International commodity transactions : The role of the commodity futures trading commission

The creation of so-called ‘financial’ futures contracts in the USA has spurred the growth of futures trading by other countries, including the UK. The increased expansion of commodity futures trading has also led to heightened regulatory concerns throughout the world. The USA has been especially aggressive in asserting jurisdiction and establishing regulatory controls over persons dealing in the US markets. The complexity of the regulations adopted is compounded by the fact that they are often directed at specific instruments, while similar instruments are not given comparable regulatory treatment. This article discusses the growth of futures trading worldwide, as well as regulatory concerns and requirements existing in the USA.     

Correlation structure between inflation and oil futures returns: An equilibrium approach

We use an equilibrium model of a monetary economy to understand the economics behind the correlation between inflation and oil futures returns. We find that some of the positive correlation found in empirical studies is due to the fact that oil is in the consumption basket; however, this accounts only for a minor part of it. There exist other important sources of correlation related to monetary shocks and output shocks. In particular, we find that the correlation is extremely sensitive to the reaction of the central bank to output shocks, while the reaction to inflation changes is less significant. We estimate our model using maximum likelihood with the following data sets: crude oil futures prices, nominal interest rates, inflation rates and money supply growth rates. Our estimates suggest that the monetary authority overreacts to output shocks by increasing the money supply in a more than necessary amount, generating a significant source of positive correlation. From a practical perspective, We find that it is a good strategy to use as a hedge, the futures whose maturity is closer to the hedging horizon. This is particularly true for short-term hedging.     

排污权交易机制在山西省的探索与实践

排污权交易制度是一项需要探索的引入了利益激励的新制度,本文着重介绍了山西省在排污权交易工作中的探索成果。对排污权交易机构的设立、区域排污权总数量的确定及企业初始排污权的核定、交易价格计量单位和排污权获得后拥有年限、排污权交易的保护价格、可出让排污权及政府储备排污权、跨区域交易原则、排污权退市以及促使现有企业进入购买排污权队列等问题做了详细阐述。     

The illegal trading of high unit value minerals in developing countries

Attracted by the high unit value and low barriers to entry in terms of capital requirements, technology, infrastructure, minimum reserves and implementation time, the artisanal and small-scale mining of high unit value minerals, such as gemstones, diamonds and gold, has grown to significant proportions in developing countries. This is manifested by the value of output and large numbers of miners engaged in this activity. Despite the expansion of the subsector, its national economic role in many developing countries has largely been disappointing, primarily due to high levels of illegal trading activity. The objectives of this paper are to identify major factors responsible for the declaration problem. The economic impact of such activities is pointed out. To conclude the discussion, options are presented that provide a basis for eliminating illegal marketing practices and thereby strengthening the economic role of the subsector in meeting national development objectives of developing countries .     

中国排污权交易实践存在的问题及其解决路径

目前,排污权有偿使用和交易作为各地环保工作体制、机制创新的热点,是利用经济手段促进环境保护的有益尝试。本文介绍了我国试点地区开展排污权有偿使用和交易所做的主要工作及其特点,并就面临的问题进行了重点分析,提出了进一步完善的对策措施,为全国范围内开展排污权有偿使用和交易积累了工作经验。     

建立PM2.5排污权交易框架的研究

化学需氧量、氨氮、二氧化硫、氮氧化物的排污权交易在我国已经开展试点工作,但是PM2.5排污权交易在我国尚未开展试点工作。本文根据国内外排污权交易的经验,以及其他污染物排放总量控制目标和我国的实际情况,分析了建立PM2.5排污权交易的必要性,并提出了初步构建PM2.5排污权交易的框架,为今后开展PM2.5排污权交易试点工作提供了理论基础。     

安徽省水域排污权交易市场建立可行性研究

随着经济发展,传统的经济增长模式已经不能适应需要,寻求一种资源节约型、环境友好型的新的经济发展模式势在必行。日益受到关注的排污权交易制度就是新型经济发展模式的具体运用和体现。本文在对安徽省自然条件、市场主体需求、政府政策等方面进行分析的基础上,就安徽省水域排污权交易市场建立的可行性问题作了必要研究。     

排污权交易基准价定价机制探讨

构建科学合理的基准价定价机制是推动排污权交易的基础性工作,本文以政策、管理、技术三个方面作为立足点,探讨了基准价定价机制,构建了工作框架。研究认为现阶段基准价定价采取成本定价法是合适的,并对基准价定价技术难点进行了剖析,提出了建议。     

Toward quantifying the effectiveness of water trading under uncertainty

This paper presents a methodology for quantifying the effectiveness of water-trading under uncertainty, by developing an optimization model based on the interval-parameter two-stage stochastic program (TSP) technique. In the study, the effectiveness of a water-trading program is measured by the water volume that can be released through trading from a statistical point of view. The methodology can also deal with recourse water allocation problems generated by randomness in water availability and, at the same time, tackle uncertainties expressed as intervals in the trading system. The developed methodology was tested with a hypothetical water-trading program in an agricultural system in the Swift Current Creek watershed, Canada. Study results indicate that the methodology can effectively measure the effectiveness of a trading program through estimating the water volume being released through trading in a long-term view. A sensitivity analysis was also conducted to analyze the effects of different trading costs on the trading program. It shows that the trading efforts would become ineffective when the trading costs are too high. The case study also demonstrates that the trading program is more effective in a dry season when total water availability is in shortage.     

Feasibility,forward pricing and returns: Recent developments in the literature on futures trading

In recent years the feasibility conditions for market establishment and the information value of futures markets have been central issues in futures market research. This paper first discusses recent developments under the heading of feasibility conditions, including the obsolescence of the commodity characteristics approach and the search for a comprehensive framework. Second, futures markets collect and disseminate information, and in so doing they are centres of rational price formation, and the forms of tests that have been developed to ascertain whether they perform this function efficiently are considered. Futures markets also perform a forward pricing function: their prices may be regarded as market anticipations of subsequent cash prices. 1970s' literature has addressed this question, finding differences in performance between continuous and non-continuous inventory commodities. This paper discusses the reasons for and economic implications of these results.     

Jordan,minerals extraction and the resource curse

In its role as a competitive producer of phosphate and potash Jordan has not suffered noticeably from the Resource Curse over the past 50 years. However, the effects on its economy because of its geographical proximity to major oil-producing states have been both positive and negative. It is arguable that an oil resource curse has applied to Jordan.     

Regional resource management techniques: The case of Colorado oil shale development

Regions under stress from rapid development require comprehensive planning and management tools, capable of identifying the pace, location and magnitude of growth and assessing social, economic and environmental impacts. Northwest Colorado, endowed with massive rich deposits of oil shale, went through a boom-bust cycle of growth during the early 1980s as US interest in synthetic fuels peaked and then rapidly declined. An innovative resource information system has been developed which has assisted the region in anticipating growth and modifying its consequences. This article reviews the organization and development of the Colorado Resource Information System (CRIS) and evaluates its role and impact in the decisionmaking process. Experience shows that regions which develop and maintain planning and information tools can have significant influence on economic development.     

An international registration and tracking system for greenhouse gas emissions trading: elements,possibilities, problems and issues for further discussion

International emissions trading under the Kyoto Protocol or an alternative international regime need a registration system to prevent the creation of fake emission permits. We suggest a two-tier system consisting of an International Registry (IR) and a set of national registries. National registries have to adhere to a set of minimum standards. The IR maintains accounts for countries and private entities. The latter would thus be ensured against expropriation. We suggest that permits should become fungible across all Kyoto Mechanisms, and are allocated a serial number to allow tracking. The IR should collect fees for adaptation and administration. It should also be charged with reallocation of emission budgets owing to various causes, enforcing of eventual caps, and discounting of permits owing to non-compliance. We discuss the registration process and a timetable for the set-up of the registries. Copyright © 2001 John Wiley & Sons, Ltd.     

合芜蚌试验区排污权交易制度建立之构想

排污权交易的实践证明了排污权交易可以有效地保护环境,同时也提出了亟需对其适用条件和建设模式进行探索的现实命题。文章以合芜蚌自主创新试验区为例,在分析了合芜蚌试验区内推行排污权交易制度的可行性基础上,提出了区域性排污权交易的构建模式。     

Baseline requirements can hinder trades in water quality trading programs: Evidence from the Conestoga watershed

The U.S. Environmental Protection Agency (USEPA) and the U.S. Department of Agriculture (USDA) are promoting point/nonpoint trading as a way of reducing the costs of meeting water quality goals. Farms can create offsets by implementing management practices such as conservation tillage, nutrient management and buffer strips. To be eligible to sell offsets or credits, farmers must first comply with baseline requirements. USEPA guidance recommends that the baseline for nonpoint sources be management practices that are consistent with the water quality goal. A farmer would not be able to create offsets until the minimum practice standards are met. An alternative baseline is those practices being implemented at the time the trading program starts, or when the farmer enters the program. The selection of the baseline affects the efficiency and equity of the trading program. It has major implications for which farmers benefit from trading, the cost of nonpoint source offsets, and ultimately the number of offsets that nonpoint sources can sell to regulated point sources. We use a simple model of the average profit-maximizing dairy farmer operating in the Conestoga watershed in Pennsylvania to evaluate the implications of baseline requirements on the cost and quantity of offsets that can be produced for sale in a water quality trading market, and which farmers benefit most from trading.     

A study on recovery of oil from sludge containing oil using froth flotation

Induced air flotation was used to recover oil from synthetically prepared sludge containing oil. A commercial surfactant was used as the collector and frother. The effects of various parameters, namely flotation time, initial amount of oil in the feed and the amount of surfactant used on the recovery of oil were investigated. Within the range of operating conditions studied herein, the maximum oil recovery obtained was about 55%. A detailed study of flotation kinetics based on oil recovery was carried out. It showed that the process followed first-order kinetics.     

Response of Georges Bank cod to periodic and nonperiodic oil spill events

In the management of conflicting dual-resource systems such as continental shelf hydrocarbon extraction and commercial fishing operations, it is necessary to consider the possibility of repeated impact events. The potential magnitude of impacts on Georges Bank fisheries of single oil spill events has been addressed in detail elsewhere (Reed and Spaulding 1979, Reed and others 1980, Spaulding and others 1982). An oil spill-fishery impact estimation model, implemented for the Georges Bank cod fishery (Reed and others 1980), has been used to investigate the potential for nonlinear biological responses to periodic and nonperiodic repetitive spill events. Prerecruit mortality equations incorporating young-of-the-year as well as adult-juvenile interactions, perform acceptably vis-à-vis the historical catch record, but show highly variable behavior under recruitment reductions induced by periodic simulated spills. The results demonstrate the importance of selecting mathematical representations of biological and physical processes underlying population dynamics such that characteristic system behavior is adequately represented in both the time and frequency domains.     

Forward pricing and efficiency in the silver market

If futures prices ‘fully reflect’ all available information, then these prices may be interpreted as market anticipations of spot (cash) prices at the delivery date of the futures contract. This hypothesis, which has tended to find most support among established markets for storable commodities, is investigated for the Chicago silver futures market. Using instrumental variable estimation and a joint (χ²) test, the unbiased prediction hypothesis is rejected, and a tentative explanation is offered for this outcome. This result, however, does not necessarily imply that the market is inefficient, and two tests of the weak form efficient markets hypothesis suggest that, while there is some slight dependence in past prices, this is only marginally more than would be expected from normal sampling variation.     

Nigerian Supreme Court and ownership of offshore oil

This article discusses the decision of the Supreme Court of Nigeria on the constitutional provision dealing with the sharing of revenues derived from natural resources located within the states of the Federation, the ‘derivation principle.’ Although the case relates to the interpretation of a constitutional provision, the arguments of the parties suggest that the real battle was — and still is — about the ownership and control of Nigeria's offshore oil. The article details the legal history and precedents as well as constitutional provisions relevant to the case. Disagreements arose over legal questions such as the seaward boundaries of littoral states (from which oil revenues are derived), and whether a distinction can be made between offshore and onshore oil revenues in applying a 13% constitutionally prescribed derivation principle. The article shows that, in its judgment, Nigeria's Supreme Court relied heavily on rules of international law, while failing to apply existing Nigerian laws and constitutional provision, and argues that the decision might have been different had the court investigated and invoked the legislative history of the provision in question, as required in Nigerian law. Furthermore, it is argued that the court was wrong to disregard the provision of the law which had abolished any distinction between onshore and offshore natural resources in the application of the derivation principle. The article concludes that the legal tug of war is set to continue for some years.