The Effect of Investment Subsidy in a Dualistic Economy

2012 ◽  
Author(s):  
Hiranya Lahiri
Keyword(s):  
Dualistic Economy ◽  
Investment Subsidy

Efficient use of subsidies in the financing of water and wastewater investments

2005 ◽  
Vol 5 (6) ◽  
pp. 197-207
Author(s):  
A.J. Almagro
Keyword(s):  
European Commission ◽  
Significant Risk ◽  
The European Union ◽  
Checks And Balances ◽  
Economic Agents ◽  
Economic Justification ◽  
Economic Rationale ◽  
Eu Directives ◽  
Water And Wastewater ◽  
Investment Subsidy

Compliance with the European Union (EU) standards in the provision of water supply and wastewater services, as set forth in the relevant EU Directives, may require a significant investment effort for some countries and more specifically the new Member States. In order to ease this effort, these countries have the possibility of receiving subsidies from the European Commission to finance their investments. Using as a reference the standard methodology applied by the European Commission to define its intervention rate in a project, this paper focuses on the economic rationale and risks behind the investment subsidies in the sector. The questions asked are (a) what is the economic justification of this kind of investment subsidy and who are the target beneficiaries; (b) what factors may cause these subsidies to reach other economic agents; and (c) what measures would prevent those unexpected transfers of taxpayer resources. The results of the analysis indicate that, although the underlying methodology is economically sound, there is a significant risk that part of the subsidies may end up benefiting economic agents other than those originally targeted. However, this risk can be easily mitigated with some basic checks and balances during the calculation of the intervention rate. The views expressed in this paper are strictly personal.

ILLUSIONS IN THE MARGINAL INVESTMENT SUBSIDY

1962 ◽  
Vol 15 (1) ◽  
pp. 26-31
Author(s):  
WILLIAM H. WHITE
Keyword(s):  
Investment Subsidy

scholarly journals Managing a South African organisation within a dual manufacturing and services economy

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
R. Weeks ◽  
S. Benade
Keyword(s):  
South African ◽  
Global Economy ◽  
Manufacturing Sector ◽  
Management Approach ◽  
The South ◽  
Literature Study ◽  
Important Conclusion ◽  
Management Perspective ◽  
The Impact ◽  
Dualistic Economy

Purpose: The purpose of this paper is to analyse the nature of the South African dual manufacturing and services economy and the impact thereof on organisations from a management perspective. Problem investigated: Services account for over 65% of South Africa's gross domestic product (GDP) and reflects an escalating trend. The manufacturing sector of the economy is just over 26% of GDP. This by implication implies that the South African economy is dualistic in nature. The economy functions as an integrated component of the global economy, one that is highly competitive and turbulent in nature. The traditional management approach tends to be one based on a mechanistic, analytical and deterministic manufacturing perspective that is no longer effective in dealing with the services economy. Methodology: A literature study is undertaken and a narrative enquiry conducted by means of discussions with 24 South African executives to determine the impact of the dual economy on South African organisations and the influence thereof from a management perspective. The approach adopted was intentionally analytical-descriptive in nature. The narrative enquiry constituted open ended but structured discussions with executives in order to learn from their personal experiences in managing an organisation in what is termed to be the dual South African services and manufacturing economy. Findings: An important conclusion drawn from the study is that traditional paradigms of management that evolved within a mechanistic manufacturing economy is no longer effective for dealing with the unpredictable and disruptive changes of a highly competitive global services economy. A complexity theory based management approach it would appear may be more relevant in dealing with the emergent realities associated with a turbulent services economy. Value of the research: Seen within the context of the changing nature of the global and South African economy, the insights gained from the study could assist executives and managers in exploring alternative paradigms of management that would be more appropriate for dealing with the paradoxical nature of a dualistic economy. Conclusion: Appropriate management paradigms differ in terms of contextual realities confronting managers, namely dealing with ordered and un-ordered contextual conditions. The Cynefin Framework (Kurtz & Snowden, 2003) serves as a means of sense making in finding the most appropriate management response for dealing with the contextual realities associated with a dualistic economy.

scholarly journals REVENUE RECYCLING AND COST EFFECTIVE GHG ABATEMENT: AN EXPLORATORY ANALYSIS USING A GLOBAL MULTI-SECTOR MULTI-REGION CGE MODEL

2018 ◽  
Vol 09 (01) ◽  
pp. 1840009 ◽  
Author(s):  
YUNFA ZHU ◽  
MADANMOHAN GHOSH ◽  
DEMING LUO ◽  
NICK MACALUSO ◽  
JACOB RATTRAY
Keyword(s):  
Computable General Equilibrium ◽  
Income Tax ◽  
Capital Investment ◽  
Economic Cost ◽  
Cost Effective ◽  
Cge Model ◽  
Revenue Recycling ◽  
Lump Sum ◽  
Tax Reduction ◽  
Investment Subsidy

Carbon pricing generates revenues which can be recycled back into the economy in different ways to help mitigate the economic cost of abatement. These include, lump-sum transfers to households; reducing existing distortionary taxes, such as income taxes on labor and capital; investment in technology funds leading to energy/emissions efficiency improvements; and/or infrastructure developments that help expedite the adoption of low or lower carbon-intensive technologies. In this paper, we undertake illustrative simulations to explore how different revenue recycling options influence the overall economic outcome in terms of broad macroeconomic indicators, such as Gross Domestic Product (GDP) or household welfare. Environment and Climate Change Canada’s (ECCC) multi-sector, multi-region Computable General Equilibrium (CGE) model (EC-MSMR) is used to simulate various revenue recycling options. These simulations are undertaken for the U.S. economy. The main findings of the paper are: (i) using carbon revenue for a general income tax reduction or investment subsidy is more advantageous than a lump-sum transfer to U.S. consumers in terms of welfare or GDP; and (ii) using carbon revenue for a sector-based subsidy such as renewable energy is more disadvantageous than a lump-sum transfer to consumers. In terms of accumulated welfare effects, our results indicate that the best carbon revenue recycling option is the investment subsidy or capital income tax reduction in the longer horizon; labor tax reductions yield the best outcome in the shorter horizons.

Environmental taxation in a dualistic economy

2007 ◽  
Vol 12 (1) ◽  
pp. 73-89 ◽  
Author(s):  
VASSILIS T. RAPANOS
Keyword(s):  
National Income ◽  
Environmental Taxation ◽  
Rural Sector ◽  
Urban Sector ◽  
Agricultural Output ◽  
Employment Effects ◽  
Short Run ◽  
Factors Of Production ◽  
Dualistic Economy

In the framework of the Harris–Todaro model we introduce a production–production externality and assume that the activity in the urban sector negatively affects (pollutes) the rural sector. As a means of reducing pollution a tax is imposed on the production of the polluting sector and the distributional and employment effects, as well as the national income aspects of such a tax, are explored. We take two versions of the Harris–Todaro model, the short run, where only labour is mobile between the rural and the urban sector, and the longer run, where all factors of production are intersectorally mobile. Our findings indicate that taxation will reduce pollution, may favour employment in the rural sector, and under certain conditions will also reduce unemployment, particularly in the longer run. National income will be generally enhanced if the share of the agricultural output in national income is higher than the share of manufactures.

Economic and Environmental Assessments of Two Installation Types of Photovoltaic Systems in Shanghai

2014 ◽  
Vol 672-674 ◽  
pp. 44-47
Author(s):  
Xin Fang Wu ◽  
Yong Sheng Liu ◽  
Juan Xu ◽  
Xiao Dong Si ◽  
Wei Lei ◽  
...  
Keyword(s):  
Net Present Value ◽  
Environmental Benefit ◽  
Pv System ◽  
Pv Systems ◽  
Energy Payback ◽  
Payback Time ◽  
Energy Payback Time ◽  
Negative Impacts ◽  
Investment Subsidy ◽  
Electricity Tariff

This paper mainly analyses a BAPV system of 3kWp and a BIPV system of 10 kWp in Shanghai, China. Net present value (NPV) and the payback time (Pd) as the parameters to determine the profitability of the system based on some actual measured data. As there are two subsidy policies in China, including the initial investment subsidy and PV electricity tariff subsidy. The variations of NPV and Pdwith the initial investment subsidy and PV electricity tariff subsidy are researched. Analysis results indicate both the systems have a good economic benefit. Since the manufacturing, utilization and recycling periods of PV systems can lead to negative impacts on the environment. Environmental impacts by both the systems are also evaluated in this paper by the energy payback time (EPBT) and greenhouse-gas payback time (GPBT). Results show both the systems have a good environmental benefit, PV technology and PV system are sustainable.

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