Chapter One: When is Free Trade Good for the Environment? This paper provides the conditions under which free trade reduces the emission of pollution. In this paper, we construct a computable general equilibrium model of free trade and environment. Using data from different countries with different characteristics with respect to the stringency of their environmental and trade policies and factor endowments, we simulate a reduction on import tariffs and measure the impact on the volume of emission. Our main findings show that, for a combination of relatively high capital to labour ratio and low level of protectionism, if a country exports the polluting good then, trade liberalization increases the level of emission. Whereas if the country exports the clean good, then the effect of an import tariff reduction on the emission level is positively related to the variation in the producer’s price of the polluting good. Furthermore, we find that under a relatively low level of capital endowment for a country that exports the polluting good, the impact of free trade on the environment depends on the degree of protectionism. // Chapter Two: Ageing and the Environment in an Overlapping Generations Model. We empirically investigate the impact of population ageing on the environment using an overlapping generations model. We decompose the impact into scale, composition, and cohort effects. Using data from the Canadian economy, we simulate the impact of demographic shock on the volume of emission. Population ageing results mostly from a baby bust that follows a baby boom. The demographic transition is characterized by an increase then a decline in the population growth rate. Under the first part of the transition, we find that the scale effect generates more pollution. However, if young generations are more concerned about the environment, an increase in the population growth rate may improve the environment via the composition effects. On the other hand, a decline in the population growth rate (population ageing) creates the opposite results. We further find that cohort effect is positively related to the environment when there is a higher degree of awareness towards a cleaner environment. By comparing scale to both composition and cohort effects, we find that scale dominates both effects, so population ageing causes the level of pollution to fall. // Chapter Three: Does Population Ageing in the North Leads to More Pollution in the South? We construct a two-country model: a rich country (the North) with relatively high level of capital endowment and stringent environmental policy and a poor country (the South) with less stringent environmental policy. Both countries produce a clean and a polluting good and both have access to an exogenous abatement technology. The paper has three main foci. First, it provides an empirical test for the pollution haven and the factor endowment hypotheses. Second, it introduces the issue of population ageing in the North into the question of trade liberalisation and the environment. Finally, it investigates the impact of demographic and trade shocks on the level of emissions in both countries. Results from simulations suggest that an increase in the population growth rate increases the volume of emission in the long run. However, population-ageing generates an opposite effect. In the short term, the scale dominates the composition effect. Empirical evidences show that the level of emission is positively related to the size of population. With respect to trade, pollution increases in the North and falls in the South. Also, we find that demographic changes dominate trade liberalization. Finally, worldwide free trade is bad for the environment, but its effect is marginal.

Chapter One: When is Free Trade Good for the Environment? This paper provides the conditions under which free trade reduces the emission of pollution. In this paper, we construct a computable general equilibrium model of free trade and environment. Using data from different countries with different characteristics with respect to the stringency of their environmental and trade policies and factor endowments, we simulate a reduction on import tariffs and measure the impact on the volume of emission. Our main findings show that, for a combination of relatively high capital to labour ratio and low level of protectionism, if a country exports the polluting good then, trade liberalization increases the level of emission. Whereas if the country exports the clean good, then the effect of an import tariff reduction on the emission level is positively related to the variation in the producer’s price of the polluting good. Furthermore, we find that under a relatively low level of capital endowment for a country that exports the polluting good, the impact of free trade on the environment depends on the degree of protectionism. // Chapter Two: Ageing and the Environment in an Overlapping Generations Model. We empirically investigate the impact of population ageing on the environment using an overlapping generations model. We decompose the impact into scale, composition, and cohort effects. Using data from the Canadian economy, we simulate the impact of demographic shock on the volume of emission. Population ageing results mostly from a baby bust that follows a baby boom. The demographic transition is characterized by an increase then a decline in the population growth rate. Under the first part of the transition, we find that the scale effect generates more pollution. However, if young generations are more concerned about the environment, an increase in the population growth rate may improve the environment via the composition effects. On the other hand, a decline in the population growth rate (population ageing) creates the opposite results. We further find that cohort effect is positively related to the environment when there is a higher degree of awareness towards a cleaner environment. By comparing scale to both composition and cohort effects, we find that scale dominates both effects, so population ageing causes the level of pollution to fall. // Chapter Three: Does Population Ageing in the North Leads to More Pollution in the South? We construct a two-country model: a rich country (the North) with relatively high level of capital endowment and stringent environmental policy and a poor country (the South) with less stringent environmental policy. Both countries produce a clean and a polluting good and both have access to an exogenous abatement technology. The paper has three main foci. First, it provides an empirical test for the pollution haven and the factor endowment hypotheses. Second, it introduces the issue of population ageing in the North into the question of trade liberalisation and the environment. Finally, it investigates the impact of demographic and trade shocks on the level of emissions in both countries. Results from simulations suggest that an increase in the population growth rate increases the volume of emission in the long run. However, population-ageing generates an opposite effect. In the short term, the scale dominates the composition effect. Empirical evidences show that the level of emission is positively related to the size of population. With respect to trade, pollution increases in the North and falls in the South. Also, we find that demographic changes dominate trade liberalization. Finally, worldwide free trade is bad for the environment, but its effect is marginal.

Chapter One: When is Free Trade Good for the Environment? This paper provides the conditions under which free trade reduces the emission of pollution. In this paper, we construct a computable general equilibrium model of free trade and environment. Using data from different countries with different characteristics with respect to the stringency of their environmental and trade policies and factor endowments, we simulate a reduction on import tariffs and measure the impact on the volume of emission. Our main findings show that, for a combination of relatively high capital to labour ratio and low level of protectionism, if a country exports the polluting good then, trade liberalization increases the level of emission. Whereas if the country exports the clean good, then the effect of an import tariff reduction on the emission level is positively related to the variation in the producer’s price of the polluting good. Furthermore, we find that under a relatively low level of capital endowment for a country that exports the polluting good, the impact of free trade on the environment depends on the degree of protectionism. // Chapter Two: Ageing and the Environment in an Overlapping Generations Model. We empirically investigate the impact of population ageing on the environment using an overlapping generations model. We decompose the impact into scale, composition, and cohort effects. Using data from the Canadian economy, we simulate the impact of demographic shock on the volume of emission. Population ageing results mostly from a baby bust that follows a baby boom. The demographic transition is characterized by an increase then a decline in the population growth rate. Under the first part of the transition, we find that the scale effect generates more pollution. However, if young generations are more concerned about the environment, an increase in the population growth rate may improve the environment via the composition effects. On the other hand, a decline in the population growth rate (population ageing) creates the opposite results. We further find that cohort effect is positively related to the environment when there is a higher degree of awareness towards a cleaner environment. By comparing scale to both composition and cohort effects, we find that scale dominates both effects, so population ageing causes the level of pollution to fall. // Chapter Three: Does Population Ageing in the North Leads to More Pollution in the South? We construct a two-country model: a rich country (the North) with relatively high level of capital endowment and stringent environmental policy and a poor country (the South) with less stringent environmental policy. Both countries produce a clean and a polluting good and both have access to an exogenous abatement technology. The paper has three main foci. First, it provides an empirical test for the pollution haven and the factor endowment hypotheses. Second, it introduces the issue of population ageing in the North into the question of trade liberalisation and the environment. Finally, it investigates the impact of demographic and trade shocks on the level of emissions in both countries. Results from simulations suggest that an increase in the population growth rate increases the volume of emission in the long run. However, population-ageing generates an opposite effect. In the short term, the scale dominates the composition effect. Empirical evidences show that the level of emission is positively related to the size of population. With respect to trade, pollution increases in the North and falls in the South. Also, we find that demographic changes dominate trade liberalization. Finally, worldwide free trade is bad for the environment, but its effect is marginal.

Chapter One: When is Free Trade Good for the Environment? This paper provides the conditions under which free trade reduces the emission of pollution. In this paper, we construct a computable general equilibrium model of free trade and environment. Using data from different countries with different characteristics with respect to the stringency of their environmental and trade policies and factor endowments, we simulate a reduction on import tariffs and measure the impact on the volume of emission. Our main findings show that, for a combination of relatively high capital to labour ratio and low level of protectionism, if a country exports the polluting good then, trade liberalization increases the level of emission. Whereas if the country exports the clean good, then the effect of an import tariff reduction on the emission level is positively related to the variation in the producer’s price of the polluting good. Furthermore, we find that under a relatively low level of capital endowment for a country that exports the polluting good, the impact of free trade on the environment depends on the degree of protectionism. // Chapter Two: Ageing and the Environment in an Overlapping Generations Model. We empirically investigate the impact of population ageing on the environment using an overlapping generations model. We decompose the impact into scale, composition, and cohort effects. Using data from the Canadian economy, we simulate the impact of demographic shock on the volume of emission. Population ageing results mostly from a baby bust that follows a baby boom. The demographic transition is characterized by an increase then a decline in the population growth rate. Under the first part of the transition, we find that the scale effect generates more pollution. However, if young generations are more concerned about the environment, an increase in the population growth rate may improve the environment via the composition effects. On the other hand, a decline in the population growth rate (population ageing) creates the opposite results. We further find that cohort effect is positively related to the environment when there is a higher degree of awareness towards a cleaner environment. By comparing scale to both composition and cohort effects, we find that scale dominates both effects, so population ageing causes the level of pollution to fall. // Chapter Three: Does Population Ageing in the North Leads to More Pollution in the South? We construct a two-country model: a rich country (the North) with relatively high level of capital endowment and stringent environmental policy and a poor country (the South) with less stringent environmental policy. Both countries produce a clean and a polluting good and both have access to an exogenous abatement technology. The paper has three main foci. First, it provides an empirical test for the pollution haven and the factor endowment hypotheses. Second, it introduces the issue of population ageing in the North into the question of trade liberalisation and the environment. Finally, it investigates the impact of demographic and trade shocks on the level of emissions in both countries. Results from simulations suggest that an increase in the population growth rate increases the volume of emission in the long run. However, population-ageing generates an opposite effect. In the short term, the scale dominates the composition effect. Empirical evidences show that the level of emission is positively related to the size of population. With respect to trade, pollution increases in the North and falls in the South. Also, we find that demographic changes dominate trade liberalization. Finally, worldwide free trade is bad for the environment, but its effect is marginal.

本研究探討選擇權交易量之大小對於波動度預測之效率性所造成之對偶效果(dual effect)，驗證〝正常的高交易量〞與〝異常的高交易量〞對於波動度預測能力是否有不同的影響。本研究採用panel data之資料型態，以LIFFE上市的個股買權為對象，資料長度為三年左右。主要欲探討之假說為： 1.一般而言，交易量大的選擇權，其波動度估計誤差較交易量小的選擇權來得小。 2.相對於平日水準而言，某日交易量異常高的選擇權將有較大的波動度估計誤差。 本研究所使用的波動度預測模型為隱含波動度(ISD)，採用的是最接近到期月份及最接近價平的合約。實證以組合迴歸、固定效果模型、隨機效果模型分別估計之，加以比較。結果發現固定效果模型為較佳之解釋模型，然而結果顯示交易量的對偶效果並不明確影響波動度預測誤差，故推測有某種影響公司間差異的因素，即公司間之異質性，比相對交易量更容易影響波動度預測之誤差。另外，透過組間與組內效果之分析，發現不論是長期還是短期，由於公司間的異質性存在，使得相對交易量對於波動度預測誤差均無明顯影響。 / The purpose of this research is to study the dual effect on the efficiency of volatility forecasting which is caused by the volume of option market, with the intent to test whether〝normal high volume〞and〝abcdrmal high volume〞cause different results on the ability of volatility forecasting. The data used is in the form of panel data. It is drawn from LIFFE, and has a length of about three years. The hypotheses to be examined in this study are：1. High-average-volume options have smaller volatility forecasting errors than low-average-volume options; 2. Options have larger volatility forecasting errors on abcdrmally-high-volume days than on normal-volume days. In this research, volatility is forecasted by implied standard deviation (ISD) which is implied in the at-the-money and the nearest expiry month options. Pooled regression、fixed effect model、and random effect model methods were applied. The results show that the fixed effect model made the best analysis amongst the three models. However, the result does not support the hypotheses made above, which means that volume does not have much influence on volatility forecasting error. It is inferred that there exists some other factors which could cause the difference between firms, namely heterogeneity, and these factors have much more powerful influence over volatility forecasting error than volume. Finally, it was found that no matter for long run or short run, because of the existence of heterogeneity, relative volume doesn’t have obvious influence on volatility forecasting errors when analyzing the difference between the between-individual effect and the within-individual effect.