Browse by: "2013"

In 2009, the term “21st Century Coal” was jointly coined by the governments of China and the United States to describe the importance of strategic international partnerships to advance development of near-zero emissions (NZE) technology enabling clean energy solutions from coal (OPS, 2009). Coal industry leaders have embraced the concept of “21st Century Coal”, viewing the term in an even broader context as a term which symbolises the future of coal in the world. This future rests on a foundation of several elements, including an uncompromising commitment to safety, modern cutting-edge mining techniques, world-class land restoration practices and a technology path to NZE.

This paper presents an overview of gender differences in education outcomes in OECD countries. A rich set of indicators describes the improvement of educational attainment among women over the past decades, and various dimensions of male under-performance in education. Possible explanatory factors include incentives provided by changing employment opportunities for women, demographic trends, as well as the higher sensitivity of boys to disadvantaged socio-economic backgrounds. Gender differences in field of study and in performance by subject are found to be related to attitudes and self-perceptions towards academic subjects, which are in turn influenced by social norms. A number of policy options to address gender gaps are presented in the final section of the paper.

This report provides a comprehensive overview of the international landscape of environmental labelling and information schemes (ELIS), defined as policies and initiatives that aim to provide information about one or more aspects of the environmental performance of a product or service to external users. First, a review of initiatives and actors is used to build an institutional map of the diversity of schemes. Second, the universe of ELIS is dissected, based on a list of identified characteristics affecting the modes of communication of such schemes and the nature of the standards on which they are based. Lastly, the growth in ELIS is analysed by these identified characteristics, using a dataset of 544 ELIS introduced between 1970 and 2012 covering 197 countries.

Results from this analysis support the rapid in the number of ELIS, especially in the late 1990s and between 2007 and 2010. At the same time, these figures suggest that this growth might have slowed since 2010. The analysis also shows both the diversity and unequal growth of ELIS according to different characteristics. The growth in ELIS appears to be driven by the combination of an increase in the number of “traditional” ELIS, such as single-issue environmental seals, and the emergence of “more recent” types of ELIS, including quantitative reports. This combination highlights the tension between increased competition among similar ELIS, and the emergence of new schemes potentially less exposed to direct competition but facing larger entry challenges. The dataset also shows that the multiplicity of ELIS may not be present for all types of products and environmental areas in all countries.

These findings provide a contextual basis to look at evidence on the potential implications of having a multiplicity of schemes, and analyse the current and possible need for policy responses to identified challenges.

This work proposes a characterisation of the patenting behaviours of firms. It relies on patent data linked to firm data from a commercial dataset, regards firms of 20 or more employees located in 15 countries, and refers to the period 1999-2010. The way in which patent assignees’ names are linked to firm names is explained, and the coverage and representativeness of the firm database used is discussed using information from structural business statistics. The profile of patenting and non-patenting firms is delineated on the basis of characteristics such as firm size, ownership, firm age and industry, and of combinations thereof. Statistics related to the sector-specific patterns of patent renewals are also shown.

Much valuable information exists already on household economic resources (i.e. income, consumption and wealth). Indeed, the national accounts provide aggregate measures and micro sources (surveys, administrative records, and censuses) can be used to derive measures of the distribution across household groups. Over the years, however, macro and micro statisticians have tended to work separately leading to sometimes divergent results which can cause problem to users. In 2011, the OECD and Eurostat launched a joint Expert Group to carry out a study on the feasibility of compiling measures of the distribution of income, consumption and wealth across household groups that are consistent with national accounts definitions and totals. The first challenge of the Expert Group was to draw a detailed picture of the extent to which statistical information derived from micro sources can be aligned to three national accounts aggregates; 20 countries studied all (or part) of the components of adjusted disposable income, 21 all (or part) of the components of actual final consumption and 7 studied all (or part) of the components of household net worth. Results show that there are a number of identified reasons that can explain differences between micro and macro sources. Some of them were quantified and isolated showing finally that for most countries micro sources provide distributive information for most of the national accounts components but for some of them with quite significant gaps in total amounts. Overall, micro and macro totals are closer to each other for income components than for consumption and wealth components. The results also show that there is greater heterogeneity in results across countries for consumption components.

This paper proposes a new measure of skills mismatch that combines information about skill proficiency, self-reported mismatch and skill use. The theoretical foundations underling this measure allow identifying minimum and maximum skill requirements for each occupation and to classify workers into three groups, the well-matched, the under-skilled and the over-skilled. The availability of skill use data further permit the computation of the degree of under and overusage of skills in the economy. The empirical analysis is carried out using the first wave of the OECD Survey of Adult Skills (PIAAC) and the findings are compared across skill domains, labour market status and countries.

This paper proposes a new set of public health and long-term care expenditure projections until 2060, seven years after a first set of projections was published by the OECD. It disentangles health from longterm care expenditure, as well as the demographic from the non-demographic drivers, and refines the previous methodology, in particular by extending the country coverage. Regarding health care, nondemographic drivers are identified, with an attempt to better understand the residual expenditure growth by determining which share can be explained by the evolution of health prices and technology effects. Concerning LTC, an estimation of the determinants of the number of dependants (people needing help in their daily life activities) is provided. A cost-containment and a cost-pressure scenario are provided, together with sensitivity analysis. On average across OECD countries, total health and long-term care expenditure is projected to increase by 3.3 and 7.7 percentage points of GDP between 2010 and 2060 in the cost-containment and the cost-pressure scenarios respectively. For the BRIICS over the same period, it is projected to increase by 2.8 and 7.3 percentage points of GDP in the cost-containment and the costpressure scenarios respectively.

This paper develops a simple model-based framework for stress testing fiscal consolidation strategies under different scenarios of future shocks. A baseline scenario assuming a gradual debt consolidation is presented and by assuming different future developments (e.g. lower potential growth) and/or model specification in terms of a fiscal rule confidence bands around the baseline are obtained. Trade-offs between costs and benefits are evaluated, in terms of cumulative output loss and primary surpluses, as well as political difficulty of fiscal strategies and risk of failed consolidation. The model is applied to Austria, Czech Republic and Germany. This working paper relates to the 2013 OECD Economic Surveys of Austria, Czech Republic and Germany. (www.oecd.org/eco/surveys)

Empirically, the income share is procyclical for the low-income groups and acyclical for the top 5%. To generate this kind of behaviour in a DGE business cycle model, we consider overlapping generations and elastic labour supply in addition to those elements considered by Castañeda et al. (1998). We also analyse a model with rigid wages. However, these features do not help to constitute a major improvement vis-a-vis their model.

JEL classification: C68, D31, E32
Keywords: Income distribution, business cycle, overlapping generations, unemployment, pensions

Competitiveness and carbon leakage issues have been some of the main concerns in the implementation and discussions of climate policies. These concerns are particularly important in the presence of multiple carbon markets since differences in climate change policy approaches may have impacts on the relative competitiveness of domestic sectors in countries with more stringent policies, and on the environmental effectiveness through carbon leakage.

This paper examines the macroeconomic and sectoral competitiveness and carbon leakage impacts associated with a range of stylised mitigation policy scenarios. The scenarios reflect different depictions of carbon markets in terms of their level of linkages, their coverage (i.e. number of countries participating, types of gases and sectors) and the stringency of the carbon pricing policy across countries. The paper also investigates some policies to address competitiveness and carbon leakage issues. The analysis considers border carbon adjustments (BCAs) as well as direct and indirect (offset-based) linking of carbon markets.

The results show that in presence of multiple carbon markets, competitiveness can decrease in countries that undertake climate policies, also leading to carbon leakage. The negative sectoral competitiveness and leakage effects can be reduced when more countries act, more emission sources are covered, and when the climate mitigation policy is harmonised across countries. The results also show that response policies, such as BCAs and linking of carbon markets, can address some, but not all, of the competitiveness and carbon leakage issues. While BCAs are more effective in addressing domestic competitiveness concerns than linking instruments, the latter are better in preserving the welfare of countries that are not undertaking a climate policy.

The tragic accident at the Fukushima Daiichi nuclear power plant (NPP) will long be seen as a seminal event in the history of commercial nuclear power. Within the United States, not since the accident at Three Mile Island in 1979 has the US Nuclear Regulatory Commission (NRC) been confronted with as many important issues, so central to the core of its mission, as have arisen following the Fukushima Daiichi accident. While much of the agency’s attention has rightfully been on the technical merits of the NRC’s Near-Term Task Force (NTTF)1 Report recommendations, the long-term regulatory implications of our post-Fukushima Daiichi actions have not always received similar scrutiny. Now that sufficient time has passed, I believe it is appropriate to take a step back and at a high level see what impact implementation of all these actions will have on our regulatory framework and our approach to adequate protection.

 

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This article shows how to combine top-down budgeting – in the core sense of the establishment of a hard aggregate expenditure ceiling at the start of the budget preparation process – with flexibility in the allocation of the aggregate ceiling between spending ministries during budget preparation. It argues strongly against determining spending ministry shares of the aggregate expenditure ceiling without any prior opportunity for them to present formal new spending proposals. The keys to reconciling top-down budgeting with allocative flexibility are: the baseline/new policy distinction; good forward estimates; a government-wide new policy pool; and spending review.

JEL classification: E620, H610
Keywords: Fiscal policy, budget preparation process, top-down budgeting, expenditure ceiling, bottom-up spending requests, fiscal space, multi-year ceilings, baseline ceilings, allocative efficiency, aggregate fiscal discipline, budgeting techniques

Like most large cities, Sydney has an airport problem. Demand is increasing faster than supply, and additional capacity will be needed if costly rationing, and delays, are to be avoided. However, compared to many cities, the problems facing Sydney are modest. At the moment, demand is only just exceeding capacity. There is a good chance that the available capacity will be rationed efficiently. Options for expanding capacity are being evaluated well. There may be problems in the future- poor options may be chosen over good options.

Many major airports are hubs for network carriers at the same time as serving a large local market. The complementarity between these functions is often seen as a prerequisite for viable hub operations, suggesting that spreading the hub network over multiple airports can be very costly and damages the corner stone of the hub operation: the creation of scope and density economies.

The global airline industry is slowly returning to profitability, but there is a long and difficult road ahead. According to IATA, the industry raised a profit of $8 billion in 20112 and it is forecasted to make a profit of $11 billion in 2013.3 However, these improved profit margins continue to be razor thin – in the best of times the airline industry earns only a modest 1-2% net profit margin on revenue. Volatile fuel prices, economic downturns, impacts of terrorism and natural disasters (hurricanes, volcanic ash, tsunamis), pandemics and government austerity measures are among the key factors that will continue to affect airline profitability...

Each year SIGMA produces assessment reports as a contribution to the EC’s annual reports on EU candidate countries and potential candidates, as well as to its programming of technical assistance. These reports assess progress made in public administration reform by our beneficiary countries. The report for Albania analyses and takes stock of progress achieved by this country in 2013, with an aim to also provide inputs into its reform agenda. It focuses on administrative law and administrative justice, public expenditure management (financial management and control), internal audit, external audit, public procurement (including concessions), and regulatory management (legislative drafting process and related consultation processes).

As a continuation of the 2013 SIGMA assessments and as part of a longer-term programme of work, SIGMA has identified country priorities for public administration reform (PAR) for Albania. Priorities cover the overall PAR needs of the country, including areas which were not covered by the assessments. Priorities in areas outside the scope of SIGMA assessments are based on other analytical sources and SIGMA’s practical experience of working with the country. SIGMA proposes priority 2020 targets for the countries, sub-targets when needed, and sequenced priority activities in 1-2, 3-5 and 5+ year time perspectives.

The predictive power of the PISA test items for future student success is examined based on data from the Longitudinal Surveys of Australian Youth (LSAY) for the PISA 2003 cohort. This working paper analyses how students’ responses to mathematics and problem-solving items in PISA 2003 are related to the students’ qualifications in education in 2007 and 2010. The results show that items do differ in their predictive power, depending on some of their deep qualities. PISA mathematics and problem-solving items are grouped into various classifications according to their qualities. This paper proposes 16 new classifications of items. Among mathematics-specific item classifications, two are found to be significantly related to future student success: those that assess knowledge, understanding, and application of statistics; and those related to rates, ratios, proportions, and/or percent. These items frequently require students to apply common mathematical concepts to solve multi-step, non-routine problems, think flexibly, and understand and interpret information presented in an unfamiliar format or context. Among classifications that are not specific to mathematics, items that were classified as using reverse or flexible thinking are found to be related to student qualifications in both mathematics and problem solving. These items require students to be able to think through a solution at various points during the problem-solving process, not just at the start.