Access Journals (Sweden)

    Jan Makurat

    2017-07-01

    Full Text Available Background: The establishment of staff canteens is expected to improve the nutritional situation of Cambodian garment workers. The objective of this study is to assess the nutritive value of low-price model lunch sets provided at a garment factory in Phnom Penh, Cambodia. Methods: Exemplary lunch sets were served to female workers through a temporary canteen at a garment factory in Phnom Penh. Dish samples were collected repeatedly to examine mean serving sizes of individual ingredients. Food composition tables and NutriSurvey software were used to assess mean amounts and contributions to recommended dietary allowances (RDAs or adequate intake of energy, macronutrients, dietary fiber, vitamin C (VitC, iron, vitamin A (VitA, folate and vitamin B12 (VitB12. Results: On average, lunch sets provided roughly one third of RDA or adequate intake of energy, carbohydrates, fat and dietary fiber. Contribution to RDA of protein was high (46% RDA. The sets contained a high mean share of VitC (159% RDA, VitA (66% RDA, and folate (44% RDA, but were low in VitB12 (29% RDA and iron (20% RDA. Conclusions: Overall, lunches satisfied recommendations of caloric content and macronutrient composition. Sets on average contained a beneficial amount of VitC, VitA and folate. Adjustments are needed for a higher iron content. Alternative iron-rich foods are expected to be better suited, compared to increasing portions of costly meat/fish components. Lunch provision at Cambodian garment factories holds the potential to improve food security of workers, approximately at costs of <1 USD/person/day at large scale. Data on quantitative total dietary intake as well as physical activity among workers are needed to further optimize the concept of staff canteens.

  18. Estimating shadow prices and efficiency analysis of productive inputs and pesticide use of vegetable production

    NARCIS (Netherlands)

    Singbo, Alphonse G.; Lansink, Alfons Oude; Emvalomatis, Grigorios

    2015-01-01

    This paper analyzes technical efficiency and the value of the marginal product of productive inputs vis-a-vis pesticide use to measure allocative efficiency of pesticide use along productive inputs. We employ the data envelopment analysis framework and marginal cost techniques to estimate

  19. Estimating the Quadratic Variation Spectrum of Noisy Asset Prices Using Generalized Flat-top Realized Kernels

    DEFF Research Database (Denmark)

    Varneskov, Rasmus T.

    2014-01-01

    -top estimators are shown to be consistent, asymptotically unbiased, and mixed Gaussian at the optimal rate of convergence, n1/4. Exact bound on lower order terms are obtained using maximal inequalities and these are used to derive a conservative, MSE-optimal flat-top shrinkage. Additionally, bounds...

  20. Estimating Water Demand in Urban Indonesia: A Maximum Likelihood Approach to block Rate Pricing Data

    NARCIS (Netherlands)

    Rietveld, Piet; Rouwendal, Jan; Zwart, Bert

    1997-01-01

    In this paper the Burtless and Hausman model is used to estimate water demand in Salatiga, Indonesia. Other statistical models, as OLS and IV, are found to be inappropiate. A topic, which does not seem to appear in previous studies, is the fact that the density function of the loglikelihood can be

  1. The regulations for delivery of subsidies to radiation monitoring

    International Nuclear Information System (INIS)

    1985-01-01

    The regulations provide for subsidies for equipment and operation of a radiation monitoring facility around a nuclear power generating facility. Subsidies are provided to the prefectures concerned for equipment, etc. required in radiation monitoring, pre-service radiation monitoring and in-service radiation monitoring conducted by a prefecture. The contents are as follows: terms of subsidy allocations, the sum of subsidy allocations, applications for subsidies, decisions on the allocation of subsidies, withdrawal of applications, conditions of the allocations, a report on the work proceedings, a report on the results, confirmation on the sum of the subsidies, withdrawal of the decision for subsidies, limitations for disposal of the properties, payment of the subsidy, accounting of the subsidy operations, and a record on the subsidy. (Kubozono, M.)

  2. The regulations for delivery of subsidies to radiation monitoring

    International Nuclear Information System (INIS)

    1984-01-01

    The regulations provide for subsidies for equipment and operation of a radiation monitoring facility around a nuclear power generating facility. Subsidies are provided to the prefectures concerned for equipment, etc. required in radiation monitoring, pre-service radiation monitoring and in-service radiation monitoring conducted by a prefecture. The contents are as follows: terms of subsidy allocations, the sum of subsidy allocations, applications for subsidies, decisions on the allocation of subsidies, withdrawal of applications, conditions of the allocations, a report on the work proceedings, a report on the results, confirmation on the sum of the subsidies, withdrawal of the decision for subsidies, limitations for disposal of the properties, payment of the subsidy, accounting of the subsidy operations, and a record on the subsidy. (Mori, K.)

  3. Computable error estimates of a finite difference scheme for option pricing in exponential Lévy models

    KAUST Repository

    Kiessling, Jonas

    2014-05-06

    Option prices in exponential Lévy models solve certain partial integro-differential equations. This work focuses on developing novel, computable error approximations for a finite difference scheme that is suitable for solving such PIDEs. The scheme was introduced in (Cont and Voltchkova, SIAM J. Numer. Anal. 43(4):1596-1626, 2005). The main results of this work are new estimates of the dominating error terms, namely the time and space discretisation errors. In addition, the leading order terms of the error estimates are determined in a form that is more amenable to computations. The payoff is only assumed to satisfy an exponential growth condition, it is not assumed to be Lipschitz continuous as in previous works. If the underlying Lévy process has infinite jump activity, then the jumps smaller than some (Formula presented.) are approximated by diffusion. The resulting diffusion approximation error is also estimated, with leading order term in computable form, as well as the dependence of the time and space discretisation errors on this approximation. Consequently, it is possible to determine how to jointly choose the space and time grid sizes and the cut off parameter (Formula presented.). © 2014 Springer Science+Business Media Dordrecht.

  4. Cross-Subsidies and Government Transfers: Impacts on Electricity Service Quality in Colombia

    Directory of Open Access Journals (Sweden)

    Fan Li

    2018-05-01

    Full Text Available An affordable and reliable supply of electricity service is essential to encourage sustainable social development in developing countries. Colombia uses cross-subsidies to prompt electricity usage for poor households. This raises the issue of whether charging lower prices to poor households, while boosting their consumption, induces utilities to lower the quality of service received by them. This paper uses unique databases and examines how underfunded cross-subsidies affect perceived electricity service quality across consumer groups. Results indicate that when facing financial deficits, utilities provide lower perceived service quality to subsidized consumers than to residents paying surcharges. The difference in perceived quality across consumer groups is reduced by an increase in the amount of (external government transfers. To prompt electricity consumption by the poor, the Colombian government should fund subsidies, strengthen quality regulation, and increase the transparency and reliability of government transfers.

  5. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Mendez, Susan J.; Rønde, Thomas

    On April 1, 2005, Denmark changed the way references prices, a main determinant of reimbursements for pharmaceutical purchases, are calculated. The previous reference prices, which were based on average EU prices, were substituted to minimum domestic prices. Novel to the literature, we estimate...... the joint eects of this reform on prices and quantities. Prices decreased more than 26 percent due to the reform, which reduced patient and government expenditures by 3.0 percent and 5.6 percent, respectively, and producer revenues by 5.0 percent. The prices of expensive products decreased more than...

  6. Retail Price Model

    Science.gov (United States)

    The Retail Price Model is a tool to estimate the average retail electricity prices - under both competitive and regulated market structures - using power sector projections and assumptions from the Energy Information Administration.

  7. Arbitrage Pricing, Capital Asset Pricing, and Agricultural Assets

    OpenAIRE

    Louise M. Arthur; Colin A. Carter; Fay Abizadeh

    1988-01-01

    A new asset pricing model, the arbitrage pricing theory, has been developed as an alternative to the capital asset pricing model. The arbitrage pricing theory model is used to analyze the relationship between risk and return for agricultural assets. The major conclusion is that the arbitrage pricing theory results support previous capital asset pricing model findings that the estimated risk associated with agricultural assets is low. This conclusion is more robust for the arbitrage pricing th...

  8. Apprenticeship training in Denmark : the impacts of subsidies

    DEFF Research Database (Denmark)

    Westergård-Nielsen, Niels Chr.; Rasmussen, Anders Rue

    1997-01-01

    For years, Denmark has maintained and developed its apprenticeship system which is comparable to the German system. Today, about 40% of the youth cohorts get apprenticeship training. The paper describes the basic functioning of the labour market of apprentices. It is initially shown how the wage...... and unemployment rates of skilled workers who have served an apprenticeship differ from those of non-skilled workers. In recent years there have been periods with serious mismatches between the demand for and the supply of apprenticeships. Through the 80's subsidies were introduced to overcome this shortage....... The main purpose of this paper is to investigate the possible impact of these subsidies. A unique longitudinal data set that enables us to follow 1000 work places from 1980 to 1991 is applied. This makes it possible to control for observed and unobserved work place effects. The estimates show...

  9. Estimating the effects of Technology and Depletion on the Real Price of Copper in the U. S. Using a Cointegration Approach

    Energy Technology Data Exchange (ETDEWEB)

    Bunuel, M.

    2001-07-01

    The effects of technology and depletion on U. S. copper scarcity- as measured by real price can be estimated explicitly using econometrics, rather than assuming the their combined effect is implicit in a quadratic trend. The two most relevant cost-decreasing technologies-black-caving and open-pit mining and leaching and solvent extraction-electrowinning (SX-EW)-are proxied by their rate of diffusion. Depletion is proxied by average yield. Since these proxies and real price contain a unit root. Johansen's maximum-likelihood estimation procedure is used to test for the number of cointegrating relations, and estimate a vector autoregressive model from which a price equation in error-correction form is derived. A unique cointegrating relation without a trend is found, which supports the hypothesis that the real price of copper has no scarcity-rent component if we believe that this components should be modeled as a trend. The cointegrating relation loads into the price equation, and the convergence towards the long-run equilibrium is almost instantaneous. The estimated combined effect of physical depletion and technology on the U. S. real price of copper shows that the diffusion of block-caving and open-pit mining technologies off set the effect on price of the decline in average yield until the end of the thirties. From 1938 to 1976, the combined effect was slightly positive, and markedly and continuously negative thereafter, as a result of the introduction of leaching and SX-EW technologies, and the stabilization and even increase of average yield. (Author)

  10. African agricultural subsidy impacts food security, poverty, drought tolerance, and environmental quality

    Science.gov (United States)

    Galford, G. L.; Palm, C.; DeFries, R. S.; Nziguheba, G.; Droppelmann, K.; Nkonya, E.; Michelson, H.; Clark, C.; Kathewera, F.; Walsh, M.

    2011-12-01

    Malawi has spearheaded an unprecedented policy change in sub-Saharan Africa (SSA) since 2005 when it started a widespread agricultural inputs subsidy program (AISP) targeting small farmer maize production with mineral fertilizer and improved seeds. Since then, the mean N fertilizer load has increased significantly, from ~ 0 to a modest 35 kg N/ha or 7 times greater than SSA's average 5 kg N/ha average. During the tenure of AISP, Malawi has transitioned from a food aid recipient to an exporter. Maize yields each year of AISP are double the long-term average (0.8 tons/ha/yr, 1960-2005). In 2007, subsidy inputs combined with good rains led to of an unprecedented increase in national average yields of 2.7 tons/ha. National-scale assessments covering, agriculture, poverty, and environment such as this one are required to understand the trade-offs between development, climate and the environment. Environmentally, N2O emissions from fertilizer are a concern. First order estimates put emissions from AISP fertilizers at 2,600 Mg N2O/year (0.81 Tg CO2-e). While globally insignificant, these emissions may be equivalent to 16% of Malawi's annual fossil fuel and deforestation emissions. However, our partial nutrient budgets indicate that crop removal is still higher than N applied and therefore little loss of N to the environment is expected. Mineral fertilizers are a rapid first step to increase soil N after 40 years of serious depletion. Once restored, the soils will support robust agroforestry and other forms of organic inputs produced on-farm. Fertilizer use increases carbon sequestration on agricultural soils and reduces pressure to clear forests, which may partially compensate for the N2O emissions. We find evidence that AISP significantly increases food security and mitigates the impacts of drought on maize production. This is the first work linking the distribution of fertilizer subsidies to local crop yields using government records, remotely-sensed time series of

  11. Impacts of energy subsidy reform on the Malaysian economy and transportation sector

    International Nuclear Information System (INIS)

    Solaymani, Saeed; Kari, Fatimah

    2014-01-01

    Malaysia is paying a high level of subsidies on the consumption of energy (about 5% of its GDP). Therefore, reforming the energy subsidies, as planned by the government, will have a significant impact on household welfare and energy-intensive sectors, such as the transport sector. This study employs a computable general equilibrium (CGE) model to highlight the transmission channels through which the removal of energy subsidies affects the domestic economy. The findings show that the shock increases real GDP and real investment, while decreasing Malaysian total exports and imports. The removal of energy subsidies also decreases the aggregate energy demand, and, consequently, decreases the level of carbon emissions in the Malaysian economy. In addition, households experience significant falls in their consumption and welfare. The transport sector is significantly influenced through an increase in production costs due to an increase in the prices of intermediate inputs. The total output and total exports of the whole transport sector decrease while its imports increase. In addition, the use of all kinds of transport by households decreases significantly. The Malaysian energy subsidy reform, leads to an initial decrease in CO 2 emissions and demand for electricity, gas, and petroleum products in the entire transport sector. - Highlights: • Malaysia pays a high level of subsidy on consumption of energy. • The transportation sector in this country is the highest energy consumer among others. • A general equilibrium model used to analyse the effects of energy subsidy reform. • The shock increases real GDP and decreases energy and carbon emission in this sector. • It is not beneficial for the transport sector as decreases the output of this sector

  12. Some Key Issues in Policy, Pricing, Regulation, and Financing of Irrigation Development in India Today

    OpenAIRE

    Morris, Sebastian

    2005-01-01

    In this paper we discuss the stylised problems relating to water and irrigation in India and argue that most of the inefficiencies, misuse and environmental damage have their roots in the mispricing of water and electricity. Since the only kind of subsidies thus far used are price based input subsidies they end up distorting the allocative prices, from which the other distortions follow. The problems of the sector can be overcome by changing the method of subsidisation. Converting price based...

  13. The Price Elasticity of Specialty Drug Use: Evidence from Cancer Patients in Medicare Part D.

    Science.gov (United States)

    Jung, Jeah Kyoungrae; Feldman, Roger; McBean, A Marshall

    2017-12-01

    Specialty drugs can bring substantial benefits to patients with debilitating conditions, such as cancer, but their costs are very high. Insurers/payers have increased patient cost-sharing for specialty drugs to manage specialty drug spending. We utilized Medicare Part D plan formulary data to create the initial price (cost-sharing in the initial coverage phase in Part D), and estimated the total demand (both on- and off-label uses) for specialty cancer drugs among elderly Medicare Part D enrollees with no low-income subsidies (non-LIS) as a function of the initial price. We corrected for potential endogeneity associated with plan choice by instrumenting the initial price of specialty cancer drugs with the initial prices of specialty drugs in unrelated classes. We report three findings. First, we found that elderly non-LIS beneficiaries with cancer were less likely to use a Part D specialty cancer drug when the initial price was high: the overall price elasticity of specialty cancer drug spending ranged between -0.72 and -0.75. Second, the price effect in Part D specialty cancer drug use was not significant among newly diagnosed patients. Finally, we found that use of Part B-covered cancer drugs was not responsive to the Part D specialty cancer drug price. As the demand for costly specialty drugs grows, it will be important to identify clinical circumstances where specialty drugs can be valuable and ensure access to high-value treatments.

  14. Ex-ante evaluation of profitability and government's subsidy policy on vehicle-to-grid system

    International Nuclear Information System (INIS)

    Hong, Junhee; Koo, Yoonmo; Jeong, Gicheol; Lee, Jongsu

    2012-01-01

    Abstact: Although the electric vehicle reduces pollutant emissions and results in reduced energy costs, lack of battery charging infrastructure and relatively high vehicle prices create challenges to the automobile industry and affect government support policies. To create a battery charging infrastructure, such as a vehicle-to-grid system, stakeholders need a quantitative analysis that decreases profitability uncertainty. The high cost of an electric vehicle can be offset by government subsidies that promote early marketing efforts, but an ex-ante evaluation of consumer demand is needed to analyze the effectiveness of any policy. This study provides information about optimal pricing based on consumer demand as well as the social welfare change effected by possible government subsidy polices for electric vehicles. Results show that the maximum profit for a vehicle-to-grid service provider will be 1.27 trillion Korean won/year with an annual subscription fee of 0.65 million Korean won. The government subsidy of 1 trillion Korean won, given annually, will increase social welfare by 1.94 trillion won and also boost the profit of vehicle-to-grid service provider to 1.98 trillion won. - Highlights: ▶ We evaluate consumer preference on electric vehicle and V2G service. ▶ Based on the consumer preference, we calculate profitability of V2G service. ▶ Also, the effect of government subsidy on electric vehicle market is analyzed. ▶ The empirical results will be useful to the V2G service providers and policy makers

  15. Technology diffusion, product differentiation and environmental subsidies

    Energy Technology Data Exchange (ETDEWEB)

    McGinty, M. [Univ. of Wisconsin, Milwaukee, WI (United States). Dept. of Economics; Vries, F.P. de [Univ. of Groningen (Netherlands). Dept. of Law and Economics

    2007-07-01

    Technological change is often seen as the promising device that will mitigate or solve environmental problems. Policy intervention that spurs the development, adoption and diffusion of new, environmentally benign technologies therefore holds great appear for environmental authorities. Policymakers have various instruments at their disposal to affect technological diffusion, ranging from direct regulation (command-and-control strategies) to market-based instruments, such as taxes, subsidies and tradable pollution permits. This paper examines environmental subsidies as a technology diffusion policy. The authors apply evolutionary game theory to explore the relationship between subsidies for clean technology, the diffusion of that technology and the degree of product differentiation in an imperfectly competitive market. They show that the subsidy succeeds in reducing environmental damage only when the substitution effect (the reduction in pollution associated with the clean technology) exceeds the output effect (the extent that the subsidy increases output). When the substitution effect does dominate, environmental damage decreases monotonically during the diffusion process. The extent of diffusion (the degree to which clean technolgy replaces dirty) and the likelihood that the substitution effect will dominate both decrease with the extent of product differentiation. Finally, the subsidy for clean technology will spill over to the remaining dirty producers increasing their profit as well.

  16. Wealth Transfers from Implementing Real-Time Retail Electricity Pricing

    OpenAIRE

    Borenstein, Severin

    2005-01-01

    Adoption of real-time electricity pricing %u2014 retail prices that vary hourly to reflect changing wholesale prices %u2014 removes existing cross-subsidies to those customers that consume disproportionately more when wholesale prices are highest. If their losses are substantial, these customers are likely to oppose RTP initiatives unless there is a supplemental program to offset their loss. Using data on a random sample of 636 industrial and commercial customers in southern California, I sho...

  17. China’s electric vehicle subsidy scheme: Rationale and impacts

    International Nuclear Information System (INIS)

    Hao, Han; Ou, Xunmin; Du, Jiuyu; Wang, Hewu; Ouyang, Minggao

    2014-01-01

    To promote the market penetration of electric vehicles (EV), China launched the Electric Vehicle Subsidy Scheme (EVSS) in Jan 2009, followed by an update in Sep 2013, which we named phase I and phase II EVSS, respectively. In this paper, we presented the rationale of China’s two-phase EVSS and estimated their impacts on EV market penetration, with a focus on the ownership cost analysis of battery electric passenger vehicles (BEPV). Based on the ownership cost comparison of five defining BEPV models and their counterpart conventional passenger vehicle (CPV) models, we concluded that in the short term, especially before 2015, China’s EVSS is very necessary for BEPVs to be cost competitive compared with CPVs. The transition from phase I to phase II EVSS will generally reduce subsidy intensity, thus resulting in temporary rise of BEPV ownership cost. However, with the decrease of BEPV manufacturing cost, the ownership cost of BEPV is projected to decrease despite of the phase-out mechanism under phase II EVSS. In the mid term of around 2015–2020, BEPV could become less or not reliant on subsidy to maintain cost competitiveness. However, given the performance disadvantages of BEPV, especially the limited electric range, China’s current EVSS is not sufficient for the BEPV market to take off. Technology improvement associated with battery cost reduction has to play an essential role in starting up China’s BEPV market. - Highlights: • China’s phase I and phase II electric vehicle subsidy schemes were reviewed. • Major electric vehicle models in China’s vehicle market were reviewed. • The ownership costs of five defining electric passenger vehicle models were compared. • Policies to promote electric vehicle deployment in China were discussed

  18. 2011-12 National Postsecondary Student Aid Study (NPSAS:12). Price Estimates for Attending Postsecondary Education Institutions. First Look. NCES 2014-166

    Science.gov (United States)

    Simone, Sean; Radwin, David; Wine, Jennifer; Siegel, Peter; Bryan, Michael

    2013-01-01

    This First Look publication provides price estimates for attending postsecondary education institutions using data from the 2011-12 National Postsecondary Student Aid Study (NPSAS:12), the most comprehensive, nationally representative survey of student financing of postsecondary education in the United States. The survey includes about 95,000…

  19. Energy conservation, energy efficiency and energy savings regulatory hypotheses - taxation, subsidies and underlying economics

    Energy Technology Data Exchange (ETDEWEB)

    Trumpy, T. [International Legal Counsel, Brussels (Belgium)

    1995-12-01

    More efficient use of energy resources can be promoted by various regulatory means, i.e., taxation, subsidies, and pricing. Various incentives can be provided by income and revenue tax breaks-deductible energy audit fees, energy saving investment credits, breaks for energy saving entrepreneurs, and energy savings accounts run through utility accounts. Value added and excise taxes can also be adjusted to reward energy saving investments and energy saving entrepreneurial activity. Incentives can be provided in the form of cash refunds, including trade-in-and-scrap programs and reimbursements or subsidies on audit costs and liability insurance. Pricing incentives include lower rates for less energy use, prepayment of deposit related to peak load use, electronically dispatched multiple tariffs, savings credits based on prior peak use, and subsidized {open_quotes}leasing{close_quotes} of more efficient appliances and lights. Credits, with an emphasis on pooling small loans, and 5-year energy savings contracts are also discussed.

  20. Energy taxes and subsidies downstream: transparency and dissemination

    International Nuclear Information System (INIS)

    Aissaour, A.

    2001-01-01

    The reasons why governments levy taxes are discussed with special reference to the energy sector. The article focuses on the quantitative aspect of policies and gives a guide to the relevant statistical sources. It summarises the basis of taxes and subsidies and discusses the incidence of energy taxation together with the structure of taxes and subsidies in energy downstream. It reviews the main sources of data and issues highlighted by published statistics and the impact of taxes levied on the consumption of energy products and other taxes (e.g. VAT) which directly affect end-user prices. Production-based levies such as royalties, petroleum revenue taxes, windfall taxes and import and export taxes on fuels are not discussed. The paper is presented under the sub-headings of (i) theoretical foundations in a nutshell; (ii) the incidence of taxation; (iii) the structure and main features of energy taxation (iv) base rate and level of taxation (v) sources of data and methods and (vi) observability and comparability

  1. On the Reliability of Optimization Results for Trigeneration Systems in Buildings, in the Presence of Price Uncertainties and Erroneous Load Estimation

    Directory of Open Access Journals (Sweden)

    Antonio Piacentino

    2016-12-01

    Full Text Available Cogeneration and trigeneration plants are widely recognized as promising technologies for increasing energy efficiency in buildings. However, their overall potential is scarcely exploited, due to the difficulties in achieving economic viability and the risk of investment related to uncertainties in future energy loads and prices. Several stochastic optimization models have been proposed in the literature to account for uncertainties, but these instruments share in a common reliance on user-defined probability functions for each stochastic parameter. Being such functions hard to predict, in this paper an analysis of the influence of erroneous estimation of the uncertain energy loads and prices on the optimal plant design and operation is proposed. With reference to a hotel building, a number of realistic scenarios is developed, exploring all the most frequent errors occurring in the estimation of energy loads and prices. Then, profit-oriented optimizations are performed for the examined scenarios, by means of a deterministic mixed integer linear programming algorithm. From a comparison between the achieved results, it emerges that: (i the plant profitability is prevalently influenced by the average “spark-spread” (i.e., ratio between electricity and fuel price and, secondarily, from the shape of the daily price profiles; (ii the “optimal sizes” of the main components are scarcely influenced by the daily load profiles, while they are more strictly related with the average “power to heat” and “power to cooling” ratios of the building.

  2. Individual health insurance within the family : can subsidies promote family coverage?

    OpenAIRE

    Kanika Kapur; M. Susan Marquis; José J. Escarce

    2007-01-01

    This paper examines the role of price in health insurance coverage decisions within the family to guide policy in promoting whole family coverage. We analyze the factors that affect individual health insurance coverage among families, and explore family decisions about whom to cover and whom to leave uninsured. The analysis uses household data from California combined with abstracted individual health plan benefit and premium data. We find that premium subsidies for individual insurance would...

  3. Estimating 'Value at Risk' of crude oil price and its spillover effect using the GED-GARCH approach

    International Nuclear Information System (INIS)

    Fan, Ying; Wei, Yi-Ming; Zhang, Yue-Jun; Tsai, Hsien-Tang

    2008-01-01

    Estimation has been carried out using GARCH-type models, based on the Generalized Error Distribution (GED), for both the extreme downside and upside Value-at-Risks (VaR) of returns in the WTI and Brent crude oil spot markets. Furthermore, according to a new concept of Granger causality in risk, a kernel-based test is proposed to detect extreme risk spillover effect between the two oil markets. Results of an empirical study indicate that the GED-GARCH-based VaR approach appears more effective than the well-recognized HSAF (i.e. historical simulation with ARMA forecasts). Moreover, this approach is also more realistic and comprehensive than the standard normal distribution-based VaR model that is commonly used. Results reveal that there is significant two-way risk spillover effect between WTI and Brent markets. Supplementary study indicates that at the 99% confidence level, when negative market news arises that brings about a slump in oil price return, historical information on risk in the WTI market helps to forecast the Brent market. Conversely, it is not the case when positive news occurs and returns rise. Historical information on risk in the two markets can facilitate forecasts of future extreme market risks for each other. These results are valuable for anyone who needs evaluation and forecasts of the risk situation in international crude oil markets. (author)

  4. A joint estimation of price-cost margins and sunk capital. Theory and evidence from the European electricity industry

    International Nuclear Information System (INIS)

    Roeger, W.; Warzynski, F.

    2004-01-01

    In this paper, we propose a new methodology to jointly estimate market power and the importance of sunk capital extending the work of Hall (1988) and Roeger (1995). Wc then apply this new technique to the European electricity industry using firm level data for the period 1994-1999, and analyze the impact of the 1996 European directive to liberalize electricity markets. We find that the average price cost margin has declined from 0.29 in 1994 to 0.22 in 1999. Moreover, the magnitude of the decline is linked to firm size: the largest firms have experienced a larger percentage fall. The variable cost parameter has increased from 0.36 in 1994 to 0.56 in 1999. The main reason of the change is the switch of the relationship between real labor productivity and the share of variable capital. Our results therefore document a more competitive electricity market and a more flexible and more efficient use of capital. (au)

  5. Food pricing strategies, population diets, and non-communicable disease: a systematic review of simulation studies.

    Directory of Open Access Journals (Sweden)

    Helen Eyles

    Full Text Available BACKGROUND: Food pricing strategies have been proposed to encourage healthy eating habits, which may in turn help stem global increases in non-communicable diseases. This systematic review of simulation studies investigates the estimated association between food pricing strategies and changes in food purchases or intakes (consumption (objective 1; Health and disease outcomes (objective 2, and whether there are any differences in these outcomes by socio-economic group (objective 3. METHODS AND FINDINGS: Electronic databases, Internet search engines, and bibliographies of included studies were searched for articles published in English between 1 January 1990 and 24 October 2011 for countries in the Organisation for Economic Co-operation and Development. Where ≥ 3 studies examined the same pricing strategy and consumption (purchases or intake or health outcome, results were pooled, and a mean own-price elasticity (own-PE estimated (the own-PE represents the change in demand with a 1% change in price of that good. Objective 1: pooled estimates were possible for the following: (1 taxes on carbonated soft drinks: own-PE (n  =  4 studies, -0.93 (range, -0.06, -2.43, and a modelled -0.02% (-0.01%, -0.04% reduction in energy (calorie intake for each 1% price increase (n  =  3 studies; (2 taxes on saturated fat: -0.02% (-0.01%, -0.04% reduction in energy intake from saturated fat per 1% price increase (n  =  5 studies; and (3 subsidies on fruits and vegetables: own-PE (n = 3 studies, -0.35 (-0.21, -0.77. Objectives 2 and 3: variability of food pricing strategies and outcomes prevented pooled analyses, although higher quality studies suggested unintended compensatory purchasing that could result in overall effects being counter to health. Eleven of 14 studies evaluating lower socio-economic groups estimated that food pricing strategies would be associated with pro-health outcomes. Food pricing strategies also have the potential to reduce

  6. Dynamic Subsidy Method for Congestion Management in Distribution Networks

    DEFF Research Database (Denmark)

    Huang, Shaojun; Wu, Qiuwei

    2016-01-01

    Dynamic subsidy (DS) is a locational price paid by the distribution system operator (DSO) to its customers in order to shift energy consumption to designated hours and nodes. It is promising for demand side management and congestion management. This paper proposes a new DS method for congestion...... management in distribution networks, including the market mechanism, the mathematical formulation through a two-level optimization, and the method solving the optimization by tightening the constraints and linearization. Case studies were conducted with a one node system and the Bus 4 distribution network...... of the Roy Billinton Test System (RBTS) with high penetration of electric vehicles (EVs) and heat pumps (HPs). The case studies demonstrate the efficacy of the DS method for congestion management in distribution networks. Studies in this paper show that the DS method offers the customers a fair opportunity...

  7. Product pricing in TAC SCM using adaptive real-time probability of acceptance estimations based on economic regimes

    NARCIS (Netherlands)

    Hogenboom, A.C.; Ketter, W.; Dalen, van Jan; Kaymak, U.; Collins, J.; Gupta, Alok

    2009-01-01

    Dynamic product pricing is a vital, yet non-trivial task in complex supply chains -- especially in case of limited visibility of the market environment. We propose to differentiate product pricing strategies using economic regimes. In our approach, we use economic regimes (characterizing market

  8. Estimating the long-run equilibrium relationship. The case of city-gate and residential natural gas prices

    International Nuclear Information System (INIS)

    Arano, Kathleen; Velikova, Marieta

    2010-01-01

    This paper examines market cointegration of city-gate and residential natural gas prices. Cointegration of gas prices across different segments of the industry provides evidence that deregulation has resulted into a more integrated, competitive natural gas industry where gas prices converge into a long-run equilibrium. Our results indicate prices further down the distribution line, the final two points of consumption, are cointegrated for a majority of the US states post open access and retail unbundling, although we find little evidence of perfect market integration. The two price series likewise converge to the long-run equilibrium faster post open access and retail unbundling. Results relative to state level unbundling (choice programs) reveal mixed outcomes with a few states without retail unbundling exhibiting market integration while some states with full unbundling exhibiting non-cointegration. (author)

  9. Contracts, Vouchers, and Child Care Subsidy Stability: A Preliminary Look at Associations between Subsidy Payment Mechanism and Stability of Subsidy Receipt

    Science.gov (United States)

    Holod, Aleksandra; Johnson, Anna D.; Martin, Anne; Gardner, Margo; Brooks-Gunn, Jeanne

    2012-01-01

    Background: The federal child care subsidy program, funded through the Child Care and Development Fund (CCDF), is the nation's largest public investment in early child care. However, little is known about whether and how subsidy payment mechanisms relate to the stability of subsidy receipt or the stability of children's care arrangements.…

  10. Improving access to malaria medicine through private-sector subsidies in seven African countries.

    Science.gov (United States)

    Tougher, Sarah; Mann, Andrea G; Ye, Yazoume; Kourgueni, Idrissa A; Thomson, Rebecca; Amuasi, John H; Ren, Ruilin; Willey, Barbara A; Ansong, Daniel; Bruxvoort, Katia; Diap, Graciela; Festo, Charles; Johanes, Boniface; Kalolella, Admirabilis; Mallam, Oumarou; Mberu, Blessing; Ndiaye, Salif; Nguah, Samual Blay; Seydou, Moctar; Taylor, Mark; Wamukoya, Marilyn; Arnold, Fred; Hanson, Kara; Goodman, Catherine

    2014-09-01

    Improving access to quality-assured artemisinin combination therapies (ACTs) is an important component of malaria control in low- and middle-income countries. In 2010 the Global Fund to Fight AIDS, Tuberculosis, and Malaria launched the Affordable Medicines Facility--malaria (AMFm) program in seven African countries. The goal of the program was to decrease malaria morbidity and delay drug resistance by increasing the use of ACTs, primarily through subsidies intended to reduce costs. We collected data on price and retail markups on antimalarial medicines from 19,625 private for-profit retail outlets before and 6-15 months after the program's implementation. We found that in six of the AMFm pilot programs, prices for quality-assured ACTs decreased by US$1.28-$4.34, and absolute retail markups on these therapies decreased by US$0.31-$1.03. Prices and markups on other classes of antimalarials also changed during the evaluation period, but not to the same extent. In all but two of the pilot programs, we found evidence that prices could fall further without suppliers' losing money. Thus, concerns may be warranted that wholesalers and retailers are capturing subsidies instead of passing them on to consumers. These findings demonstrate that supranational subsidies can dramatically reduce retail prices of health commodities and that recommended retail prices communicated to a wide audience may be an effective mechanism for controlling the market power of private-sector antimalarial retailers and wholesalers. Project HOPE—The People-to-People Health Foundation, Inc.

  11. Edgeworth Price Cycles, Cost-Based Pricing, and Sticky Pricing in Retail Gasoline Markets

    OpenAIRE

    Michael D. Noel

    2007-01-01

    This paper examines dynamic pricing behavior in retail gasoline markets for 19 Canadian cities over 574 weeks. I find three distinct retail pricing patterns: 1. cost-based pricing, 2. sticky pricing, and 3. steep, asymmetric retail price cycles that, while seldom documented empirically, resemble those of Maskin & Tirole[1988]. Using a Markov switching regression, I estimate the prevalence of patterns and the structural characteristics of the cycles. Retail price cycles prevail in over 40% of ...

  12. Conservation potential of agricultural water conservation subsidies

    Science.gov (United States)

    Huffaker, Ray

    2008-07-01

    A current policy subsidizes farmers to invest in improved on-farm irrigation efficiency, expecting water to be conserved off farm. Contrary to expectation, water has been increasingly depleted in some regions after such improvements. This paper investigates the policy's failure to conserve water consistently by (1) formulating an economic model of irrigated crop production to determine a profit-maximizing irrigator's range of responses to a subsidy and (2) embedding these responses into hypothetical streamflow diagrams to ascertain their potential to conserve water under various hydrologic regimes. Testable hypotheses are developed to predict the conservation potential of a subsidy in real-world application.

  13. Towards a grand deal on subsidies and climate change

    International Nuclear Information System (INIS)

    Moor, Andre de

    2001-01-01

    Recent studies have identified public subsidies as a principal cause of unsustainable development. Worldwide, governments are spending up to $US950 billion a year on subsidies. Many of these public subsidies fail to serve their purpose and in fact, often turn out as policy failures as they further distort trade and cause environmental harm. The energy sector is among the most subsidized sectors in the world, receiving over $US240 billion per annum of public subsidies. This article highlights current energy subsidies and their implications. The article examines: (i) the global size and distribution of energy subsidies in industrialized and developing countries; (ii) the impact of these subsidies on the economy, equity and the environment ana their role as barriers for sustainable development; (iii) the political economy behind public subsidies and the various political and institutional barriers and lock-in mechanisms that cause subsidies to become entrenched in economic and public structures; and (iv) proposals for effective subsidy reform in energy policies, suggesting a global strategy to eliminate energy subsidies. OECD governments are in a position to take the lead, and the UN Framework Convention on Climate Change presents an excellent opportunity of striking a political grand deal and linking the reform of energy subsidies to a meaningful participation of developing countries to the Kyoto Protocol. Moreover, if sinks are to be included in the clean development mechanism (CDM), it is crucial to include the removal of forestry subsidies in the grand deal. (author)

  14. Taxes and Subsidies for Improving Diet and Population Health in Australia: A Cost-Effectiveness Modelling Study.

    Science.gov (United States)

    Cobiac, Linda J; Tam, King; Veerman, Lennert; Blakely, Tony

    2017-02-01

    An increasing number of countries are implementing taxes on unhealthy foods and drinks to address the growing burden of dietary-related disease, but the cost-effectiveness of combining taxes on unhealthy foods and subsidies on healthy foods is not well understood. Using a population model of dietary-related diseases and health care costs and food price elasticities, we simulated the effect of taxes on saturated fat, salt, sugar, and sugar-sweetened beverages and a subsidy on fruits and vegetables, over the lifetime of the Australian population. The sizes of the taxes and subsidy were set such that, when combined as a package, there would be a negligible effect on average weekly expenditure on food (beverage tax (12,000 [95% UI: 2,100 to 21,000] DALYs). The fruit and vegetable subsidy (-13,000 [95% UI: -44,000 to 18,000] DALYs) was a cost-effective addition to the package of taxes. However, it did not necessarily lead to a net health benefit for the population when modelled as an intervention on its own, because of the possible adverse cross-price elasticity effects on consumption of other foods (e.g., foods high in saturated fat and salt). The study suggests that taxes and subsidies on foods and beverages can potentially be combined to achieve substantial improvements in population health and cost-savings to the health sector. However, the magnitude of health benefits is sensitive to measures of price elasticity, and further work is needed to incorporate potential benefits or harms associated with changes in other foods and nutrients that are not currently modelled, such as red and processed meats and fibre. With potentially large health benefits for the Australian population and large benefits in reducing health sector spending on the treatment of non-communicable diseases, the formulation of a tax and subsidy package should be given a more prominent role in Australia's public health nutrition strategy.

  15. A State-Space Estimation of the Lee-Carter Mortality Model and Implications for Annuity Pricing

    OpenAIRE

    Man Chung Fung; Gareth W. Peters; Pavel V. Shevchenko

    2015-01-01

    In this article we investigate a state-space representation of the Lee-Carter model which is a benchmark stochastic mortality model for forecasting age-specific death rates. Existing relevant literature focuses mainly on mortality forecasting or pricing of longevity derivatives, while the full implications and methods of using the state-space representation of the Lee-Carter model in pricing retirement income products is yet to be examined. The main contribution of this article is twofold. Fi...

  16. Oil prices and the stock prices of alternative energy companies

    International Nuclear Information System (INIS)

    Henriques, Irene; Sadorsky, Perry

    2008-01-01

    Energy security issues coupled with increased concern over the natural environment are driving factors behind oil price movements. While it is widely accepted that rising oil prices are good for the financial performance of alternative energy companies, there has been relatively little statistical work done to measure just how sensitive the financial performance of alternative energy companies are to changes in oil prices. In this paper, a four variable vector autoregression model is developed and estimated in order to investigate the empirical relationship between alternative energy stock prices, technology stock prices, oil prices, and interest rates. Our results show technology stock prices and oil prices each individually Granger cause the stock prices of alternative energy companies. Simulation results show that a shock to technology stock prices has a larger impact on alternative energy stock prices than does a shock to oil prices. These results should be of use to investors, managers and policy makers. (author)

  17. Drug Pricing Reforms

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Mendez, Susan J.; Rønde, Thomas

    2015-01-01

    Reference price systems for prescription drugs have found widespread use as cost containment tools. Under such regulatory regimes, patients co-pay a fraction of the difference between pharmacy retail price of the drug and a reference price. Reference prices are either externally (based on drug...... prices in other countries) or internally (based on domestic drug prices) determined. In a recent study, we analysed the effects of a change from external to internal reference pricing in Denmark in 2005, finding that the reform led to substantial reductions in prices, producer revenues, and expenditures...... for patients and the health insurance system. We also estimated an increase in consumer welfare but the size effect depends on whether or not perceived quality differences between branded and other drugs are taken into account....

  18. On the Incidence of Employment Subsidies to Vocational Training

    DEFF Research Database (Denmark)

    Albæk, Karsten

    The present paper analyses employment subsidies to vocational training under union wage bargaining. The analysis includes an investigation of the consequences of financing the subsidy by a levy on employment, which is the typical way of financing these types of subsidies in many countries. The pa....... The paper demonstrates high incidence rates of subsidies to vocational training under standard assumptions about the preference structure of the union. The financing scheme appears to counteract the purpose of the subsidy.......The present paper analyses employment subsidies to vocational training under union wage bargaining. The analysis includes an investigation of the consequences of financing the subsidy by a levy on employment, which is the typical way of financing these types of subsidies in many countries...

  19. The Incidence of Employment Subsidies for Vocational Training

    DEFF Research Database (Denmark)

    Albæk, Karsten

    2013-01-01

    This paper analyses employment subsidies for vocational training under union wage bargaining. The analysis includes an investigation of the consequences of financing the subsidy by a levy on employment, which is the typical way of financing these types of subsidies in many countries. The paper de...... demonstrates high incidence rates of subsidies for vocational training under standard assumptions about the preference structure of the union. The financing scheme appears to counteract the purpose of the subsidy.......This paper analyses employment subsidies for vocational training under union wage bargaining. The analysis includes an investigation of the consequences of financing the subsidy by a levy on employment, which is the typical way of financing these types of subsidies in many countries. The paper...

  20. Manufacturing Decisions and Government Subsidies for Electric Vehicles in China: A Maximal Social Welfare Perspective

    Directory of Open Access Journals (Sweden)

    Xiaoxue Zheng

    2018-03-01

    Full Text Available In order to address challenges in the sustainable development of transportation, economy, and environment, governments of China and conventional automobile manufacturers are extremely concerned about the development of the electric vehicle (EV manufacturing industry and market. However, owing to the limitations of EVs and the government economic policies on decreasing subsidies in China, many manufacturers are worried about entering the EV market. Given the low consumer preference for EVs, using a leader-follower Stackelberg game model, we investigate the impact of government a subsidy on the optimal production and pricing decisions of an auto manufacturer who could produce both EVs and conventional vehicles. We characterize whether/under what conditions the manufacturer’s decision to offer EV products under government subsidy, whilst increasing its profits (a win-win situation. On the policy side, we delineate how government a subsidy can be set to realize the inherent economic, environmental, and social benefits of EV production (the triple win of EV production. We further investigate the impact of EV manufacturing- and society-related factors on the balance among manufacturer profits, environmental impact and social welfare. This study also finds that the adoption of EVs is not bound to be beneficial for the environment.

  1. Energy subsidies and costs in urban Ethiopia: The cases of kerosene and electricity

    Energy Technology Data Exchange (ETDEWEB)

    Kebede, Bereket [School of Development Studies, University of East Anglia, Norwich NR4 7TJ (United Kingdom)

    2006-10-15

    Making energy affordable to the poor is a widely cited reason for subsidies. Whether subsidies achieve this objective is rarely analysed. In this article, the significance of kerosene and electricity subsidies in relation to the purchasing power of Ethiopian urban households is examined. The results indicate that subsidies on kerosene prices and electricity tariffs do not significantly change the overall costs for households. Even poor households on the average have the purchasing power to access unsubsidised kerosene. The overall costs-including fixed costs-of accessing electricity are very high relative to purchasing power even for the well to do urban households if down payments are made. But when costs are spread over the lifespan of fixed components, even the average poor have the purchasing power to access electricity. These results underscore the importance of a mechanism that spreads fixed costs over longer periods of time. Spreading fixed costs over electricity bills and providing credit facilities are two options that can ameliorate the condition. (author)

  2. An agent-based approach with collaboration among agents. Estimation of wholesale electricity price on PJM and artificial data generated by a mean reverting model

    International Nuclear Information System (INIS)

    Sueyoshi, Toshiyuki

    2010-01-01

    This study examines the performance of MAIS (Multi-Agent Intelligent Simulator) equipped with various learning capabilities. In addition to the learning capabilities, the proposed MAIS incorporates collaboration among agents. The proposed MAIS is applied to estimate a dynamic change of wholesale electricity price in PJM (Pennsylvania-New Jersey-Mainland) and an artificial data set generated by a mean reverting model. Using such different types of data sets, the methodological validity of MAIS is confirmed by comparing it with other well-known alternatives in computer science. This study finds that the MAIS needs to incorporate both the mean reverting model and the collaboration behavior among agents in order to enhance its estimation capability. The MAIS discussed in this study will provide research on energy economics with a new numerical capability that can investigate a dynamic change of not only wholesale electricity price but also speculation and learning process of traders. (author)

  3. How Are Property Investment Returns Determined? — Estimating the Micro-Structure of Asset Prices, Property Income, and Discount Rates —

    OpenAIRE

    清水, 千弘; Chihiro, Shimizu

    2014-01-01

    How exactly should one estimate property investment returns? Investors in property aim to maximize capital gains from price increases and income generated by the property. How are the returns on investment in property determined based on its characteristics, and what kind of market characteristics does it have? Focusing on the Tokyo commer-cial property market and residential property market, the purpose of this paper was to break down and measure the micro-structure of property investment re...

  4. Fertilizer Subsidy in India: Who are the Beneficiaries?

    OpenAIRE

    Sharma, Vijay Paul; Thaker, Hrima

    2009-01-01

    Agricultural subsidies that encourage production and productivity have been widely criticized because of the cost of subsidies and they are perceived to be far from uniformly distributed. There is a general view in academic, policy and political circles that agricultural subsidies are concentrated geographically, they are concentrated on relatively few crops and few producers and in many cases do not reach the targeted group(s). One of the most contentious issues surrounding input subsidies i...

  5. Microsimulation of Corporate Response to Investment Subsidies

    NARCIS (Netherlands)

    Tongeren, van F.W.

    1998-01-01

    The article presents an application of microsimulation to modeling of firm behavior in an economy-wide framework. The model is used to investigate the response of industrial corporations to investment subsidies in the Netherlands and traces the effects to the macro economic level. The

  6. Reducing rebound effect through fossil subsidies reform

    DEFF Research Database (Denmark)

    Ren, Jingzheng; Yang, Yingkui; Li, Hong

    2017-01-01

    China has committed a sharp reduction in its carbon intensity by 2020 and proposed to take integrated policy package including energy subsidy reform to achieve this goal. While energy efficiency improvement is the key influencing factor for this goal, its effectiveness is significantly determined...

  7. Essays on the economics of housing subsidies

    NARCIS (Netherlands)

    Schilder, F.P.W.

    2012-01-01

    In a perfect market a government needs not to intervene. For several reasons the housing market is not a perfect market and, thus, governments generally tend to intervene. The Dutch government, however, intervenes mainly by subsidies to such an extent that the housing market has become strongly

  8. 19 CFR 351.514 - Export subsidies.

    Science.gov (United States)

    2010-04-01

    ... 19 Customs Duties 3 2010-04-01 2010-04-01 false Export subsidies. 351.514 Section 351.514 Customs Duties INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE ANTIDUMPING AND COUNTERVAILING DUTIES... government, a benefit does not exist if the Secretary determines that the activities consist of general...

  9. 46 CFR 282.30 - Payment of subsidy.

    Science.gov (United States)

    2010-10-01

    ... include for payment in such voucher the amount of ODS accrued for the voyages terminated during the period. ... 46 Shipping 8 2010-10-01 2010-10-01 false Payment of subsidy. 282.30 Section 282.30 Shipping... COMMERCE OF THE UNITED STATES Subsidy Payment and Billing Procedures § 282.30 Payment of subsidy...

  10. 19 CFR 351.502 - Specificity of domestic subsidies.

    Science.gov (United States)

    2010-04-01

    ... 351.502 Customs Duties INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE ANTIDUMPING AND...) The subsidy programs have the same purpose; (2) The subsidy programs bestow the same type of benefit; (3) The subsidy programs confer similar levels of benefits on similarly situated firms; and (4) The...

  11. Impacts of subsidy policies on vaccination decisions in contact networks

    Science.gov (United States)

    Zhang, Hai-Feng; Wu, Zhi-Xi; Xu, Xiao-Ke; Small, Michael; Wang, Lin; Wang, Bing-Hong

    2013-07-01

    To motivate more people to participate in vaccination campaigns, various subsidy policies are often supplied by government and the health sectors. However, these external incentives may also alter the vaccination decisions of the broader public, and hence the choice of incentive needs to be carefully considered. Since human behavior and the networking-constrained interactions among individuals significantly impact the evolution of an epidemic, here we consider the voluntary vaccination on human contact networks. To this end, two categories of typical subsidy policies are considered: (1) under the free subsidy policy, the total amount of subsidy is distributed to a certain fraction of individual and who are vaccinated without personal cost, and (2) under the partial-offset subsidy policy, each vaccinated person is offset by a certain amount of subsidy. A vaccination decision model based on evolutionary game theory is established to study the effects of these different subsidy policies on disease control. Simulations suggest that, because the partial-offset subsidy policy encourages more people to take vaccination, its performance is significantly better than that of the free subsidy policy. However, an interesting phenomenon emerges in the partial-offset scenario: with limited amount of total subsidy, a moderate subsidy rate for each vaccinated individual can guarantee the group-optimal vaccination, leading to the maximal social benefits, while such an optimal phenomenon is not evident for the free subsidy scenario.

  12. Role of Indian Commodity Derivatives Market in Hedging Price Risk: Estimation of Constant and Dynamic Hedge Ratio, and Hedging Effectiveness

    Directory of Open Access Journals (Sweden)

    Brajesh Kumar

    2014-08-01

    Full Text Available This  paper  examines  hedging  effectiveness  of  four  agricultural  (soybean,  corn,  castor seed and guar seed and seven non-agricultural (gold, silver, aluminium, copper, zinc, crude oil  and,  natural  gas  futures  contracts  traded  in  India,  using  VECM  and  CCC-MGARCH model to estimate constant hedge ratio and dynamic hedge ratios, respectively. We ind that agricultural  futures  contracts  provide  higher  hedging  effectiveness  (30-70%  as  compared to  non-agricultural  futures  (20%.  In  the  more  recent  period,  the  hedging  effectiveness  of Indian futures markets has increased. When hedging effectiveness of non-agricultural Indian futures  contracts  with  the  world  spot  markets  (NYMEX  and  LME  is  analyzed,  hedging effectiveness  increases  dramatically  which  indicates  the  fact  that  Indian  futures  contracts are more effective for hedging exposures to global prices. Other reasons of lower hedging effectiveness  of  Indian  futures  contracts  may  be  low  awareness  of  futures  markets  among participants,  high  transaction  costs  in  the  futures  markets,  policy  restrictions,  inadequate contract design, or high transaction costs in the spot market. These are, of course, expected birth pays for a nascent futures markets in an emerging economy. ";} // -->activate javascript

  13. Photovoltaic power: the inadequate purchase price

    International Nuclear Information System (INIS)

    Finon, D.

    2009-01-01

    The current policy of guaranteed purchase prices applied to photovoltaic power lacks rationality: prices are not graduated, commitment times are too long, there is no capping to capacity developed, subsidies (tax credit, direct subsidy, etc) are complex and give too favourable a return time. The lack of differentiation between products may also delay the emergence of new PV technologies. As a result, it is legitimate to envisage a cost/benefit analysis of future subsidies and to wonder about Frances ability, as a second rank player, to catch up with the leaders (Germany, Japan, United States). The report does not criticize policy based on purchase prices in itself: this is suitable or technology close to commercial operation in that it guarantees stable terms close to wholesale electricity market prices. It does, however, criticize adequacy in terms of less advanced PV technology, which results in purchase prices five times that of wind power. The report proposes re-targeting the system to take account of the significant stakes in PV power. Costly incentives for installing land PV cells and units should be quickly reduced, while industrial demonstration budgets deserve increases to further the development of new technologies (improved crystal silicon and thin layers). The demonstration phase and industrial development should be the primary focus, where a large part of potentially promising reductions in costs are likely to be achieved. (author)

  14. European Commission study on energy costs and subsidies in the EU. Report for EDF

    International Nuclear Information System (INIS)

    Roques, Fabien; Perekhodtsev, Dmitri; Verhaeghe, Charles

    2014-01-01

    The European Commission (EC) has launched a study in order to provide a complete and consistent view on the subsidies and external costs associated with different power generation technologies. Such study is expected to provide input for policy making in years to come. FTI CL Energy has been mandated by EDF to provide a critical review of the methodology developed in the EC study, and to identify potential gaps in coverage and/or contestable assumptions. The study provides a description of best practice to improve the methodology and surveys the literature to provide a range of estimates for critical assumptions on costs and subsidies

  15. Sensitivity of portuguese electricity market prices to solar PV penetration : an analysis of 2016 prices

    OpenAIRE

    Cordeiro De Sousa, João

    2017-01-01

    The reduction in price of solar PV technology led, in the recent years, multiple investors to apply for installing new solar PV power plants in Portugal which would operate without subsidies or feed-in-tari s. In 2016 it was reported the approval of construction of such power plants and given the low variable cost of this technology it is expected that their penetration would reduce the electricity market prices. Hence, before doing the economic assessment of potential new sola...

  16. A numerical method to estimate the parameters of the CEV model implied by American option prices: Evidence from NYSE

    International Nuclear Information System (INIS)

    Ballestra, Luca Vincenzo; Cecere, Liliana

    2016-01-01

    Highlights: • We develop a method to compute the parameters of the CEV model implied by American options. • This is the first procedure for calibrating the CEV model to American option prices. • The proposed approach is extensively tested on the NYSE market. • The novel method turns out to be very efficient in computing the CEV model parameters. • The CEV model provides only a marginal improvement over the lognormal model. - Abstract: We develop a highly efficient procedure to forecast the parameters of the constant elasticity of variance (CEV) model implied by American options. In particular, first of all, the American option prices predicted by the CEV model are calculated using an accurate and fast finite difference scheme. Then, the parameters of the CEV model are obtained by minimizing the distance between theoretical and empirical option prices, which yields an optimization problem that is solved using an ad-hoc numerical procedure. The proposed approach, which turns out to be very efficient from the computational standpoint, is used to test the goodness-of-fit of the CEV model in predicting the prices of American options traded on the NYSE. The results obtained reveal that the CEV model does not provide a very good agreement with real market data and yields only a marginal improvement over the more popular Black–Scholes model.

  17. Evaluation of the subsidy scheme for heat pumps, pellet-fuelled fireplaces and control systems; Evaluering av tilskuddsordningen til varmepumper, pelletskaminer og styringssystemer

    Energy Technology Data Exchange (ETDEWEB)

    Bjoernstad, Even; Grande, Jorunn; Sand, Roar; Wendelborg, Christian

    2005-07-01

    Enova's subsidy scheme for energy economising in households was carried out in 2003. Subsidies were given to investments in heat pumps, pellet-fuelled fireplaces and electric energy management systems. The primary objective for this evaluation is to build knowledge about the effect of such subsidy schemes, and determine if they contribute to the reduction of electricity consumption in households. Questions that are addressed include Enova's administration of the subsidy scheme, the effects on households, the effects on the energy market, prices and technology. It is concluded that the scheme had a varied effect for the three technologies entitled to subsidies, and heat pump applications got 92,5 percent of the total sum. The households that received subsidies are in general positive, and the households that did not are in general not so satisfied with the service. It is concluded Enova has administered the subsidy scheme well, especially considering the time-frame and the changed economical conditions given (ml)

  18. Recent oil price shock and Tunisian economy

    International Nuclear Information System (INIS)

    Jbir, Rafik; Zouari-Ghorbel, Sonia

    2009-01-01

    The objective of this paper is to study the oil prices-macroeconomy relationship by the analysis of the role of subsidy policy. The vector autoregression (VAR) method was employed to analyze the data over the period 1993 Q1 - 2007 Q3. The results of the model using both linear and non-linear specifications indicate that there is no direct impact of oil price shock on the economic activity. The shock of oil prices affects economic activity indirectly. The most significant channel by which the effects of the shock are transmitted is the government's spending. (author)

  19. Reference-dependent electric vehicle production strategy considering subsidies and consumer trade-offs

    International Nuclear Information System (INIS)

    Zhang, Xiang

    2014-01-01

    In this paper, we extend previous reference-dependence newsvendor research by incorporating both consumer trade-offs and government subsidies to evaluate the relevant influences on the optimal electric vehicle (EV) production decisions. We present the properties of the model, derive the closed-form solutions for the model given the relevant constraints, and use numerical experiments to illustrate the results. We find that subsidies, loss aversion, the performance of both EVs and internal combustion engine-powered vehicles (ICEVs), and the coefficient of variation of demand are significant factors influencing the optimal production quantity and the expected utilities of EV production. The high selling price and other high costs of ICEVs help offset the influence of loss aversion, whereas the high costs of EV enhance loss aversion. Our study enriches the literature on subsidies for EVs by establishing a behavioral model to incorporate the decision bias in terms of loss aversion at the firm level. These findings provide guiding principles for both policymakers and EV managers for making better strategies to promote EVs in the early immature market. - Highlights: • The performance of both electric vehicles (EVs) and internal combustion engine-power vehicles (ICEVs) influences the EV production decisions. • A loss averse EV manager produces less and obtains less the expected utility than a risk neutral one. • Subsidies help decrease the EV breakeven quantity, increase the optimal quantity, offset the influence of loss aversion. • Subsidies should be adjusted according to the performance of both EVs and the ICEVs, demand heterogeneity, and local conditions. • The high ICEVs costs help offset the influence of loss aversion, whereas the high EV costs enhance loss aversion

  20. Regulation for delivery of subsidies for public relations and safety

    International Nuclear Information System (INIS)

    1984-01-01

    The regulations provide for subsidies for the public relations activities and safety operations carried out by a local government for the local inhabitants in the vicinity of a nuclear power generation, etc. facility. This type of activity includes the dissemination of information on nuclear power, studies on securing the safety of the inhabitants and communication concerning the facility safety. The contents are as follows: limits of the subsidies, terms of subsidy allocations, the application for subsidies, determination of subsidy allocations, withdrawal of applications, the conditions to the allocations, a report on the work proceedings, a report on the results, confirmation on the sum of subsidies, withdrawal of the decision for subsidies, limitations for disposal of the properties, etc. (Mori, K.)

  1. Regulation for delivery of subsidies for public relations and safety

    International Nuclear Information System (INIS)

    1985-01-01

    The regulations provide for subsidies for the public relations activities and safety operations carried out by a local government for the local inhabitants in the vicinity of a nuclear power generation, etc. facility. This type of activity includes the dissemination of information on nuclear power, studies on securing the safety of the inhabitants and communication concerning the facility safety. The contents are as follows : limits of the subsidies, terms of subsidy allocations, the application for subsidies, determination of subsidy allocations, withdrawal of applications, the conditions to the allocations, a report on the work proceedings, a report on the results, confirmation on the sum of subsidies, withdrawal of the decision for subsidies, limitations for disposal of the properties, etc. (Kubozono, M.)

  2. Energy price disparity and public welfare

    International Nuclear Information System (INIS)

    Templet, P.H.

    2001-01-01

    The differences in the price of energy to economic sectors are linked to a number of system parameters and to public welfare. There are large disparities in energy prices within states when comparing residential and industrial prices although neoclassical economics predicts one price in markets. The large disparities between the two sectors across states negatively affects the efficiency of resource allocation, creates subsidies for those getting the cheap energy and results in unequal access to energy. These in turn lead to inefficient partitioning of energy between products and waste, higher pollution, leakage of wealth and poorer energy use efficiency, i.e. high energy intensity. States with large energy price disparities between sectors have statistically higher poverty, lower incomes, more pollution and use more energy but with less efficiency. Higher energy price disparities also result in higher throughput per unit of output thus reducing the chances for sustainability and lower public welfare. 31 refs

  3. Cost-price estimation of clinical laboratory services based on activity-based costing: A case study from a developing country.

    Science.gov (United States)

    Mouseli, Ali; Barouni, Mohsen; Amiresmaili, Mohammadreza; Samiee, Siamak Mirab; Vali, Leila

    2017-04-01

    It is believed that laboratory tariffs in Iran don't reflect the real costs. This might expose private laboratories at financial hardship. Activity Based Costing is widely used as a cost measurement instrument to more closely approximate the true cost of operations. This study aimed to determine the real price of different clinical tests of a selected private clinical laboratory. This study was a cross sectional study carried out in 2015. The study setting was the private laboratories in the city of Kerman, Iran. Of 629 tests in the tariff book of the laboratory (relative value), 188 tests were conducted in the laboratory that used Activity Based Costing (ABC) methodology to estimate cost-price. Analyzing and cost-price estimating of laboratory services were performed by MY ABCM software Version 5.0. In 2015, the total costs were $641,645. Direct and indirect costs were 78.3% and 21.7% respectively. Laboratory consumable costs by 37% and personnel costs by 36.3% had the largest share of the costing. Also, group of hormone tests cost the most $147,741 (23.03%), and other tests group cost the least $3,611 (0.56%). Also after calculating the cost of laboratory services, a comparison was made between the calculated price and the private sector's tariffs in 2015. This study showed that there was a difference between costs and tariffs in the private laboratory. One way to overcome this problem is to increase the number of laboratory tests with regard to capacity of the laboratories.

  4. Temperate marine protected area provides recruitment subsidies to local fisheries.

    Science.gov (United States)

    Le Port, A; Montgomery, J C; Smith, A N H; Croucher, A E; McLeod, I M; Lavery, S D

    2017-10-25

    The utility of marine protected areas (MPAs) as a means of protecting exploited species and conserving biodiversity within MPA boundaries is supported by strong empirical evidence. However, the potential contribution of MPAs to fished populations beyond their boundaries is still highly controversial; empirical measures are scarce and modelling studies have produced a range of predictions, including both positive and negative effects. Using a combination of genetic parentage and relatedness analysis, we measured larval subsidies to local fisheries replenishment for Australasian snapper ( Chrysophrys auratus : Sparidae) from a small (5.2 km 2 ), well-established, temperate, coastal MPA in northern New Zealand. Adult snapper within the MPA contributed an estimated 10.6% (95% CI: 5.5-18.1%) of newly settled juveniles to surrounding areas (approx. 400 km 2 ), with no decreasing trend in contributions up to 40 km away. Biophysical modelling of larval dispersal matched experimental data, showing larvae produced inside the MPA dispersed over a comparable distance. These results demonstrate that temperate MPAs have the potential to provide recruitment subsidies at magnitudes and spatial scales relevant to fisheries management. The validated biophysical model provides a cost-efficient opportunity to generalize these findings to other locations and climate conditions, and potentially informs the design of MPA networks for enhancing fisheries management. © 2017 The Author(s).

  5. Stochastic LMP (Locational marginal price) calculation method in distribution systems to minimize loss and emission based on Shapley value and two-point estimate method

    International Nuclear Information System (INIS)

    Azad-Farsani, Ehsan; Agah, S.M.M.; Askarian-Abyaneh, Hossein; Abedi, Mehrdad; Hosseinian, S.H.

    2016-01-01

    LMP (Locational marginal price) calculation is a serious impediment in distribution operation when private DG (distributed generation) units are connected to the network. A novel policy is developed in this study to guide distribution company (DISCO) to exert its control over the private units when power loss and green-house gases emissions are minimized. LMP at each DG bus is calculated according to the contribution of the DG to the reduced amount of loss and emission. An iterative algorithm which is based on the Shapley value method is proposed to allocate loss and emission reduction. The proposed algorithm will provide a robust state estimation tool for DISCOs in the next step of operation. The state estimation tool provides the decision maker with the ability to exert its control over private DG units when loss and emission are minimized. Also, a stochastic approach based on the PEM (point estimate method) is employed to capture uncertainty in the market price and load demand. The proposed methodology is applied to a realistic distribution network, and efficiency and accuracy of the method are verified. - Highlights: • Reduction of the loss and emission at the same time. • Fair allocation of loss and emission reduction. • Estimation of the system state using an iterative algorithm. • Ability of DISCOs to control DG units via the proposed policy. • Modeling the uncertainties to calculate the stochastic LMP.

  6. Effects of an oil price rise on inflation, output, and the exchange rate in the case of subsidization policy

    Energy Technology Data Exchange (ETDEWEB)

    Zandi, F R

    1982-01-01

    Since the Organization of Petroleum Exporting Countries raised the price of oil by 400% in 1974, the theory of supply inflation has received a great deal of attention. This study analyses the short and long run effects of an oil price rise on output, inflation, and the exchange rate. The study also analyses dynamic adjustments to the oil price rise in cases where oil-price subsidies are provided and where no subsidies are provided. In the no-subsidy case it is shown that the oil price rise can be inflationary or deflationary. The implications of the policy of subsidizing the price of oil is highlighted by taking account of a government budget constraint which in turn leads to the possibility of monetization as a source of financing the deficit, and thereby to higher output relative to the no subsidy case. As to the price level, the possibility is illustrated that subsidization can actually be more inflationary. The important element giving rise to the above possibility is the subsidy induced increase in the money supply. Exchange-rate flexibility is shown not to insulate the domestic price level against an oil price rise. In the long run the rate of inflation and exchange-rate variations are determined by the rate of growth of the money supply. The dynamic adjustment path of price and output is shown to be determined by the rate of adjustment of inflationary expectations.

  7. Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile.

    Science.gov (United States)

    Guerrero-López, Carlos M; Unar-Munguía, Mishel; Colchero, M Arantxa

    2017-02-10

    Chile is the second world's largest per capita consumer of caloric beverages. Caloric beverages are associated with overweight, obesity and other chronic diseases. The objective of this study is to estimate the price elasticity of demand for soft drinks, other sugar-sweetened beverages and high-energy dense foods in urban areas in Chile in order to evaluate the potential response of households' consumption to changes in prices. We used microdata from the VII Family Budget Survey 2012-2013, which collects information on expenditures made by Chilean urban households on items such as beverages and foods. We estimated a Linear Approximation of an Almost Ideal Demand System Model to derive own and cross price elasticities of milk, coffee, tea and other infusions, plain water, soft drinks, other flavored beverages, sweet snacks, sugar and honey, and desserts. We considered the censored nature of the data and included the Inverse Mills Ratio in each equation of the demand system. We estimated a Quadratic Almost Ideal Demand System and a two-part model as sensitivity analysis. We found an own price-elasticity of -1.37 for soft drinks. This implies that a price increase of 10% is associated with a reduction in consumption of 13.7%. We found that the rest of food and beverages included in the demand system behave as substitutes for soft drinks. For instance, plain water showed a cross-price elasticity of 0.63: a 10% increase in price of soft drinks could lead to an increase of 6.3% of plain water. Own and cross price elasticities were similar between models. The demand of soft drinks is price sensitive among Chilean households. An incentive system such as subsidies to non-sweetened beverages and tax to soft drinks could lead to increases in the substitutions for other healthier beverages.

  8. Price elasticity of the demand for soft drinks, other sugar-sweetened beverages and energy dense food in Chile

    Directory of Open Access Journals (Sweden)

    Carlos M. Guerrero-López

    2017-02-01

    Full Text Available Abstract Background Chile is the second world’s largest per capita consumer of caloric beverages. Caloric beverages are associated with overweight, obesity and other chronic diseases. The objective of this study is to estimate the price elasticity of demand for soft drinks, other sugar-sweetened beverages and high-energy dense foods in urban areas in Chile in order to evaluate the potential response of households’ consumption to changes in prices. Methods We used microdata from the VII Family Budget Survey 2012–2013, which collects information on expenditures made by Chilean urban households on items such as beverages and foods. We estimated a Linear Approximation of an Almost Ideal Demand System Model to derive own and cross price elasticities of milk, coffee, tea and other infusions, plain water, soft drinks, other flavored beverages, sweet snacks, sugar and honey, and desserts. We considered the censored nature of the data and included the Inverse Mills Ratio in each equation of the demand system. We estimated a Quadratic Almost Ideal Demand System and a two-part model as sensitivity analysis. Results We found an own price-elasticity of −1.37 for soft drinks. This implies that a price increase of 10% is associated with a reduction in consumption of 13.7%. We found that the rest of food and beverages included in the demand system behave as substitutes for soft drinks. For instance, plain water showed a cross-price elasticity of 0.63: a 10% increase in price of soft drinks could lead to an increase of 6.3% of plain water. Own and cross price elasticities were similar between models. Conclusions The demand of soft drinks is price sensitive among Chilean households. An incentive system such as subsidies to non-sweetened beverages and tax to soft drinks could lead to increases in the substitutions for other healthier beverages.

  9. Poverty and price transmission

    DEFF Research Database (Denmark)

    Elleby, Christian

    A key parameter determining the welfare impact from a world market shock is the transmission elasticity which measures the average domestic response to an international price change. Many studies have estimated price transmission elasticities for a large number of countries but the variation in t...

  10. Estimating the electricity prices, generation costs and CO_2 emissions of large scale wind energy exports from Ireland to Great Britain

    International Nuclear Information System (INIS)

    Cleary, Brendan; Duffy, Aidan; Bach, Bjarne; Vitina, Aisma; O’Connor, Alan; Conlon, Michael

    2016-01-01

    The share of wind generation in the Irish and British electricity markets is set to increase by 2020 due to renewable energy (RE) targets. The United Kingdom (UK) and Ireland have set ambitious targets which require 30% and 40% of electricity demand to come from RE, mainly wind, by 2020, respectively. Ireland has sufficient indigenous onshore wind energy resources to exceed the RE target, while the UK faces uncertainty in achieving its target. A possible solution for the UK is to import RE directly from large scale onshore and offshore wind energy projects in Ireland; this possibility has recently been explored by both governments but is currently on hold. Thus, the aim of this paper is to estimate the effects of large scale wind energy in the Irish and British electricity markets in terms of wholesale system marginal prices, total generation costs and CO_2 emissions. The results indicate when the large scale Irish-based wind energy projects are connected directly to the UK there is a decrease of 0.6% and 2% in the Irish and British wholesale system marginal prices under the UK National Grid slow progression scenario, respectively. - Highlights: • Modelling the Irish and British electricity markets. • Investigating the impacts of large scale wind energy within the markets. • Results indicate a reduction in wholesale system marginal prices in both markets. • Decrease in total generation costs and CO_2 emissions in both markets.

  11. Demand assessment and price-elasticity estimation of quality-improved primary health care in Palestine: a contribution from the contingent valuation method.

    Science.gov (United States)

    Mataria, Awad; Luchini, Stéphane; Daoud, Yousef; Moatti, Jean-Paul

    2007-10-01

    This paper proposes a new methodology to assess demand and price-elasticity for health care, based on patients' stated willingness to pay (WTP) values for certain aspects of health care quality improvements. A conceptual analysis of how respondents consider contingent valuation (CV) questions allowed us to specify a probability density function of stated WTP values, and consequently, to model a demand function for quality-improved health care, using a parametric survival approach. The model was empirically estimated using a CV study intended to assess patients' values for improving the quality of primary health care (PHC) services in Palestine. A random sample of 499 individuals was interviewed following medical consultation in four PHC centers. Quality was assessed using a multi-attribute approach; and respondents valued seven specific quality improvements using a decomposed valuation scenario and a payment card elicitation technique. Our results suggest an inelastic demand at low user fees levels, and when the price-increase is accompanied with substantial quality-improvements. Nevertheless, demand becomes more and more elastic if user fees continue to rise. On the other hand, patients' reactions to price-increase turn out to depend on their level of income. Our results can be used to design successful health care financing strategies that include a consideration of patients' preferences and financial capacities. John Wiley & Sons, Ltd.

  12. Is College Pricing Power Pro-Cyclical?

    Science.gov (United States)

    Altringer, Levi; Summers, Jeffrey

    2015-01-01

    We define pricing power as a college's ability to increase its net tuition revenue by raising its sticker-price for tuition. The greater is the positive effect of sticker-price increases on net tuition revenue, the greater is the pricing power. We gauge variation in the pricing power of private, non-profit baccalaureate colleges by estimating this…

  13. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Méndez, Susan J.; Rønde, Thomas

    2014-01-01

    Reference prices constitute a main determinant of patient health care reimbursement in many countries. We study the effects of a change from an "external" (based on a basket of prices in other countries) to an "internal" (based on comparable domestic products) reference price system. We find...... that while our estimated consumer compensating variation is small, the reform led to substantial reductions in list and reference prices as well as co-payments, and to sizeable decreases in overall producer revenues, health care expenditures, and co-payments. These effects differ markedly between branded...

  14. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Méndez, Susan J.; Rønde, Thomas

    Reference prices constitute a main determinant of patient health care reimbursement in many countries. We study the effects of a change from an "external" (based on a basket of prices in other countries) to an "internal" (based on comparable domestic products) reference price system. We find...... that while our estimated consumer compensating variation is small, the reform led to substantial reductions in list and reference prices as well as co-payments, and to sizeable decreases in overall producer revenues, health care expenditures, and co-payments. These effects differ markedly between branded...

  15. An econometrics method to estimate demand of sugar

    Directory of Open Access Journals (Sweden)

    Negar Seyed Soleimany

    2012-01-01

    Full Text Available Sugar is one of the strategic goods in the basket of households in each country and it plays an important role in supplying the required energy. On the other hand, it is one of the goods, which Iranian government is about to change its subsidy strategies. To design useful sugar subsidy strategies, it is necessary to know sugar position in the basket of households and be familiar with households' sugar demand or consumption behavior. This research estimates sugar demand for Iranian households by using time series of 1984-2008, which is taken from central bank of Iran. In this paper, first independent and dependent variables of household sugar demand model are chosen based on the literature review and theory of demand. Then, sugar demand is estimated by OLS technique and linear regression. The preliminary statistical observations such as Durbin-Watson, F statistic and R2 indicate that the regression is admissible. The results seem plausible and consistent with theory and show that sugar demand in Iranian households is associated with household expenditure, relative sugar price, family size and indicate that demand of sugar is affected during the war time. The results also show the income elasticity is 0.8 and price elasticity is -0.2 which means sugar is essential good for Iranian households and is inelastic to price.

  16. The “Cadillac Tax” on Health Benefits in the United States Will Hit the Middle Class Hardest: Refuting the Myth That Health Benefit Tax Subsidies Are Regressive.

    Science.gov (United States)

    Woolhandler, Steffie; Himmelstein, David U

    2016-01-01

    U.S. employment-based health benefits are exempt from income and payroll taxes, an exemption that provided tax subsidies of $326.2 billion in 2015. Both liberal and conservative economists have denounced these subsidies as “regressive” and lauded a provision of the Affordable Care Act—the Cadillac Tax—that would curtail them. The claim that the subsidies are regressive rests on estimates showing that the affluent receive the largest subsidies in absolute dollars. But this claim ignores the standard definition of regressivity, which is based on the share of income paid by the wealthy versus the poor, rather than on dollar amounts. In this study, we calculate the value of tax subsidies in 2009 as a share of income for each income quintile and for the wealthiest Americans. In absolute dollars, tax subsidies were highest for families between the 80th and 95th percentiles of family income and lowest for the poorest 20%. However, as shares of income, subsidies were largest for the middle and fourth income quintiles and smallest for the wealthiest 0.5% of Americans. We conclude that the tax subsidy to employment-based insurance is neither markedly regressive, nor progressive. The Cadillac Tax will disproportionately harm families with (2009) incomes between $38,550 and $100,000, while sparing the wealthy.

  17. Equivalent oil price, equivalent gas price and CO2 cost

    International Nuclear Information System (INIS)

    Bacher, P.

    2008-01-01

    This article assess the magnitudes of costs to replace oil (and natural gas) in their fixed (heat) or mobile (transport) uses with energy savings or non CO 2 emitting energies. The price of oil (or gas) at which such measures would be profitable at is inferred, without any tax or subsidy, as well as the resulting CO 2 costs avoided. It shows that several of the actions considered in France and Europe to protect the climate are far from being the most economically justified. (author)

  18. Price fairness

    OpenAIRE

    Diller, Hermann

    2013-01-01

    Purpose – The purpose of this article is to integrate the various strands of fair price research into a concise conceptual model. Design/methodology/approach – The proposed price fairness model is based on a review of the fair pricing literature, incorporating research reported in not only English but also German. Findings – The proposed fair price model depicts seven components of a fair price: distributive fairness, consistent behaviour, personal respect and regard for the partner, fair dea...

  19. Flat-Top Realized Kernel Estimation of Quadratic Covariation with Non-Synchronous and Noisy Asset Prices

    DEFF Research Database (Denmark)

    Varneskov, Rasmus T.

    . Lastly, two small empirical applications to high frequency stock market data illustrate the bias reduction relative to competing estimators in estimating correlations, realized betas, and mean-variance frontiers, as well as the use of the new estimators in the dynamics of hedging....... problems. These transformations are all shown to inherit the desirable asymptotic properties of the generalized at-top realized kernels. A simulation study shows that the class of estimators has a superior finite sample tradeoff between bias and root mean squared error relative to competing estimators...

  20. Child Care Subsidies and School Readiness in Kindergarten

    Science.gov (United States)

    Johnson, Anna D; Martin, Anne; Brooks-Gunn, Jeanne

    2013-01-01

    The federal child care subsidy program represents one of the government’s largest investments in early care and education. Using data from the nationally representative Early Childhood Longitudinal Study – Birth Cohort (ECLS-B), this paper examines associations, among subsidy-eligible families, between child care subsidy receipt when children are 4 years old and a range of school readiness outcomes in kindergarten (sample n ≈ 1,400). Findings suggest that subsidy receipt in preschool is not directly linked to subsequent reading or social-emotional skills. However, subsidy receipt predicted lower math scores among children attending community-based centers. Supplementary analyses revealed that subsidies predicted greater use of center care, but this association did not appear to affect school readiness. PMID:23461769

  1. On the Intensity of International Subsidy Competition for FDI

    Directory of Open Access Journals (Sweden)

    Tomáš HAVRÁNEK

    2010-02-01

    Full Text Available The objective of this paper is to empirically assess the recently introduced models of subsidy competition based on the classical oligopoly theories. Three crucial scenarios (coordination, weak competition, and fierce competition are tested employing iteratively re-weighted least squares, fixed effects, and dynamic Blundell-Bond estimator on the data from the World Competitiveness Yearbook. The results suggest that none of the scenarios can be strongly supported – although there is some weak support for cooperation –, and thus that empirical evidence is not in accordance with the tested models. There is no evidence for a significant international competition for FDI. It seems that, however, by means of FDI incentives, governments try to compensate foreign investors for high wages and low productivity of their countries’ labor force.

  2. Value and Pricing of MOOCs

    Directory of Open Access Journals (Sweden)

    Rose M. Baker

    2016-05-01

    Full Text Available Reviewed in this article is the potential for Massive Open Online Courses (MOOCs to transform higher education delivery, accessibility, and costs. Next, five major value propositions for MOOCs are considered (headhunting, certification, face-to-face learning, personalized learning, integration with services external to the MOOC, marketing. Then, four pricing strategies for MOOCs are examined (cross-subsidy, third-party, “freemium”, nonmonetary. Although the MOOC movement has experienced growing pains similar to most innovations, we assert that the unyielding pace of improvements in network technologies combined with the need to tame the costs of higher education will create continuing demand for MOOC offerings.

  3. Geographically Weighted Regression Models in Estimating Median Home Prices in Towns of Massachusetts Based on an Urban Sustainability Framework

    Directory of Open Access Journals (Sweden)

    Yaxiong Ma

    2018-03-01

    Full Text Available Housing is a key component of urban sustainability. The objective of this study was to assess the significance of key spatial determinants of median home price in towns in Massachusetts that impact sustainable growth. Our analysis investigates the presence or absence of spatial non-stationarity in the relationship between sustainable growth, measured in terms of the relationship between home values and various parameters including the amount of unprotected forest land, residential land, unemployment, education, vehicle ownership, accessibility to commuter rail stations, school district performance, and senior population. We use the standard geographically weighted regression (GWR and Mixed GWR models to analyze the effects of spatial non-stationarity. Mixed GWR performed better than GWR in terms of Akaike Information Criterion (AIC values. Our findings highlight the nature and spatial extent of the non-stationary vs. stationary qualities of key environmental and social determinants of median home price. Understanding the key determinants of housing values, such as valuation of green spaces, public school performance metrics, and proximity to public transport, enable towns to use different strategies of sustainable urban planning, while understanding urban housing determinants—such as unemployment and senior population—can help modify urban sustainable housing policies.

  4. Wealth Transfers Among Large Customers from Implementing Real-Time Retail Electricity Pricing

    OpenAIRE

    Borenstein, Severin

    2007-01-01

    Adoption of real-time electricity pricing — retail prices that vary hourly to reflect changing wholesale prices — removes existing cross-subsidies to those customers that consume disproportionately more when wholesale prices are highest. If their losses are substantial, these customers are likely to oppose RTP initiatives unless there is a supplemental program to offset their loss. Using data on a sample of 1142 large industrial and commercial customers in northern California, I show that RTP...

  5. Leveraging Fuel Subsidy Reform for Transition in Yemen

    OpenAIRE

    Clemens Breisinger; Wilfried Engelke; Olivier Ecker

    2012-01-01

    Yemen is currently undergoing a major political transition, yet many economic challenges—including fuel subsidy reform—remain highly relevant. To inform the transition process with respect to a potential subsidy reform, we use a dynamic computable general equilibrium and microsimulation model for Yemen; we show that overall growth effects of subsidy reduction are positive in general, but poverty can increase or decrease depending on reform design. A promising strategy for ...

  6. Subsidies in Croatian agriculture and adjustment to the EU

    Directory of Open Access Journals (Sweden)

    Ramona Franić

    2005-08-01

    Full Text Available After the Croatian independence and re-adoption of the free trade principles, in political debates agriculture got the role of one of the basic pillar in economic development. There is intention to protect domestic agriculture against much more developed western European agriculture and to support its competitiveness, respecting at the same time the requirements of the international trade agreements asking for decreasing domestic protection. The reform of agricultural price policy started in 1988, due to the trade policy reform within the requirements imposed by the membership in the World Trade Organization. Recent changes from 2003 tend to simplify the system of agricultural support and to equalize the level of incentives. Together with existing production subsidies, new models of income support, capital investments and rural development are introduced. The reform predicts harmonization of domestic agricultural policy measures with those conducted or should be conducted in the EU. It means the shift from the old way of supporting European agricultural markets, toward incentives for European farmer, in the way that in total support prevails income, and not production support.

  7. Dynamic Pricing

    DEFF Research Database (Denmark)

    Sharifi, Reza; Anvari-Moghaddam, Amjad; Fathi, S. Hamid

    2017-01-01

    Dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use (TOU) pricing) for enabling demand response (DR) actions. Over the past few years, advantages of RTP-based schemes h...... of dynamic pricing can lead to increased willingness of consumers to participate in DR programs which in turn improve the operation of liberalized electricity markets.......Dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use (TOU) pricing) for enabling demand response (DR) actions. Over the past few years, advantages of RTP-based schemes...

  8. Subsidies which are harmful to the environment, a complex reality

    International Nuclear Information System (INIS)

    Pourquier, Francois-Xavier; Monnoyer-Smith, Laurence; Demeulenaere, Laurence

    2017-12-01

    As the reduction of public supports which are harmful to the environment is a major stake in terms of struggle against pollutions and greenhouse gases, this publication proposes a discussion of these subsidies which are still important in France despite recent improvements, notably regarding wastes and fuels. The author first discusses how these harmful subsidies are defined by international or research bodies. He outlines that some subsidies have been suppressed since 2013, that important reforms have been initiated, and that, however, the level of harmful subsidies remains high. Then, he discusses the necessary reconciliation of different objectives, and briefly evokes the German and Italian assessment examples

  9. Subsidy as an agent to enhance the effectiveness of the energy performance certificate

    International Nuclear Information System (INIS)

    McGilligan, Charles; Sunikka-Blank, Minna; Natarajan, Sukumar

    2010-01-01

    Since more than two-thirds of the United Kingdom housing stock in 2050 will comprise houses that have already been built, the need for a focus of policy on the already-built private housing stock is apparent. This study examines the impact that subsidy can make in bolstering the performance of the Energy Performance Certificate by reducing carbon emissions in the residential sector. The results of a survey of new homeowners' uptake of nine commonly installed energy saving measures in response to subsidy are examined. A cost-benefit analysis is performed using the recently introduced concept of the Shadow Price of Carbon and a model is presented which allows the carbon savings for any level of subsidy to be calculated. The model suggests that subsidisation of the installation of hot water tank insulation, draught proofing measures, loft insulation and cavity wall insulation may be cost-effective, but that the subsidisation of others, most notably interior solid wall insulation, are unlikely to significantly bolster carbon savings.

  10. Subsidy as an agent to enhance the effectiveness of the energy performance certificate

    Energy Technology Data Exchange (ETDEWEB)

    McGilligan, Charles; Natarajan, Sukumar [Department of Architecture and Civil Engineering, University of Bath, Bath BA2 7AY (United Kingdom); Sunikka-Blank, Minna [Department of Architecture, University of Cambridge, Cambridge CB2 1PX (United Kingdom)

    2010-03-15

    Since more than two-thirds of the United Kingdom housing stock in 2050 will comprise houses that have already been built, the need for a focus of policy on the already-built private housing stock is apparent. This study examines the impact that subsidy can make in bolstering the performance of the Energy Performance Certificate by reducing carbon emissions in the residential sector. The results of a survey of new homeowners' uptake of nine commonly installed energy saving measures in response to subsidy are examined. A cost-benefit analysis is performed using the recently introduced concept of the Shadow Price of Carbon and a model is presented which allows the carbon savings for any level of subsidy to be calculated. The model suggests that subsidisation of the installation of hot water tank insulation, draught proofing measures, loft insulation and cavity wall insulation may be cost-effective, but that the subsidisation of others, most notably interior solid wall insulation, are unlikely to significantly bolster carbon savings. (author)

  11. Estimated burden of cardiovascular disease and value-based price range for evolocumab in a high-risk, secondary-prevention population in the US payer context.

    Science.gov (United States)

    Toth, Peter P; Danese, Mark; Villa, Guillermo; Qian, Yi; Beaubrun, Anne; Lira, Armando; Jansen, Jeroen P

    2017-06-01

    To estimate real-world cardiovascular disease (CVD) burden and value-based price range of evolocumab for a US-context, high-risk, secondary-prevention population. Burden of CVD was assessed using the UK-based Clinical Practice Research Datalink (CPRD) in order to capture complete CV burden including CV mortality. Patients on standard of care (SOC; high-intensity statins) in CPRD were selected based on eligibility criteria of FOURIER, a phase 3 CV outcomes trial of evolocumab, and categorized into four cohorts: high-risk prevalent atherosclerotic CVD (ASCVD) cohort (n = 1448), acute coronary syndrome (ACS) (n = 602), ischemic stroke (IS) (n = 151), and heart failure (HF) (n = 291) incident cohorts. The value-based price range for evolocumab was assessed using a previously published economic model. The model incorporated CPRD CV event rates and considered CV event reduction rate ratios per 1 mmol/L reduction in low-density lipoprotein-cholesterol (LDL-C) from a meta-analysis of statin trials by the Cholesterol Treatment Trialists Collaboration (CTTC), i.e. CTTC relationship. Multiple-event rates of composite CV events (ACS, IS, or coronary revascularization) per 100 patient-years were 12.3 for the high-risk prevalent ASCVD cohort, and 25.7, 13.3, and 23.3, respectively, for incident ACS, IS, and HF cohorts. Approximately one-half (42%) of the high-risk ASCVD patients with a new CV event during follow-up had a subsequent CV event. Combining these real-world event rates and the CTTC relationship in the economic model, the value-based price range (credible interval) under a willingness-to-pay threshold of $150,000/quality-adjusted life-year gained for evolocumab was $11,990 ($9,341-$14,833) to $16,856 ($12,903-$20,678) in ASCVD patients with baseline LDL-C levels ≥70 mg/dL and ≥100 mg/dL, respectively. Real-world CVD burden is substantial. Using the observed CVD burden in CPRD and the CTTC relationship, the cost-effectiveness analysis showed

  12. The impact of intermittently renewable energy on Italian wholesale electricity prices: Additional benefits or additional costs?

    International Nuclear Information System (INIS)

    Gullì, Francesco; Balbo, Antonio Lo

    2015-01-01

    Most studies of the literature find that the development of renewable energy sources determines a decrease in the wholesale prices. Some authors use this finding to state that the current subsidies for renewable technologies cannot be considered as excessive. By carrying out a hybrid analysis (both simulation and ex-post empirical analyses) of the case of photovoltaic energy in Italy, this article demonstrates that this result cannot be generalised. Under market power, an increase in PV production can provide benefits in terms of a wholesale price decrease only beyond a specific threshold and especially if combined with other effects. Otherwise, it is likely that PV development could imply an increase in prices. Therefore, on the one hand, caution is necessary when using the estimated change in wholesale prices to evaluate the net cost for consumers of the supporting policies for renewables: either the simulation-based models or the full empirical analyses may be misleading. On the other hand, if 'decarbonisation' is the main objective, the energy policies should be designed in order to assure a deep and balanced penetration of the clean technologies, regardless of their estimated transitory impact on wholesale prices (and in the meantime reviewing the organisation of power markets). -- Highlights: •We use a hybrid analysis based on a combined approach (both simulation and ex-post empirical analyses). •There is a critical threshold of RES penetration within which prices may increase. •Price increases are more likely with PV rather than with wind power. •Either the simulation models or the full empirical analyses may be misleading. •Caution is necessary when using the results of these analyses for policy decisions

  13. 19 CFR 351.523 - Upstream subsidies.

    Science.gov (United States)

    2010-04-01

    ... competitive benefit exists under section 771A(b) of the Act, the Secretary will determine whether the price... information, the Secretary will consider the extent to which factors other than price, such as quality differences, are important determinants of demand for the subject merchandise. ...

  14. Electricity price and tariff problems and approaches to their solving

    International Nuclear Information System (INIS)

    Piha, M.

    1994-01-01

    The following problems are discussed: (i) integrity of the tariff system, price setting and price control in relation to the secondary market; (ii) long-term contracting relations between the subjects - primary and secondary market entities; (iii) the setting of electricity purchase prices from independent producers; (iv) international integration of national systems, including electricity import prices; (v) cross-subsidies within the system; (vi) identification of adverse environmental impacts and their remediation by incorporating the associated costs into electricity prices; (vii) the cost basis of prices; (viii) objectivization of the cost basis; (ix) unification/diversification of the price and tariff levels and the associated distribution rent problem; (x) rational structure of the tariff system with respect to its complexity and ties to the measuring and control instrumentation and their efficiency; and (xi) breakdown of the costs of heat and electricity cogeneration and a fair price setting. (J.B.)

  15. Housing Subsidies and Homelessness: A Simple Idea

    Directory of Open Access Journals (Sweden)

    Brendan O’Flaherty

    2012-01-01

    Full Text Available Reducing homelessness is an indisputable social good, and housing subsidies offer one way to do so. However, subsidies come in many different varieties and are intricately bound up with economic and social policies. This paper, written by one of North America’s leading urban economists, cuts through the tangle and argues that the simplest approach is the best. The ideal way to deter people from harmful acts is to reward them for abstaining. Thus, to combat homelessness, governments should offer housing allowances to people for every night they are not homeless. This optimal homelessness-reducing home allowance (OHRHA is open to adjustment to suit individual circumstances and the effects of homelessness on different demographics. It is meant to reduce homelessness by aligning individual and societal incentives, forcing people to bear the consequences or realize the benefits that their actions impose on others. The author explores methods for financing OHRHA, examines means for tailoring it to meet the diverse needs of the homeless and discusses the policy’s effect on urban housing markets, all while comparing and contrasting the proposal to existing homelessness-reduction measures in Alberta, Canada and the US.

  16. Effectiveness of subsidies in promoting healthy food purchases and consumption: a review of field experiments.

    Science.gov (United States)

    An, Ruopeng

    2013-07-01

    To systematically review evidence from field interventions on the effectiveness of monetary subsidies in promoting healthier food purchases and consumption. Keyword and reference searches were conducted in five electronic databases: Cochrane Library, EconLit, MEDLINE, PsycINFO and Web of Science. Studies were included based on the following criteria: (i) intervention: field experiments; (ii) population: adolescents 12–17 years old or adults 18 years and older; (iii) design: randomized controlled trials, cohort studies or pre–post studies; (iv) subsidy: price discounts or vouchers for healthier foods; (v) outcome: food purchases or consumption; (vi) period: 1990–2012; and (vii) language: English. Twenty-four articles on twenty distinct experiments were included with study quality assessed using predefined methodological criteria. Interventions were conducted in seven countries: the USA (n 14), Canada (n 1), France (n 1), Germany (n 1), Netherlands (n 1), South Africa (n 1) and the UK (n 1). Subsidies applied to different types of foods such as fruits, vegetables and low-fat snacks sold in supermarkets, cafeterias, vending machines, farmers’ markets or restaurants. Interventions enrolled various population subgroups such as school/ university students, metropolitan transit workers and low-income women. All but one study found subsidies on healthier foods to significantly increase the purchase and consumption of promoted products. Study limitations include small and convenience samples, short intervention and follow-up duration, and lack of cost-effectiveness and overall diet assessment. Subsidizing healthier foods tends to be effective in modifying dietary behaviour. Future studies should examine its long-term effectiveness and cost-effectiveness at the population level and its impact on overall diet intake.

  17. Intranational Price Convergence and Price Stickiness

    DEFF Research Database (Denmark)

    Bergman, Ulf Michael; Heebøll, Christian; Hansen, Niels Lynggaard

    2017-01-01

    We show that estimates of the half-life of deviations from LOOP are biased when not taking into account the precision when aggregating over types of goods. Using a comprehensive dataset with monthly price data for 124 homogeneous products across regions in Denmark over the period 1997–2010 we find...... a large positive aggregation bias. On average, we find that the half-life is 8.4 months when taking the bias into account compared to 28.7 months when applying the standard method. The heterogeneity in estimated half-life can be explained by price stickiness, distance between regions and whether the good...

  18. Into the mire: A closer look at fossil fuel subsidies

    Directory of Open Access Journals (Sweden)

    Radoslaw (Radek Stefanski

    2016-03-01

    Full Text Available Threatened by climate change, governments the world over are attempting to nudge markets in the direction of less carbon-intensive energy. Perversely, many of these governments continue to subsidize fossil fuels, distorting markets and raising emissions. Determining how much money is involved is difficult, as neither the providers nor the recipients of those subsidies want to own up to them. This paper builds on a unique method to extract fossil fuel subsidies from patterns in countries’ carbon emission-to-GDP ratios. This approach is useful since it: 1 overcomes the problem of scarce data; 2 derives a wider and more comparable measure of subsidies than existing measures and 3 allows for the performance of counterfactuals which help measure the impact of subsidies on emissions and growth. The resultant 170-country, 30-year database finds that the financial and the environmental costs of such subsidies are enormous, especially in China and the U.S. The overwhelming majority of the world’s fossil fuel subsidies stem from China, the U.S. and the ex-USSR; as of 2010, this figure was $712 billion or nearly 80 per cent of the total world value of subsidies. For its part, Canada has been subsidizing rather than taxing fossil fuels since 1998. By 2010, Canadian subsidies sat at $13 billion, or 1.4 per cent of GDP. In that same year, the total global direct and indirect financial costs of all such subsidies amounted to $1.82 trillion, or 3.8 per cent of global GDP. Aside from the money saved, in 2010 a world without subsidies would have had carbon emissions 36 per cent lower than they actually were. Any government looking to ease strained budgets and make a significant (and cheap contribution to the fight against climate change must consider slashing fossil fuel subsidies. As the data show, this is a sound decision – fiscally and environmentally.

  19. Computable error estimates of a finite difference scheme for option pricing in exponential Lévy models

    KAUST Repository

    Kiessling, Jonas; Tempone, Raul

    2014-01-01

    jump activity, then the jumps smaller than some (Formula presented.) are approximated by diffusion. The resulting diffusion approximation error is also estimated, with leading order term in computable form, as well as the dependence of the time

  20. The impact of reference pricing of nonsteroidal anti-inflammatory agents on the use and costs of analgesic drugs.

    Science.gov (United States)

    Grootendorst, Paul V; Marshall, John K; Holbrook, Anne M; Dolovich, Lisa R; O'Brien, Bernie J; Levy, Adrian R

    2005-10-01

    To estimate the effect of reference pricing (RP) of nonsteroidal anti-inflammatory drugs (NSAIDs) on drug subsidy program and beneficiary expenditures on analgesic drugs. Monthly claims data from Pharmacare, the public drug subsidy program for seniors in British Columbia, Canada, over the period of February 1993 to June 2001. RP limits drug plan reimbursement of interchangeable medicines to a reference price, which is typically equal to the price of the lowest cost interchangeable drug; any cost above that is borne by the patient. Pharmacare introduced two different forms of RP to the NSAIDs, Type 1 in April 1994 and Type 2 in November 1995. Under Type 1 RP, generic and brand versions of the same NSAID are considered interchangeable, whereas under Type 2 RP different NSAIDs are considered interchangeable. We extrapolated average reimbursement per day of NSAID therapy over the months before RP to estimate what expenditures would have been without the policies. These counterfactual predictions were compared with actual values to estimate the impact of the policies; the estimated impacts on reimbursement rates were multiplied by the postpolicy volume of NSAIDS dispensed, which appeared unaffected by the policies, to estimate expenditure changes. After Type 2 RP, program expenditures declined by $22.7 million (CAN), or $4 million (CAN), annually cutting expenditure by about half. Most savings accrued from the substitution of low-cost NSAIDs for more costly alternatives. About 20 percent of savings represented expenditures by seniors who elected to pay for partially reimbursed drugs. Type 1 RP produced one-quarter the savings of type 2 RP. Type 2 RP of NSAIDs achieved its goal of reducing drug expenditures and was more effective than Type 1 RP. The effects of RP on patient health and associated health care costs remain to be investigated.

  1. Ülkemizde Transfer Fiyatlandırmasının Yol Açtığı Tahmini Kurumlar Vergisi Kaybı(The Estimated Corporate Tax Loss Due To Transfer Pricing In Our Country

    Directory of Open Access Journals (Sweden)

    Serdar PEHLİVAN

    2010-01-01

    Full Text Available States, though in order to grasp taxable income have created legal infrastructure; with the reason of lack of efficient tax audit, they have been exposed to important tax losses due to transfer pricing.The amount of tax losses due to over invoiced imports and under invoiced exports that are determined as estimation; has shown that tax audit had not been efficient in transfer pricing. In order to minimize corporate tax losses that occured due to transfer pricing, it is required to take precautionary measures oriented in increasing efficiency in tax audit

  2. Estimating Swedish biomass energy supply

    International Nuclear Information System (INIS)

    Johansson, J.; Lundqvist, U.

    1999-01-01

    Biomass is suggested to supply an increasing amount of energy in Sweden. There have been several studies estimating the potential supply of biomass energy, including that of the Swedish Energy Commission in 1995. The Energy Commission based its estimates of biomass supply on five other analyses which presented a wide variation in estimated future supply, in large part due to differing assumptions regarding important factors. In this paper, these studies are assessed, and the estimated potential biomass energy supplies are discusses regarding prices, technical progress and energy policy. The supply of logging residues depends on the demand for wood products and is limited by ecological, technological, and economic restrictions. The supply of stemwood from early thinning for energy and of straw from cereal and oil seed production is mainly dependent upon economic considerations. One major factor for the supply of willow and reed canary grass is the size of arable land projected to be not needed for food and fodder production. Future supply of biomass energy depends on energy prices and technical progress, both of which are driven by energy policy priorities. Biomass energy has to compete with other energy sources as well as with alternative uses of biomass such as forest products and food production. Technical progress may decrease the costs of biomass energy and thus increase the competitiveness. Economic instruments, including carbon taxes and subsidies, and allocation of research and development resources, are driven by energy policy goals and can change the competitiveness of biomass energy

  3. Economic and environmental gains of China's fossil energy subsidies reform: A rebound effect case study with EIMO model

    International Nuclear Information System (INIS)

    Hong, Li; Liang, Dong; Di, Wang

    2013-01-01

    Energy consumption and efficiency emerged as the hottest topic in the context of China's sustainable development. Energy subsidies and “rebound effect” were closely related to this topic while few combinative studies on them with a focus on China. This paper employed a co-thinking approach, focusing on how the energy subsidies reform could mitigate the rebound effect in China, and how to achieve an “economic and environmental gains” that reduced pecuniary spending, improved the distorted energy market and reduced energy consumption simultaneously. Firstly, with price-gap approach we calculated the total energy subsidies scale of China in 2007, which amounted to582.0 billion CNY; then we detected and identified rebound effect of China energy consumption with the features. Furthermore, based on China 2007 monetary input–output table and energy flow analysis, we compiled a hybrid physical energy input and monetary output model (EIMO) to simulate the mitigation effect of subsidies reform. Results showed that removing energy subsidies would decrease ultimate demand of different economy sectors and reduce the accumulatively physical consumption of coal, oil, natural gas and electricity by 17.74, 13.47, 3.64 and 15.82 million tce, respectively. Finally we discussed relevant policy issues on China's energy subsidies reform in depth. - Highlights: ► Analyze the economic and environmental gains of fossil energy subsidies reform in China. ► Energy input and monetary output model was applied for analysis. ► Subsidies reform would help to reduce the rebound effect. ► The benefits of money saving, energy saving and CO 2 mitigation were achieved

  4. Ownership Restrictions, Tax Competition and Transfer Pricing Policy

    NARCIS (Netherlands)

    Diaw, K.

    2004-01-01

    This paper analyzes tax/subsidy competition and transfer pricing regulation between governments involved in trade through a multinational firm and a joint venture using an input provided by the former.The paper takes into account the fact that in absence of bargaining, any model of such JV is

  5. Assessing the Impact of Higher Oil Prices in Latin America

    OpenAIRE

    World Bank

    2012-01-01

    For some Latin American countries - especially, the oil importers in the Caribbean - rising energy prices could pose a significant threat to their current account sustainability, particularly if they are accompanied by other negative shocks. In some countries the fiscal costs associated with subsidies to protect domestic consumers have been considerable so far. Hence, a better understandin...

  6. The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia

    NARCIS (Netherlands)

    Saari, M. Yusof; Dietzenbacher, Erik; Los, Bart

    2016-01-01

    Crude oil price hikes have compelled governments of developing countries to let domestic prices of energy increase. Fiscal priorities made it impossible to fully compensate the hikes by raising energy subsidies. This paper examines the potential impacts of a limited deregulation of the petroleum

  7. Ex-vessel Fish Price Database: Disaggregating Prices for Low-Priced Species from Reduction Fisheries

    Directory of Open Access Journals (Sweden)

    Travis C. Tai

    2017-11-01

    Full Text Available Ex-vessel fish prices are essential for comprehensive fisheries management and socioeconomic analyses for fisheries science. In this paper, we reconstructed a global ex-vessel price database with the following areas of improvement: (1 compiling reported prices explicitly listed as “for reduction to fishmeal and fish oil” to estimate prices separately for catches destined for fishmeal and fish oil production, and other non-direct human consumption purposes; (2 including 95% confidence limit estimates for each price estimation; and (3 increasing the number of input data and the number of price estimates to match the reconstructed Sea Around Us catch database. Our primary focus was to address this first area of improvement as ex-vessel prices for catches destined for non-direct human consumption purposes were substantially overestimated, notably in countries with large reduction fisheries. For example in Peru, 2010 landed values were estimated as 3.8 billion real 2010 USD when using separate prices for reduction fisheries, compared with 5.8 billion using previous methods with only one price for all end-products. This update of the price database has significant global and country-specific impacts on fisheries price and landed value trends over time.

  8. Transfer Pricing

    DEFF Research Database (Denmark)

    Nielsen, Søren Bo

    2014-01-01

    Against a background of rather mixed evidence about transfer pricing practices in multinational enterprises (MNEs) and varying attitudes on the part of tax authorities, this paper explores how multiple aims in transfer pricing can be pursued across four different transfer pricing regimes. A MNE h...

  9. Gold prices

    OpenAIRE

    Joseph G. Haubrich

    1998-01-01

    The price of gold commands attention because it serves as an indicator of general price stability or inflation. But gold is also a commodity, used in jewelry and by industry, so demand and supply affect its pricing and need to be considered when gold is a factor in monetary policy decisions.

  10. The Fall of Oil Prices and the Effects on Biofuels.

    Science.gov (United States)

    Reboredo, Fernando H; Lidon, Fernando; Pessoa, Fernanda; Ramalho, José C

    2016-01-01

    This analysis is focused on the effect of the abrupt decline of oil prices on biofuels, particularly second-generation ethanol. The efforts to decrease the production costs of biofuels, especially cellulosic ethanol (CE), will be greatly threatened if current oil prices remain low, especially since production is not slowing. Only huge state subsidies could alleviate this threat, but the challenge is to persuade citizens that this sacrifice is worthwhile. Copyright © 2015 Elsevier Ltd. All rights reserved.

  11. Ethanol: the promise and the peril : Should Manitoba expand ethanol subsidies?

    International Nuclear Information System (INIS)

    Sopuck, R.D.

    2002-01-01

    Ethanol is produced through the fermentation of wheat. Blending ethanol with gasoline results in an ethanol-blended gasoline (EBG). Manitoba has already established an ethanol industry in the province and the government of the province is studying the feasibility of expansion. Every year in Manitoba, approximately 90 million litres of EBG are consumed, and the province's ethanol facility also produces a high protein cattle feed called distillers dry grain. Controversies surround the ethanol industry over both the economics and the environmental benefits and impacts. At issue is the economic efficiency of the production of ethanol, where opponents claim that the final product contains less energy than that required to produce it. A small gain is obtained, as revealed by a recent study. It is difficult to quantify the environmental effects of the ethanol industry, whether they be negative or positive. The author indicates that no matter what happens, the gasoline market in Manitoba is so small when compared to the rest of the world that the effect will not be significant. The three methods for the production of ethanol are: (1) the most risky and expensive method is the stand alone ethanol production facility, (2) integrated facilities where other products are produced, such as wet mash or nutraceuticals, and (3) integrated facilities where dry mash can be exported as a high protein feed. The production of a wide range of products is clearly the best option to be considered during the design of an ethanol facility. Price collapse and the capitalizing of subsidies into prices are the main risks facing the expansion of ethanol production in Manitoba. The author states that direct subsidies and price supports should be avoided, since subsidies would encourage the conversion of more feed grain into ethanol. The feed shortage would worsen especially as Manitoba does not currently produce enough feed to support its growing livestock industry. The author concludes that

  12. Child Care Subsidy Use and Child Development: Potential Causal Mechanisms

    Science.gov (United States)

    Hawkinson, Laura E.

    2011-01-01

    Research using an experimental design is needed to provide firm causal evidence on the impacts of child care subsidy use on child development, and on underlying causal mechanisms since subsidies can affect child development only indirectly via changes they cause in children's early experiences. However, before costly experimental research is…

  13. 42 CFR 423.782 - Cost-sharing subsidy.

    Science.gov (United States)

    2010-10-01

    ... 42 Public Health 3 2010-10-01 2010-10-01 false Cost-sharing subsidy. 423.782 Section 423.782... (CONTINUED) MEDICARE PROGRAM VOLUNTARY MEDICARE PRESCRIPTION DRUG BENEFIT Premiums and Cost-Sharing Subsidies... cents. (c) When the out-of-pocket cost for a covered Part D drug under a Part D sponsor's plan benefit...

  14. Thailand's Student Loans Fund: Interest Rate Subsidies and Repayment Burdens

    Science.gov (United States)

    Chapman, Bruce; Lounkaew, Kiatanantha; Polsiri, Piruna; Sarachitti, Rangsit; Sitthipongpanich, Thitima

    2010-01-01

    Government student loan schemes typically have implicit interest rate subsidies which, while these are a cost to taxpayers, they have the benefit of diminishing repayment burdens for graduates. Our goal is to illustrate the extent of both interest rate subsidies and repayment burdens with respect to Thailand's Student Loans Fund (SLF), using…

  15. 77 FR 75641 - Public Housing Operating Subsidy-Appeals

    Science.gov (United States)

    2012-12-21

    ... substitute actual project cost data. To appeal the amount of subsidy on any one of the permitted bases of... conditions; and (e) appeal to substitute actual project cost data. To appeal the amount of subsidy on any one of the permitted bases of appeal, PHAs submit an appeal request to HUD. Number of Annual Hours per...

  16. Subsidy programs on diffusion of solar water heaters: Taiwan's experience

    International Nuclear Information System (INIS)

    Chang, Keh-Chin; Lin, Wei-Min; Lee, Tsong-Sheng; Chung, Kung-Ming

    2011-01-01

    Financial incentives are essentially one of the key factors influencing diffusion of solar water heaters in many countries. Two subsidy programs were initiated by the government of Taiwan in 1986 (1986-1991) and 2000 (2000-present), respectively. Those long-term national programs are considered to be the driving force on local market expansion. In 2008, the regional subsidy programs for solar water heaters were announced by Kaohsiung city and Kiemen county, which resulted in the growth in sales. A revised subsidy was also initiated by the government of Taiwan in 2009. The subsidy is 50% more. However, the tremendous enlargement of market size with a high-level ratio of subsidy over total installation cost might result in a negative impact on a sustainable SWH industry and long-term development of the local market, which is associated with system design and post-installation service. This paper aims to address the relative efficiency and pitfalls of those national and regional programs. - Research Highlights: → The direct subsidy has been the driving force on market expansion in Taiwan. → Higher subsidy would certainly increase the total number of systems installed. → A high-level subsidy results in a negative impact on users or a sustainable industry.

  17. 14 CFR 271.3 - Carrier subsidy need.

    Science.gov (United States)

    2010-01-01

    ... Aeronautics and Space OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION (AVIATION PROCEEDINGS) ECONOMIC REGULATIONS GUIDELINES FOR SUBSIDIZING AIR CARRIERS PROVIDING ESSENTIAL AIR TRANSPORTATION § 271.3 Carrier subsidy need. In establishing the subsidy for an air carrier providing essential air service at an...

  18. The rule on granting subsidies for public relations

    International Nuclear Information System (INIS)

    1979-01-01

    The rule is defined under the law concerning subsidies and the provisions of the order for execution of the law. Basic terms are explained, such as: nuclear power generating facilities; related facilities of nuclear power generation; nuclear power generating facilities, etc.; and place of enterprise. Subsidies are granted by the head of the authorities concerned (the Director General of Science and Technology Agency or the Minister of International Trade and Industry) to popularize knowledge of nuclear power generation to inhabitants in surrounding areas of the facilities, or to support expenses of the preparation of arrangement programs, etc. Subsidies for public relations are delivered to those prefectures where nuclear power generating facilities, etc. are or are expected to be established, and subsidies for arrangement programs to those where the surrounding areas are included. Limits of the subsidies to a prefecture range from 6 million yen to 18 million yen for each fiscal year according to specified terms of the facilities concerned. Limits of subsidies for arrangement programs to place of enterprise extend from 500,000 yen to 1 million yen. Prefectures shall file an application for subsidies to the head of the authorities concerned with gists of business according to the forms attached. Receiving the application, the head shall examine it and notify to the applicant the decision of delivery and its conditions without delay in writing, when such settlement is made. Terms and conditions of delivery, payment of subsidies and others are stipulated respectively. (Okada, K.)

  19. Can Production Subsidies Explain China's Export Performance? Evidence from Firm-level Data

    DEFF Research Database (Denmark)

    Gong, Yundan; Yu, Zhihong; Girma, Sourafel

    2009-01-01

    This paper analyses the relationship between production subsidies and firms" export performance using a very comprehensive and recent firm-level database and controlling for the endogeneity of subsidies. It documents robust evidence that production subsidies stimulate export activity at the inten......This paper analyses the relationship between production subsidies and firms" export performance using a very comprehensive and recent firm-level database and controlling for the endogeneity of subsidies. It documents robust evidence that production subsidies stimulate export activity...

  20. More choice in health insurance marketplaces may reduce the value of the subsidies available to low-income enrollees.

    Science.gov (United States)

    Taylor, Erin A; Saltzman, Evan; Bauhoff, Sebastian; Pacula, Rosalie L; Eibner, Christine

    2015-01-01

    Federal subsidies available to enrollees in health insurance Marketplaces are pegged to the premium of the second-lowest-cost silver plan available in each rating area (as defined by each state). People who qualify for the subsidy contribute a percentage of their income to purchase coverage, and the federal government covers the remaining cost up to the price of that premium. Because the number of plans offered and plan premiums vary substantially across rating areas, the effective value of the subsidy may vary geographically. We found that the availability of more plans in a rating area was associated with lower premiums but higher deductibles for enrollees in the second-lowest-cost silver plan. In rating areas with more than twenty plans, the average deductible in the second-lowest-cost silver plan was nearly $1,000 higher than it was in rating areas with fewer than thirteen plans. Because premium costs for second-lowest-cost silver plans are capped, deductibles may be a more salient measure of plan value for enrollees than premiums are. Greater standardization of plans or an alternative approach to calculating the subsidy could provide a more consistent benefit to enrollees across various rating areas. Project HOPE—The People-to-People Health Foundation, Inc.

  1. Health insurance subsidies and deductible choice: Evidence from regional variation in subsidy schemes.

    Science.gov (United States)

    Kaufmann, Cornel; Schmid, Christian; Boes, Stefan

    2017-09-01

    The extent to which premium subsidies can influence health insurance choices is an open question. In this paper, we explore the regional variation in subsidy schemes in Switzerland, designed as either in-kind or cash transfers, to study their impact on the choice of health insurance deductibles. Using health survey data and a difference-in-differences methodology, we find that in-kind transfers increase the likelihood of choosing a low deductible plan by approximately 4 percentage points (or 7%). Our results indicate that the response to in-kind transfers is strongest among women, middle-aged and unmarried individuals, which we explain by differences in risk-taking behavior, health status, financial constraints, health insurance and financial literacy. We discuss our results in the light of potential extra-marginal effects on the demand for health care services, which are however not supported by our data. Copyright © 2017 Elsevier B.V. All rights reserved.

  2. Do Employment Subsidies Work? Evidence from Regionally Targeted Subsidies in Turkey

    DEFF Research Database (Denmark)

    Daysal, N. Meltem; Betcherman, Gordon; Pages, Carmen

    2010-01-01

    This paper studies the effects on registered employment and number of registered establishments of two employment subsidy schemes in Turkey. We implement a difference-in-differences methodology to construct appropriate counterfactuals for the covered provinces. Our findings suggest that both subs...... than boosting total employment and economic activity. This supports the theory that in countries with weak enforcement institutions, high labor taxes on low-wage workers may lead to substantial incentives for firms and workers to operate informally....

  3. Fair value enrichment pricing: is it fair

    International Nuclear Information System (INIS)

    1978-01-01

    The Atomic Energy Act of 1954, as amended (Public Law 83-702), requires the Department of Energy to recover all costs for its enrichment activities over a reasonable period of time. The proposed legislation would allow the Department to recover its costs plus a percentage of these costs. Six major factors are examined to determine whether the legislation should be adopted: What effect will the legislation have on the prices paid by ultimate consumers of electricity; will the increase in price resulting from the legislation help promote the establishment of a private uranium enrichment industry; how will the price increase impact on the administration's nuclear non-proliferation goals; what additional revenues will be generated from domestic and foreign customers; should the United States continue to perpetuate a subsidy to the U.S. nuclear industry; what effect, if any, will the new price have on the U.S. supply and demand situation for energy

  4. The Strategic Exercise of Options Using Government Subsidies: An Analysis of Production Subsidies for the Ground Source Heat Pump

    Science.gov (United States)

    Lin, Sheng-Hau; Li, Jia-Hsun; Hsu, Chih-Chen; Hsieh, Jing-Chzi; Liao, Pin-Chao

    2018-04-01

    This study utilizes consolidation investment theory to incorporate with business strategies and government subsidy to develop a strategic exercise of options model. This empirical investigation examines the ground source heat pump (GSHP) government subsidy program, which is part of China’s 12th Five Year Plan. The developed model is applied to explain the behaviours of business investment with regard to strategic investment timing, option values, and the influence of government subsidies in duopolistic real-world investment decisions. The results indicate that subsidy policy can reduce the differences of investment timing among GSHP investors and has clearly evidenced the positive benefit–cost ratio of government subsidy, which facilitates China’s GSHP industry development.

  5. Food price policies improve diet quality while increasing socioeconomic inequalities in nutrition

    Science.gov (United States)

    2014-01-01

    Background Prices are an important determinant of food choices. Consequently, food price policies (subsidies and/or taxes) are proposed to improve the nutritional quality of diets. The aim of the present study was to explore the impact of food price policies on the expenditures and nutritional quality of the food baskets chosen by low- and medium-income households. Methods Experimental economics was used to examine two price manipulations: i) a fruit and vegetable price subsidy named “fruit and vegetables condition”; ii) a healthy-product subsidy coupled with an unhealthy-product tax named “nutrient profile condition”. The nutrient profiling system called SAIN,LIM was used. This system classifies each individual food according to its overall nutritional quality which then allows for a food item to be taxed or subsidized. Women from low- (n = 95) and medium-incomes (n = 33) selected a daily food basket, first, at current prices and then at manipulated prices. The redistributive effects of experimental conditions were assessed by comparing the extent of savings induced by subsidies and of costs generated by the tax on the two income groups. Energy density (kcal/100 g), free sugars (% energy) and the mean adequacy ratio (MAR) were used as nutritional quality indicators. Results At baseline (before price manipulations), low-income women selected less expensive and less healthy baskets than medium-income ones. After price manipulations expenditures for both income group decreased significantly, whereas, the nutritional quality improved (energy density decreased, the MAR increased). Additionally, the redistributive effects were less favourable for low-income women and their nutritional quality improvements from baseline were significantly lower. Conclusion Low-income women derived fewer financial and nutritional benefits from implemented food subsidies and taxes than medium-income women. This outcome suggests that food price policies may improve diet

  6. Food price policies improve diet quality while increasing socioeconomic inequalities in nutrition.

    Science.gov (United States)

    Darmon, Nicole; Lacroix, Anne; Muller, Laurent; Ruffieux, Bernard

    2014-05-20

    Prices are an important determinant of food choices. Consequently, food price policies (subsidies and/or taxes) are proposed to improve the nutritional quality of diets. The aim of the present study was to explore the impact of food price policies on the expenditures and nutritional quality of the food baskets chosen by low- and medium-income households. Experimental economics was used to examine two price manipulations: i) a fruit and vegetable price subsidy named "fruit and vegetables condition"; ii) a healthy-product subsidy coupled with an unhealthy-product tax named "nutrient profile condition". The nutrient profiling system called SAIN,LIM was used. This system classifies each individual food according to its overall nutritional quality which then allows for a food item to be taxed or subsidized. Women from low- (n = 95) and medium-incomes (n = 33) selected a daily food basket, first, at current prices and then at manipulated prices. The redistributive effects of experimental conditions were assessed by comparing the extent of savings induced by subsidies and of costs generated by the tax on the two income groups. Energy density (kcal/100 g), free sugars (% energy) and the mean adequacy ratio (MAR) were used as nutritional quality indicators. At baseline (before price manipulations), low-income women selected less expensive and less healthy baskets than medium-income ones. After price manipulations expenditures for both income group decreased significantly, whereas, the nutritional quality improved (energy density decreased, the MAR increased). Additionally, the redistributive effects were less favourable for low-income women and their nutritional quality improvements from baseline were significantly lower. Low-income women derived fewer financial and nutritional benefits from implemented food subsidies and taxes than medium-income women. This outcome suggests that food price policies may improve diet quality while increasing socio

  7. The Effect of Price and Socio-Economic Level on the Consumption of Sugar-Sweetened Beverages (SSB): The Case of Ecuador.

    Science.gov (United States)

    Paraje, Guillermo

    2016-01-01

    The objective of this article is to estimate the own-price, cross-price and income elasticities of demand for SSB in Ecuador, as an indispensable step for predicting a reduction in the consumption of said beverages caused by the potential implementation of taxes in Ecuador. In addition, the own-price, cross-price and income elasticities of sugar-free substitutes like mineral water and diet soft drinks and juices are also estimated. The data from the 2011-2012 ENIGHUR, which contains detailed information on household consumption and socioeconomic variables, was used. The estimates are done using Deaton's Almost Ideal Demand System (AIDS) which accounts for differences in the quality of goods purchased. This demand system is estimated for different socio-economic groups, according to total household expenditure. The results reveal own-price elasticities for SSB between -1.17 and -1.33 depending on the socio-economic group, in line with the existing evidence for developed countries. Own-price elasticity for non-SSB is between -1 and -1.24. Income elasticities reveal that both SSB and non-SSB are normal goods with elasticities decreasing for higher socio-economic groups. These results show that the consumption of SSB is sensitive to price changes, meaning that the implementation of taxes on said beverages could be effective in reducing their consumption. The fact that non-SSB are also sensitive to price changes would indicate that subsidies could be implemented for the production of some of them.

  8. House Prices and Taxes

    DEFF Research Database (Denmark)

    Gjedsted Nielsen, Mads

    This paper is the first to consider a large scale natural experiment to estimate the effect of taxes on house prices. We find that a 1 percentage-point increase in income tax rates lead to a drop in house prices of at most 2.2%. This corresponds to a tax capitalization for the average household...... capitalization from earlier studies. Furthermore, we find no effect of property taxes on house prices. We attribute this to the low levels of Danish municipal property tax rates compared to income tax rates....

  9. New product pricing

    International Nuclear Information System (INIS)

    Wilkinson, V.K.

    1981-01-01

    One of the most uncertain elements in budget planning is estimating production costs of items that have heretofore only been produced in prototype configurations and quantities. This paper examines the design and development of a mathematical model which computes appropriate prices for new and unique products. The resulting model offers a producer a fair return on his investment and the consumer a fair purchase price

  10. Agricultural subsidies in the United States and their effect on two annual Chilean crops: corn and wheat

    Directory of Open Access Journals (Sweden)

    José Díaz Osorio

    2006-09-01

    Full Text Available The development strategies for Chile have been oriented toward a greater commercial openness. Chile and the United States signed a Free Trade Agreement (FTA that has triggered controversies between producers directed to the internal market due to the production and export subsidies that this country carries out. This study analyzed the effect of subsidies granted by the United States to wheat (Tritricum aestivum and corn (Zea mays growers (Farm Bill 2002. For the study, Technical Standard sheet were drawn up, from which were determined the direct production costs and the gross margins. The variables used (market prices, subsidies, freight costs and tariffs and determining the average variable costs allowed us to do a sensitivity analysis, thus establishing the minimum level of production that national farmers must achieve in order to maintain competitiveness while a free trade is in force. The signing of a trade agreement could provoke the eventual withdrawal of many Chilean producers from the business arena while at the same time, favoring consumers with lower prices for the goods derived from these grains.

  11. An electricity price model with consideration to load and gas price effects.

    Science.gov (United States)

    Huang, Min-xiang; Tao, Xiao-hu; Han, Zhen-xiang

    2003-01-01

    Some characteristics of the electricity load and prices are studied, and the relationship between electricity prices and gas (fuel) prices is analyzed in this paper. Because electricity prices are strongly dependent on load and gas prices, the authors constructed a model for electricity prices based on the effects of these two factors; and used the Geometric Mean Reversion Brownian Motion (GMRBM) model to describe the electricity load process, and a Geometric Brownian Motion(GBM) model to describe the gas prices; deduced the price stochastic process model based on the above load model and gas price model. This paper also presents methods for parameters estimation, and proposes some methods to solve the model.

  12. The Influence of Diesel Fuel Subsidies and Taxes on the Potential for Solar-Powered Hybrid Systems in Africa

    Directory of Open Access Journals (Sweden)

    Paul Bertheau

    2015-08-01

    Full Text Available Many people in African countries lack access to sufficient electricity supply due to missing infrastructure of the centralized conventional power generation system. In order to provide electricity to a wider part of the population, it is necessary to exploit the vast renewable resources in African countries. Therefore, this paper scrutinizes the economic advantages of photovoltaic-based hybrid systems over fossil fuel-based power generation. A simulation model is applied in order to calculate the cost advantage of hybrid systems compared to diesel-only systems for the entire continent on a long term basis by applying two scenarios: one based on world market diesel prices and the other one based on national diesel prices. The results indicate that average power generation costs per country can be reduced by up to 0.11 €/kWh considering world market diesel prices and by up to 0.48 €/kWh considering national diesel prices. Furthermore, the effect of diesel fuel subsidies and taxes on the renewable energy potential and the respective savings are examined. These findings may ameliorate the policy development according to fossil fuel subsidies and taxes and demonstrate the advantages of decentralized renewable hybrid systems especially in rural areas of Africa.

  13. The rule on granting subsidies for public relations

    International Nuclear Information System (INIS)

    1978-01-01

    These provisions are established on the basis of and to enforce the ''Law for the proper execution of the budget concerning subsidies'' and the Enforcement Ordinance for the ''Law for the proper execution of the budget concerning subsidies''. The Regulation covers the subsidies for the expenses for spreading the knowledge concerning nuclear power generation to the inhabitants in the surrounding areas of such nuclear power generating facilities, for the expenses for establishing the facilities for such popularization, and the office expenses for preparing the improvement plans on the surrounding areas of power generating facilities. Terms are explained, such as nuclear power generating facilities, the facilities related to nuclear power generation, nuclear power generating facilities, etc. and establishments. The subsidies for public relations are delivered to the prefectures where nuclear power generating facilities, etc. have been installed or are planned to be set up, and the subsidies for preparing the improvement plans are granted to the prefectures where the prescribed surrounding areas are involved. The subsidy for public relations delivered to one establishment is limited to 10 million yen in each fiscal year. Applications for the delivery of subsidies shall be filed to the directors of competent authorities-the Director General of the Science and Technology Agency or the Minister of International Trade and Industry. (Okada, K.)

  14. Part D employer retiree drug subsidy: inception, implementation and issues.

    Science.gov (United States)

    Costello, Ann

    2010-01-01

    The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 provided a subsidy to employers that offered a retiree health prescription coverage benefit actuarially equivalent to Medicare Part D. This article reviews the development of the subsidy, the support by the federal government and the issues that have arisen. It also presents analysis of data from a set of companies that offered retiree health in 2006 and 2007. The data show widespread acceptance of the subsidy and continuance of prescription coverage; however, companies that did not take the subsidy were more likely to be smaller and in less robust financial health. Analysis of a subset of the companies shows the magnitude of the benefits paid yearly and the accounting liability caused by retiree health relative to the size of the subsidy. The author concludes that the potential success or failure of the federal subsidy in preserving retiree health benefits will not be known for years. Nevertheless, with the elimination of the deductibility of the subsidy in the Patient Protection and Affordable Care Act (PPACA), employers surely will reexamine their offer of prescription coverage to retirees.

  15. The rule on granting subsidies for public relations

    International Nuclear Information System (INIS)

    1977-01-01

    The rule is based on the prescriptions of the Law for Proper Budget Enforcement Concerning Subsidies and its Enforcement Order. These rules apply to the subsidies for the expenses to popularize the knowledge concerning nuclear power generation to the inhabitants in the surrounding areas of such generating facilities, the office expenses to prepare the arrangement plan for the surrounding areas of such facilities, and the office expenses necessary for the delivery of the subsidies. Meanings of terms are defined, such as nuclear power generating facilities, the facilities related to nuclear power generation, establishment, etc. The chief of the competent ministry (the Director General of the Science and Technology Agency and the Minister of International Trade and Industry) gives the subsidies for public relations to the prefectures where nuclear power generating facilities and others have been or are to be set up, the preparation of the arrangement plan is made, or the delivery business is made. When two or more establishments of power generating facilities are closely located, they are regarded as one establishment. The limit of the subsidies for public relations to an establishment is 10 million yen in a fiscal year. The limit of the subsidies for the preparation of the arrangement plan concerning an establishment varies from 1 million yen to 0.2 million yen. The term of delivery, filing of applications, reports submitted by the receivers of the subsidies and other related matters are specified. (Okada, K.)

  16. The rule on granting subsidies for public relations

    International Nuclear Information System (INIS)

    1980-01-01

    The regulation is set up under the provisions of the law concerning the proper execution of subsidy budgets and the ordinance for enforcing the law, to carry these provisions into effect. The subsidies for public relations under the ordinance for enforcing the law concerning the special account for the measures of promoting power source development are delivered according to the provisions of the regulation as well as the law concerning the proper execution of subsidy budgets and the ordinance for enforcing the law. Basic terms are defined, such as nuclear power generating facilities; facilities related to nuclear power generation; place of business, etc. The ministers and directors of departments concerned deliver the subsidies for public relations to a prefecture where nuclear power generating facilities and related facilities are established or expected to be established, to cover all or a part of expenses necessary for the popularization of knowledges on nuclear power generation. The amounts of subsidies for public relations paid to a prefecture in each fiscal year are from 6 to 18 million yen. An application for such subsidies shall be filed by an applicant prefecture to the ministers or directors of departments concerned according to the form prescribed. The terms, conditions and decision of the delivery of subsidies are stipulated, respectively. (Okada, K.)

  17. Online Structural Health Monitoring and Parameter Estimation for Vibrating Active Cantilever Beams Using Low-Priced Microcontrollers

    Directory of Open Access Journals (Sweden)

    Gergely Takács

    2015-01-01

    Full Text Available This paper presents a structural health monitoring and parameter estimation system for vibrating active cantilever beams using low-cost embedded computing hardware. The actuator input and the measured position are used in an augmented nonlinear model to observe the dynamic states and parameters of the beam by the continuous-discrete extended Kalman filter (EKF. The presence of undesirable structural change is detected by variations of the first resonance estimate computed from the observed equivalent mass, stiffness, damping, and voltage-force conversion coefficients. A fault signal is generated upon its departure from a predetermined nominal tolerance band. The algorithm is implemented using automatically generated and deployed machine code on an electronics prototyping platform, featuring an economically feasible 8-bit microcontroller unit (MCU. The validation experiments demonstrate the viability of the proposed system to detect sudden or gradual mechanical changes in real-time, while the functionality on low-cost miniaturized hardware suggests a strong potential for mass-production and structural integration. The modest computing power of the microcontroller and automated code generation designates the proposed system only for very flexible structures, with a first dominant resonant frequency under 4 Hz; however, a code-optimized version certainly allows much stiffer structures or more complicated models on the same hardware.

  18. Do consumers really know if the price is right ? Direct measures of references price are their implications for retailing

    OpenAIRE

    VANHUELE, Marc; DREZE, Xavier

    2000-01-01

    Reference price research suggest that consumers memorize and recall price information when selecting brands for frequently purchased products. In this study, we show that previous price-knowledge surveys provided imperfect estimates of reference price. Further, we propose to use a combination of price recall, price recognition, and deal recognition to measure representations to memorize prices. In addition we identify consumer and product characteristics that explain the variations in price k...

  19. Transfer Pricing

    DEFF Research Database (Denmark)

    Rohde, Carsten; Rossing, Christian Plesner

    trade internally as the units have to decide what prices should be paid for such inter-unit transfers. One important challenge is to uncover the consequences that different transfer prices have on the willingness in the organizational units to coordinate activities and trade internally. At the same time...... the determination of transfer price will affect the size of the profit or loss in the organizational units and thus have an impact on the evaluation of managers‟ performance. In some instances the determination of transfer prices may lead to a disagreement between coordination of the organizational units...

  20. State energy price and expenditure report 1990

    International Nuclear Information System (INIS)

    1992-01-01

    The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates individually for the 50 States and the District of Columbia and in aggregate for the United States. The estimates are provided by energy source and economic sector. This report is an update of the State Energy Price and Expenditure Report 1989 published in September 1991. Energy price and expenditure estimates are published for the years 1970, 1975, 1980, and 1985 through 1990. Documentation follows the tables and describes how the price estimates are developed, including sources of data, methods of estimation, and conversion factors applied

  1. Markets up on subsidies - but dilemma on disbursement

    Energy Technology Data Exchange (ETDEWEB)

    Malaviya Jaideep N.

    2013-04-01

    To encourage the masses and ensure rapid augmentation of solar thermal installations, India introduced capital subsidies of 30 % on systems traded during the Solar Mission plan. A scheme of 'channel partners' was worked out under which manufacturers, suppliers and other bulk users would sell systems as net-of-subsidy to the end users and would later claim reimbursement from the MNRE. Now with delays in the settlement of subsidy amounts the manufacturers have barely left enough capital to do business. (orig.)

  2. 'Frozen' media subsidies during a time of media change

    DEFF Research Database (Denmark)

    Nielsen, Rasmus Kleis

    2014-01-01

    documents and secondary sources, I show that media subsidies have largely remained frozen in their late-20th century form. The absence of major reform means that media subsidies are increasingly subject to policy drift, a process by which the operations and effectiveness of policies change not because......Media systems around the world have changed in significant ways in the early 21st century. In this article, I analyse how various forms of media subsidies have changed in response to these transformations in a sample of six different affluent democracies. On the basis of interviews, official......) a perceived shortage of desirable, cost-effective, and governable alternatives to existing policies....

  3. Price performance following stock's IPO in different price limit systems

    Science.gov (United States)

    Wu, Ting; Wang, Yue; Li, Ming-Xia

    2018-01-01

    An IPO burst occurred in China's stock markets in 2015, while price limit trading rules usually help to reduce the short-term trading mania on individual stocks. It is interesting to make clear the function of the price limits after IPOs. We firstly make a statistical analysis based on all the IPO stocks listed from 1990 to 2015. A high dependency exists between the activities in stock's IPO and various market environment. We also focus on the price dynamics in the first 40 trading days after the stock listed. We find that price limit system will delay the price movement, especially for the up-trend movements, which may lead to longer continuous price limit hits. Similar to our previous work, many results such as ;W; shape can be also observed in the future daily return after the price limit open. At last, we find most IPO measures show evident correlations with the following price limit hits. IPO stocks with lower first-day turnover and earning per share will be followed with a longer continuous price limit hits and lower future daily return under the newest trading rules, which give us a good way to estimate the occurrence of price limit hits and the following price dynamics. Our analysis provides a better understanding of the price dynamics after IPO events and offers potential practical values for investors.

  4. Diesel Subsidies and Yemen Politics: Post-2011 Crises and their Impact on Groundwater Use and Agriculture

    Directory of Open Access Journals (Sweden)

    Adel Al-Weshali

    2015-06-01

    Full Text Available Groundwater is the main source of agricultural and municipal water and contributes 70% of total water use in Yemen. All aquifers are depleting at a very high rate owing to combined effects of a host of socioeconomic, institutional and climate-change factors. The government policy on diesel subsidy was largely believed to be one of the significant factors which stimulated large-scale pumping of water for irrigating water-intensive cash crops such as qat, fruits, and vegetables. A rapid field assessment was conducted between June and December 2011 in six different regions of the country to analyse the impacts of the severe diesel crisis that accompanied the political turmoil of 2011 on groundwater use and agriculture. The study highlighted winners and losers in the process of adapting to diesel shortage and high diesel prices. Farmers’ responses differed according to their social status, financial resources, and farming systems. Poorly endowed households partially or completely abandoned agriculture. Others abandoned farming of irrigated cereals and fodder, but practised deficit irrigation of fruits and vegetables, thus halving the consumption of diesel. Crop yields dropped by 40-60% in all surveyed regions. The intra-governorate transport halt due to the sharp increase in transport cost caused prices at the farm gate to drop. Only those farmers who could absorb increases in diesel prices due to high return:cost ratios, higher drought tolerance, stable prices (qat, and access to alternative sources of water could cope with the diesel crisis.

  5. On the electrification of road transport - Learning rates and price forecasts for hybrid-electric and battery-electric vehicles

    International Nuclear Information System (INIS)

    Weiss, Martin; Patel, Martin K.; Junginger, Martin; Perujo, Adolfo; Bonnel, Pierre; Grootveld, Geert van

    2012-01-01

    Hybrid-electric vehicles (HEVs) and battery-electric vehicles (BEVs) are currently more expensive than conventional passenger cars but may become cheaper due to technological learning. Here, we obtain insight into the prospects of future price decline by establishing ex-post learning rates for HEVs and ex-ante price forecasts for HEVs and BEVs. Since 1997, HEVs have shown a robust decline in their price and price differential at learning rates of 7±2% and 23±5%, respectively. By 2010, HEVs were only 31±22 € 2010 kW −1 more expensive than conventional cars. Mass-produced BEVs are currently introduced into the market at prices of 479±171 € 2010 kW −1 , which is 285±213 € 2010 kW −1 and 316±209 € 2010 kW −1 more expensive than HEVs and conventional cars. Our forecast suggests that price breakeven with these vehicles may only be achieved by 2026 and 2032, when 50 and 80 million BEVs, respectively, would have been produced worldwide. We estimate that BEVs may require until then global learning investments of 100–150 billion € which is less than the global subsidies for fossil fuel consumption paid in 2009. These findings suggest that HEVs, including plug-in HEVs, could become the dominant vehicle technology in the next two decades, while BEVs may require long-term policy support. - Highlights: ► Learning rates for hybrid-electric and battery-electric vehicles. ► Prices and price differentials of hybrid-electric vehicles show a robust decline. ► Battery-electric vehicles may require policy support for decades.

  6. Pricing of new vaccines.

    Science.gov (United States)

    Lee, Bruce Y; McGlone, Sarah M

    2010-08-01

    New vaccine pricing is a complicated process that could have substantial long-standing scientific, medical, and public health ramifications. Pricing can have a considerable impact on new vaccine adoption and, thereby, either culminate or thwart years of research and development and public health efforts. Typically, pricing strategy consists of the following ten components: 1. Conduct a target population analysis; 2. Map potential competitors and alternatives; 3. Construct a vaccine target product profile (TPP) and compare it to projected or actual TPPs of competing vaccines; 4. Quantify the incremental value of the new vaccine's characteristics; 5. Determine vaccine positioning in the marketplace; 6. Estimate the vaccine price-demand curve; 7. Calculate vaccine costs (including those of manufacturing, distribution, and research and development); 8. Account for various legal, regulatory, third party payer, and competitor factors; 9. Consider the overall product portfolio; 10. Set pricing objectives; 11. Select pricing and pricing structure. While the biomedical literature contains some studies that have addressed these components, there is still considerable room for more extensive evaluation of this important area.

  7. Pricing of new vaccines

    Science.gov (United States)

    McGlone, Sarah M

    2010-01-01

    New vaccine pricing is a complicated process that could have substantial long-standing scientific, medical and public health ramifications. Pricing can have a considerable impact on new vaccine adoption and, thereby, either culminate or thwart years of research and development and public health efforts. Typically, pricing strategy consists of the following eleven components: (1) Conduct a target population analysis; (2) Map potential competitors and alternatives; (3) Construct a vaccine target product profile (TPP) and compare it to projected or actual TPPs of competing vaccines; (4) Quantify the incremental value of the new vaccine's characteristics; (5) Determine vaccine positioning in the marketplace; (6) Estimate the vaccine price-demand curve; (7) Calculate vaccine costs (including those of manufacturing, distribution, and research and development); (8) Account for various legal, regulatory, third party payer and competitor factors; (9) Consider the overall product portfolio; (10) Set pricing objectives; (11) Select pricing and pricing structure. While the biomedical literature contains some studies that have addressed these components, there is still considerable room for more extensive evaluation of this important area. PMID:20861678

  8. Petroleum price

    International Nuclear Information System (INIS)

    Chevallier, B.

    2009-01-01

    The 'AFTP' conference on 'petroleum prices' organized by Total last March, tries to explain the different aspects of the crisis we undergo for July 2007 and its consequential effects on the petroleum markets (supply, demand evolvements, impacts on reserves, prices, refining...). (O.M.)

  9. NIGERIAN GOVERNMENT AND OIL SUBSIDY REGIME: A HORN ...

    African Journals Online (AJOL)

    GRACE

    The crisis that the oil subsidy removal elicits has polarized the Nigerian society. ..... Malaysia among others, have become investors' destination due to the .... Development in Africa: The Nigerian Experience, Asian Economic and Financial.

  10. Leveraging Fuel Subsidy Reform for Transition in Yemen

    Directory of Open Access Journals (Sweden)

    Olivier Ecker

    2012-10-01

    Full Text Available Yemen is currently undergoing a major political transition, yet many economic challenges—including fuel subsidy reform—remain highly relevant. To inform the transition process with respect to a potential subsidy reform, we use a dynamic computable general equilibrium and microsimulation model for Yemen; we show that overall growth effects of subsidy reduction are positive in general, but poverty can increase or decrease depending on reform design. A promising strategy for a successful reform combines fuel subsidy reduction with direct income transfers to the poorest one-third of households during reform, and productivity-enhancing investment in infrastructure, plus fiscal consolidation. Public investments should be used for integrating economic spaces and restructuring of agricultural, industrial and service value chains in order to create a framework that encourages private-sector-led and job-creating growth.

  11. The Estimation of Water Demand Function of Household Sector According to Non Liner Pricing Through Discrete – continues Choice Model (The Case Study of Tehran City During 2002 to 2006

    Directory of Open Access Journals (Sweden)

    Ameneh Khoshbakht

    2011-07-01

    Full Text Available The scarcity of water is the result of the recent successive drought in most country's districts. The increase of demand due to the increase of population and also inappropriate growth of supply according to the high cost of production process and therefore distribution, arise a big concern for the water and wastewater companies. Therefore the provision of water supply for consumers emphasizes on the urge of the management policies more than ever. Knowing the consumer behavior, in this regard, is the first and the most important step. In this study, to reach this objective, the function of household water demand in structure of block pricing in Tehran was estimated by using  household budget data , through discrete – continues choice model and maximum likelihood approach . The results show that price and income parameters have expected sign. The calculated unconditional elasticties show that consumers’ sensitiveness for price fluctuations in the structure of block pricing are against zero. Therefore, the policy of price reform in the structure of block pricing can be used as an effective tool in the management of consumption.

  12. The Price of a Neglected Zoonosis: Case-Control Study to Estimate Healthcare Utilization Costs of Human Brucellosis.

    Directory of Open Access Journals (Sweden)

    Oded Vered

    Full Text Available Human brucellosis has reemerged as a serious public health threat to the Bedouin population of southern Israel in recent years. Little is known about its economic implications derived from elevated healthcare utilization (HCU. Our objective was to estimate the HCU costs associated with human brucellosis from the insurer perspective. A case-control retrospective study was conducted among Clalit Health Services (CHS enrollees. Brucellosis cases were defined as individuals that were diagnosed with brucellosis at the Clinical Microbiology Laboratory of Soroka University Medical Center in the 2010-2012 period (n = 470. Control subjects were randomly selected and matched 1:3 by age, sex, clinic, and primary physician (n = 1,410. HCU data, demographic characteristics and comorbidities were obtained from CHS computerized database. Mean±SD age of the brucellosis cases was 26.6±17.6 years. 63% were male and 85% were Bedouins. No significant difference in Charlson comorbidity index was found between brucellosis cases and controls (0.41 vs. 0.45, respectively, P = 0.391. Before diagnosis (baseline, the average total annual HCU cost of brucellosis cases was slightly yet significantly higher than that of the control group ($439 vs. $382, P<0.05, however, no significant differences were found at baseline in the predominant components of HCU, i.e. hospitalizations, diagnostic procedures, and medications. At the year following diagnosis, the average total annual HCU costs of brucellosis cases was significantly higher than that of controls ($1,327 vs. $380, respectively, P<0.001. Most of the difference stems from 7.9 times higher hospitalization costs (p<0.001. Additional elevated costs were 3.6 times higher laboratory tests (P<0.001, 2.8 times higher emergency room visits (P<0.001, 1.8 times higher medication (P<0.001 and 1.3 times higher diagnostic procedures (P<0.001. We conclude that human brucellosis is associated with elevated HCU costs. Considering these

  13. The Price of a Neglected Zoonosis: Case-Control Study to Estimate Healthcare Utilization Costs of Human Brucellosis.

    Science.gov (United States)

    Vered, Oded; Simon-Tuval, Tzahit; Yagupsky, Pablo; Malul, Miki; Cicurel, Assi; Davidovitch, Nadav

    2015-01-01

    Human brucellosis has reemerged as a serious public health threat to the Bedouin population of southern Israel in recent years. Little is known about its economic implications derived from elevated healthcare utilization (HCU). Our objective was to estimate the HCU costs associated with human brucellosis from the insurer perspective. A case-control retrospective study was conducted among Clalit Health Services (CHS) enrollees. Brucellosis cases were defined as individuals that were diagnosed with brucellosis at the Clinical Microbiology Laboratory of Soroka University Medical Center in the 2010-2012 period (n = 470). Control subjects were randomly selected and matched 1:3 by age, sex, clinic, and primary physician (n = 1,410). HCU data, demographic characteristics and comorbidities were obtained from CHS computerized database. Mean±SD age of the brucellosis cases was 26.6±17.6 years. 63% were male and 85% were Bedouins. No significant difference in Charlson comorbidity index was found between brucellosis cases and controls (0.41 vs. 0.45, respectively, P = 0.391). Before diagnosis (baseline), the average total annual HCU cost of brucellosis cases was slightly yet significantly higher than that of the control group ($439 vs. $382, P<0.05), however, no significant differences were found at baseline in the predominant components of HCU, i.e. hospitalizations, diagnostic procedures, and medications. At the year following diagnosis, the average total annual HCU costs of brucellosis cases was significantly higher than that of controls ($1,327 vs. $380, respectively, P<0.001). Most of the difference stems from 7.9 times higher hospitalization costs (p<0.001). Additional elevated costs were 3.6 times higher laboratory tests (P<0.001), 2.8 times higher emergency room visits (P<0.001), 1.8 times higher medication (P<0.001) and 1.3 times higher diagnostic procedures (P<0.001). We conclude that human brucellosis is associated with elevated HCU costs. Considering these

  14. Resource subsidies between stream and terrestrial ecosystems under global change

    Science.gov (United States)

    Larsen, Stefano; Muehlbauer, Jeffrey D.; Marti Roca, Maria Eugenia

    2016-01-01

    Streams and adjacent terrestrial ecosystems are characterized by permeable boundaries that are crossed by resource subsidies. Although the importance of these subsidies for riverine ecosystems is increasingly recognized, little is known about how they may be influenced by global environmental change. Drawing from available evidence, in this review we propose a conceptual framework to evaluate the effects of global change on the quality and spatiotemporal dynamics of stream–terrestrial subsidies. We illustrate how changes to hydrological and temperature regimes, atmospheric CO2 concentration, land use and the distribution of nonindigenous species can influence subsidy fluxes by affecting the biology and ecology of donor and recipient systems and the physical characteristics of stream–riparian boundaries. Climate-driven changes in the physiology and phenology of organisms with complex life cycles will influence their development time, body size and emergence patterns, with consequences for adjacent terrestrial consumers. Also, novel species interactions can modify subsidy dynamics via complex bottom-up and top-down effects. Given the seasonality and pulsed nature of subsidies, alterations of the temporal and spatial synchrony of resource availability to consumers across ecosystems are likely to result in ecological mismatches that can scale up from individual responses, to communities, to ecosystems. Similarly, altered hydrology, temperature, CO2 concentration and land use will modify the recruitment and quality of riparian vegetation, the timing of leaf abscission and the establishment of invasive riparian species. Along with morphological changes to stream–terrestrial boundaries, these will alter the use and fluxes of allochthonous subsidies associated with stream ecosystems. Future research should aim to understand how subsidy dynamics will be affected by key drivers of global change, including agricultural intensification, increasing water use and biotic

  15. Regulation for delivery of subsidies for urgent safety measures for atomic power generating facilities

    International Nuclear Information System (INIS)

    1984-01-01

    The regulations provide for subsidies for the emergency measures taken by the prefecture concerned in preparation for a major accident in a nuclear power generating, etc. facility. These activities include an emergency communication network, emergency medical care, personnel education, and outfitting of emergency personnel. The contents are as follows: terms of subsidy allocations, the sum of a subsidy allocation, applications for subsidies, determination of subsidy allocations, withdrawal of applications the conditions attached to the allocations, a report on the work proceedings, a report on the results, confirmation on the sum of the subsidies, withdrawal of the decision for subsidies, limitations for the disposal of the properties, etc. (Mori, K.)

  16. Cost-Sharing Contracts for Energy Saving and Emissions Reduction of a Supply Chain under the Conditions of Government Subsidies and a Carbon Tax

    Directory of Open Access Journals (Sweden)

    Yi Yuyin

    2018-03-01

    Full Text Available To study the cooperation of upstream and downstream enterprises of a supply chain in energy saving and emissions reduction, we establish a Stackelberg game model. The retailer moves first to decide a cost-sharing contract, then the manufacturer determines the energy-saving level, carbon-emission level, and wholesale price successively. In the end, the retailer determines the retail price. As a regulation, the government provides subsidies for energy-saving products, while imposing a carbon tax on the carbon emitted. The results show that (1 both the energy-saving cost-sharing (ECS and the carbon emissions reduction cost-sharing (CCS contracts are not the dominant strategy of the two parties by which they can facilitate energy savings and emissions reductions; (2 compared with single cost-sharing contracts, the bivariate cost-sharing (BCS contract for energy saving and emissions reduction is superior, although it still cannot realise prefect coordination of the supply chain; (3 government subsidy and carbon tax policies can promote the cooperation of both the upstream and downstream enterprises of the supply chain—a subsidy policy can always drive energy saving and emissions reductions, while a carbon tax policy does not always exert positive effects, as it depends on the initial level of pollution and the level of carbon tax; and (4 the subsidy policy reduces the coordination efficiency of the supply chain, while the influences of carbon tax policy upon the coordination efficiency relies on the initial carbon-emission level.

  17. THE CORN-EGG PRICE TRANSMISSION MECHANISM

    OpenAIRE

    Babula, Ronald A.; Bessler, David A.

    1990-01-01

    A vector autoregression (VAR) model of corn, farm egg, and retail egg prices is estimated and shocked with a corn price increase. Impulse responses in egg prices, t-statistics for the impulse responses, and decompositions of forecast error variance are presented. Analyses of results provide insights on the corn/egg price transmission mechanism and on how corn price shocks pulsate through the egg-related economy.

  18. The impact of electricity price changes on industrial prices and the general price level in Korea

    International Nuclear Information System (INIS)

    Lim, Seul-Ye; Yoo, Seung-Hoon

    2013-01-01

    Electricity has played an important role in the economic development of Korea and, thus, has become a critical factor in sustaining the well-being of the Korean people. This study attempts to investigate the impact of electricity price changes on industrial prices and the general price level using input–output (I–O) analysis. To this end, we apply the I–O price model to the 2011 I–O table recently produced by the Bank of Korea, paying particular attention to the electricity sector by considering it as exogenous and then investigating its impacts. The impacts of the electricity price changes on each industrial sector's prices and the general price level are quantitatively derived. For example, the overall impact of a 10% increase in electricity price on the Korean national economy is estimated to be 0.4367%. We also report the results from the model with the electricity sector endogenous and the model with endogenous electricity and labor sectors. This information can be usefully utilized in decision-making regarding price management for electricity. - Highlights: • We investigate the impact of electricity price changes on the Korean economy. • We use the input–output (I–O) analysis specifying the electricity sector as exogenous. • We apply the I–O price model to 2010 I–O table produced by the Bank of Korea. • The impact of a 10% increase in electricity price on the Korean economy is 0.2176%

  19. Regulation for delivery of subsidies for public relations and safety

    International Nuclear Information System (INIS)

    1981-01-01

    This rule is established under the provisions of the law for the proper enforcement of subsidy budgets and the ordinance for the execution of this law, and to practice these provisions. It is applied to subsidies for the expenses of popularizing the knowledge of atomic power generation to inhabitants in the surrounding areas of atomic power generating facilities, investigation on the security of inhabitants in these areas, communication and coordination concerning the safety of such facilities during and after their installation and other expenses of establishing the facilities for public relations to inhabitants in the surrounding areas of these facilities. Basic terms are defined, such as atomic power generating facility, facility related to atomic power generation, and place of business. Subsidies are delivered to prefectures, cities, towns and villages where atomic power generating facilities are or are expected to be set up, prefectures including cities, towns and villages adjacent to those where such facilities are or are expected to be established, and prefectures which include the surrounding areas of those facilities. The limits of subsidies are stipulated in the lists attached. The terms of delivery vary according to the kinds of atomic power generating facilities and related facilities. Prefectures or cities, towns and villages which intend to apply for the delivery of subsidies shall file specified applications attached with the explanation of subsidy business outlines to the director of the ministry or agency concerned. Decision and conditions of delivery, reports on the situations and results of business and other concerned matters are defined, respectively. (Okada, K.)

  20. Modeling the relationship between the oil price and global food prices

    International Nuclear Information System (INIS)

    Chen, Sheng-Tung; Kuo, Hsiao-I; Chen, Chi-Chung

    2010-01-01

    The growth of corn-based ethanol production and soybean-based bio-diesel production following the increase in the oil prices have significantly affect the world agricultural grain productions and its prices. The main purpose of this paper is to investigate the relationships between the crude oil price and the global grain prices for corn, soybean, and wheat. The empirical results show that the change in each grain price is significantly influenced by the changes in the crude oil price and other grain prices during the period extending from the 3rd week in 2005 to the 20th week in 2008 which implies that grain commodities are competing with the derived demand for bio-fuels by using soybean or corn to produce ethanol or bio-diesel during the period of higher crude oil prices in these recent years. The subsidy policies in relation to the bio-fuel industries in some nations engaging in bio-fuel production should be considered to avoid the consequences resulting from high oil prices. (author)

  1. Gas prices and price process

    International Nuclear Information System (INIS)

    Groenewegen, G.G.

    1992-01-01

    On a conference (Gas for Europe in the 1990's) during the Gasexpo '91 the author held a speech of which the Dutch text is presented here. Attention is paid to the current European pricing methods (prices based on the costs of buying, transporting and distributing the natural gas and prices based on the market value, which is deducted from the prices of alternative fuels), and the transparency of the prices (lack of information on the way the prices are determined). Also attention is paid to the market signal transparency and gas-gas competition, which means a more or less free market of gas distribution. The risks of gas-to-gas competition for a long term price stability, investment policies and security of supply are discussed. Opposition against the Third Party Access (TPA), which is the program to implement gas-to-gas competition, is caused by the fear of natural gas companies for lower gas prices and lower profits. Finally attention is paid to government regulation and the activities of the European Commission (EC) in this matter. 1 fig., 6 ills., 1 tab

  2. Estimating short and long-term residential demand for electricity. New evidence from Sri Lanka

    International Nuclear Information System (INIS)

    Athukorala, P.P.A Wasantha; Wilson, Clevo

    2010-01-01

    This study investigates the short-run dynamics and long-run equilibrium relationship between residential electricity demand and factors influencing demand - per capita income, price of electricity, price of kerosene oil and price of liquefied petroleum gas - using annual data for Sri Lanka for the period, 1960-2007. The study uses unit root, cointegration and error-correction models. The long-run demand elasticities of income, own price and price of kerosene oil (substitute) were estimated to be 0.78, - 0.62, and 0.14 respectively. The short-run elasticities for the same variables were estimated to be 0.32, - 0.16 and 0.10 respectively. Liquefied petroleum (LP) gas is a substitute for electricity only in the short-run with an elasticity of 0.09. The main findings of the paper support the following (1) increasing the price of electricity is not the most effective tool to reduce electricity consumption (2) existing subsidies on electricity consumption can be removed without reducing government revenue (3) the long-run income elasticity of demand shows that any future increase in household incomes is likely to significantly increase the demand for electricity and (4) any power generation plans which consider only current per capita consumption and population growth should be revised taking into account the potential future income increases in order to avoid power shortages in the country. (author)

  3. Estimating short and long-term residential demand for electricity. New evidence from Sri Lanka

    Energy Technology Data Exchange (ETDEWEB)

    Athukorala, P.P.A Wasantha; Wilson, Clevo [School of Economics and Finance, Queensland University of Technology, Brisbane (Australia)

    2010-09-15

    This study investigates the short-run dynamics and long-run equilibrium relationship between residential electricity demand and factors influencing demand - per capita income, price of electricity, price of kerosene oil and price of liquefied petroleum gas - using annual data for Sri Lanka for the period, 1960-2007. The study uses unit root, cointegration and error-correction models. The long-run demand elasticities of income, own price and price of kerosene oil (substitute) were estimated to be 0.78, - 0.62, and 0.14 respectively. The short-run elasticities for the same variables were estimated to be 0.32, - 0.16 and 0.10 respectively. Liquefied petroleum (LP) gas is a substitute for electricity only in the short-run with an elasticity of 0.09. The main findings of the paper support the following (1) increasing the price of electricity is not the most effective tool to reduce electricity consumption (2) existing subsidies on electricity consumption can be removed without reducing government revenue (3) the long-run income elasticity of demand shows that any future increase in household incomes is likely to significantly increase the demand for electricity and (4) any power generation plans which consider only current per capita consumption and population growth should be revised taking into account the potential future income increases in order to avoid power shortages in the country. (author)

  4. Price increase

    CERN Multimedia

    2006-01-01

    Please take note that after five years of stable prices at Restaurant No 1 a price increase will come into force on 1st January 2006. This increase has been agreed after discussions between the CSR (Comité de Surveillance des Restaurants) and the catering company Novae and will reflect the inflation rate of the last few years. In addition, a new children's menu will be introduced, as well as 'Max Havelaar' fair-trade coffee at a price of 1.70 CHF.

  5. Price increase

    CERN Multimedia

    2005-01-01

    Please take note that after five years of stable prices at Restaurant No 1 a price increase will come into force on 1st January 2006. This increase has been agreed after discussions between the CSR (Comité de Surveillance des Restaurants) and the catering company Novae and will reflect the inflation rate of the last few years. In addition, a new children's menu will be introduced as well as 'Max Havelaar' fair-trade coffee at a price of 1.70 CHF.

  6. Narrow Networks On The Health Insurance Marketplaces: Prevalence, Pricing, And The Cost Of Network Breadth.

    Science.gov (United States)

    Dafny, Leemore S; Hendel, Igal; Marone, Victoria; Ody, Christopher

    2017-09-01

    Anecdotal reports and systematic research highlight the prevalence of narrow-network plans on the Affordable Care Act's health insurance Marketplaces. At the same time, Marketplace premiums in the period 2014-16 were much lower than projected by the Congressional Budget Office in 2009. Using detailed data on the breadth of both hospital and physician networks, we studied the prevalence of narrow networks and quantified the association between network breadth and premiums. Controlling for many potentially confounding factors, we found that a plan with narrow physician and hospital networks was 16 percent cheaper than a plan with broad networks for both, and that narrowing the breadth of just one type of network was associated with a 6-9 percent decrease in premiums. Narrow-network plans also have a sizable impact on federal outlays, as they depress the premium of the second-lowest-price silver plan, to which subsidy amounts are linked. Holding all else constant, we estimate that federal subsidies would have been 10.8 percent higher in 2014 had Marketplaces required all plans to offer broad provider networks. Narrow networks are a promising source of potential savings for other segments of the commercial insurance market. Project HOPE—The People-to-People Health Foundation, Inc.

  7. State energy price and expenditure report 1994

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1997-06-01

    The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates individually for the 50 States and the District of Columbia and in aggregate for the United States. The price and expenditure estimates developed in the State Energy Price and Expenditure Data System (SEPEDS) are provided by energy source and economic sector and are published for the years 1970 through 1994. Consumption estimates used to calculate expenditures and the documentation for those estimates are taken from the State Energy Data Report 1994, Consumption Estimates (SEDR), published in October 1996. Expenditures are calculated by multiplying the price estimates by the consumption estimates, which are adjusted to remove process fuel; intermediate petroleum products; and other consumption that has no direct fuel costs, i.e., hydroelectric, geothermal, wind, solar, and photovoltaic energy sources. Documentation is included describing the development of price estimates, data sources, and calculation methods. 316 tabs.

  8. State energy price and expenditure report 1994

    International Nuclear Information System (INIS)

    1997-06-01

    The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates individually for the 50 States and the District of Columbia and in aggregate for the United States. The price and expenditure estimates developed in the State Energy Price and Expenditure Data System (SEPEDS) are provided by energy source and economic sector and are published for the years 1970 through 1994. Consumption estimates used to calculate expenditures and the documentation for those estimates are taken from the State Energy Data Report 1994, Consumption Estimates (SEDR), published in October 1996. Expenditures are calculated by multiplying the price estimates by the consumption estimates, which are adjusted to remove process fuel; intermediate petroleum products; and other consumption that has no direct fuel costs, i.e., hydroelectric, geothermal, wind, solar, and photovoltaic energy sources. Documentation is included describing the development of price estimates, data sources, and calculation methods. 316 tabs

  9. Advancing research on animal-transported subsidies by integrating animal movement and ecosystem modelling.

    Science.gov (United States)

    Earl, Julia E; Zollner, Patrick A

    2017-09-01

    Connections between ecosystems via animals (active subsidies) support ecosystem services and contribute to numerous ecological effects. Thus, the ability to predict the spatial distribution of active subsidies would be useful for ecology and conservation. Previous work modelling active subsidies focused on implicit space or static distributions, which treat passive and active subsidies similarly. Active subsidies are fundamentally different from passive subsidies, because animals can respond to the process of subsidy deposition and ecosystem changes caused by subsidy deposition. We propose addressing this disparity by integrating animal movement and ecosystem ecology to advance active subsidy investigations, make more accurate predictions of subsidy spatial distributions, and enable a mechanistic understanding of subsidy spatial distributions. We review selected quantitative techniques that could be used to accomplish integration and lead to novel insights. The ultimate objective for these types of studies is predictions of subsidy spatial distributions from characteristics of the subsidy and the movement strategy employed by animals that transport subsidies. These advances will be critical in informing the management of ecosystem services, species conservation and ecosystem degradation related to active subsidies. © 2017 The Authors. Journal of Animal Ecology © 2017 British Ecological Society.

  10. Do food and oil prices co-move?

    International Nuclear Information System (INIS)

    Reboredo, Juan C.

    2012-01-01

    This paper studies co-movements between world oil prices and global prices for corn, soybean and wheat using copulas. Several copula models with different conditional dependence structures and time-varying dependence parameters were considered. Empirical results for weekly data from January 1998 to April 2011 showed weak oil-food dependence and no extreme market dependence between oil and food prices. These results support the neutrality of agricultural commodity markets to the effects of changes in oil prices and non-contagion between the crude oil and agricultural markets. However, dependence increased significantly in the last three years of the sampling period, even though upper tail dependence remained insignificant, indicating that food price spikes are not caused by positive extreme oil price changes. These results have implications for policy design, risk management and hedging strategies. - Highlights: ► We study co-movement between food and oil markets through copulas. ► Food prices are neutral to the effects of changes in oil prices. ► Oil price spikes had no causal effect on agricultural price spikes. ► Oil–corn and oil–soybean dependence increased in recent years. ► Food subsidy policies and price controls are unnecessary to avoid extreme oil prices.

  11. Understanding Price Elasticities to Inform Public Health Research and Intervention Studies: Key Issues

    Science.gov (United States)

    Nghiem, Nhung; Genç, Murat; Blakely, Tony

    2013-01-01

    Pricing policies such as taxes and subsidies are important tools in preventing and controlling a range of threats to public health. This is particularly so in tobacco and alcohol control efforts and efforts to change dietary patterns and physical activity levels as a means of addressing increases in noncommunicable diseases. To understand the potential impact of pricing policies, it is critical to understand the nature of price elasticities for consumer products. For example, price elasticities are key parameters in models of any food tax or subsidy that aims to quantify health impacts and cost-effectiveness. We detail relevant terms and discuss key issues surrounding price elasticities to inform public health research and intervention studies. PMID:24028228

  12. Understanding price elasticities to inform public health research and intervention studies: key issues.

    Science.gov (United States)

    Nghiem, Nhung; Wilson, Nick; Genç, Murat; Blakely, Tony

    2013-11-01

    Pricing policies such as taxes and subsidies are important tools in preventing and controlling a range of threats to public health. This is particularly so in tobacco and alcohol control efforts and efforts to change dietary patterns and physical activity levels as a means of addressing increases in noncommunicable diseases. To understand the potential impact of pricing policies, it is critical to understand the nature of price elasticities for consumer products. For example, price elasticities are key parameters in models of any food tax or subsidy that aims to quantify health impacts and cost-effectiveness. We detail relevant terms and discuss key issues surrounding price elasticities to inform public health research and intervention studies.

  13. The influence of estimated retail tobacco sale price increase on smokers' smoking habit in Jiangxi province, China: a cross-sectional study.

    Science.gov (United States)

    Wang, Ruiping; Zhu, Liping; Yan, Wei; Zeng, Guang; Michael, Engelgau

    2015-01-01

    China is the biggest tobacco producer and consumer in the world. Raising cigarette taxes and increasing tobacco retail prices have been prove as effective strategies to reduce tobacco consumption and the prevalence of smoking in western countries. But in China, it is uncertain how an increase of cigarette retail price will influence the tobacco consumption. From April to July, 2012, we selected 4025 residents over 15 years by a three stage random sampling in four cities, Jiangxi Province, China. We conducted interviews of their current smoking habits and how they would change their smoking behavior if tobacco retail prices increase. Overall, the prevalence of smoking is 27 % (47 % for male, 3.1 % for female). 15 % of smokers have tried to quit smoking in the past but all relapsed (168/1088), and over 50 % of current smokers do not want to quit, The average cigarette price per pack is 1.1 USD (range = 0.25-5.0). If retail cigarette prices increases by 50 %, 45 % of smokers say they will smoke fewer cigarettes, 20 % will change to cheaper brands and 5 % will attempt to quit smoking. Smokers who have intention to quit smoking are more sensitive to retail cigarette price increase. With retail cigarette price increases, more smokers will attempt to quit smoking. Chinese smokers will change their smoking habits if tobacco retail prices increase. Consequently the Chinese government should enact tobacco laws which increase the retail cigarette price. The implementation of new tobacco laws could result in lowering the prevalence of smoking. Meanwhile, price increase measures need to apply to all cigarette brands to avoid smokers switching cigarettes to cheaper brands.

  14. Farm-retail price spread for pork in Malaysia

    OpenAIRE

    Tey, (John) Yeong-Sheng; Randy, Stringer; Wendy, Umberger

    2009-01-01

    The price difference between farm and retail levels is called price spread, which is constituted mostly by marketing costs and profits. From the price spread, this paper intends to estimate elasticities of price transmission for pork in Malaysia via different empirical model specifications of markup pricing model. Using data from January 1997 to December 2007, a quantitative analysis of farm-to-retail price spreads was undertaken for pork in Malaysia. It was found that retail price is the onl...

  15. Petroleum price

    International Nuclear Information System (INIS)

    Maurice, J.

    2001-01-01

    The oil market is the most volatile of all markets, with the exception of the Nasdaq. It is also the biggest commodity market in the world. Therefore one cannot avoid forecasting oil prices, nor can one expect to avoid the forecasting errors that have been made in the past. In his report, Joel Maurice draws a distinction between the short term and the medium-long term in analysing the outlook for oil prices. (author)

  16. CVD Prevention Through Policy: a Review of Mass Media, Food/Menu Labeling, Taxation/Subsidies, Built Environment, School Procurement, Worksite Wellness, and Marketing Standards to Improve Diet

    OpenAIRE

    Afshin, Ashkan; Penalvo, Jose; Del Gobbo, Liana; Kashaf, Michael; Micha, Renata; Morrish, Kurtis; Pearson-Stuttard, Jonathan; Rehm, Colin; Shangguan, Siyi; Smith, Jessica D.; Mozaffarian, Dariush

    2015-01-01

    Poor diet is the leading cause of cardiovascular disease in the USA and globally. Evidence-based policies are crucial to improve diet and population health. We reviewed the effectiveness for a range of policy levers to alter diet and diet-related risk factors. We identified evidence to support benefits of focused mass media campaigns (especially for fruits, vegetables, salt), food pricing strategies (both subsidies and taxation, with stronger effects at lower income levels), school procuremen...

  17. Behavioral heterogeneity in stock prices

    NARCIS (Netherlands)

    Boswijk, H.P.; Hommes, C.H.; Manzan, S.

    2007-01-01

    We estimate a dynamic asset pricing model characterized by heterogeneous boundedly rational agents. The fundamental value of the risky asset is publicly available to all agents, but they have different beliefs about the persistence of deviations of stock prices from the fundamental benchmark. An

  18. Is macroeconomic announcement news priced?

    NARCIS (Netherlands)

    de Goeij, Peter; Hu, Jiehui; Werker, Bas

    2016-01-01

    We test whether news contained in macroeconomic announcements (MEAs) is priced in the cross-section of stock returns. When including news on a set of widely followed individual macroeconomic fundamentals in the cross-section of stock returns, estimates of their prices of risk are consistent with the

  19. Electricity-price arbitrage with plug-in hybrid electric vehicle: Gain or loss?

    International Nuclear Information System (INIS)

    Shang, Duo; Sun, Guodong

    2016-01-01

    Customers, utilities, and society can gain many benefits from distributed energy resources (DERs), including plug-in hybrid electric vehicles (PHEVs). Using battery on PHEV to arbitrage electricity price is one of the potential benefits to PHEV owners. There is, however, disagreement on the magnitude of such profit. This study uses a stochastic optimization model to estimate the potential profit from electricity price arbitrage of two types of PHEVs (PHEV-10, and PHEV-40) under three scenarios with variant electricity tariff and PHEV owners over a five-year period. The simulation results indicate that under current market structure, even with significant improvement in battery technologies (e.g., higher efficiency, lower cost), the PHEV owners can't achieve a positive arbitrage profit. This finding implies that expected arbitrage profit solely is not a viable option to engage PHEVs larger adoption. Subsidy and combining PHEV arbitraging with alternative PHEV services are required. - Highlights: •A stochastic optimization model is proposed to assess the arbitrage value of plug-in hybrid electric vehicle (PHEV). •Under current market condition, PHEV owners lose money from conducting PHEV arbitrage if counting battery degradation cost. •PHEV owner loses more money at real time pricing (RTP) than at time of use (TOU) scheme. •Battery improvement will reduce but can't even the arbitrage loss. •Expected arbitrage profit is not a viable option to engage PHEVs in dispatching and in providing ancillary services.

  20. Estimating the Acquisition Price of Enshi Yulu Young Tea Shoots Using Near-Infrared Spectroscopy by the Back Propagation Artificial Neural Network Model in Conjunction with Backward Interval Partial Least Squares Algorithm

    Science.gov (United States)

    Wang, Sh.-P.; Gong, Z.-M.; Su, X.-Zh.; Liao, J.-Zh.

    2017-09-01

    Near infrared spectroscopy and the back propagation artificial neural network model in conjunction with backward interval partial least squares algorithm were used to estimate the purchasing price of Enshi yulu young tea shoots. The near-infrared spectra regions most relevant to the tea shoots price model (5700.5-5935.8, 7613.6-7848.9, 8091.8-8327.1, 8331-8566.2, 9287.5-9522.5, and 9526.6-9761.9 cm-1) were selected using backward interval partial least squares algorithm. The first five principal components that explained 99.96% of the variability in those selected spectral data were then used to calibrate the back propagation artificial neural tea shoots purchasing price model. The performance of this model (coefficient of determination for prediction 0.9724; root-mean-square error of prediction 4.727) was superior to those of the back propagation artificial neural model (coefficient of determination for prediction 0.8653, root-mean-square error of prediction 5.125) and the backward interval partial least squares model (coefficient of determination for prediction 0.5932, root-mean-square error of prediction 25.125). The acquisition price model with the combined backward interval partial least squares-back propagation artificial neural network algorithms can evaluate the price of Enshi yulu tea shoots accurately, quickly and objectively.

  1. Alpha Momentum and Price Momentum

    Directory of Open Access Journals (Sweden)

    Hannah Lea Hühn

    2018-05-01

    Full Text Available We analyze a novel alpha momentum strategy that invests in stocks based on three-factor alphas which we estimate using daily returns. The empirical analysis for the U.S. and for Europe shows that (i past alpha has power in predicting the cross-section of stock returns; (ii alpha momentum exhibits less dynamic factor exposures than price momentum and (iii alpha momentum dominates price momentum only in the U.S. Connecting both strategies to behavioral explanations, alpha momentum is more related to an underreaction to firm-specific news while price momentum is primarily driven by price overshooting due to momentum trading.

  2. House Prices and Public Debt

    DEFF Research Database (Denmark)

    Gjedsted Nielsen, Mads; Rzeznik, Aleksandra

    By using the 2002 case of fraud in the Danish municipality Farum by then mayor Peter Brixtofte as an exogenous shock to public debt of 1 billion DKK, I estimate the effect of public debt on house prices. I find that the average home ownership lost about 570,000 DKK or as much as 29% of the average...... house price in the municipality. Furthermore, I document that the aggregate house price loss of 2.1 billion DKK greatly exceeds the increase in public debt of 1 billion DKK. I find that the drop in house prices is sustained 1 year, indicating that the housing market initially overreacts...

  3. Study the Effect of Value-Added of Services Sector on Forecasting of Electricity Demand in Services Sector due to Price Reform

    Directory of Open Access Journals (Sweden)

    Sayed Mahdi Mostafavi

    2016-07-01

    Full Text Available Electrical energy is as one of the important effective factors on economic growth and development. In recent decades, numerous studies in different countries to estimate and forecast electricity demand in different parts of the economy have been made. In this paper, using the method ARDL, estimation and forecasting of electricity demand in the services sector of Iran are determined for the time period from 1983 to 2012. Estimated equations show that the added value of the services sector and a significant positive impact on the demand for electricity in this sector. The price elasticity for services sector is smaller than 1 due to low electricity prices and subsidized electricity. Hence, electricity prices have little impact on the demand for electricity. The results of the estimate represents a long-term relationship between the variables in the services sector. In this paper, based on amendments to the law on subsidies and estimated values, anticipated electricity demand until the end of the fifth development plan was carried out. The results indicate an increase in power consumption in the services sector.

  4. Energy subsidies: lessons learned in assessing their impact and designing policy reforms

    International Nuclear Information System (INIS)

    Moltke, A. von; McKee, C.; Morgan, T.

    2004-02-01

    This book, which is based on the work carried out by the International Energy Agency and UNEP, explores the potential impacts of energy subsidies and provides guidelines for policy makers on how to implement reform of energy subsides. The background on energy subsidies is traced and an analytical framework is presented covering defining and measuring energy subsidies, the size of the subsidies, and analysis of the impact of subsidies and their reform. Energy subsidies in OECD countries, Czech and Slovak Republics, Russia, India, Indonesia, Korea, Iran and Senegal are examined along with the impact of removing energy subsidies in Chile, the findings of country case studies, and the design and implementation of energy subsidies reforms. Methodological approaches to analysing the economic, environmental and social effects of energy subsidy reform are considered in the Annex

  5. The regulations for delivery of subsidies to radiation monitoring

    International Nuclear Information System (INIS)

    1979-01-01

    The regulations are defined under the law concerning subsidies and the provisions of the order for execution of the law. Basic terms are explained, such as: nuclear power generating facilities; arrangement business of radiation monitoring facilities; pre-research business of radiation monitoring; radiation monitoring business; place of enterprise; and expected time of beginning of the use. The Director General of Science and Technology Agency delivers subsidies to those prefectures where nuclear power generating facilities are or are expected to be established, or their neighboring prefectures. Subsidies are paid for each place of enterprise to support all or a part of expenses necessary for arrangement, pre-research or radiation monitoring business. Limits of subsidies for a place of enterprise in a prefecture are 155.6 million yen for a term for arrangement business, 16 million yen for each fiscal year for pre-research and 16 million yen for each fiscal year for radiation monitoring. An application for subsidies shall be filed by a prefecture to the Director General with the business program and gists of nuclear power generating facilities according to the forms attached. Receiving the application, the Director General shall examine it and notify without delay to the applicant the decision of delivery and its conditions in writing, when such settlement is made. Terms and conditions of delivery and reports, etc. are prescribed respectively. (Okada, K.)

  6. Marketplace pricing

    International Nuclear Information System (INIS)

    Anon.

    1991-01-01

    As discussed in this chapter, interest in marketplace pricing has been increasing in recent years, reflecting the societal trend toward substituting competition for regulation where appropriate. Competition is valuable because it encourages utilities to make efficient decisions with a minimum of regulatory intervention. It enhances efficiency through the incentive for innovation by the regulated companies and by increasing the likelihood they will come forward with proposals for better services, lower prices or both. Ultimately, consumers are beneficiaries. Marketplace pricing is emblematic of the view that the degree of regulation should reflect the degree of market power, that workably competitive markets should be allowed to operate with as little regulatory interference as possible. The Edison Electric Institute has made perhaps the most detailed proposal on marketplace pricing. It and others perceive numerous benefits from this method of pricing transmission services. Given the undeniable market power resulting from line ownership, FERC has emphasized the need to find a workably competitive market before approving such proposals. The ability to make this distinction without a full-blown antitrust review for every transaction is questionable, and FERC has yet to provide generic guidance. Finally, FERC's legal ability to depart from cost-based standards is questionable

  7. Projections of the energy prices

    International Nuclear Information System (INIS)

    Jankauskas, V.

    1996-01-01

    This article deals with the trends of the main fuel prices development in the Western European markets. There are two possible price development scenarios presented in the article. Transportation costs of various internationally traded fuels from various sources (Russia, Western Europe) are estimated and their most feasible values are considered. Fuel prices for the final big consumers are calculated adding the domestic distribution costs. Trends of heat and electricity price development in Lithuania during the period of 1991-1995 are analyzed. Forecasts of the electricity generation and supply costs are calculated according to various scenarios. Electricity prices will be lowest in the case of the further operation of the Ignalina NPP and low fuel prices in international markets. (author). 8 refs., 14 figs., 4 tabs

  8. Examination of energy price policies in Iran for optimal configuration of CHP and CCHP systems based on particle swarm optimization algorithm

    International Nuclear Information System (INIS)

    Tichi, S.G.; Ardehali, M.M.; Nazari, M.E.

    2010-01-01

    The current subsidized energy prices in Iran are proposed to be gradually eliminated over the next few years. The objective of this study is to examine the effects of current and future energy price policies on optimal configuration of combined heat and power (CHP) and combined cooling, heating, and power (CCHP) systems in Iran, under the conditions of selling and not-selling electricity to utility. The particle swarm optimization algorithm is used for minimizing the cost function for owning and operating various CHP and CCHP systems in an industrial dairy unit. The results show that with the estimated future unsubsidized utility prices, CHP and CCHP systems operating with reciprocating engine prime mover have total costs of 5.6 and $2.9x10 6 over useful life of 20 years, respectively, while both systems have the same capital recovery periods of 1.3 years. However, for the same prime mover and with current subsidized prices, CHP and CCHP systems require 4.9 and 5.2 years for capital recovery, respectively. It is concluded that the current energy price policies hinder the promotion of installing CHP and CCHP systems and, the policy of selling electricity to utility as well as eliminating subsidies are prerequisites to successful widespread utilization of such systems.

  9. Subsidies and sustainable development. Concepts, methodology and state of the art in literature; Subsidies en duurzame ontwikkeling. Concepten, methodologie en stand van zaken van de literatuur

    Energy Technology Data Exchange (ETDEWEB)

    Bachus, K. [Onderzoeksinstituut voor Arbeid en Samenleving HIVA, KU Leuven, Leuven (Belgium)

    2012-04-15

    This paper is the 1st research paper as part of the Centre for Sustainable Development project on the theme 'subsidies and sustainable development'. It gives a conceptual and methodological framework on the relation between subsidies and sustainable development. In the 2nd paper attention is given to an application of the methodology to map subsidies for two Flemish subsidies: (1) the Flemish Renovation Incentive and Surcharge Rights in the Flemish agricultural sector [Dutch] Dit paper is het 1e onderzoekspaper in het kader van het Steunpunt Duurzame Ontwikkeling over het thema 'subsidies en duurzame ontwikkeling'. Het geeft een conceptueel en methodologisch kader over het verband tussen subsidies en duurzame ontwikkeling. In het 1e paper werden de concepten en de methoden besproken. De methode werd toegepast op twee Vlaamse subsidies, namelijk de Vlaamse Renovatiepremie en de Toeslagrechten in de Vlaamse landbouw.

  10. A study of Canadian retail gasoline prices

    International Nuclear Information System (INIS)

    Eckert, A.L.

    1999-05-01

    Retail gasoline pricing in Canadian markets was examined to demonstrate why retail prices tend to follow one of two distinct patterns and that neither pattern is observable in the wholesale price. In many cities, retail prices are more rigid than wholesale prices, while in other markets, retail prices follow a cyclic pattern not seen in wholesale prices. This study examined why constant prices are observed in some cities, while other cities have cyclic prices. Theoretical justification was given to the argument that prices will remain constant only in markets in which there are only few gasoline companies with a small number of stations, but a large per-station capacity. It was shown that when one firm operates significantly more stations than its rival, a constant cost equilibrium cannot be maintained. However, a cycle equilibrium can be constructed in this case, and also when the two companies are similarly sized. An initial examination of available price, cost and market structure data shows that there is a positive correlation between price stability and concentration. The response of retail prices to wholesale price movements in the presence of a retail price cycle was also examined through the use of a simple model based on the predictions of the above theory. Data for the city of Windsor, Ontario was used for the modelling approach. A new cycle is created by an increase in price whenever the distance between the previous retail price and the current wholesale prices is very small. Retail prices are more responsive to wholesale prices over the increasing portion of the cycle. It was shown that when the asymmetric error correction model of Borenstein, Cameron and Gilbert is estimated, it indicates a more rapid response to wholesale price increases than to decreases. 72 refs., 22 tabs., 8 figs

  11. Who is exposed to gas prices? How gasoline prices affect automobile manufacturers and dealerships

    OpenAIRE

    Silva-Risso, Jorge; Zettelmeyer, Florian; Busse, Meghan R.; Knittel, Christopher Roland

    2016-01-01

    Many consumers are keenly aware of gasoline prices, and consumer responses to gasoline prices have been well studied. In this paper, by contrast, we investigate how gasoline prices affect the automobile industry: manufacturers and dealerships. We estimate how changes in gasoline prices affect equilibrium prices and sales of both new and used vehicles of different fuel economies. We investigate the implications of these effects for individual auto manufacturers, taking into account differences...

  12. Who is exposed to gas prices? How gasoline prices affect automobile manufacturers and dealerships

    OpenAIRE

    Busse, Meghan R.; Kittel, Christopher R.; Zettelmeyer, Florian

    2012-01-01

    Many consumers are keenly aware of gasoline prices, and consumer responses to gasoline prices have been well studied. In this paper, by contrast, we investigate how gasoline prices affect the automobile industry: manufacturers and dealerships. We estimate how changes in gasoline prices affect equilibrium prices and sales of both new and used vehicles of different fuel economies. We investigate the implications of these effects for individual auto manufacturers, taking into account differences...

  13. Maintenance Policy in Public-Transport Involving Government Subsidy

    Science.gov (United States)

    Pasaribu, U. S.; Bayuzetra, Y.; Gunawan, L. E.; Husniah, H.

    2018-02-01

    A public transport with government subsidy is considered to encourage the sustainability of the transportation. The transportations revenue is determined by the maximum of the uptimes of the vehicle. In this paper, we study a one-dimensional maintenance policy for new vehicle which is characterized by age parameter. We consider that the degradation of the vehicle is affected by the age of the vehicle, and modelled by using a one-dimensional approach. The owner performs both preventive and corrective maintenance actions, and the preventive maintenance action will reduce the vehicle failure rate and hence it will decrease the corrective maintenance cost during the life time of the vehicle. The decision problem for the owner is to find the optimal preventive maintenance time of the vehicle of each subsidy option offered by maximizing the expected profit for each subsidy.

  14. Electricity pricing

    International Nuclear Information System (INIS)

    Wijayatunga, P.D.C.

    1994-01-01

    Electricity pricing in most countries, especially in the developing world, has been determined by traditional accounting criteria where it raises revenue requirements to cover the operating costs and a return on past and future capital investments in possible power systems. The use of economic principles to improve the total economic efficiency in the electricity industry is discussed. Basic marginal cost theory, long run marginal costing (LRMC) cost categories and rating periods, marginal capacity costs, marginal energy costs, consumer costs, short run marginal costing (SRMC), marginal cost of fuel, marginal cost of network losses, market clearing price, value of unserved energy and network quality of supply cost are discussed

  15. The regulations for delivery of subsidies to radiation monitoring

    International Nuclear Information System (INIS)

    1980-01-01

    This rule is established under the provisions of the law for the proper execution of budgets of subsidies and the enforcement ordinance for this law, and to carry out these provisions. This rule is applied to the grant of subsidies for the expenses of installing and operating radiation monitoring equipment in the surrounding areas of atomic power generating facilities. Basic terms are defined, such as atomic power generating facilities, redevelopment works for radiation monitoring facilities, preliminary survey works for radiation monitoring, radiation monitoring works, place of business and expected date of beginning operation, etc. The Director General of the Science and Technology Agency delivers subsidies to appropriate for all or a part of expenses required for the redevelopment works for radiation monitoring facilities, preliminary survey works for radiation monitoring and radiation monitoring works. Subsidies are given to those prefectures, where atomic power generating facilities are established or expected to be established, or the prefectures in their neighborhood, and to each place of business as a unit. The term of grant is stipulated for each of these places of business. The amount of subsidies for one place of business ranges from 224.4 million yen for the whole period to 20 million yen for each fiscal year according to the kinds of business. Prefectures which intend to request the grant of subsidies shall file to the Director General specified application attaching operation plans and the general explanation of atomic power generating facilities. The decision and the conditions of delivery, the reports on operation and business results, etc. are defined, respectively. (Okada, K.)

  16. Social accounting matrix and the effects of economic reform on health price index and household expenditures: Evidence from Iran.

    Science.gov (United States)

    Keshavarz, Khosro; Najafi, Behzad; Andayesh, Yaghob; Rezapour, Aziz; Abolhallaj, Masoud; Sarabi Asiabar, Ali; Hashemi Meshkini, Amir; Sanati, Ehsan; Mirian, Iman; Nikfar, Shekoofeh; Lotfi, Farhad

    2017-01-01

    Background: Socioeconomic indicators are the main factors that affect health outcome. Health price index (HPI) and households living costs (HLC) are affected by economic reform. This study aimed at examining the effect of subsidy targeting plan (STP) on HPI and HLC. Methods: The social accounting matrix was used to study the direct and indirect effects of STP. We chose 11 health related goods and services including insurance, compulsory social security services, hospital services, medical and dental services, other human health services, veterinary services, social services, environmental health services, laundry& cleaning and dyeing services, cosmetic and physical health services, and pharmaceutical products in the social accounting matrix to examine the health price index. Data were analyzed by the I-O&SAM software. Results: Due to the subsidy release on energy, water, and bread prices, we found that (i) health related goods and services groups' price index rose between 33.43% and 77.3%, (ii) the living cost index of urban households increased between 48.75% and 58.21%, and (iii) the living cost index of rural households grew between 53.51% and 68.23%. The results demonstrated that the elimination of subsidy would have negative effects on health subdivision and households' costs such that subsidy elimination increased the health prices index and the household living costs, especially among low-income families. The STP had considerable effects on health subdivision price index. Conclusion: The elimination or reduction of energy carriers and basic commodities subsidies have changed health price and households living cost index. Therefore, the policymakers should consider controlling the price of health sectors, price fluctuations and shocks.

  17. Do Targeted Hiring Subsidies and Profiling Techniques Reduce Unemployment?

    DEFF Research Database (Denmark)

    Jahn, Elke; Wagner, Thomas

    2008-01-01

    To reduce equilibrium unemployment targeted hiring subsidies and profiling techniques for long-term unemployed are often recommended. To analyze the effects of these two instruments, our model combines two search methods: the public employment service and random search, jobseekers choose between...... an active and a passive search strategy, while labour market policy has two options available. First, only the long-term unemployed placed by the public employment service are subsidized. Second, the subsidy is paid for each match with a long-term unemployed irrespective of the search method used. We show...

  18. The Effect of Subsidies on the Offer of Sea Transport

    Directory of Open Access Journals (Sweden)

    Drago Pupavac

    2017-01-01

    Full Text Available The main goal of this academic discussion is to study the effect of subsidies on the offer of sea transport. Research results are based on the method of microeconomic analysis. The knowledge obtained through this academic discussion may prove to be of assistance to managers in the area of sea transport in deliberating on more efficient and market-oriented business models. The results of this work reveal that subsidies in sea transport make sense if they contribute to the improvement of the quality of transport or are of help to those for whom they are intended.

  19. Do Targeted Hiring Subsidies and Profiling Techniques Reduce Unemployment?

    DEFF Research Database (Denmark)

    Jahn, Elke; Wagner, Thomas

    To reduce equilibrium unemployment targeted hiring subsidies and profilin techniques for long-term unemployed are often recommended. To analyze the effects of these two instruments, our model combines two search methods: the public employment serviceand random search, jobseekers choose between...... an active and a passive search strategy, while labour market policy has two options available. First, only the long-term unemployed placed by the public employment service are subsidized. Second, the subsidy is paid for each match with a long-term unemployed irrespective of the search method used. We show...

  20. Timber price dynamics following a natural catastrophe

    Science.gov (United States)

    Jeffrey P. Prestemon; Thomas P. Holmes

    2000-01-01

    Catastrophic shocks to existing stocks of a renewable resource can cause long-run price shifts. With timber, these long-run price shifts may be accompanied by a short-run price drop due to salvage. Hurricane Hugo damaged 20 percent of southern pine timber in the South Carolina Coastal Plain in 1989. To estimate the...