Gideon Fishelson

Emission control policies under uncertainty

Abstract The paper deals with the problem of optimal environmental policy under uncertainty. Usually, when an environmental policy is considered, only the expected values of the parameters of the marginal benefit and marginal cost functions associated with the policy are known. Thus a relevant question is: In the presence of uncertainty, what is the optimal policy mean for achieving the environmental objective? The study addresses itself to the specific objective of improving air quality although the analysis is generally applicable. The policy means are emission taxes and emission quotas. It is shown that under uncertainty neither of these means is generally optimal, and that specific parameter values of the costs and benefits relations and their distributions determine the optimal policy for each situation.

The (non)equivalence of optimal tariffs and quotas under uncertainty

Abstract Tariffs and quotas are compared as instruments for restricting imports to improve the terms of trade in a world in which domestic and/or foreign supply and demand conditions are stochastic. The two instruments are not generally equivalent in their welfare effects, and furthermore there is no general presumption in favour of one instrument over the other. In a particular model, characterized by linear supply and demand curves for imports, quotas are more likely to be superior when the predominant source of uncertainty is with respect to foreign supply conditions and when the supply of imports is inelastic.

Telecommunications, CES production function

The note points out the deficiencies of previously estimated production functions of telecommunication systems. Another functional form, a variant of the CES Function, is suggested. The empirical estimation uses prior information on technological change and its adoption rate. None of the estimated parameters is inadmissible and the implied economic variables are very similar to those actually observed. Since the estimation is done under the assumption of profit maximization, the good results cast some doubts on the argument of a ‘regulated industry’.

Demand for gasoline for usage by passenger cars

Abstract The paper contains the results of estimating the behavioral relationships that determine the consumption of gasoline per capita via the usage of passenger cars. The variables that are explained are the number of cars per capita, the miles driven per car, and the miles driven per gallon of gasoline. These variables are explained by the price of gasoline, the price of cars, the gross national product per capita, and the lagged corresponding variables. The important result that emerges is that the long-run elasticity of demand for gasoline is about unity.

Economic determinants of the use of energy and materials in the U.S. and Japanese iron and steel industries

Energy and materials use in the Japanese and U.S. iron and steel industries is assessed using process engineering analyses. The energy required for producing a tonne of steel in the U.S. (20.99 GJ) is 50% greater than that in Japan (13.18 GJ). The structures and technologies of the two industries are examined to unravel the basis for this difference. The engineering studies are complemented by an econometric analysis of the cost structures of the two industries and factor substitutabilities. The evaluations show that in the U.S. energy and capital are substitutes, but that labor and energy are complementary economic factors. These conclusions are even stronger for the case of Japan, whose technology may serve as a model for U.S. technological change over the medium term. Thus, governmental policies that stimulate the construction of new mills will have an energy conserving effect, but may have a negative impact on employment.

The economics of R and D : A geometric exposition for some problems

Abstract A simplified benefit—cost analysis is employed to explain the optimal investment in R and D. One of the results is that also if the market for a product is monopolized it might be in the interest of the public to support an R and D project, the results of which would be owned exclusively by the monopoly. Without explicitly saying, resources and energy direct saving or via substitution are first in line of candidates for the R and D discussed in the study.

Household's location in an urban area: An extension of the traditional model

Abstract The study contains an explicit introduction of the environmental quality into the households utility function thereby affecting its decision on the optimal location. The resulting relations indicate that the environmental quality which is postulated to be characterized by better quality the farther the location from the CBD induces farther shifts from the CBD as income increases. An empirical investigation is carried out to show the positive interaction between increase in income and air quality level on population density.

Package size and solid waste

Abstract The study contains a discussion on a proposal to utilize package size control regulations for reducing solid waste. The idea is to equate the social losses due to the increase of package size with social benefits derived from less solid waste. A similar analysis is applied to the question of optimal product durability, again resorting to increased durability as a means of reducing solid waste.

Improved Coal Quality and Prospects For Lowering Emissions

The study is aimed at identifying stages in the electricity production process where non-polluting inputs or processes can be substituted for polluting inputs. The hypothesis tested is that enriching coal, i.e., increasing the Btus per unit weight, would lower the quantity of coal per Kwh by a factor that at least equals the enrichment factor. The terms to enrich or to improve coal quality are used to denote an increase in the fuel heat content (Btus) per unit of weight. The theoretical framework for the empirical analysis is that of an input derived demand which is specified in terms of Btu per Kwh. The statistical analysis uses the ordinary least squares method, to explain the Btu/Kwh variable.

Between groups and total income inequality indices; U.S. 1960∗

Abstract The study contains a theoretical analysis on the behavior of a between groups Lorenz Index. The variables affecting this index are utilized to construct between groups indices for white-non-white; rural-urban; above 65 yr old-younger; population groups by state for 1960. The constructed indices were then used as explanatory variables for the state total Lorenz Index. It was found that they explained over 80 per cent of the variance. Adding other socio-economic variables enabled us to explain over 90 per cent of the variance of state Lorenz indices.