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on European Economics |
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Issue of 2024‒07‒22
twenty papers chosen by Simon Sosvilla-Rivero, Instituto Complutense de Análisis Económico |
| By: | Gökhan Ider; Alexander Kriwoluzky; Frederik Kurcz; Ben Schumann |
| Abstract: | This paper first shows that, contrary to conventional wisdom, the European Central Bank (ECB) can influence global energy prices. Second, through Lucas critique-robust counterfactual analysis, we uncover that the ECB’s ability to affect fast-moving energy prices plays an important role in the transmission of monetary policy. Third, we empirically document that, to optimally fulfill its primary mandate, the ECB should swiftly tighten policy in response to an increase in energy prices. Crucially, the tightening required depends on the ECB’s ability to influence global energy prices. Finally, we find this policy strategy could have largely prevented the post-pandemic inflation episode. |
| Keywords: | Inflation, energy prices, monetary policy transmission mechanism |
| JEL: | C22 E31 E52 Q43 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwwpp:dp2089&r= |
| By: | Schmitz, Martin; Dietrich, Andreas; Brisson, Rémy |
| Abstract: | The nominal effective exchange rate (EER) of a currency is an index of the trade-weighted average of its bilateral exchange rates vis-à-vis the currencies of selected trading partners, while the real EER is derived by adjusting the nominal index for relative prices or costs. The nominal EER provides a summary measure of a currency’s external value, while the real EER is the most commonly used indicator of the international price and cost competitiveness of an economy. Additionally, for all individual euro area countries, harmonised competitiveness indicators (HCIs) are published by the European Central Bank (ECB) based on the same methodology as the euro EERs. This paper describes how the calculation of the ECB’s EERs and HCIs has been enhanced to take into account in the underlying trade weights the evolution of international trade linkages and, in particular, the growing importance of trade in services. The paper includes an in-depth description of the methodology used to calculate these enhanced EERs and HCIs. In particular, it presents how to overcome the challenges arising from the inclusion of services trade, foremost in terms of data availability, with imputation and estimation techniques. Importantly, the ECB’s well-established methodology – which in particular accounts for competition faced by euro area exporters in third markets – did not have to be changed with the inclusion of services trade. Finally, the paper provides some evidence on the usefulness of the enhanced indicators for policymakers, economic analysts and the public at large. JEL Classification: C82, F10, F17, F30, F31, F40 |
| Keywords: | competitiveness, effective exchange rate (EER), gravity model, harmonised competitiveness indicator (HCI), nominal effective exchange rate (NEER), real effective exchange rate (REER), services trade, trade weights |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbsps:202449&r= |
| By: | Francesca Guadagno (The Vienna Institute for International Economic Studies, wiiw); Oliver Reiter (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Increasing production of green technologies in the EU holds great potential for the European economy. This study uses trade data and input-output tables to estimate the impacts on GDP and employment of reshoring to the EU the production of five major green technologies photovoltaics, wind turbines, batteries, electric motors and electric vehicles. Our findings show that reshoring these five technologies would increase EU GDP by EUR 18.4 billion, or 0.13% of EU GDP, and create 242, 728 new jobs. The same shift of imports to EU production would have had roughly half of the impact in 2010. We also find significant spillover effects on other sectors of the economy, particularly for metal products, wholesale and retail, professional, scientific and technical activities, and administrative and support services. To make the most from the transition, we argue that EU green industrial policy should put more emphasis on manufacturing capacities and innovation to meet the targets of the Net Zero Industry Act, remain internationally competitive, and reduce strategic dependencies. |
| Keywords: | green transition; photovoltaics; batteries; electric vehicles; GDP; employment |
| JEL: | Q55 Q56 F14 O25 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:wii:pnotes:pn:80&r= |
| By: | Behn, Markus; Cornacchia, Wanda; Forletta, Marco; Jarmulska, Barbara; Perales, Cristian; Ryan, Ellen; Serra, Diogo; Tereanu, Eugen; Tumino, Marcello; Abreu, Daniel; Ciampi, Francesco; Ciocchetta, Federica; Drenkovska, Marija; Fritz, Benedikt; Geiger, Sebastian; Melnychuk, Mariya; Meusel, Steffen; Reginster, Alexandre; Rychtárik, Štefan; Vilka, Ilze; Virel, Fleurilys |
| Abstract: | The 2019 revision to the Capital Requirements Directive allowed the systemic risk buffer to be applied on a sectoral basis in the European Union. Since then an increasing number of countries have implemented the new tool, primarily to address vulnerabilities in the residential real estate sector. To inform and foster a consistent understanding and application of the buffer, this paper proposes two specific methodologies. First, an indicator-based approach which provides an aggregate measure of cyclical vulnerabilities in the residential real estate sector and can signal a potential need to activate a sectoral buffer to address them. Second, a model-based approach following a stress test rationale simulating mortgage loan losses under adverse conditions, which can be used as a starting point for calibrating a sectoral buffer. Besides these methodological contributions, the paper conceptually discusses the interaction between the sectoral buffer and other prudential requirements and instruments, ex ante and ex post policy impact assessment, and factors guiding the possible release of the buffer. Finally, the paper considers possible future applications of sectoral buffer requirements for other types of sectoral vulnerabilities, for example in relation to commercial real estate, exposures to non-financial corporations or climate-related risks. JEL Classification: G21, G28 |
| Keywords: | banks, capital buffers, financial stability, macroprudential policy |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbops:2024352&r= |
| By: | Mariam Camarero ((University Jaume I and INTECO); Alejandro Muñoz (University of València); Cecilio Tamarit (University of València and INTECO) |
| Abstract: | This paper examines the determinants of portfolio equity and bond investment in the European Union. We estimate the impact of different drivers typical of the gravity model developed by Okawa and van Wincoop (2012). A notable aspect of our study is that it accounts for the effects of tax havens through the recent database of Coppola et al. (2021). Another distinctive trait of our paper is that we model bilateral and multilateral resistance measured as financial restrictions between the country pair (bilateral) and relative to the rest of the world (multilateral). Our findings suggest that gravity variables (distance, economic size, and resistance), as well as historical links and global risk, explain portfolio holdings allocation. Our extended gravity model also captures the positive effect of government quality and financial development on portfolio equity and bonds. Given the differences in nature and risk between assets, we also compare the results for portfolio equity and bonds; we find that while portfolio equity is more mobile, portfolio debt tends to be invested in neighboring countries; more specifically, EU debt tends to remain in the EU. Our results also suggest that portfolio equity is more affected by global risk and multilateral financial restrictions. Finally, our comparative analysis using the IMF CPIS database (constructed under the residence principle) shows that not accounting for tax havens underestimates the gravity and fundamental factors explaining portfolio equity and bonds holdings investment. |
| Keywords: | Gravity, cross-border asset holdings, global frictions, international finance |
| JEL: | G |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:inf:wpaper:2024.7&r= |
| By: | Srdelic, Leonarda |
| Abstract: | To identify sectors in Croatia that are particularly sensitive to the European Union's measures for transitioning to a low-carbon economy, this paper analyses data from the United Nations Framework Convention on Climate Change (UNFCCC) on greenhouse gas emissions. The aim is to identify the sectors that contribute most to climate change, assess their effectiveness in implementing emission reduction policies, and achieve sustainable development goals. Based on the analysis, it is clear that the energy, transport, and industrial processes sectors are key in the context of sensitivity to EU climate policies. In contrast, the Land Use, Land-Use Change and Forestry sector stands out as offering unique opportunities for mitigating climate change through carbon sequestration activities and thereby achieving climate neutrality. |
| Keywords: | transition risks, climate change, greenhouse gas emissions, Croatia, euro area |
| JEL: | E01 Q54 Q58 |
| Date: | 2024–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121318&r= |
| By: | Kim, Yoonjung (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Cheolwon (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Oh, Taehyun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Chorong (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kang, Yooduk (Hankuk University of Foreign Studies) |
| Abstract: | 본 연구에서는 러시아의 우크라이나 침공 이후 EU의 추가 확대 가능성에 대한 고찰을 통해 향후 한-EU 경제협력 관련 정책 시사점을 제시한다. 기존의 EU 확대 관련 연구가 글로벌 금융위기 이전에 주로 수행된 반면, 본 연구는 금융위기 및 유로존 위기와 팬데믹 등을 거치며 나타난 변화를 반영한다는 점에서 차별성을 갖는다. 특히 중동부유럽 국가들의 EU 가입 이후 성과에 대한 평가와 함께 다양한 경제지표 및 거버넌스 지수 분석을 통해 신규 가입 후보국들의 현 상황을 세부적으로 진단하고, 기업 및 산업 구조에 대한 조망을 통해 우리나라의 대EU 진출 전략을 도출하였다. This study assesses the previous enlargement of the EU and investigates the potential enlargement EU in the future. The European Union has established itself as a politically and economically integrated community in the European region, and it continues to evolve. The biggest change in the EU in the last two decades was the massive enlargement of the EU to the countries of Central and Eastern Europe in 2004, when eight Central and Eastern European countries joined the EU together at the same time. The discussion of EU enlargement, which has been stagnant since the last enlargement when Croatia joined the EU, seems to have been revitalized by the recent Russian invasion of Ukraine. As further changes in the EU are becoming increasingly visible, the purpose of this study is to draw implications for Korea’s future strategy to cooperate with the EU candidate countries. To this end, Chapter 2 provides an understanding of the EU’s enlargement process, and Chapter 3 lays the groundwork for future conjectures through an economic and political assessment of existing Central and Eastern European countries since their accession to the EU. In addition, Chapter 4 examines the prospects for the accession of the candidate countries through a diagnosis of their current economies and governance, and Chapter 5 examines Korea’s cooperation with the existing Central and Eastern European countries and the current status of cooperation with the candidate countries. We conclude with the prospects for further enlargement of the EU and policy implications for Korea’s future cooperation in Chapter 6. (the rest omitted) |
| Keywords: | enlargement; EU; Central and Eastern Europe; GDP; trade share; foreign direct investment |
| Date: | 2023–12–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieppa:2023_035&r= |
| By: | Anabela Marques Santos; Francesco Molica; Carlos Torrecilla Salinas (European Commission, Joint Research Centre, Sevilla, Spain; European Commission, Joint Research Centre, Brussels, Belgium; European Commission, Joint Research Centre, Sevilla, Spain) |
| Abstract: | Artificial Intelligence (AI) is seen as a disruptive and transformative technology with the potential to impact on all societal aspects, but particularly on competitiveness and growth. While its development and use has grown exponentially over the last decade, its uptake between and within countries is very heterogeneous. The paper assesses the geographical distribution at NUTS2-level of EU-funded investments related to AI during the programming period 2014-2020. It also examines the relationship between this specialization pattern and regional characteristics using a spatial autoregressive model. Such an analysis provides a first look at the geography of public investment in AI in Europe, which has never been done before. Results show that in the period 2014-2020, around 8 billion EUR of EU funds were targeted for AI investments in the European regions. More developed regions have a higher specialization in AI EU-funded investments. This specialization also generates spillover effects that enhance similar specialization patterns in neighboring regions. AI-related investments are more concentrated in regions with a higher concentration of ICT activities and that are more innovative, highlighting the importance of agglomeration effects. Regions that have selected AI as an innovation priority for their Smart Specialization Strategies are also more likely to have a higher funding specialization in AI. Such findings are very relevant for policymakers as they show that AI-related investments are already highly spatially concentrated. This highlights the importance for less-developed regions to keep accessing to sufficient amounts of pre-allocated cohesion funds and to devote them for AI-related opportunities in the future. |
| Keywords: | Artificial intelligence; Public subsidy; Territorial specialization; Europe |
| JEL: | O31 R58 R12 O52 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:mde:wpaper:181&r= |
| By: | Christian Moser; Farzad Saidi; Benjamin Wirth; Stefanie Wolter |
| Abstract: | We study the distributional consequences of monetary policy-induced credit supply in the German labor market. Firms in relationships with banks that are more exposed to the introduction of negative interest rates in 2014 experience a relative contraction in credit supply, associated with lower average wages and employment. Within firms, initially lower-paid workers are more likely to leave employment, while initially higher-paid workers see a relative decline in wages. Between firms, wages fall by more at initially higher-paying employers. Our results suggest that credit affects the distribution of pay and employment both within and between firms. |
| Keywords: | Wages, Employment, Worker and Firm Heterogeneity, Credit Supply, Monetary Policy |
| JEL: | J31 E24 J23 E51 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_558&r= |
| By: | Fatica, Serena (European Commission); Grammatikopoulou, Ionna (European Commission); Hirschbuehl, Dominik (European Commission); La Notte, Alessandra (European Commission); Pisani, Domenico (European Commission) |
| Abstract: | Nature-related financial risks have emerged as critical concerns for policymakers and financial actors. Central to this issue are ecosystem services, which play an integral role in various production processes but may be interrupted due to nature degradation. This article delves into the vulnerability of European SMEs by combining firm-level exposures to ecosystem service dependencies with regional information on the relative abundance of ecosystem services provisioning and the risk of natural hazards. Focusing on long-term debt positions to gauge financial stability implications, the results reveal moderate nature risks for European SMEs at the current stance but also highlight a possible concentration of risks and a need to further refine the use of available indicators. |
| Keywords: | ecosystem services, natural capital, nature degradation, physical risks, environmental risks, ENCORE, risk management, SMEs |
| JEL: | G21 G38 Q5 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:jrs:wpaper:202403&r= |
| By: | Blauberger, Michael; Heindlmaier, Anita |
| Abstract: | In this study, we provide an overview of the recently established European Labour Authority (ELA), its goals and powers, before offering a preliminary analysis of ELA. In brief, ELA is an agency with the broad and important objective of improving the enforcement of mobile workers' rights in the EU, but with limited competences and resources. ELA essentially depends on the willingness of national authorities to cooperate through exchange of information and coordinated enforcement action. Nevertheless, our evidence collected from interviews with various stakeholders suggests that it can provide added value in particular by connecting members of national enforcement authorities. |
| Abstract: | In dieser Studie geben wir einen Überblick über die neue Europäische Arbeitsbehörde (ELA), ihre Ziele und Befugnisse, und nehmen eine erste Analyse der ELA vor. Die ELA hat einerseits das weitreichende und wichtige Ziel, die Rechte mobiler Arbeitnehmer*innen in der EU besser durchzusetzen, verfügt andererseits aber nur über die begrenzten Kompetenzen und Ressourcen einer europäischen Agentur. Sie hängt im Wesentlichen von den nationalen Behörden ab und deren Bereitschaft, durch Informationsaustausch und koordinierte Durchsetzungsmaßnahmen zusammenzuarbeiten. Unsere Gespräche mit verschiedenen Akteur*innen deuten jedoch darauf hin, dass die Agentur insbesondere dadurch einen Mehrwert bieten kann, dass sie Mitglieder der nationalen Durchsetzungsbehörden grenzüberschreitend miteinander vernetzt. |
| Keywords: | Sozialstandards, Arbeitnehmerschutz, Europäisches Arbeitsrecht, Arbeitsverwaltung, Rechtsdurchsetzung, EU-Staaten |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wsistu:299251&r= |
| By: | Angelino, Pierluigi; Czarnitzki, Dirk; Volckaert, Astrid |
| Abstract: | The Flemish government launched its Spearhead Cluster (SHC) policy in 2017. The aim is to boost strategic sectors by setting up cluster initiatives which coordinate collaborative R&D initiatives. In this paper, we analyze whether becoming a member of such a cluster initiative has an impact on the Total Factor Productivity (TFP) of the firm. We exploit firm-level data between 2013 and 2020 to estimate TFP and apply a difference-in-differences approach to assess the programs' treatment effects. We find that becoming a member of a cluster has an average positive impact on firmlevel TFP of between 1 to 4.4 percent, depending on the econometric specification. These results are the first to provide an insight into the impact of the Flemish SHC policy on productivity. |
| Keywords: | cluster associations, cluster policy, innovation policy, total factor productivity, conditional difference-in-difference |
| JEL: | D24 L25 L52 L53 O25 O38 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:300010&r= |
| By: | Heinemann, Friedrich; Asatryan, Zareh; Bachtrögler, Julia; Birkholz, Carlo; Corti, Franceso; von Ehrlich, Maximilian; Fratesi, Ugo; Fuest, Clemens; Lang, Valentin; Weber, Martin |
| Abstract: | By international comparison as well as compared to other EU policies, the EU's Cohesion Policy (CP) evaluation system is far developed and institutionalized. This paper analyses the remaining gaps and shortcomings in the CP evaluation system against principles established by the OECD and others and provides recommendations on how to further improve it. The presence of a broad and imprecise CP objective function emerges as a key challenge for evaluations. The evaluation culture is not equally developed among all Member States and regions. In quite some cases, an unfavorable equilibrium is found which is characterized by limited evaluation capacities, poor methods, and a formalistic approach to evaluations. Programme evaluations in the Member States are usually commissioned by national or regional managing authorities who have a vested interest in promoting the success of their programmes. Evaluations are carried out by evaluators who are functionally independent, but often lack factual independence. There is also limited international competition in the market for evaluations commissioned by national or regional authorities. Evaluation methods applied in CP programme evaluations mostly lag behind academic advancements and evaluation reports often do not transparently describe their methodological limitations. As the EU body responsible for implementing CP across all 27 Member States, the Commission may also have an overly optimistic perspective on CP. Finally, there is little evidence that evaluation findings are used for decision-making processes, funding allocation and the design of programmes. The paper offers a number of recommendations how to advance the evaluation system: (1) Reorient CP reforms towards a more focused set of objectives; (2) Specify evaluation obligations more precisely in the Common Provision Regulation and set out a 'charter for evaluators'; (3) Introduce an 'evaluate first' requirement when preparing or updating programmes; (4) Promote the use of counterfactual methods; (5) Explicitly link funding decisions at programme and policy level to evaluation results; (6) Implement measures to stimulate a European market for CP evaluations; and (7) establish a standing European Advisory Panel on CP evaluation to foster independent third-party reviews. |
| Keywords: | EU budget, cohesion policy, evaluation, performance budgeting, regional policy |
| JEL: | H43 H87 R58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:300013&r= |
| By: | Scheper, Christian; Engelhardt, Anne |
| Abstract: | Nach jahrelangen Diskussionen hat die Europäische Union (EU) eine Richtlinie zur Regulierung von Menschenrechten und Nachhaltigkeit in globalen Lieferketten beschlossen, die sogenannte Corporate Sustainability Due Diligence Directive (CSDDD). Erstmals verankert sie europaweit verbindliche menschenrechtliche und um- weltbezogene Sorgfaltspflichten für Unternehmen entlang ihrer Lieferketten. Die Richtlinie harmonisiert und erweitert eine Reihe von neuen Sorgfaltspflichtengesetzen in EU-Mitgliedsstaaten, darunter in Frankreich und Deutschland (Lieferkettensorgfaltspflichtengesetz, LkSG). Mit diesem Spotlight wollen wir die neuen Sorgfaltspflichten politisch einordnen: Welche Probleme lösen sie? Und bringen sie auch neue Probleme mit sich? Anhand des größten Arbeitsunfalls in Brasilien, dem Staudammbruch in Brumadinho, verdeutlichen wir einige wesentliche Aspekte der Problematik. Im Fazit betonen wir Herausforderungen und geben Empfehlungen für die Umsetzung. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:sefggs:300082&r= |
| By: | Blauberger, Michael; Heindlmaier, Anita |
| Abstract: | In dieser Studie geben wir einen Überblick über die neue Europäische Arbeitsbehörde (ELA), ihre Ziele und Befugnisse, und nehmen eine erste Analyse der ELA vor. Die ELA hat einerseits das weitreichende und wichtige Ziel, die Rechte mobiler Arbeitnehmer*innen in der EU besser durchzusetzen, verfügt andererseits aber nur über die begrenzten Kompetenzen und Ressourcen einer europäischen Agentur. Sie hängt im Wesentlichen von den nationalen Behörden ab und deren Bereitschaft, durch Informationsaustausch und koordinierte Durchsetzungsmaßnahmen zusammenzuarbeiten. Unsere Gespräche mit verschiedenen Akteur*innen deuten jedoch darauf hin, dass die Agentur insbesondere dadurch einen Mehrwert bieten kann, dass sie Mitglieder der nationalen Durchsetzungsbehörden grenzüberschreitend miteinander vernetzt. |
| Abstract: | In this study, we provide an overview of the recently established European Labour Authority (ELA), its goals and powers, before offering a preliminary analysis of ELA. In brief, ELA is an agency with the broad and important objective of improving the enforcement of mobile workers' rights in the EU, but with limited competences and resources. ELA essentially depends on the willingness of national authorities to cooperate through exchange of information and coordinated enforcement action. Nevertheless, our evidence collected from interviews with various stakeholders suggests that it can provide added value in particular by connecting members of national enforcement authorities. |
| Keywords: | Sozialstandards, Arbeitnehmerschutz, Europäisches Arbeitsrecht, Arbeitsverwaltung, Rechtsdurchsetzung, EU-Staaten |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wsistu:299249&r= |
| By: | Lee, Neil; Pardy, Martina; Mcneil, Andrew |
| Abstract: | The early 2020s saw a spike in inflation across much of the advanced world, with pervasive economic consequences. There is strong evidence that economic shocks generally have political consequences, but few studies have specifically focused on inflation. In this paper, we address this gap using an original, pre-registered survey experiment in the United Kingdom, a country which saw the highest consumer price inflation in 40 years and a major cost of living crisis. First, we describe how individuals, on average, are only neutral in their confidence in the Bank of England’s and economists’ ability to tackle inflation. The population is even more pessimistic regarding the government’s abilities. Second, using an experimental survey vignette, we causally identify the effect of reminding and/or informing participants about the high levels of inflation. While our treatment shifts inflation expectations, we find no evidence that it reduces trust in government, the bank of England, nor economists more generally. Instead, we find weak evidence that respondents blame corporations. Inflation also makes citizens less likely to support public sector pay rises although we find no effect on authoritarianism, redistribution attitudes, attitudes towards overseas trade, or optimism towards the future. |
| Keywords: | inflation; political attitudes; political trust; authoritarianism; survey experiment |
| JEL: | N0 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123926&r= |
| By: | Sahar Amidi (Université d'Orléans); Rezgar Feizi (University of Luxembourg) |
| Abstract: | This paper investigates how various factors affect pollution levels in Europe’s manufacturing industry. The paper explores how productivity, expenditure share, trade cost, and environmental regulations affect pollution levels in Europe’s manufacturing industry. The World Input-Output Database provides data on global and local pollution for each industrial sector solely for the period ranging from 1995 to 2009. We use a general equilibrium model and quantitative trade model that considers pollution as a byproduct of production. The study aims to examine the effectiveness of regulations and control for the primary causes of environmental pollution (the main causes). Our empirical results reveal that air pollution emissions from EU manufacturing decreased by 33.21 percent despite an 85.44 percent increase in real manufacturing output. This outcome could provide evidence for the role of reducing the pollution contamination of manufacturing. The study finds that most of the decrease in emissions can be ascribed to changes in environmental regulations, rather than changes in expenditure share, trade cost, and productivity. Increasing environmental regulations by 20 percent can eliminate emissions intensity. After increasing environmental regulations by 20%, the emission of global pollutants such as methane decreased by 17.27% in 2009. |
| Keywords: | Environmental account and accounting, environmental taxes, general equilibrium model, productivity, quantitative model, technological innovation, trade cost |
| JEL: | Q |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:inf:wpaper:2024.10&r= |
| By: | Vasily Astrov (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | The dynamics of Austria’s economic relations with the EU Eastern Partnership (EaP) countries – Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine – and with Russia have deviated from those of the EU in several important ways. During the decade preceding the war in Ukraine, Austrian trade with the region generally developed less dynamically than EU trade, as trade with countries that did not sign Deep and Comprehensive Free Trade Agreements (DCFTAs) with the EU – unsurprisingly –underperformed. However, Austrian investments in Russia have shown greater resilience than EU investments, especially since the start of the war in Ukraine. Austria ranks third from bottom among EU member states for the share of companies that have completely withdrawn from Russia or are in the process of doing so, probably explaining in part why its exports to Russia have suffered much less than EU exports. In addition, chemicals, including pharmaceuticals, which have been little affected by sanctions, account for a large share of Austrian exports. Also, unlike the EU, Austria’s dependence on Russian natural gas remains high, partly for geographical reasons and also because of contractual obligations between Austria’s ÖMV and Russia’s Gazprom. Austria would be well advised to build on its record of economic involvement in the EaP region and capitalise on the new opportunities offered by the improved EU accession prospects of Ukraine, Moldova and Georgia. |
| Keywords: | EU Eastern Partnership countries, Austria, EU, trade, investment, gas dependence |
| JEL: | F14 F21 Q40 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:wii:pnotes:pn:81&r= |
| By: | Luca, Davide; Özgüzel, Cem; Wei, Zhiwu |
| Abstract: | The paper maps the diffusion of working from home across 30 European countries during the COVID-19 pandemic. We summarise the determinants of remote working and show that its uptake was lower than in the United States, and substantially uneven across/within countries, with most remote jobs concentrated in cities and capital regions. We then apply a variance decomposition procedure to investigate whether the uneven distribution of remote jobs can be attributed to individual or territorial factors. Results underscore the importance of composition effects as, compared with intermediate-density and rural areas, cities hosted more workers in occupations/sectors more amenable to working remotely. |
| Keywords: | COVID-19; Europe; remote work; telework; work from home |
| JEL: | R14 J01 |
| Date: | 2024–06–06 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123880&r= |
| By: | Jang, Youngook (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Cheolwon (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Na, Suyeob (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Hyun-Jean (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lim, You-Jin (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 본 보고서에서는 최근 EU 및 유럽 주요국에서 제시하고 있는 경제안보 분야 대중국 전략을 문헌조사, 통계분석, 현지조사, 전문가간담회를 통해 다각도로 분석하였다. EU 및 유럽 주요국이 제시하고 있는 다양한 산업 및 통상 정책에는 중국의 경제적, 정치적 위상 제고에 대응하여 자국의 산업경쟁력을 보호하기 위한 노력이 반영되고 있다. 유럽 주요국의 대중국 전략 변화가 우리 기업에 미치는 영향을 파악하여 대응하는 한편, 우리나라의 대중국 전략을 수립하는 참고자료로 활용할 필요가 있다. This report analyzes the recent strategies of the EU and major European countries regarding economic relations with China, through literature review, statistical analysis, field research, and expert interviews. Chapter 2 of this report examines the background to the recent changes in the public attitudes towards China and ‘China Strategy' of Europe. China’s rising economic and diplomatic profile has led to an intensification of the U.S.-China trade dispute since the mid-2010s. The COVID-19 pandemic has turned the U.S.-China conflict into a competition over values such as democracy, freedom, and human rights. The West has intensified its criticism of the Chinese Communist Party regime, including human rights issues and media control. After the outbreak of the Russian-Ukrainian war, China’s pro-Russian behavior further aggravated European perceptions of China, and countries responded by establishing official ‘China Strategy’. Chapter 2 further examines the trends and determinants of public attitudes towards China in major European countries. The trend of rising anti-China sentiment over the past decade was evident in the data from Eurobarometer, Pew Research Center, and YouGov. Regression analyses showed that the trade deficit is the most significant factor in worsening public perceptions of China, while trade with China itself is effective in improving public perceptions. Institutional factors, such as the rule of law, were not significant in the full sample, but were found to be significant in explaining changes in public attitudes after 2017, when the regime competition with China began to intensify. (the rest omitted) |
| Keywords: | EU; economic security; China; China Strategy |
| Date: | 2023–12–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieppa:2023_027&r= |