Border tax adjustment: a feasible way to support stringent emission trading

CO₂ emission allowances help to internalise effects of fossil fuel consumption on global climate and sea levels. However, consumption, production and investment decisions do not reach the optimal allocation when the scheme is only implemented in some countries. Production with inefficient facilities in non-participating countries may even increase. Border tax adjustment (BTA) for costs incurred from procuring CO₂ emission allowances reduces the leakage. We show that BTA can be both feasible and compatible with World Trade Organization (WTO) constraints. Practicable implementability requires a focus on CO₂ emissions from certain processed materials and a separate treatment of electric energy input.      

Innovation capacity and economic development: China and India

Decomposing the GDP growth from 1981 to 2004, this paper finds that innovation capacity has contributed significantly to the economic growth of China and India, especially in the 1990 s. Outputs of the national innovation system, measured by patents and high-tech/service exports, demonstrate the considerable progress China and India have made in innovation capacity. The enhanced innovation capacity of China and India is primarily due to their heavy investment in the inputs of innovation system, i.e., R&D expenditure and R&D personnel, in recent decades. This paper emphasizes the role that the governments have played in promoting innovation capacity and their contribution to economic development. Both governments have transformed their national innovation systems through linking the science sector with the business sector, providing incentives for innovation activities, and balancing import of technology and indigenous R&D effort. Using case studies of domestic biotech firms in China and India, this paper also offers micro-level insights on innovation capacity and economic development: (1) innovation capacity has become essential for domestic firms?? market success and (2) global institutional factors and national government policies on innovation have considerable influence on the choice of innovation at the firm level, i.e., to conduct indigenous R&D or to import foreign technology.     

Income tax evasion in the United States and China

This paper compares income tax evasion in the US and China with regard to several aspects, including income tax evasion laws and cases, problems both countries face and their possible solutions. It provides a general picture of income tax evasion in the US and China from both theoretical and practical perspectives. In the last part of the paper, errors in translation on some websites are present to remind readers to be wary of such errors.     

Production networks in China and India: a comparative analysis

In this paper, we examine and compare the two important production hubs in Asia: China and Greater China and India and South Asia. We show that in China, Hong Kong and Taiwan, manufacturing trade has continued to be highly relevant, with trade in parts and components growing in importance. In contrast, in India, Pakistan and Sri Lanka, trade in parts and components remain limited. We then calculate various revealed comparative advantage (RCA) indices, which China having more components with RCA values exceeding one. Some of the most important components exported by China include electronic parts and telecommunication parts. One explanation is to why India is relatively weak in parts and components trade is that India is strong in service trade. Other reasons may be related to better port infrastructure, higher research and development intensity and higher educational enrollments in China.     

Tax planning and tax policy in China: Case study of the tainted milk scandal

No food safety crisis has ever stirred such a national sensation in China like the tainted milk powder scandal in 2008. A further exploration of the root cause of this crisis, however, reveals something more disturbing—it is the undeveloped tax system that causes the melamine milk crisis. Because of the tension between political logic and governance logic of tax reform in China, the vacuum of public good provision becomes a burning issue since the Agricultural Tax Regulation was abolished and farmers’ economic burden became heavier than before. Thus, in order to prevent any food safety incident in the future, a sound notion of tax and an integrated system of tax planning and expenditure should be established and reinforced in the Chinese tax law.     

Social goals and appropriate policy for corrections: An economic appraisal

This paper presents a logical approach to the problem of devising socially acceptable policy for the operation of a corrections system. As an alternative to considering separately the frequently mentioned, but conflicting goals of providing rehabilitation, retribution, detention of dangerous criminals, and general and specific deterrence of criminal behavior, the authors suggest that the goal be couched in terms of minimizing the social cost of crime. By developing a model which illustrates how the corrections process relates to the various facets of the criminal justice system, and by isolating the functional relationships which must be taken into account, the authors are able to show there is an optimal level of rehabilitation, detention, and deterrence associated with a socially optimal level of criminal activity and criminal justice control activity. Although much remains to be learned before such a model can be effectively implemented, considerable research has already pointed the way for learning how to more effectively balance the alternatives for policy. An enumeration of the policy implications of the model identifies targets for further research.     

国际碳排放权交易及其对我国的启示

全球气候变化对各国产生了一系列的影响,碳排放权已成为新兴的交易客体,国际碳排放权的产生与发展,既为我国带来机遇,也使我国面临挑战。我国碳排放权交易市场尚处于起步阶段,建立与完善我国碳排放市场机制显得尤为重要与迫切。因此,我们应当借鉴国际碳排放权交易的经验,从法律、政策、信息透明度、政府职能等方面进行改进。     

United Kingdom: Sisters and inheritance tax

Joyce and Sybil Burden are two sisters who have lived togethersince birth and currently occupy a UK farmhouse. When one ofthem dies the other will face a large inheritance tax bill andwill have to sell the     

The conundrum of charitability: reassessing tax exemption for hospitals

Tax exemption is an ancient, honorable and expensive tradition. Tax exemption for hospitals is all of these three, but it also places in sharp focus a fundamental problem with tax exemption in general. Organizations can retain their tax exemption while changing circumstances or expectations undermine the rationale that led to the exemption in the first place. Hospitals are perhaps the best example of this problem. The dramatic changes in the health care environment have eliminated most of the characteristics of a hospital that originally persuaded the citizenry to grant it an exemption. Hospitals have entered into competition with tax-paying businesses, and have increasingly behaved like competitive actors. Such conduct may well be beneficial, but it does not follow that tax exemption is appropriate. Rather than an undifferentiated subsidy, a shift to focused goals will provide charitable hospitals with the opportunity and incentive to "do the right thing."     

Land-based negative emissions: risks for climate mitigation and impacts on sustainable development

This paper focuses on the risks associated with “negative emissions” technologies (NETs) for drawing carbon dioxide from the atmosphere through photosynthesis and storing it in land-based sinks or underground. Modelled mitigation pathways for 1.5 °C assume NETs that range as high as 1000 Gt CO₂. We argue that this is two to three times greater than the amount of land-based NETs that can be realistically assumed, given critical social objectives and ecological constraints. Embarking on a pathway that assumes unrealistically large amounts of future NETs could lead society to set near-term targets that are too lenient and thus greatly overshoot the carbon budget, without a way to undo the damage. Pathways consistent with 1.5 °C that rely on smaller amounts of NETs, however, could prove viable. This paper presents a framework for assessing the risks associated with negative emissions in the context of equity and sustainable development. To do this, we identify three types of risks in counting on NETs: (1) that NETs will not ultimately prove feasible; (2) that their large-scale deployment involves unacceptable ecological and social impacts; and (3) that NETs prove less effective than hoped, due to irreversible climate impacts, or reversal of stored carbon. We highlight the technical issues that need to be resolved and—more importantly—the value judgements that need to be made, to identify the realistic potential for land-based NETs consistent with social and environmental goals. Given the critical normative issues at stake, these are decisions that should be made within an open, transparent, democratic process. As input, we offer here an indicative assessment of the realistic potential for land-based NETs, based on a precautionary assessment of the risks to their future effectiveness and a provisional assessment of the extent to which they are in conflict with sustainable development goals related to land, food and climate.     

Citizens' procedural expectations for an upcoming tax audit: Their nature and formation

Using qualitative interviews with citizens who will soon have a state tax audit, this study examines the nature and formation of procedural expectations. The findings show that the most prevalent concept was dignity which means the auditors' politeness and respect for the citizens' rights. Expectations about relationship concerns also were significantly more prevalent than expectations about instrumental concerns. These findings are consistent with the group value model's emphasis on relationship concerns. Contrary to the view that procedural expectations are developed during childhood, people who relied more on recent mass media reports and conversations with peers were more likely to think that the auditor favored the state and made less effort to be fair. Directions for future research are discussed.     

Climate mitigation policies and actions: access and allocation issues

International Environmental Agreements: Politics, Law and Economics - As part of the Special Issue on Access and Allocation, this paper explores how reducing greenhouse gas (GHG) emissions...     

Development and validation of videotaped scenarios: a method for targeting specific participant groups

Researchers using scenarios often neglect to validate perceived content and salience of embedded stimuli specifically with intended participants, even when such meaning is integral to the study. For example, sex and aggression stimuli are heavily influenced by culture, so participants may not perceive what researchers intended in sexual aggression scenarios. Using four studies, the authors describe the method of scenario validation to produce two videos assessing alcohol-related sexual aggression. Both videos are identical except for the presence in one video of antiforce cues that are extremely salient to the young heterosexual men. Focus groups and questionnaires validate these men's perceptions that (a) the woman was sexually interested, (b) the sexual cues were salient, (c) the antiforce cues were salient (antiaggression video only), and (e) these antiforce cues inhibited acceptance of forced sex. Results show the value of carefully selecting and validating content when assessing socially volatile variables and provide a useful template for developing culturally valid scenarios.     

Maritime security and the common interests of India and China

The world has changed dramatically over the years, and being two of the world’s largest and most populous developing countries, India and China should remain in close touch on issues concerning developing nations. Today’s challenges to maritime security increasingly comprise more non-traditional threats, such as terrorist acts against shipping, trafficking in weapons of mass destruction, piracy and armed robbery at sea, illicit transportation in narcotic drugs, psychotropic substances and nuclear substances, and smuggling of people and arms. It is therefore important to intensify cooperation at all levels to address threats to maritime security and safety in a comprehensive manner through bilateral and multilateral instruments and mechanisms aimed at monitoring, preventing and responding to such threats.     

Reducing racial and ethnic health disparities: exploring an outcome-oriented agenda for research and policy

Eliminating racial and ethnic disparities in health status and health care, a major focus of Healthy People 2010, remains on the national agenda and among the priorities for the administration of President George W. Bush. Even though the elimination of racial and ethnic health disparities challenges the whole nation, individual states are on the front line of many initiatives and are often the focus of important policy efforts. In addition, it is important to focus on states because they are already responsible for much of the health and public health infrastructure, and several states have developed initiatives dating back to the release of Margaret Heckler's report on the gaps in health outcomes by race in 1985. This article makes the case for an outcome-oriented approach and provides a summary of lessons learned based upon preliminary investigations into constructing and applying two indices, the disparity reduction profile to measure effort and the disparity index to measure outcomes.     

Italy--reduced tax benefits for 'family REITs' and anti-avoidance provisions

Italian REITs, as defined under Article 37 of the Italian consolidatedlaw on the financial sector (Legislative Decree of 24 February1998 n 58) have traditionally enjoyed a favourable tax treatment.Since 2004 they have been exempt from income tax, whereas unit-holdershave been liable to a