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1
Steenblik, Ronald P., and Mark Mateo. "Western Europe's Long Retreat from Coal and Implications for Energy Trade." World Trade Review 19, S1 (July 2020): s98—s119. http://dx.doi.org/10.1017/s1474745620000269.
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AbstractWestern Europe's industrialization was powered largely by coal. Within 15 years after the end of the Second World War, however, governments were subsidizing coal and protecting producers from foreign competition while allowing their industries to contract in a way that avoided large-scale unemployment of miners. The oil-price shocks of 1973–1974 and 1979–1980 gave temporary reprieve to hard-coal production until international oil prices slumped in 1986. This event, combined with ever more stringent environmental regulations and, later, caps on carbon-dioxide emissions, led to the disappearance of subsidized coal mining in one country after another. As of the end of 2019, hard coal was still being mined – in small amounts – in only three Western European countries: Norway, Spain, and the United Kingdom. This paper describes the history of the industry from 1945 through to the present, and the consequences of subsidy policy for trade in hard coal and its substitutes. A common observation is that a reduction in subsidized coal production by a country has not necessarily translated into increased imports of coal on a one-for-one basis.
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Da, Bowen, Chuanzhe Liu, Nana Liu, Yufei Xia, and Fangming Xie. "Coal-Electric Power Supply Chain Reduction and Operation Strategy under the Cap-and-Trade Model and Green Financial Background." Sustainability 11, no. 11 (May 28, 2019): 3021. http://dx.doi.org/10.3390/su11113021.
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For reliving the pressure of air pollution and corresponding the sustainability development policy in China, the companies are urging the creation of a highly productive low-carbon supply chain. This work uses price regulation, the cap-and-trade model, and a green financial policy background to establish a strategy for the coal–electric power supply chain with two-level carbon reduction and operation with financial constraints. A Stackelberg model was built to help investigate the rate of thermal order realization, the carbon reduction strategy in the coal enterprise, and the amount of thermal energy ordered in the electric enterprise. Results show that under a green financial background, a high bank loan discount rate for investing in carbon reduction technology equates to large carbon reduction in coal enterprises, large quantities of thermal energy ordered in electric enterprises, and high profit for coal and electric enterprises. However, the realization rate of thermal power ordered decreased when the price regulation become strict, thereby reducing the profit and carbon emission in electric enterprise. Therefore, the thermal price regulation level increased, the profit on both company and the production did not respond with sensitivity, and the government could encourage a low carbon model by controlling the bank loan rate.
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Yang, Zhenkai, Mei-Chih Wang, Tsangyao Chang, Wing-Keung Wong, and Fangjhy Li. "Which Factors Determine CO2 Emissions in China? Trade Openness, Financial Development, Coal Consumption, Economic Growth or Urbanization: Quantile Granger Causality Test." Energies 15, no. 7 (March 26, 2022): 2450. http://dx.doi.org/10.3390/en15072450.
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The current study employs a Granger causality test within a Quantile approach investigating CO2 emission determinants in China. Results show urbanization, financial development and openness to trade are leading determinants of CO2 emissions in China. These results highlight climate change issues while taking advantage of a new methodology to fill a gap in the current literature. Our findings show key implications for PRC government policy related to pollutant reduction policy.
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Temby, Owen, and Joshua MacFadyen. "Urban Elites, Energy, and Smoke Policy in Montreal during the Interwar Period." Articles 45, no. 1 (December 1, 2017): 37–49. http://dx.doi.org/10.7202/1042294ar.
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During the late 1920s and early 1930s, Montreal’s air was blackened by smoke from coal-burning homes, factories, and the locomotives and lake freighters connecting its growing economy to the rest of Canada. Lacking regulatory tools suited to the task of abating this nuisance, the municipal government passed the country’s first modern smoke bylaw, consisting of an objective emissions standard, a smoke control bureau, and requirements for the installation and utilization of technology to lessen emissions. In providing an account of the process through which Montreal’s smoke nuisance was addressed, this article describes the role of the city’s most influential local growth coalition, the Montreal Board of Trade, in introducing the issue on the city’s policy agenda, participating in the formulation of a policy response, and monitoring the implementation of the resulting bylaw. The Board of Trade sought a resolution to the problem because it damaged the city’s reputation and business climate. Consistent with other documented examples of smoke abatement in large urban areas, the response promoted by this elite growth coalition consisted largely of technology-based measures that managed the problem while eschewing recourse to measures that would dampen economic activity.
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Hollander, Taylor. "Making Reform Happen: The Passage of Canada's Collective-Bargaining Policy, 1943–1944." Journal of Policy History 13, no. 3 (2001): 299–328. http://dx.doi.org/10.1353/jph.2001.0008.
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Patrick Conroy, the secretary-treasurer of the Canadian Congress of Labour (CCL) from 1941 to 1951, was not someone who gave up easily. As a friend observed, the Scottish-born coal miner was a committed trade unionist whose “moral certitude was admirable and… one of his great strengths.” In late 1942, however, Conroy seemed ready to call it quits on the CCL's campaign to win a national collective-bargaining policy in Canada. Since its inception in September 1940, the Congress, which represented most of the industrial unions in the country, had pushed hard for a comprehensive labor policy like the National Labor Relations or Wagner Act in the United States, which protected and advanced the rights of workers. But the Liberal government of Prime Minister Mackenzie King repeatedly refused to move beyond a turn-of-the-century conciliatory framework that emphasized moral suasion and compromise. In late 1942, when a regional organizer asked Conroy whether a collective-bargaining policy appeared likely in the future, the CCL leader replied: “We do not feel it worthwhile to raise people's hopes when the record of the federal government is as it has been.”
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Nasirov, Shahriyar, Raúl O’Ryan, and Héctor Osorio. "Decarbonization Tradeoffs: A Dynamic General Equilibrium Modeling Analysis for the Chilean Power Sector." Sustainability 12, no. 19 (October 7, 2020): 8248. http://dx.doi.org/10.3390/su12198248.
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Medium size developing countries like Chile that commit to decarbonization goals need to carefully assess the trade-offs associated to their intensity and timing, since most of the technologies required will be absorbed, not produced, by these countries. A rapid expansion of renewables in the Chilean energy matrix, mostly thanks to exceptional solar and wind resources, combined with a rapid decrease in the cost of renewable energy technologies, intensified current policy debates to reduce the role of coal, which is the largest source of CO2 emissions in the generation mix. Recently, the main generation companies in Chile made a voluntary commitment to not invest in new coal projects that do not include carbon capture and storage systems. In addition, the Chilean government announced its plans to phase out coal plants completely by 2040. In this context, the aim of this research is to study the economy-wide and emission reduction impacts of different decarbonization paths in the Chilean power sector. For this purpose, we consider dynamic simulations using a new energy-oriented version of the Computable General Equilibrium Model (CGE)- General Equilibrium Model for the Chilean Economy (ECOGEM)-Chile which is soft linked to the bottom-up engineering energy model. The results show the major impacts under both the business as usual (BAU) scenario and the coal phase-out scenario. Additionally, the study discusses to what extent the ambitious decarbonization goals of the Chilean government are coherent with the current technological limitations.
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Khobai, Hlalefang, and Katlego Sithole. "The Relationship between Economic Growth and Carbon Emissions in South Africa." International Journal of Energy Economics and Policy 12, no. 2 (March 20, 2022): 516–25. http://dx.doi.org/10.32479/ijeep.11194.
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South Africa has been dismantling the challenges of Global warming and climate change issues pertaining Carbon emissions which have aggravated environmental problems over the past years due to its heavy reliance on coal. About 77% of South Africa's electricity needs are been bestowed by coal. This study serves to determine the relationship between carbon emissions and economic growth in South Africa covering the period between 1984 and 2018. The study employed the ARDL bounds technique to determine the long run relationship among the variables and the VECM to determine the direction of causality among variables. The findings established that there is a long relationship between carbon emission, economic growth, energy consumption, foreign direct investment and trade openness in South Africa. The VECM suggested that there is bidirectional causality flowing between economic growth and carbon emissions. The results also validated the EKC hypothesis both in the long run and short run. It is thus imperative for the policy makers and government to divert their thoughts to more innovative and creative strategies of attaining alternative energy sources especially renewable sources. There is a need for the best environmental policy to enhance infrastructure investment to improve energy efficiency and reduce emissions.
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Khorolskaya, M. "New Vectors of German Energy Policy." World Economy and International Relations 66, no. 10 (2022): 56–64. http://dx.doi.org/10.20542/0131-2227-2022-66-10-56-64.
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The article is devoted to energy policy of Germany. In the coalition treaty, the new German “red-green-yellow” coalition confirmed the commitment to achieve climate neutrality by 2045. In line with this goal Germany has developed a strategy to move away from coal as a primary source of energy. And, in the meantime, Berlin will close the last three Nuclear Power Plants by the end of the year 2022. The Russian special military operation in Ukraine has influenced the German energy policy significantly. Since February 2022, the German government has put a premium on substitution of Russian energy. The aim of this article is to analyze the coherence of the two policies: energy transition and rejection of Russian energy resources. The author explores phasing out nuclear power and coal, import of oil and gas, development of hydrogen production and renewables in Germany. The analysis revealed that two tracks do not complement each other. Both tracks should trace to the same goal – carbon-free energy, – but they have different temporal frameworks. While political elites claim to phase out Russian fuels within two years, the energy transition should take around 30 years. The natural gas was supposed to be the transitional energy, but more than half of it comes from Russia. Substitution of Russian coal and Russian oil requires more investment, and it could reduce the ability to subsidize renewables. Potential cooperation between Germany and Russia in hydrogen production was frozen. Only the policy aimed at improving energy efficiency and developing new building standards is likely to fit both tracks.
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Hartwell, John. "2009 Release of offshore petroleum exploration acreage." APPEA Journal 49, no. 1 (2009): 463. http://dx.doi.org/10.1071/aj08030.
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John Hartwell is Head of the Resources Division in the Department of Resources, Energy and Tourism, Canberra Australia. The Resources Division provides advice to the Australian Government on policy issues, legislative changes and administrative matters related to the petroleum industry, upstream and downstream and the coal and minerals industries. In addition to his divisional responsibilities, he is the Australian Commissioner for the Australia/East Timor Joint Petroleum Development Area and Chairman of the National Oil and Gas Safety Advisory Committee. He also chairs two of the taskforces, Clean Fossil Energy and Aluminium, under the Asia Pacific Partnership for Clean Development and Climate (AP6). He serves on two industry and government leadership groups delivering reports to the Australian Government, strategies for the oil and gas industry and framework for the uranium industry. More recently he led a team charged with responsibility for taking forward the Australian Government’s proposal to establish a global carbon capture and storage institute. He is involved in the implementation of a range of resource related initiatives under the Government’s Industry Action Agenda process, including mining and technology services, minerals exploration and light metals. Previously he served as Deputy Chairman of the Snowy Mountains Council and the Commonwealth representative to the Natural Gas Pipelines Advisory Committee. He has occupied a wide range of positions in the Australian Government dealing with trade, commodity, and energy and resource issues. He has worked in Treasury, the Department of Trade, Department of Foreign Affairs and Trade and the Department of Primary Industries and Energy before the Department of Industry, Science and Resources. From 1992–96 he was a Minister Counsellor in the Australian Embassy, Washington, with responsibility for agriculture and resource issues and also served in the Australian High Commission, London (1981–84) as the Counsellor/senior trade relations officer. He holds a MComm in economics, and Honours in economics from the University of New South Wales, Australia. Prior to joining the Australian Government, worked as a bank economist. He was awarded a public service medal in 2005 for his work on resources issues for the Australian Government.
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Rawsthorne, Phil. "Implementing the Ridley Report: The Role of Thatcher's Policy Unit during the Miners’ Strike of 1984–1985." International Labor and Working-Class History 94 (2018): 156–201. http://dx.doi.org/10.1017/s0147547918000108.
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AbstractThe Conservative Party has long faced concerns that in regard to the great British miners’ strike of 1984–1985, senior Tories had, in fact, planned the confrontation as early as 1977, when still on the opposition benches. Historian John Savile pointed to the existence of the Ridley Report—a Conservative think-tank paper produced in 1977, which appeared to include a detailed blueprint on how to provoke, and secondly win, a battle against Britain's powerful miners’ union. After Margaret Thatcher's second election victory, and her first landslide, in 1983, the Prime Minister populated the Downing Street Policy Unit with private-sector allies who looked to implement aspects of the report. Some of these allies had clear economic incentives in running down British coal. Nevertheless, the Policy Unit members were instrumental in determining government policy concerning all aspects of the strike, including preparation, policing, the law courts, financial concerns and the portrayal of the strike in the media. The campaign by Thatcher's Policy Unit resulted in a shattering blow for Britain's trade union movement from which it has yet to recover—just as the Ridley Report had predicted.
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Li, Ying, Wing-Keung Wong, Ming Jing Yang, Yang-Che Wu, and Tien-Trung Nguyen. "Modeling the Linkage between Vertical Contracts and Strategic Environmental Policy: Energy Price Marketization Level and Strategic Choice for China." Energies 15, no. 13 (June 21, 2022): 4509. http://dx.doi.org/10.3390/en15134509.
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The lower price of energy leads to higher coal consumption in China. The idea of an “environment-for-trade policy” could be used to achieve an international competitive advantage, which, in turn, has important implications. To address the issue, we develop properties to examine the link between the low price of energy and strategic environmental policy in China and investigate the choice of policy instruments in a strategic environmental policy model with vertical contracts. In addition, to contribute to the literature on strategic environmental policy, this paper also develops properties to investigate different choices of instruments for the environmental policy and includes the degree of energy marketization for the wholesale price in the study. To do so, we assume that the wholesale price of the polluting input increases with the market price. By using this assumption, this paper analyzes the effects of two instruments of the environmental policy on social welfare and concludes that there is no reason to expect both downstream and upstream firms to establish a high wholesale price. Due to the low level of marketization, when the government selects an emission tax as the policy instrument, the optimal tax rates should be higher than the marginal damage of emissions. However, the optimal resource tax is uncertain when its effect on environmental damage is taken into account. In other words, the resource tax is ineffective as a policy instrument. Our results can be used to draw some practical policies for countries to use their energy effectively. To promote energy sustainability, governments should liberate resource prices and reform the system to get efficient environmental policies.
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Yi, Tai Fang. "Japanese Response to Indonesian Law Banning the Export of Raw Minerals." Verity: Jurnal Ilmiah Hubungan Internasional (International Relations Journal) 9, no. 18 (January 5, 2018): 50. http://dx.doi.org/10.19166/verity.v9i18.774.
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<p>The government of Indonesia enacted a policy banning the export of raw minerals in 2009, materialized in Law No. 04 of 2009 on Mineral and Coal Mining. The law mandated the raw minerals processing inside the country before they can be exported to other countries by the year 2014. This policy has drawn response from the government of Japan as one of the importing countries. Japan had threatened to report to the World Trade Organization regarding the issue because they complained that the policy violates the General Agreement on Tariffs and Trade. This study discusses how the policy is in the effort of Indonesia to develop its nation without any intention to harm any other countries. The justification of the enactment of the policy is mandated under the 1945 Constitution and the policy in essence does not deny the General Agreement on Tariffs and Trade. The enactment of the policy has affected the raw minerals export activity in Indonesia when export activity reached its peak in 2013 and also the last year raw material export was allowed. The policy might also have impacts on Japanese mining industries which relies on the import of raw minerals from Indonesia and those having investments in Indonesian mining industries. Japan at the end cancelled its intention to report Indonesia to the World Trade Organization and agreed to solve the dispute through bilateral solutions.</p><p>BAHASA INDONESIA ABSTRAK: Pemerintah Indonesia memberlakukan kebijakan yang melarang ekspor mineral mentah pada tahun 2009 yang terwujud dalam Undang-Undang No. 04 Tahun 2009 tentang Pertambangan Mineral dan Batubara. Undang-Undang tersebut mengamanatkan pemrosesan mineral mentah di dalam negeri sebelum dapat diekspor ke negara lain mulai dari tahun 2014. Kebijakan ini telah menarik tanggapan dari pemerintah Jepang sebagai salah satu negara pengimpor. Jepang telah mengancam untuk melapor kepada Organisasi Perdagangan Dunia mengenai masalah ini karena mereka mengeluhkan bahwa kebijakan tersebut melanggar Persetujuan Umum tentang Tarif dan Perdagangan. Studi ini membahas bagaimana kebijakan tersebut adalah upaya Indonesia untuk mengembangkan negaranya tanpa ada niat untuk menyakiti negara lain. Pembenaran atas berlakunya kebijakan tersebut diamanatkan di bawah UUD 1945 dan pada intinya, kebijakan tersebut tidak menyalahi Persetujuan Umum tentang Tarif dan Pertambangan. Pemberlakuan kebijakan tersebut telah mempengaruhi aktivitas ekspor mineral mentah di Indonesia di mana kegiatan ekspor mineral mentah paling tinggi pada tahun 2013 yang merupakan tahun terakhir di mana mineral mentah diizinkan untuk diekspor. Kebijakan tersebut memiliki dampak yang mungkin terjadi bagi industri pertambangan Jepang yang mengandalkan impor mineral mentah dari Indonesia dan yang memiliki investasi di industri pertambangan Indonesia. Jepang pada akhirnya membatalkan niatnya untuk melaporkan Indonesia ke Organisasi Perdagangan Dunia dan sepakat untuk menyelesaikan perselisihan tersebut melalui solusi bilateral.</p>
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Kim, Joseph, Hyo-Jin Kim, and Seung-Hoon Yoo. "Public Value of Marine Biodiesel Technology Development in South Korea." Sustainability 10, no. 11 (November 17, 2018): 4252. http://dx.doi.org/10.3390/su10114252.
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Biodiesel (BD) is often regarded as a carbon-neutral fuel. Many countries are investing resources in biodiesel technology development to respond to the need to improve energy sustainability and the threat of climate change. Since 2009, the South Korean Government has invested a considerable amount of money in developing marine BD (MBD) technology that converts carbon dioxide into diesel using marine microalgae cultivated in large quantities with the help of waste heat from nuclear power plants and/or coal-fired power plants. If the development is successful, 4800 tons of MBD a year, approximately 1820 cars fully fueled annually, will be produced from 2019. Furthermore, the South Korean Government is expected to continue to invest in MBD to improve the market share after 2019. Quantitative information about the public value of MBD technology development is widely demanded by the Government. This study aims to investigate the public value of MBD technology, the attributes of which it considers to be the reduction of greenhouse gas emissions, the mitigation of air pollutant emissions, new job creation, and the improvement of energy security. A choice experiment (CE) survey of 600 people was conducted during July 2016. The trade-offs among the attributes and the price were evaluated in the survey. The CE data were examined through a multinomial logit model. The marginal values for a 1%p reduction of greenhouse gas emissions, 1%p mitigation of air pollutant emissions, the creation of 100 new jobs, and an improvement of energy security caused by MBD technology development are computed to be KRW 1082.7 (USD 0.9), 918.1 (0.8), and 258.3 (0.2) per household per month, respectively.
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Udeagha, Maxwell Chukwudi, and Nicholas Ngepah. "Dynamic ARDL Simulations Effects of Fiscal Decentralization, Green Technological Innovation, Trade Openness, and Institutional Quality on Environmental Sustainability: Evidence from South Africa." Sustainability 14, no. 16 (August 18, 2022): 10268. http://dx.doi.org/10.3390/su141610268.
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Fiscal decentralization and green innovation are important to a country’s economic progress, but the externalities of increased pollution as a result of a rise in the energy used and economic growth must not be overlooked. The destruction of the environment presents a serious threat to human existence. South Africa, like several nations, has been working on reducing its dependence on fossil fuels such as coal by utilizing modern energy-efficient technologies that allow to establish a more carbon-neutral economy. Several attempts have been made to identify the major sources of environmental deterioration. Within the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) framework from 1960 to 2020, this study aims to check empirically the effect of fiscal decentralization (FD), green technological innovation (GI), trade openness (OPEN), population size (POP), per capita GDP (GDP), per capita GDP squared (GDP2), institutional quality (INS), and energy consumption (EC) on carbon emissions (CO2) in South Africa, as given its fast economic progress the country is facing problems with CO2 emission. The recently developed novel dynamic autoregressive distributed lag (ARDL)-simulations framework has been used. The outcomes of the analysis indicate that (i) FD, GI, and INS improve environmental sustainability in both the short and long run; (ii) OPEN deteriorates environmental quality in the long run, although it is environmentally friendly in the short run; (iii) per capita GDP increases CO2 emissions, whereas its square contributes to lower it, thus validating the presence of an environmental Kuznets curve (EKC) hypothesis; (iii) POP and EC contribute to environmental deterioration in both the short and long run; and (iv) FD, GI, OPEN, POP, GDP, GDP2, INS, and EC Granger cause CO2 in the medium, long, and short run, suggesting that these variables are important to influence environmental sustainability. In light of our empirical evidence, this paper suggests that the international teamwork necessary to lessen carbon emissions is immensely critical to solve the growing trans-boundary environmental decay and other associated spillover consequences. Moreover, it is important to explain responsibilities at different tiers of government to effectively meet the objectives of low CO2 emissions and energy-saving fiscal expenditure functions.
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Chen, Cong, Xueting Zeng, Guohe Huang, Lei Yu, and Yongping Li. "Robust Planning of Energy and Environment Systems through Introducing Traffic Sector with Cost Minimization and Emissions Abatement under Multiple Uncertainties." Applied Sciences 9, no. 5 (March 5, 2019): 928. http://dx.doi.org/10.3390/app9050928.
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Motor vehicles have been identified as a growing contributor to air pollution, such that analyzing the traffic policies on energy and environment systems (EES) has become a main concern for governments. This study developed a dual robust stochastic fuzzy optimization - energy and environmental systems (DRSFO-EES) model for sustainable planning EES, while considering the traffic sector through integrating two-stage stochastic programming, robust two-stage stochastic optimization, fuzzy possibilistic programming, and robust fuzzy possibilistic programming methods into a framework, which can be used to effectively tackle fuzzy and stochastic uncertainties as well as their combinations, capture the associated risks from fuzzy and stochastic uncertainties, and thoroughly analyze the trade-offs between system costs and reliability. The proposed model can: (i) generate robust optimized solutions for energy allocation, coking processing, oil refining, heat processing, electricity generation, electricity power expansion, electricity importation, energy production, as well as emission mitigation under multiple uncertainties; (ii) explore the impacts of different vehicle policies on vehicular emission mitigation; (iii) identify the study of regional atmospheric pollution contributions of different energy activities. The proposed DRSFO-EES model was applied to the EES of the Beijing-Tianjin-Hebei (BTH) region in China. Results generated from the proposed model disclose that: (i) limitation of the number of light-duty passenger vehicles and heavy-duty trucks can effectively reduce vehicular emissions; (ii) an electric cars’ policy is enhanced by increasing the ratio of its power generated from renewable sources; and (iii) the air-pollutant emissions in the BTH region are expected to peak around 2030, because the energy mix of the study region would be transformed from one dominated by coal to one with a cleaner pattern. The DRSFO-EES model can not only provide scientific support for the sustainable managing of EES by cost-effective ways, but also analyze the desired policies for mitigating pollutant emissions impacts with a risk adverse attitude under multiple uncertainties.
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KANTO, Tetsu'o. "Strategic Trade Policy and Government Credibility." Studies in Regional Science 31, no. 1 (2000): 77–89. http://dx.doi.org/10.2457/srs.31.77.
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Zhang, Wei-Bin. "Trade, knowledge and government research policy." International Review of Economics & Finance 2, no. 2 (January 1993): 103–14. http://dx.doi.org/10.1016/1059-0560(93)90017-k.
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Zientara, Piotr. "Polish Government policy for coal (1989‐2006)." International Journal of Energy Sector Management 1, no. 3 (April 3, 2007): 273–94. http://dx.doi.org/10.1108/17506220710821143.
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Anesi, Vincent, and Giovanni Facchini. "Coercive Trade Policy." American Economic Journal: Microeconomics 11, no. 3 (August 1, 2019): 225–56. http://dx.doi.org/10.1257/mic.20170085.
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Coercion is used by one government (the “sender”) to influence the trade practices of another (the “target”). We build a two-country trade model in which coercion can be exercised unilaterally or channeled through a “weak” international organization without enforcement powers. We show that unilateral coercion may be ineffective because signaling incentives lead the sender to demand a concession so substantial to make it unacceptable to the target. If the sender can instead commit to the international organization’s dispute settlement mechanism, then compliance is more likely because the latter places a cap on the sender’s incentives to signal its resolve. (JEL D74, D82, F12, F53)
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Steenblik, R. P., and K. J. Wigley. "Coal policies and trade barriers." Energy Policy 18, no. 4 (May 1990): 351–67. http://dx.doi.org/10.1016/0301-4215(90)90193-8.
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Melnik, Valentin. "DOMINANT STRATEGIC TRADE POLICY." ENVIRONMENT. TECHNOLOGIES. RESOURCES. Proceedings of the International Scientific and Practical Conference 2 (June 17, 2021): 106–11. http://dx.doi.org/10.17770/etr2021vol2.6542.
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In implementing trade policy measures, governments usually select from a range of instruments including quotas, subsidies (explicit or implicit) and tariffs. In this paper we consider the potential gain of a government pursuing a two-part trade policy: an import license for entry, along with a per-unit tariff on imports. The model is a three-step game between home and foreign countries in the Cournot duopoly. The paper demonstrates that two-part trade policy is dominant.
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Ossa, Ralph. "Trade Wars and Trade Talks with Data." American Economic Review 104, no. 12 (December 1, 2014): 4104–46. http://dx.doi.org/10.1257/aer.104.12.4104.
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How large are optimal tariffs? What tariffs would prevail in a worldwide trade war? How costly would a breakdown of international trade policy cooperation be? And what is the scope for future multilateral trade negotiations? I address these and other questions using a unified framework which nests traditional, new trade, and political economy motives for protection. I find that optimal tariffs average 62 percent, world trade war tariffs average 63 percent, the government welfare losses from a breakdown of international trade policy cooperation average 2.9 percent, and the possible government welfare gains from future multilateral trade negotiations average 0.5 percent. (JEL F12, F13, O19)
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Smil, Vaclav. "CHina's potential in international coal trade." Energy Policy 16, no. 3 (June 1988): 318–20. http://dx.doi.org/10.1016/0301-4215(88)90163-2.
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Smith, Greg. "The world coal trade: a commentary." Energy Policy 22, no. 6 (June 1994): 443–46. http://dx.doi.org/10.1016/0301-4215(94)90064-7.
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Karol, David. "Divided Government and U.S.Trade Policy: Much Ado About Nothing?" International Organization 54, no. 4 (2000): 825–44. http://dx.doi.org/10.1162/002081800551389.
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Scholars assert that divided government impedes the liberalization of U.S. trade policy. They claim that presidents favor freer trade and will use the negotiating authority Congress delegates to them to reach agreements lowering trade barriers. Since presidents gain more support from their congressional co-partisans, less liberalization ensues under divided government. This theory rests on the premise that party is unrelated to congressional trade policy preferences beyond legislators' tendencies to support their presidential co-partisans. Yet before 1970 congressional Democrats were relatively free trading regardless of the president's party affiliation. Since then, the same has been true of Republicans. Divided government facilitates the trade policies of presidents from the protectionist party since they win more support from their “opposition” in this area. Divided government does impede the efforts of presidents from the free-trading party to liberalize. I conclude that divided government has no consistent effect on trade policy outcomes.
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Lohmann, Susanne, and Sharyn O'Halloran. "Divided government and U.S. trade policy: theory and evidence." International Organization 48, no. 4 (1994): 595–632. http://dx.doi.org/10.1017/s0020818300028320.
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If different parties control the U.S. Congress and White House, the United States may maintain higher import protection than otherwise. This proposition follows from a distributive politics model in which Congress can choose to delegate trade policymaking to the President. When the congressional majority party faces a President of the other party, the former has an incentive to delegate to but to constrain the President by requiring congressional approval of trade proposals by up-or-down vote. This constraint forces the President to provide higher protection in order to assemble a congressional majority. Evidence confirms that (1) the institutional constraints placed on the President's trade policymaking authority are strengthened in times of divided government and loosened under unified government and (2) U.S. trade policy was significantly more protectionist under divided than under unified government during the period 1949–90.
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Zhang, Fuqiang, and Renyu Zhang. "Trade-in Remanufacturing, Customer Purchasing Behavior, and Government Policy." Manufacturing & Service Operations Management 20, no. 4 (September 2018): 601–16. http://dx.doi.org/10.1287/msom.2017.0696.
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Stegemann, Klaus. "Policy rivalry among industrial states: what can we learn from models of strategic trade policy?" International Organization 43, no. 1 (1989): 73–100. http://dx.doi.org/10.1017/s0020818300004562.
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The economic theory of international trade has changed dramatically over the last decade by admitting into its mainstream a body of literature that focuses on the implications of monopolistic and oligopolistic elements in international markets. By applying the tools of the “new” industrial organization in an international context, two new classes of models have emerged: models of intra-industry trade and models of strategic trade policy. The policy implications of models of strategic trade policy were quite disturbing for the economics profession, since these models demonstrated that the classical harmony between national and cosmopolitan welfare maximization does not exist if one assumes opportunities for strategic manipulation of oligopolistic international industries. This article reviews two prominent models of strategic trade policy—the Brander-Spencer model and the Krugman model—and relates them to more familiar earlier concepts, such as Stackelberg's asymmetrical duopoly solution and the venerable infant-industry argument for government intervention. The primary purpose of this article, however, is to provide a synopsis of the large literature addressing the question of whether models of strategic trade policy can give guidance for government policy.
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Hao, Xuguang, Mei Song, Yunan Feng, and Wen Zhang. "De-Capacity Policy Effect on China’s Coal Industry." Energies 12, no. 12 (June 18, 2019): 2331. http://dx.doi.org/10.3390/en12122331.
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Overcapacity in China’s coal industry has serious negative impacts on the rational allocation of coal resources and stable operation of the national economy. Since 2016, the Chinese government has implemented a series of de-capacity policies to optimise coal production capacity. Timely policy effect assessment is of great significance to the government to guide high-quality development of the coal industry. This paper first reviews the dilemma encountered by China’s coal industry prior to 2016, and then analyses the progress and effect of coal industry de-capacity. The main results are as follows: (1) The capacity reduction is mainly distributed in the central and southwestern regions. Most of the coal mines are state-owned, and there is a prominent worker resettlement problem. (2) The capacity optimisation policy has accelerated the implementation of the overall spatial planning of China’s coal supply. China’s coal production centre has shifted from the central and eastern regions to the west, and the industry’s high-quality development pattern has taken shape. (3) China’s coal industrial profitability has constantly been improving, industry concentration has increased significantly, and coal mining has become safer. (4) Due to the regional heterogeneity, the de-capacity policy effect has significant differences in coal production capacity and employee reduction in various regions. Finally, regarding the optimisation of China’s coal production capacity, some policy implications are given.
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Benítez, Galia. "Business Lobbying: Mapping Policy Networks in Brazil in Mercosur." Social Sciences 7, no. 10 (October 15, 2018): 198. http://dx.doi.org/10.3390/socsci7100198.
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In the creation of trade policy, business actors have the most influence in setting policy. This article identifies and explains variations in how economic interest groups use policy networks to affect trade policymaking. This article uses formal social network analysis (SNA) to explore the patterns of articulation or a policy network between the government and business at the national level within regional trade agreements. The empirical discussion herein focuses on Brazil and the setting of exceptions list to Mercosur’s common external tariff. It specifically concentrates on the relations between the Brazilian executive branch and ten economic subsectors. The article finds that the patterns of articulation of these policy networks matter and that sectors with stronger ties to key government decision-makers have a structural advantage in influencing trade policy and obtaining and/or maintaining their desired, privileged trade policies, compared with sectors that are connected to government actors with weak decision-making power, but might have numerous and diversified connections. Therefore, sectors that have a strong pluralist–clientelist policy structure with connections to government actors with decision-making power have greater potential for achieving their target policies compared with more corporatist policy networks.
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Mercier, Stephanie. "Adding a new perspective to US agricultural trade policy." Renewable Agriculture and Food Systems 35, no. 4 (September 14, 2018): 445–48. http://dx.doi.org/10.1017/s174217051800042x.
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AbstractUS farmers and ranchers have actively pursued markets in foreign countries for their products since the 1970s. This priority was reflected by the US Congress in 1978 enacting the first set of laws establishing programs aimed at promoting US agricultural exports. In 1986, the US government initiated its first trade negotiations, with the government of Canada, with the express goal of liberalizing access in that market to all US food and agricultural exports. Since that time, the US government has completed free trade agreements with 20 countries, six in DR-CAFTA, 13 in bilateral agreements and adding Mexico to create NAFTA. The US government also devotes considerable resources to detecting and combatting unfair barriers to trade, through informal channels as well as through WTO dispute settlements. However, these tools primarily focus on capturing larger slices of existing markets. To generate better returns, we need to focus more energy on efforts to generate increased demand in developing countries, by helping their agricultural economies prosper. Once those economies are growing, the other tools can be utilized.
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Subhan, Ahmad. "Disputes on Public Roads: Coal Transportation Policy and Actor Networks in Jambi Province, Indonesia." Journal of Social and Development Sciences 7, no. 4(S) (January 26, 2017): 38–45. http://dx.doi.org/10.22610/jsds.v7i4(s).1503.
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Abstract: Besides providing financial contributions to local revenue, coal also increases transportation problems in Jambi province. Mobilization of trucks that pass through the public roads has caused damage although already a regional policy that forbids it. This phenomenon has brought some disputes implication among local stakeholders in various forms, either in the judiciary or in the field. This paper examines that phenomenon from public policy aspects, especially from a policy actor networks perspective. This study used a descriptive qualitative approach by relying on documentary data which revealed that the complexity of coal transportation issues in Jambi province is visible from regulation violations by coal entrepreneurs that use the public road. Demonstrations by coal truck driver, road blockage protests by resident and even efforts by coal entrepreneurs are held to revise local regulation. The source of the problem is due to self-interests of government officials and coal operators. The key solution is law enforcement and policy support from district government towards the provincial government policies.Keywords: Public policy, actor-network, policy network, coal transportation, Jambi Province
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Song, Joon-heon. "Finding beneficiaries: trade adjustment assistance system in South Korea." Journal of International Trade Law and Policy 16, no. 2 (June 19, 2017): 92–105. http://dx.doi.org/10.1108/jitlp-03-2017-0010.
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Purpose The purpose of this study is to explore the essential cause for the policy failure of Trade Adjustment Assistance (TAA) in South Korea. Design/methodology/approach To substantiate the claims made for the failure of the policy, this paper focuses on the differences in policy preferences among the government ministries and agencies involved in TAA. Findings The failure in the TAA policy, according to this study, was attributed to the conflicts and miscoordination arising from the differences in policy preferences among government ministries and agencies. To rectify this failure, the South Korean government had to revise its laws and regulations several times over a short period. Originality/value Drawing on the analytical framework of the literature on policy failure, this paper examines the causal relationships between outcomes of TAA policy and the conflicts or miscoordination among government bodies at each stage: initiatives and planning, implementation and operation of the policy.
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Yasin, C. M., B. Yunianto, S. Sugiarti, and G. K. Hudaya. "Implementation of Indonesia coal downstream policy in the trend of fossil energy transition." IOP Conference Series: Earth and Environmental Science 882, no. 1 (November 1, 2021): 012083. http://dx.doi.org/10.1088/1755-1315/882/1/012083.
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Abstract The implementation of downstream coal policies in Indonesia is regulated in Law Number 3 of 2020 to optimize coal’s domestic use and value-added. The policy is also supported by the issuance of fiscal, non-fiscal, and regional incentives. In Law Number 3 of 2020, the government of Indonesia states six types of coal downstream: coal upgrading; coal briquetting; cokes making; coal liquefaction; coal gasification; and coal slurry, yet the government has not defined which downstream coal products should be prioritized. Several parameters must be considered in implementing the downstream coal policy, those are the availability of coal and its characteristics, proven technology, economic and environmental feasibility. This study examines the mineral and coal sector regulation, taxation, coal resources and reserves, technology, and economics. In addition, to implement the commitment of reducing CO2 emissions, this study also considers applying Carbon Capture and Storage (CCS) or Carbon Capture, Utilization, and Storage (CCUS) technology to implement downstream coal policy.
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Abboushi, Suhail. "Solar trade tariffs." Competitiveness Review 24, no. 1 (January 14, 2014): 59–65. http://dx.doi.org/10.1108/cr-06-2013-0061.
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Purpose – The purpose of this paper is to survey the growth of solar energy worldwide, analyze US-China trade dispute in the solar industry, and evaluate the merits of US trade tariffs. Design/methodology/approach – The study surveyed archival data, publications by international organizations, government agencies, industry groups, and some academic research papers. Findings – Global demand for solar energy has been rising steadily and is projected to generate growing source of electric power. There is worldwide consensus that public support for solar industry in the development stages is necessary. The US Government provides generous support programs and subsidies to US solar industry. Accordingly, US punitive tariffs against China's solar industry on grounds of government subsidies are of questionable merit. Originality/value – This paper presents a concise profile of global solar energy and evaluates US trade policy toward China. The findings can be of value to government officials as they consider trade policies and their impact on the future of solar energy.
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Unger, Richard W. "Trade, Taxation and Government Policy in the High Middle Ages." Viator 46, no. 3 (September 2015): 195–217. http://dx.doi.org/10.1484/j.viator.5.108331.
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Irwin, Douglas A. "Retrospectives: Challenges to Free Trade." Journal of Economic Perspectives 5, no. 2 (May 1, 1991): 201–8. http://dx.doi.org/10.1257/jep.5.2.201.
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The recent theoretical literature on strategic trade policy suggests that government intervention in international trade has the potential to be welfare improving. Government promotion of exports from imperfectly competitive industries, for example, may enable domestic firms to capture economic rents from foreign firms, thereby increasing national welfare. In addition, active responses to foreign protection, by a policy of reciprocity, may be required to prevent a loss of domestic welfare. Although these findings may bring into question the traditional economic case for free trade, many economists doubt that these theories provide sound guidance for trade policy. Economists in the nineteenth century also argued about whether theoretical justifications for tariffs compromised the case for free trade. This paper discusses two older debates somewhat related to the current focus on strategic industries and reciprocity, and concludes with an observation about how developments in economic theory affect economists' view of policy.
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Abelson, Donald E., and Michael Lusztig. "The Consistency of Inconsistency: Tracing Ontario's Opposition to the North American Free Trade Agreement." Canadian Journal of Political Science 29, no. 4 (December 1996): 681–98. http://dx.doi.org/10.1017/s0008423900014438.
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AbstractEmploying a rational choice perspective, this article seeks to explain the shift in the trade policy position of the Canadian province of Ontario during negotiations that led to the North American Free Trade Agreement. In doing so it highlights an important, though often overlooked, phenomenon: issue linkage in public policy construction. Early in 1993, Premier Bob Rae's New Democratic party government significantly shifted its position on the proposed agreement. While never actively supportive of the accord prior to 1993, the provincial government maintained close contact with federal trade negotiators as a means of advancing its core trade objectives. By February 1993, however, the government's position hardened perceptibly. Specifically, the government actively undertook to derail the proposed agreement. This article suggests that this shift cannot be understood in terms of growing dissatisfaction with the impending trade agreement, nor solely to a change in Ontario's trade policy preferences. Rather, it suggests that a broader perspective is needed, and argues that Ontario's position on NAFTA was linked to other priorities of the Rae government: namely, those in the fiscal policy arena.
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Siraën, Jean-Marc. "VERs as Strategic Trade Policies." Recherches économiques de Louvain 60, no. 2 (June 1994): 197–210. http://dx.doi.org/10.1017/s0770451800005790.
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SummaryLiterature about strategic trade policy (Brender, Krugman,…) has been concerned only with implicit internal strategic trade policies. We define them as policy tools targeting exclusively the behavior of national firms. In duopolistic terms, the goal is to move the reaction function of the domestic firm and to locate it in a better position than previously. The home country government must credibly commits itself to pursue a particular trade policy before firms make decisions about prices or production. On the contrary, external strategic trade policies influence the behaviour of foreign firms and force them to act in the way desired by the home government. Mixed strategies associate both actions and may lead to a collusive agreement. We show that if subsidy is an attractive policy tool for internal strategic trade policy with Cournot-Nash competition, Voluntary Export Restraints agreements are an equivalent and alternative strategic trade policy for governments having more preference for fiscal restraints than for the surplus of consumers and the general welfare. It is acceptable by foreign firms because they are less predatory than alternative measures. Retaliations by foreign countries are avoided by the agreement; VERs allow to impose a co-operative framework.
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Lydgate, Emily, and Chloe Anthony. "Coordinating UK trade and climate policy ambitions: A legislative and policy analysis." Environmental Law Review 22, no. 4 (December 2020): 280–95. http://dx.doi.org/10.1177/1461452920960349.
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The UK Government has pledged to achieve net-zero carbon emissions by 2050 but also champion open multilateral trade and pursue new trade relationships with geographically distant partners. The dynamism of policymaking in both areas, as the UK leaves the EU, provides a useful case study for the larger question of how to reconcile liberal trade policy with a net-zero target. After setting out the relevance of trade policy to the climate target, we examine areas at their intersection: current and proposed UK green subsidies, regulatory trade barriers, potential carbon border adjustment, fossil fuel subsidies and free trade agreements. We apply two analytical tests: compliance with relevant World Trade Organisation obligations and coherence with the net-zero climate target. The analysis is hindered by uncertainty, primarily regarding the extent of future global climate ambition, but there are clear areas in which the UK could strengthen its approach to climate change mitigation without undermining its commitment to open trade. Barring a major increase in global ambition, achieving the net-zero target will, however, likely require new trade restrictions. The implication is that, rather than being situated at the margins, the climate target must comprise a central objective of trade strategy.
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Irwin, Douglas A. "Trade Policy in American Economic History." Annual Review of Economics 12, no. 1 (August 2, 2020): 23–44. http://dx.doi.org/10.1146/annurev-economics-070119-024409.
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This article reviews the broad changes in US trade policy over the course of the nation's history. Import tariffs have been the main instrument of trade policy and have had three main purposes: to raise revenue for the government, to restrict imports and protect domestic producers from foreign competition, and to reach reciprocity agreements that reduce trade barriers. Each of these three objectives—revenue, restriction, and reciprocity—was predominant in one of three consecutive periods in history. The political economy of these tariffs has been driven by the location of trade-related economic interests in different regions and the political power of those regions in Congress. The review also addresses the impact of trade policies on the US economy, such as the welfare costs of tariffs, the role of protectionism in fostering US industrialization, and the relationship between the Smoot–Hawley Tariff Act and the Great Depression of the 1930s.
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Flфystad, Gunnar. "On Tariffs and Optimal Taxation Policy in Developing Countries." Pakistan Development Review 24, no. 3-4 (December 1, 1985): 443–52. http://dx.doi.org/10.30541/v24i3-4pp.443-452.
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Taxes on the foreign-trade sector are substantial sources of government revenue in almost all developing countries. Thus in a number of countries - including Pakistan, Indonesia, Burma, Ceylon, Malaysia, Thailand, Nigeria, Ghana and Colombia - such taxes account for more than 40 'percent of the government revenue. The main type of trade tax has been tariffs, but in addition there have been export taxes and profits from export marketing boards, the latter being really forms of export taxes
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Chandra Wijaya, Rasyid Dwi, Kristian Kusumo Dirjo, and Riski Dwi Arianto. "Export Policy – Import And Related Parties In Letter Of Credit." ASIAN Economic and Business Development 4, no. 1 (June 2, 2022): 74–82. http://dx.doi.org/10.54204/aebd/vol4no1july2022012.
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International trade policy is carried out to stabilize the economy that occurs between several countries. International Trade with this Letter of Credit is a sale and purchase price agreement carried out before international trade activities. This study aims to find out how policies in export and import activities use a Letter of Credit and parties participating in import export activities. The use of the method in this study is to use the type of analysis method in a qualitative way based on data from several sites such as Emerald, ScienceDirect, and Google Scholar. We find that international trading has a positive impact, namely encouraging manufacturing activities, making economic growth increase, employment rates increasing, financial institutions gaining trust and domestic needs will be met. Based on the concept of national economic strategy, policies in conducting international trade are divided into two types. First, the policy of free trade. This policy explains if the government gives permission to carry out exports and imports without interference from various rules. This import-export activity has an influence on the competition between each country. Second, trade defense policy. This policy explains if there is government interference in export and import activities. This government intervention is to protect various sectors that carry out export and import activities in order to survive in international competition.
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Effiom, Lionel, and Bassey Ebi. "Trade Policy, Infrastructure and Agricultural Output in Nigeria." Research in World Economy 10, no. 3 (July 25, 2019): 329. http://dx.doi.org/10.5430/rwe.v10n3p329.
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The collapse of the international price of crude oil in 2015 and its attendant negative consequences on government fiscal capacity and development efforts re-echoed the need for Nigerians to return to agriculture as the surest means of conserving foreign exchange and revamping productive capacity. Within this context, this paper deploys the autoregressive distributed lag (ARDL) econometric methodology to investigate the impact of Nigeria’s trade policy and infrastructural development on agricultural value added. Findings show that in the long run Nigeria’s trade liberalization policy is a disincentive to the growth of the agricultural sector value added, while key components of infrastructure (roads, telecommunications, and electricity consumption) had a significant relationship with the agricultural sector. We advocate guided trade liberalization wherein, while embracing the principles of conventional trade deregulation, the government properly articulates the weakness of the economy’s productive structure and encourage farmers and local producers to attain maturity. Specifically, the current ban on some selected food items should be consolidated, without which Nigeria would continue to be a net food importer. Goveronment might consider studying and implementing the African Development Bank’s Infrastructure Action Plan for Nigeria.
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Pulignano, Valeria. "Union struggle and the crisis of industrial relations in Italy." Capital & Class 27, no. 1 (March 2003): 1–7. http://dx.doi.org/10.1177/030981680307900101.
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This paper argues that the Berlusconi government is seeking to replace the ‘social concertation’ arrangement between government and trade unions with ‘social dialogue’ in an effort to undermine trade union ‘power’. This endeavour by the government to impose a policy of ‘social dialogue’ would severely limit trade unions' influence in economic and social policy decision-making and leave Berlusconi free to introduce reforms favouring his friends in employer organisations. One likely outcome would be the deregulation of the Italian labour market strongly damaging workers' rights.
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Janusch, Holger. "Labor Standards in U.S. Trade Politics." Journal of World Trade 49, Issue 6 (December 1, 2015): 1047–71. http://dx.doi.org/10.54648/trad2015040.
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This article shows that since the early 1990s the inclusion of labor standards in trade agreements and the accordance of the national labor laws and practices of the trading partner with international standards have been a necessary condition for U.S. trade liberalization. If Democrats and Republicans were unable to reach agreement over the linkage of trade and labor, a liberal trade policy was difficult to achieve regardless of unified or divided government. On the other hand, a liberal trade policy became possible even under divided government if Democrats and Republicans agreed on labor provisions for trade agreements. Furthermore, the controversy over labor standards in trade agreements changed the relation between the President and Congress, because Congress increasingly acted as dominant trade policy maker not only in domestic politics but also in international negotiations.
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Obi-Egbedi, Ogheneruemu, Olaide A Akin-Olagunju, and Isaac B Oluwatayo. "Rice trade policy and productivity: empirical evidence from Nigeria’s Rice sub-sector." Global Journal of Economics and Business 11, no. 1 (August 2021): 96–106. http://dx.doi.org/10.31559/gjeb2021.11.1.7.
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Low productivity, modest production and large-scale importation characterize Nigeria’s rice subsector despite government intervention through trade policy measures since independence. Studies on Nigeria’s trade policy and rice productivity are scanty in the literature. Therefore, this study investigated the effect of the country’s rice trade policy on rice productivity from 1961-2017, employing the Vector Error Correction Modeling approach. The results show that protectionist trade policy reduced rice productivity in the short run but was not significant in the long run. Producer price and domestic consumption improved rice productivity in the short run although, the latter reduced productivity in the long run. Similarly, fertilizer consumption and exchange rate reduced productivity in the short run but exchange rate increased productivity in the long run. Thus, government should focus on exchange rate, liberalized trade policy and appropriate fertilizer policy to improve Nigeria’s rice productivity.
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Cole, Alexandre Lucas, Chiara Guerello, and Guido Traficante. "ONE EMU FISCAL POLICY FOR THE EURO." Macroeconomic Dynamics 24, no. 6 (November 26, 2019): 1437–77. http://dx.doi.org/10.1017/s1365100518000925.
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We build a two-country New-Keynesian DSGE model of a Currency Union to study the effects of fiscal policy coordination, by evaluating the stabilization properties and welfare implications of different fiscal policy scenarios. Our main findings are that a government spending rule which targets the net exports gap rather than the domestic output gap produces more stable dynamics and that consolidating government budget constraints across countries with symmetric tax rate movements provides greater stabilization. A key role is played by the trade elasticity which determines the impact of the terms of trade on net exports. In fact, when goods are complements, the stabilization properties of coordinating fiscal policies are no longer supported. These findings point out to possible policy prescriptions for the Euro Area: to coordinate fiscal policies by reducing international demand imbalances, either by stabilizing trade flows across countries or by creating some form of Fiscal Union or both.
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Kurniawan, Robi, and Shunsuke Managi. "Coal consumption, urbanization, and trade openness linkage in Indonesia." Energy Policy 121 (October 2018): 576–83. http://dx.doi.org/10.1016/j.enpol.2018.07.023.
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Lee, Dalgon. "Equity Implications of the Korean Urban Energy Policy." Korean Journal of Policy Studies 2 (December 31, 1987): 26–46. http://dx.doi.org/10.52372/kjps02002.
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The importance of gas as the major source of fuel energy has recently been on the rise, reducing the traditional dependence on coal and coal briquets significantly. Accordingly, how to distribute government incentives among alternative sources of energy becomes an important policy issue. While admitting that the decision will be ultimately swayed by political considerations, this paper suggests that there are several policy criteria which, if properly adopted, would help rationalize energy policymaking. The author argues that in addition to the traditional criteria such as efficiency and equity, the uncertainties of the energy policy system and the consistency and continuity of the policy should be considered as substantive policy criteria as well. Among those, this paper focuses on the equity effects of gas and coal subsidies for various income groups. Evaluating the current distribution of government subsidies fairly equitable and favoring a greater reliance on gas as major source of energy in the future in light of its higher social benefits, this paper warns against the negative equity effects of gas subsidy for the lower income class, particularly when it is combined with the withdrawal or reduction of coal briquet subsidy currently available to them.