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To synergise civil and military research, their separation should be abandoned and the so-called 'civil clauses' still enshrined in the statutes of many German universities should be reconsidered. Together with its European partners, the German government should establish joint development and procurement processes for the military. Key technologies must be systematically identified and promoted in order to avoid unilateral dependencies in these technology areas that could weaken military security. In order to counter the lack of skilled personnel, the Bundeswehr should train soldiers in such a way that they can use the knowledge they have acquired during their military service in civilian life. [ABSTRACT FROM AUTHOR]

This paper develops a simple model of division of labor under perfect competition. The model shows under that the division of labor is compatible with perfectly competitive markets if coordination costs are increasing with the number of teams. We also show under what conditions interior solutions for the division of labor exist under imperfect competition. [ABSTRACT FROM AUTHOR]

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jedc.2006.03.009 Byline: Ulf Moslener (a), Till Requate (b) Abstract: We analyze a dynamic multi-pollutant problem where abatement costs of several pollutants are not separable. The pollutants can be either technological substitutes or complements. Environmental damage is induced by the stock of accumulated pollution. Optimal emission paths are found to be qualitatively different for substitutes and complements. We derive general properties governing optimal emission paths and present numerical examples to illustrate our main results. In particular we find that optimal emission paths need not be monotonic, even for highly symmetric pollutants. Finally, we describe a comparatively simple method to implement the optimal path without explicitly knowing its shape. Author Affiliation: (a) Centre for European Economic Research (ZEW), L7,1, 68161 Mannheim, Germany (b) Department of Economics, University of Kiel, Olshausenstr. 40, 24098 Kiel, Germany Article History: Received 27 April 2004; Accepted 13 March 2006

A critical analysis of the research paper of Fisher that contended that Dixit-Pindyck and Arrow-Fisher-Hanemann-Henry option values are equal is presented. It is proved that they are not. The option values are useful for decision making under uncertainty relating to irreversible investments.

The environmental trade policy is used to achieve competitive advantage in international market which is considered to be an important implications for the way we conceive free trade. The strategic environmental policy in a model makes explicit the vertical structure that supports production of the traded good.

The design of refunding of emission taxes of firms which depend on market shares is examined. Different emission taxes and optimal refunding schemes is also described.

We investigate incentives through environmental policy instruments to adopt advanced abatement technology. First, we study the case where the regulator makes long-term commitments to policy levels and does not anticipate arrival of new technology. We show that taxes provide stronger incentives than permits, auctioned and free permits offer identical incentives, and standards may give stronger incentives than permits. Second, we investigate scenarios where the regulator anticipates new technologies. We show that with taxes and permits the regulator can induce first-best outcomes if he moves after firms have invested, whereas this does not always hold if he moves first. JEL classification: L5; Q2; Q28 Keywords: Emission taxes; Auctioned permits; Grandfathering; Emission standards; Technology adoption