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As China reaffirms its commitments to limit the climate change risk and improve air quality, a combination of new policy and technology opportunities is presenting itself. A national emission trading scheme (ETS) begun in 2017 and is showing great promise, creating decentralized incentives for cost effective pollution mitigation. At the same time, sustained energy sector innovation is driving the costs of renewable electric power generation below those of fossil fuel substitutes. Early economic evidence of ETS measured pollution reductions, but has not addressed important economy-wide net benefits. This paper focuses on technology and energy cost savings and is the first to account for three multiplier effects—shifting consumption patterns, job growth, and the benefits of induced productivity growth—that would result from accelerated renewable electricity deployment in China. Results from a dynamic recursive computable general equilibrium model for 2017 to 2030 show that expanding renewable deployment can interact with the ETS to slash GHG emissions, as well as energy costs, stimulating significant long-term economic growth. These results suggest that China should accelerate its clean energy transition, not only for the air-quality and climate benefits, but to fulfill the energy sector's potential to promote innovation, employment, and economic growth. [ABSTRACT FROM AUTHOR]

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.worlddev.2005.10.014 Byline: Gregory Graff, David Roland-Holst, David Zilberman Keywords: agriculture; biotechnology; globalization; innovation; poverty; technology transfer Abstract: While biotechnology innovation is concentrated in high income, 'Tier I' countries, international diffusion of innovations to improve the diet, health, and incomes of the poorest will be largely driven by 'Tier II' innovators such as China and Brazil. Adoption of beneficial biotechnologies in 'Tier II' and 'Tier III' countries will increase as more transgenic versions of conventionally grown varieties become available and as costs decline, which in turn will depend upon regulatory approvals being needed only once for each transformation event and transaction costs for accessing technologies being minimized. Investments in higher education and intellectual property clearinghouse institutions can greatly facilitate technology transfer. Author Affiliation: University of California at Berkeley, USA Article History: Accepted 20 October 2005

Developing countries with comparative advantage in dirty industries face the risk of environmental degradation unless appropriate policies are implemented. Using applied general equilibrium analysis, we examine how trade influences the environment and assess the welfare and environmental implications of alternative pollution abatement policies for Indonesia. Our results indicate that unilateral trade liberalization by Indonesia would increase the ratio of emission levels to real output for almost all major pollution categories. More importantly, when tariff removal is combined with a cost-effective tax policy, the twin objectives of welfare enhancement and environmental quality improvement appear to be feasible. This sheds new and positive light on the role of trade in sustainable development.

International trade developments between Japan and the US are examined. The study covers the period from 1965-92 and focuses on the impact of trade patterns on employment. It is shown that the US would benefit more by increasing trade with Japan than with the rest of the world despite generating a bilateral trade imbalance. Such bilateral relations will generate a more favorable net economywide job creation for the US than Japan.

A study was conducted to evaluate demand estimation research. The study employs the almost ideal demand system (AIDS) for the estimation process involving variation in demand types depending on country of origin. This condition generates high flexibility levels for subtitution and demand patterns. It is shown that terms-of-trade problems can be resolved by applying firm-level product differentiation or by using the AIDS as a constant elasticity of substitution functional form.

Armington (1969) proposed a neoclassical trade model based on constant elasticity of substitution (CES). Armington estimates for US mining and manufacturing sectors are attempted using domestic and imported price and quantity data from 163 sectors. Statistically significant elasticities ranging from 0.14 to 3.49 were obtained, implying imperfect substitutability at this aggregation level. Price differentials are thus possible without complete specialization. Thus, policies that impose the law of one price are inadvisable.

This article presents results of a field experiment designed to assess willingness to pay for safely produced free-range chicken in Hanoi, the capital of Vietnam. Improved safety of chicken production and trading is suggested as an important component of avian influenza control strategy, which aims to address the direct costs of avian influenza as well as the global public health externality. However, consumer demand for safely produced free-range chicken is unknown. Products that have credible food labeling are not common in traditional markets where the majority of free-range chicken is purchased. Valuing characteristics of products sold in informal markets is a major challenge that our experiment overcomes. As part of the experiment, we provided several vendors from these markets with safety-labeled free-range chicken. Consumer valuation of safety labeling was elicited through having experiment participants, who were representative of potential consumers, select between discount coupons for either safety-labeled chicken or regular chicken. Results indicate that consumers will pay at least $0.50, or a 10-15% premium, per chicken purchase for safety labeling, which emphasizes safe production, processing, and transport conditions. This premium is smaller than the premium currently paid for traditional chicken varieties that are considered to be tastier. Consumers with more education have higher valuation of safety labeling. Hence, safety labeling for high-quality free-range chicken can play a role in controlling livestock disease and improving public health. [ABSTRACT FROM AUTHOR]

The biofuel industry has received billions of dollars in support from governments around the world, as political leaders respond to new environmental and energy-security imperatives. However, a growing body of research highlights nontrivial costs associated with biofuel production, including environmental destruction and diminished food security, and questions the magnitude of perceived benefits. We discuss the ability of biofuels to accomplish climate change, rural development and energy-security objectives, and consider possible impacts on food production and environmental conservation. We also review methods for judging biofuels, consider how well they contribute to policy objectives, and compare policies that support biofuels. [ABSTRACT FROM AUTHOR]

The very rapid economic growth of the People's Republic of China (PRC), its dramatic success in world export markets and its heavy receipts of foreign direct investment (FDI) have generated much thought and debate in policy and business circles in different parts of the world. This paper surveys evidence from research by ADB Institute staff and Visiting Fellows conducted over the last two years that sheds light on these issues. The paper examines differences in trade structure between the PRC and its trading partners, finding that the PRC's current structure is closest to that of Korea and Taipei, China in 1990. It also considers changes in market share and finds that the PRC exports are eroding the market share of its regional neighbours in the USA and Japan, particularly in products in which trading partners are most specialised. There is no evidence of FDI diversion from elsewhere in the region to PRC. The trade diversion effects in the US and Japan are offset however by strong trade creation as the rapid growth in PRC leads to a substantial rise in its imports. The paper surveys the projections of models that demonstrate the gains in greater trade and income for the region from closer trade links with the PRC. The broad conclusion that emerges is that whilst there may be risks to individual sectors in all countries concerned, the pattern of regional trade and investment that is emerging is mutually beneficial, provided enterprises and governments representing the PRC's regional partners respond effectively to the adjustments required. [ABSTRACT FROM AUTHOR]

Economic reforms and greater outward orientation are giving rise to extensive structural change in the Vietnamese economy. Because of the leverage that global markets can exert on an emerging economy, such adjustments will be particularly significant in the composition of domestic supply and demand. As domestic protection levels are reduced and external market access increases, trade growth and shifting trade patterns will have pervasive effects on income distribution in Vietnam. In this paper, we use a newly estimated Vietnam social accounting matrix to elucidate the links between trade and income in the country. With matrix decomposition methods, we show how the Vietnamese economy propagates the direct effects of external demand across the spectrum of domestic activities, factors, and households. This detailed analysis provides a blueprint for policies to improve economic participation of activities and households with relatively weak linkages to the rest of the economy. [ABSTRACT FROM AUTHOR]

In recent years, a surge of interest in the linkages between trade and the environment has occurred in the contexts of both regional and multilateral trade agreements. In this paper, we utilize a three-country, social accounting matrix (SAM) of the North American economy and data from the World Bank's Industrial Pollution Projection System (IPPS) to conduct a linear multiplier analysis of industrial pollution linkages in North America. We provide estimates of both direct and indirect inter-country effects for a detailed set of industrial pollutants. The strongest linkages occur in the petroleum, chemicals, paper, base metals, and transportation equipment sectors. [ABSTRACT FROM AUTHOR]

Discusses data which indicated that bilateral trade with Japan has resulted in the substantial net transfers of effluent loads from 1981 to 1995. Historical bilateral trade patterns for Japan; Approach to develop foreign investment policies in Japan; Environmental implications of Japan's bilateral trade.

Studies the influence of North-South trade on the wages in North America. Outcome of real wage benefits for occupational groups with trade liberalization; Discussion of the Stolper-Samuelson effects of tariff changes; Features of the applied general equilibrium models of the North American Free Trade Area.

Presents the methodology for and results of the construction of a 26-sector social accounting matrix (SAM). Information on the North American macro-economic SAM and a detailed North American SAM; Sectoring scheme for detailed North American SAM; Structure of the North American Economy; Regional decomposition of multipliers; Conclusion about SAM in providing a comprehensive and consistent means of organizing data on single or multiple economies.

ABSTRACT This paper presents the methodology used to construct a highly disaggregated social accounting matrix (SAM) of the USA which integrates data on interindustry flows, value added, imports and final demand for 487 production sectors into a consistent framework. The table was assembled from a variety of government data sources and updates 1982 input--output accounts and other information to 1988. The paper documents the data and techniques used to assemble and update these accounts for those who wish to construct large-scale SAMs. [ABSTRACT FROM AUTHOR]

Evaluates the role of income-expenditure linkages in interindustry analysis. Comparison of interindustry and social accounting matrices (SAMs) multipliers; Modelling the composition of income and product; An example of United States interindustry linkages; Conclusions.