Carbon price: theory and practice of greenhouse gas emissions regulation

In the context of transition to low-carbon development, carbon price is rapidly gaining ground all over the world. Discussions on its implementation are under way in Russia as well. However, the use of carbon price as an indicator can be compounded by certain risks. In practice, to overcome them depends on the ability of carbon price designing to take into account the specifics of a country or industries where the regulation is introduced. The regulator needs to determine the specifics of carbon pricing, identify the acceptable degree of regulation and coverage of carbon price; consider the consequences for vulnerable sectors of population, companies, etc. The study aims at systematizing theory and practice of carbon pricing across various countries and regions of the world economy. Drawing on the analysis of fundamental and empirical works, the authors identify the factors that limit the effective use of carbon price; classify the key elements of carbon pricing design. Based on the analysis of international experience, the article provides recommendations on the development of a system for regulating carbon in Russia.

Carbon price: theory and practice of greenhouse gas emissions regulation

In the context of transition to low-carbon development, carbon price is rapidly gaining ground all over the world. Discussions on its implementation are under way in Russia as well. However, the use of carbon price as an indicator can be compounded by certain risks. In practice, to overcome them depends on the ability of carbon price designing to take into account the specifics of a country or industries where the regulation is introduced. The regulator needs to determine the specifics of carbon pricing, identify the acceptable degree of regulation and coverage of carbon price; consider the consequences for vulnerable sectors of population, companies, etc. The study aims at systematizing theory and practice of carbon pricing across various countries and regions of the world economy. Drawing on the analysis of fundamental and empirical works, the authors identify the factors that limit the effective use of carbon price; classify the key elements of carbon pricing design. Based on the analysis of international experience, the article provides recommendations on the development of a system for regulating carbon in Russia.

Monopoly as a ‘culture-history fact’: Knight, Menger, and the role of institutions

Frank Knight's theory of monopoly price has received relatively little attention in the literature on Risk, Uncertainty and Profit. We argue that Knight accepted and refined the monopoly price theory of Carl Menger and his followers. Knight highlights the difference between monopoly as an inevitable outcome of departures from perfect competition, and monopoly as a contingent or ‘culture-history fact’. In the latter case, coercive institutional barriers to potential competition shape the choice set of consumers and producers, and provide a crucial method for identifying monopoly gains. There are three benefits to this account of Knight's contributions: it rehabilitates the focus on the institutional determinants of monopoly price, as opposed to the mainstream emphasis on market frictions and imperfections; it opens the way for a Mengerian monopoly price theory that seriously engages the study of institutions; and it adds new evidence and nuance to ongoing debates about Knight's place in economics.

Sismondi’s Price Theory: From a Liberating to a Despotic Market

This article examines the evolution of Sismondi’s price theory as well as his concept of market from 1803 to 1838. Sismondi’s early 1803 price theory in terms of supply and demand is first examined and contrasted with that of Smith in the Wealth of Nations. The progressive alterations brought to this initial formulation are discussed with the help of the relevant chapters from Nouveaux Principes ([1819] 1827) and from Études (1836–1838). In price theory terms, throughout the years Sismondi grew more and more skeptical about the process through which these prices would come about. Connecting this analytical issue with his concept of republican justice, he comes to the conclusion that a market economy characterized by unlimited competition will never lead to a socially desirable solution: such an order is neither efficient, nor natural or spontaneous and political economy is not morally neutral. In short, for Sismondi, the market never stood alone while, for him, the Ricardian approach gave nearly exclusive pride of place to market in the pursuit of wealth and happiness.

Asymmetric price transmission and farmers' response in the Czech dairy chain

The standard economic price theory of working with efficient source allocation is being confronted with a series of empirical findings of asymmetric price responses. The objective of the research was to examine whether the distribution of prices within the dairy chain in the Czech Republic was fair and whether farmers progressed in a collective approach to strengthen their position in the supply chain. We used the pre-cointegration and cointegration approach to test for asymmetry in the transmission of farm milk prices throughout the supply chain. Furthermore, we measured the development of market concentration by means of the Herfindahl-Hirschman index and discussed the background of the figures with producer organisation representatives. The results proved there were asymmetric price transmissions. In response, farmers consolidated and concentrated their milk sales. The concentration should not yet be understood as a goal but as a means to the next steps.