photovoltaic investment roadmaps and sustainable development abstract this paper analyzes the potential contributions of photovoltaic energy to sustainable development in its three dimensions environmental economic and social for that purpose the capacity deployments proposed by the main international institutions in the field are considered mainly the international energy agency the paper focuses on the monetary valuation of avoided co2 emissions and the assessment of the required financial funds the risk implied by the uncertain photovoltaic prices are dealt with and methods to manage it are suggested it is shown that valuing emission at a conservative price and properly discounted would be enough to finance on average the required investments thus a low carbon tax is all that would be required to finance the investments

competitive procurement of ancillary services by an independent system operator this paper discusses the competitive procurement of ancillary services by an independent system operator iso the paper assumes the existence of an underlying market for energy and explains why this energy market must be accompanied by a market for ancillary services these services include operating reserves and automatic generation control agc both of which may require generators that are infra marginal in the energy market to choose between supplying energy or ancillary services the paper discusses the design of an auction for these services that has formed the basis for the california iso s ancillary services market the paper also discusses the real time dispatch of ancillary services

retaliation bargaining and the pursuit of free and fair trade that domestic political economic factors are important determinants of a nation s trade barriers has been empirically well established however the question of how effective strategically retaliatory trade barriers are in deterring foreign protectionism has received far less systematic empirical attention in this article we use bilateral nontariff barrier ntb data between the united states and five developed partner countries japan france germany italy and the united kingdom to systematically examine the effectiveness of strategic retaliation we employ a simultaneous tobit model where the home and foreign ntb levels are determined endogenously in a bilateral game the model provides estimates of deterrence coefficients that is the reduction in foreign trade barriers as a result of u s retaliation which we use to characterize the nature of bilateral ntb games our hope is that the empirical results presented here which have realistic though controversial implications will inform u s trade policy

inequality and endogenous trade policy outcomes abstract an enduring puzzle in international economics is why trade interventions are biased in favor of import competing rather than export sectors and therefore restrict trade in this paper we show that if the government s objective reflects a concern for inequality then trade policy generally exhibits an anti trade bias importantly under neutral assumptions the mechanism that we analyze generates the anti trade bias independently of whether factors are specific or mobile across sectors the mechanism also generates an anti trade bias between large countries even after they sign reciprocal trade agreements that eliminate any terms of trade motivation for the use of trade protection

research advances in environmentally and socially sustainable operations abstract consumers and governments are pressuring firms to strike a balance between profitability and sustainability however this balance can only be maintained in the long run if the firm can take a holistic approach to sustain the financial flow profit resource flow planet and development flow people for the entire ecosystem comprising poor producers in emerging developing markets global supply chain partners consumers in developed countries and the planet by considering the flows associated with different entities within the ecosystem we classify and summarize recent operations research management science or ms research developments also we identify several gaps for future research in this important area

the contribution of nonhomothetic preferences to trade abstract this paper estimates the economic significance of preference nonhomotheticity in international trade tastes are assumed to be identical but budget shares depend on per capita income a linear expenditure system is estimated for 34 countries over 11 commodity aggregates a counterfactual exercise is conducted to estimate the volume of trade caused by deviations from homotheticity the results indicate that nonhomothetic preferences may account for as much as one quarter of interindustry trade flows

who wants to globalize consumer tastes and labor markets in a theory of trade policy beliefs although the allure of consumption is the engine of globalization political economists have tended to ignore varying consumer tastes as a potential source of beliefs about trade policy this article develops a theory of trade policy preferences that adds the notion of varying consumer tastes to the standard labor market application of the heckscher ohlin trade model the theory which can explain trade preferences both across individuals and countries is supported by an empirical analysis of survey data from 41 nations heavy consumers of exportables are found to be more protectionist than heavy consumers of imports and import competing goods moreover citizens in countries with expensive tradable goods see trade liberalization as a remedy to the rents they pay for protectionism other findings also support the more conventional labor market side of the heckscher ohlin model

making real progress toward more sustainable societies using decision support models and tools introduction to the special volume academics politicians professionals and the general public are aware that without stewarding our planet s natural resources man is on the pathway towards a global collapse over the next three decades mankind is expected to consume an estimated 140 billion tons of minerals ores fossil fuels and biomass per year three times current consumption social welfare and human wellbeing are threatened with the scarcity of natural resources consequently nations and their societies are also at risk of collapse the readers of this special volume will find a compilation of scholarly research papers with real life applications that take the challenge of proposing decision making models and tools to address sustainability challenges in integrative ways the main focus of this special volume is integration of sustainability dimensions economic social environmental ethical and time into decision support models and to identify pathways to achieve more sustainable societies the majority of the research in this special volume 74 percent focuses on environmental and economic dimensions only 26 percent integrated social dimensions with them methodologically a range of mathematical models and tools are presented to support prescriptive decision making with some descriptive models integrated to support decision makers in solving practical problems across a variety of industries and scenarios the breadth and complexity of issues facing organizations and society requires innovative applications of these methodologies the concerns cover a spectrum ranging from energy to solid waste management a multitude of levels from broad based policy concerns to strategic inter organizational sustainable supply chain management and significantly shop floor operational issues are also covered the variety of problems and solutions exemplifies the potential for modelling and operations research for addressing some of our world s most pressing concerns

inequity aversion and the international distribution of trade protection one important puzzle in international political economy is why lower earning and less skilled intensive industries tend to receive relatively high levels of trade protection this pattern of protection holds across countries with vastly different economic and political characteristics and is not well accounted for in existing political economy models we propose and model one possible explanation that individual inequity aversion leads to systematic differences in support for trade protection across industries we conduct original survey experiments in china and the united states and provide strong evidence that individual policy opinions about sector specific trade protection depend on the earnings of workers in the sector we also present structural estimates that advantageous and disadvantageous inequality influence support for trade protection in the two countries o ne important puzzle in international political economy is why lower earning and less skilled intensive industries tend to receive relatively high levels of trade protection because this pattern of protection holds even in low income countries for which lower earning and less skilled intensive industries are likely to be comparative advantage sectors it is arguably at odds with the common empirical finding that declining comparative disadvantage industries are more likely to receive protection moreover it is at odds with most theoretical political economy models which tend to either predict consistent with most empirical work that losing sectors from international trade receive more protection or that expanding sectors that gain from greater trade should enjoy more government support existing accounts are generally good at explaining support for winners or for losers they are not however good at

a multicriteria method for environmental management system selection an intellectual capital approach abstract the adoption of environmental management systems has become more widespread among those firms looking to minimize their environmental impacts considering that firms have to select the optimal management system from a set of possible alternatives this paper presents a novel decision making approach based on the multicriteria method of analytic network process in order to evaluate and prioritize the implementation of environmental management system alternatives in for profit firms since several relevant intangible benefits are derived from the adoption of this kind of management system such as enhancing employees knowledge and skills as well as improving corporate reputation the method integrates and quantifies both financial and non financial intellectual capital value creation criteria in order to identify the alternative that maximizes a firm s total market value the proposed approach is empirically tested in a group of spanish olive oil firms with a proactive environmental management orientation and the results confirm the reliability of the proposed model furthermore the empirical applications reveal that all the olive oil firms attribute great importance to the intangible elements when assessing environmental management systems these results suggest that it is appropriate to take into account the intellectual capital value resulting from these kinds of management systems during the decision making process the proposed method formalizes the evaluation process that firms already employ these firms certainly take non financial capital value creation elements into account albeit in an intuitive way

learning to love globalization education and individual attitudes toward international trade recent studies of public attitudes toward trade have converged on one central finding support for trade restrictions is highest among respondents with the lowest levels of education this has been interpreted as strong support for the stolper samuelson theorem the classic economic treatment of the income effects of trade that predicts that trade openness benefits those owning factors of production with which their economy is relatively well endowed those with skills in the advanced economies while hurting others low skilled workers we reexamine the available survey data showing that the impact of education on attitudes toward trade is almost identical among respondents in the active labor force and those who are not even those who are retired we also find that while individuals with college level educations are far more likely to favor trade openness than others other types of education have no significant effects on attitudes and some actually reduce the support for trade even though they clearly contribute to skill acquisition combined these results strongly suggest that the effects of education on individual trade preferences are not primarily a product of distributional concerns linked to job skills we suggest that exposure to economic ideas and information among college educated individuals plays a key role in shaping attitudes toward trade and globalization this is not to say that distributional issues are not important in shaping attitudes toward trade just that they are not clearly manifest in the simple broad association between education levels and support for free trade the authors would like to thank james alt jeffry frieden robert lawrence dani rodrik ron rogowski ken scheve andy baker peter gourevitch and beth simmons for helpful comments on earlier drafts

openness and wage inequality in developing countries the latin american challenge to east asian conventional wisdom the experience of east asia in the 1960s and 1970s supports the theory that greater openness to trade tends to narrow the wage gap between skilled and unskilled workers in developing countries in latin america since the mid 1980s however increased openness has widened wage differentials this conflict of evidence is probably not the result of differences between east asia and latin america instead the conflict is probably the result of differences between the 1960s and the 1980s specifically the entry of china into the world market and perhaps the advent of new technology biased against unskilled workers

do political protests matter evidence from the tea party movement can protests cause political change or are they merely symptoms of underlying shifts in policy preferences this paper studies the effect of the tea party movement in the united states which rose to prominence through a series of rallies across the country on april 15 tax day 2009 to identify the causal effect of protests we use an instrumental variables approach that exploits variation in rainfall on the day of the coordinated rallies weather on tax day robustly predicts rally attendance and the subsequent local strength of the movement as measured by donations media coverage social networking activity and later events we show that larger rallies cause an increase in turnout in favor of the republicans in the 2010 congressional elections and increase the likelihood that incumbent democratic representatives retire incumbent policymaking is affected as well representatives respond to large protests in their district by voting more conservatively in congress finally the estimates imply significant multiplier effects for every protester republican votes increase by seven to fourteen votes together our results show that protests can build political movements that ultimately affect policy and they suggest that it is unlikely that these effects arise solely through the standard channel of private information revelation

the smoot hawley tariff a quantitative assessment in the two years after the imposition of the smoot hawley tariff in june 1930 the volume of u s imports fell over 40 to what extent can this collapse of trade be attributed to the tariff itself versus other factors such as declining income or foreign retaliation partial and general equilibrium assessments indicate that the smoot hawley tariff itself reduced imports by 4 8 ceteris paribus although the combination of specific duties and deflation further raised the effective tariff and reduced imports an additional 8 10 a counterfactual simulation suggests that nearly a quarter of the observed 40 decline in imports can be attributed to the rise in the effective tariff i e smoot hawley plus deflation

sustainable operations the cutting stock problem with usable leftovers from a sustainable perspective abstract this paper proposes a mathematical model and two heuristic procedures to solve the cutting stock problem with usable leftovers relating the implications of the model with aspects considering sustainability in terms of environmental economic and social issues the possibility of generating leftovers that can be used or sold reduces raw material waste during the cutting process and consequently increases companies profits by reducing waste and increasing profits companies can become more competitive in the market they can also integrate environmental aspects into their operational strategies and therefore create a better self image and profitability generating more jobs and contributing to a stronger local economy we believe that the model is more likely to be adopted by smaller companies which generally face numerous barriers but at the same time have a significant social impact generating income and jobs based on the knowledge of the authors this is the first study that relates a cutting problem with its implications for sustainability computational tests were performed and the obtained results are discussed considering the win win approach to sustainability

unbundled reactive support service key characteristics and dominant cost component in this paper the authors present a systematic exposition of generator provided reactive support as an unbundled ancillary service under open access transmission they discuss the nature and salient physical characteristics of reactive support and analyze their implications in acquiring var support as one of the ancillary services the paper provides an analysis of the dominant component in the cost structure of this service this component is determined from the opportunity costs which are evaluated from the foregone profits of a generator in making sales in real power markets by providing reactive support instead of real power they illustrate the combined effects of the voltage set points of the generators and of the generator capability constraints on the transactions in competitive electricity markets both under normal and contingency operating conditions they discuss the key role of the grid operator in the provision of the reactive support and the key considerations in the acquisition and pricing of the reactive support service

self centered inequity aversion and the mass politics of taxation the politics of economic crises brings distributive economic conflict to the fore of national political debates how policy should be used to transfer resources between citizens becomes a central p

price and warranty period decisions for complementary products with horizontal firms cooperation noncooperation strategies abstract the purpose of this paper is to explore the optimal strategies on price and warranty period of two complementary products in a supply chain with two manufacturers and one common retailer from a two stage game theoretic perspective five decentralized models are established by considering the two manufacturers cooperation noncooperation strategies and the firms different bargain powers the corresponding closed form expressions for equilibrium decisions are obtained through a systematic analysis and comparison some interesting and valuable managerial insights are established we find that the retailer always has the advantage to get the higher profit when she is a leader however this is not always valid for two manufacturers for example two manufacturers profits when they are leaders and they adopt the noncooperation strategy in the supply chain are lower than that when two manufacturers and the retailer have the identical market power all channel members as well as consumers benefit from lower retail prices longer warranty periods and larger profits when the two manufacturers adopt cooperation action

preferences for international redistribution the divide over the eurozone bailouts why do voters agree to bear the costs of bailing out other countries despite the prominence of public opinion in the ongoing debate over the eurozone bailouts voters preferences on the topic are poorly understood we conduct the first systematic analysis of this issue using observational and experimental survey data from germany the country shouldering the largest share of the eu s financial rescue fund testing a range of theoretical explanations we find that individuals own economic standing has limited explanatory power in accounting for their position on the bailouts in contrast social dispositions such as altruism and cosmopolitanism robustly correlate with support for the bailouts the results indicate that the divide in public opinion over the bailouts does not reflect distributive lines separating domestic winners and losers instead the bailout debate is better understood as a foreign policy issue that pits economic nationalist sentiments versus greater cosmopolitan affinity and other regarding concerns

what determines individual trade policy preferences abstract this article provides new evidence on the determinants of individual trade policy preferences using individual level survey data for the united states there are two main empirical results first we find that factor type dominates industry of employment in explaining support for trade barriers second we find that home ownership also matters for individuals trade policy preferences independent of factor type home ownership in counties with a manufacturing mix concentrated in comparative disadvantage industries is correlated with support for trade barriers this finding suggests that in addition to current factor incomes driving preferences as in standard trade models preferences also depend on asset values

a new unified approach to evaluate economic acceptance towards main green technologies using the meta analysis the aim of this paper is to analyze the main determinants of the economic acceptability of four green technologies gts alternative fuel vehicles energy savings in residential buildings smart meters and renewable electricity using a meta analysis on a sample of 35 selected papers which provided 245 primary data this approach allows detecting relationships across heterogeneous studies avoiding the subjectivity of qualitative surveys we implement a new two step procedure first we compute a measure of the implicit price for a kilogram of co2 avoided pco2 homogenizing the usable information for the gts considered second we conduct a meta regression using the computed pco2 values to estimate the socio economic determinants impact in general our results show a wide degree of acceptability for gts which is stronger among european citizens in particular it emerges that on average the estimated pco2 is positive for the gts considered and additional positive effects exist when respondents are confronted with an explicit reference to quantitative targets in terms of co2 abatement a clear proposal for payment timing and a specific renewable electricity mix these results indicate that information and transparency are crucial to spur gts deployment therefore to support gts market penetration public and private institutional stakeholders have to provide ad hoc information to the end users setting a clear and suitable system of prices to increase the economic value end users place on gts

optimal active reactive power dispatch under competition via bilevel programming this paper proposes an active reactive power dispatch procedure that is expressed via a bilevel optimization problem whose upper and lower level criteria are respectively the minimum opportunity cost and minimum offered price of active power it analyzes the impact of minimizing such criteria on system operation and it investigates the behavior of marginal prices and opportunity costs and their use in mechanisms to compensate generators for power provision the bilevel problem is solved using a version of interior point methods derived for mathematical programs with complementarity constraints results obtained with three test systems are analyzed

production planning of multi stage multi option seru production systems with sustainable measures abstract with the concerns over climate change and the escalation in worldwide population sustainable development attracts more and more attention of academia policy makers and businesses in countries sustainable manufacturing is an inextricable measure to achieve sustainable development since manufacturing is one of the main energy consumers and greenhouse gas contributors in the previous researches on production planning of manufacturing systems environmental factor was rarely considered this paper investigates the production planning problem under the performance measures of economy and environment with respect to seru production systems a new manufacturing system praised as double e ecology and economy in japanese manufacturing industries we propose a mathematical model with two objectives minimizing carbon dioxide emission and makespan for processing all product types by a seru production system to solve this mathematical model we develop an algorithm based on the non dominated sorting genetic algorithm ii the computation results and analysis of three numeral examples confirm the effectiveness of our proposed algorithm

using data envelopment analysis for estimating energy saving and undesirable output abatement a case study in the organization for economic co operation and development oecd countries abstract environmental protection is one of the main concerns of the international community countries show meticulous attention to environmental issues by considering eco efficiency the eco efficiency evaluation of countries is a complex and multidisciplinary topic data envelopment analysis has widely been applied to measure the eco efficiency of organization for economic co operation and development countries in previous studies energy inputs have not been contemplated the subject becomes more important when there are non discretionary factors in this paper the eco efficiency of countries in the organization for economic co operation and development is assessed given energy inputs undesirable outputs and non discretionary factors to this end slack based and range adjusted measures are extended also new environmental indices are introduced the relationship between consumption of energy inputs and production of undesirable outputs can be addressed by two new environmental indices spearman correlation test indicates a direct and positive relationship between potential of energy saving and potential of undesirable output abatement france germany luxemburg norway sweden and the united kingdom are recognized as eco efficient countries south korea and italy have the highest and lowest potential for energy saving respectively poland and iceland are countries with the highest and lowest potential for undesirable output abatement respectively it can be concluded that countries producing high undesirable outputs may not operate eco efficiently and thus have an extreme potential to save the optimum energy moreover countries consuming low energy may operate eco efficiently and have a low potential to reduce undesirable outputs

explaining mass support for agricultural protectionism evidence from a survey experiment during the global recession why are citizens in advanced industrialized countries willing to accept high prices for agricultural products conventional wisdom suggests that agricul tural interests secure government protection because producers are concentrated and better politically organized than diffused consumers due to its focus on pro ducer capacity for collective action however the literature fails to account for the high levels of mass support for agricultural protectionism in advanced industrial ized nations this article presents new evidence from a survey experiment in japan conducted during the recent global recession december 2008 that accounts for this puzzle using randomly assigned visual stimuli the experiment activates respon dents identification with either producer or consumer interests and proceeds to ask attitudinal questions regarding food imports the results suggest that consumer priming has no reductive or additive effects on the respondents support for liberal izing food imports surprisingly producer priming increases respondents opposi tion to food import particularly among those who fear future job insecurity we further disentangle the puzzling finding that consumers think like producers on the issue of food import along two mechanisms sympathy for farmers and projec tion of their own job insecurity the results lend strong support to the projection hypothesis

accelerating the transition towards sustainability dynamics into supply chain relationship management and governance structures abstract stakeholders and competitive priorities drive profit and non profit organizations towards the implementation of sustainability related measures in their internal operations and in their supply chains planning it is believed by some that investments in sustainability may help them to attain more successful futures by maintaining a healthy balance among economic environmental and social resources dimensions consequently some organizations have begun to integrate these dimensions in recent years researchers and practitioners are also working to accelerate the transition for more equitable sustainable post fossil carbon societies by working with all relevant stakeholders this special volume of journal of cleaner production is focused upon on diverse types of supply chain relationships governance mechanisms and innovations which can foster effective and efficient sustainable supply chain management this volume is comprised of twenty seven articles and a book review fifteen of the articles address the supply chain relationships domain while five focus primarily upon governance five upon innovation and two on relationships and governance however there is a huge potential to further explore the opportunities towards achieving sustainability by implementing proper governance mechanisms and eco innovation strategies research from low income countries dealing with sustainability issues are also urgently needed

a theory of divided government this paper extends the spatial theory of voting to an institutional structure in which policy choices depend upon not only the executive but also the composition of the legislature voters have incentives to be strategic since policy reflects the outcome of a simultaneous election of the legislature and the executive and since the legislature s impact on policy depends upon relative plurality to analyze equilibrium in this game between voters we apply coalition proof type refinements the model has several testable implications which are consistent with voting behavior in the united states for instance the model predicts a split tickets where some voters vote for one party for president and the other for congress b for some parameter values a divided government with different parties controlling the executive and the majority of the legislature and c the midterm electoral cycle with the party holding the presidency always losing votes in midterm congressional elections

the president and the distribution of federal spending scholarship on distributive politics focuses almost exclusively on the internal operations of congress paying particular attention to committees and majority parties this article highlights the president who has extensive opportunities both ex ante and ex post to influence the distribution of federal outlays we analyze two databases that track the geographic spending of nearly every domestic program over a 24 year period the largest and most comprehensive panels of federal spending patterns ever assembled using district and county fixed effects estimation strategies we find no evidence of committee influence and mixed evidence that majority party members receive larger shares of federal outlays we find that districts and counties receive systematically more federal outlays when legislators in the president s party represent them

using survey data to assess the distributional effects of trade policy the author develops and applies a methodology to empirically explore the effects of trade policies on the distribution of income and poverty in developing countries he uses a methodology based on two links one connecting trade policies to prices and another connecting prices to household welfare the author applies the methodology to the study of the distributional effects of mercosur on argentine families the main finding is that mercosur benefits the average argentine household across the entire income distribution there is evidence of a pro poor bias of the regional trade agreement on average poor households gain more from the reform than middle income households whereas the effects on rich families are positive but not statistically significant prior to the reform argentine trade policy protected the rich over the poor and after the reform granted some protection to the poor as relative pre mercosur tariffs are higher on relatively skill intensive goods the tariff removals tend to benefit the poor over the rich these findings indicate that trade reforms may actually help improve the distribution of income and reduce poverty in the country

open door or closed door transparency in domestic and international bargaining in recent years there have been numerous calls for making the opera tions of international organizations more transparent one element in these demands involves the idea that international negotiations should be open to the same level of outside scrutiny that is presumed to prevail with bargaining in domestic contexts while transparency of this sort may have clear benefits by facilitating attempts to hold officials accountable scholars have made less effort to consider whether mak ing international bargaining more public might also have detrimental effects i develop a game theoretic model that provides four hypotheses about the relative benefits of open door versus closed door bargaining and about the preferences of different actors with regard to this type of transparency this model which can be applied to inter national and domestic contexts helps extend positive theories about the design of institutions while also providing insights for the normative question of when trans parency is desirable i show that the hypotheses developed are supported both by historical evidence from eighteenth century disputes about publicity in national par liaments and by evidence from the more recent dispute about making european coun cil of ministers deliberations public

government spending and public support for trade in the oecd an empirical test of the embedded liberalism thesis according to the embedded liberalism thesis governments committed to free trade provide insurance and other transfers to compensate those who lose economically from expanded trade the goal of this spending is to maintain public support for trade liberalization we provide a micro level test of the critical assumption behind the embedded liberalism thesis that government programs designed to protect individuals harmed by imports reduce opposition to free trade our micro results have important implications for the macro relationship between trade and government spending which we also test we find empirical support for the embedded liberalism thesis in both our micro and macro level analyses earlier versions of this article were presented at the midwest political science association s 2002 meeting and at the university of illinois during summer 2003 we thank the respective panel and seminar participants for their feedback in addition we want to acknowledge valuable comments from william bernhard rebecca blank kerwin charles alan deardorff john dinardo john freeman brian gaines jim granato nathan jensen william keech layna mosley robert pahre ken scheve marina whitman two anonymous reviewers and lisa martin they of course are not responsible for any errors

a quantitative model for environmentally sustainable supply chain performance measurement abstract the development of robust mechanisms for supply chain performance measurement have been identified as an integral step needed for the transition towards sustainable supply chain systems and a greener global economy however measuring the environmental performance of supply chains is a challenging task due to several factors such as the lack of standardised methodologies and the inherent multi criteria nature of the problem by leveraging the capability of a multi regional input output framework to handle the complex and global nature of supply chains the current work presents a robust environmental sustainable performance measurement model underpinned by industrial lifecycle thinking as a result some theoretical insights are provided and an empirical application of the model to the metal products industry of the brics brazil russia india china and south africa nations undertaken in an attempt to address some of the methodological and applied measurement challenges in particular this allowed the modelling of carbon emissions trends within and between the brics nations and with the rest of the world over a 20 year period 1992 2011 as well as providing an opportunity to hypothesis on their future carbon emissions performances specific analyses of the metal product industry showed that demand represents the main driver for the increasing carbon footprint however the overall decline in reported carbon footprint was due to improvements in emissions intensity and efficiency gains induced by technology the study further assesses the effects of imports and economic growth on carbon footprint and discusses the implications of the study to sustainability transition processes in the brics nations

the economic order quantity model revisited an extended exergy accounting approach abstract the economic order quantity eoq model has been popular among academicians and practitioners for decades despite the many variants of the eoq that have appeared in the literature to fine tune it to reality it still has limitations a major one is that it does not take into account the hidden costs inherent in inventory systems some of these costs relate to sustainability issues including environmental social labor and economic effects this paper considers some of these costs referred to as the exergetic costs and estimates them using the extended exergy accounting eea approach extended exergy accounting assigns equivalent exergetic values to capital labor and environmental remediation costs of a system the analysis combines the classical exergy analysis with the sustainability factors which are the labor capital and environment the paper uses an exergetic model to determine the eoq inventory policies for three firms operating in the usa germany and china the results show that the eoq is different for the three firms because the equivalent exergy of capital labor and environment remediation costs is different in each country

on the economic success of gatt wto dispute settlement what features of the dispute settlement process help governments live up to their trade liberalization commitments exploiting data on gatt wto trade disputes initiated and completed between 1973 and 1998 this paper identifies economic and institutional determinants that help defendant governments commit to liberalizing trade we find substantial evidence consistent with the theory that power measures including threat of retaliation by the plaintiff yield credibility to allow defendant governments to live up to their commitments we find only limited evidence however that particular procedural or institutional features beyond the basic gatt wto dispute settlement forum itself contributed to the successful economic resolution of trade disputes

do economic sanctions destabilize country leaders do economic sanctions destabilize the governments they target a form of foreign pressure sanctions are typically meant to alter the policies of other countries there is much pessimism on whether they ever work this article shows that economic pressure works in at least one respect it destabilizes the leaders it targets i present a theoretical argument that explains why destabilization is a necessary condition for successful coercion i find evidence that pressure destabilizes in a large panel of cross country time series data the destabilization finding indicates that sanctions may be more effective at altering policies than we think i conclude by noting that greater optimism regarding the effectiveness of sanctions should be balanced by a careful consideration of the policy s real and sizeable costs for those caught in the middle

why is trade reform so popular in latin america a consumption based theory of trade policy preferences despite wavy national economies and a perception among observers that economic globalization is growing increasingly unpopular aggregate support for free trade remains quite high across latin america this finding is robust to the wording of survey questions and has been quite resilient through time even in the face of economic stagnation current theories of trade preferences including the widely applied heckscher ohlin model do not explain this trend instead the author proposes a theory of trade preferences based not on what citizens produce but on what they consume statistical analyses of different surveys including one conducted in fourteen latin american countries demonstrate that a consumption based approach best accounts for trade preferences across individuals and countries moreover the theory provides an explanation for the overall popularity of free trade in latin america citizens recognize and appreciate the lower price increased variety and higher quality of goods that have come in the wake of trade liberalization

eco efficiency change in power plants using a slacks based measure for the meta frontier malmquist luenberger productivity index abstract malmquist luenberger index is a popular index deployed for evaluating eco efficiency and productivity change over a certain period when both desirable and undesirable factors are jointly produced in some production processes however conventional data envelopment analysis dea models used for computing this index are unable to distinguish the various technologies employed by the decision making units when heterogeneity exists in the technology the meta frontier malmquist luenberger approach is adopted to evaluate eco efficiency and productivity change over a period when undesirable outputs are incorporated in the analysis of efficiency in this paper a new slacks based dea measure is developed and used to compute the meta frontier malmquist luenberger productivity index this approach is then deployed to evaluate 48 iranian thermal power plants productivity change in three different categories steam gas and combined cycle over an eight year period of restructuring in the power industry this technique enables the calculation of eco efficiency change of thermal power plants operating under different technologies as well as the technology gap ratios and measures the extent to which the efficiency frontiers of individual categories of power plants deviate from the meta frontier the results reveal that the last years of the restructuring period saw a greater rate of productivity growth compared to the initial years and evidence of significant eco efficiency improvements over the period in all the three types of the thermal power plants finally it is expected that the findings in this study aid policy makers and power industry regulators in developing sustainable energy policies towards environmental protection and planning power plant operations

taxation and the political economy of the tariff traditional accounts of u s tariff policy emphasize trade strategies and interest group politics this article makes a departure it opens with an observation up until world war i the tariff was the largest single source of federal government revenues it then explores the significance of tariffs as taxes theoretically and empirically in its first part the article develops a theory of taxation politics and applies it to the tariff in its second part it submits the theory to an empirical test modeling changes in u s tariff rates from 1829 to 1940 the politics of tariff revision it argues followed from two characteristics of the tariff as tax from the extent of the treasury s dependence upon it and from the distributive pattern of its burdens and benefits taken together the article concludes revenue dependence and distributive incidence account for several diverse aspects of american tariff policy including the structure of its coalitions the shifts in its objectives and the timing of its innovations

why are some people and countries more protectionist than others we analyze two cross country data sets that contain information on attitudes toward trade as well as a broad range of socio demographic and other indicators we nd that pro trade preferences are signi cantly and robustly correlated with an individual s level of human capital in the manner predicted by the factor endowments model preferences over trade are also correlated with the trade exposure of the sector in which an individual is employed individuals in non traded sectors tend to be the most pro trade while individuals in sectors with a revealed comparative disadvantage are the most protectionist third an individual s relative economic status has a very strong positive association withpro trade attitudes finally non economic determinants in the form of values identities and attachments play an important role in explaining the variation in preferences over trade high degrees of neighborhood attachment and nationalism patriotism are associated withprotectionist tendencies c

a ricardian model with a continuum of goods under nonhomothetic preferences demand complementarities income distribution and north south trade this paper develops a ricardian model of trade in which goods are indexed according to priority and higher indexed goods are consumed only by richer households south north has a comparative advantage in lower higher indexed goods and hence specializes in goods with lower higher income elasticities of demand product cycles and a southern terms of trade deterioration result from faster population growth and uniform productivity growth in south and a global productivity improvement south s domestic income redistribution policy can improve its terms of trade so much that every household in south may be better off at the expense of north

support for free trade self interest sociotropic politics and out group anxiety although it is widely acknowledged that an understanding of mass attitudes about trade is crucial to the political economy of foreign commerce only a handful of studies have addressed this topic these studies have focused largely on testing two models both of which emphasize that trade preferences are shaped by how trade affects an individual s income the factor endowments or heckscher ohlin model posits that these preferences are affected primarily by a person s skills the specific factors or ricardo viner model posits that trade preferences depend on the industry in which a person works we find little support for either of these models using two representative national surveys of americans the only potential exception involves the effects of education initial tests indicate that educational attainment and support for open trade are directly related which is often interpreted as support for the heckscher ohlin model however further analysis reveals that education s effects are less representative of skill than of individuals anxieties about involvement with out groups in their own country and beyond furthermore we find strong evidence that trade attitudes are guided less by material self interest than by perceptions of how the u s economy as a whole is affected by trade

trade wages and the political economy of trade protection evidence from the colombian trade reforms abstract worker industry affiliation plays a crucial role in how trade policy affects wages in many trade models yet most research has focused on how trade policy affects wages by altering the economy wide returns to a specific worker characteristic i e skill or education rather than through worker industry affiliation this paper exploits drastic trade liberalizations in colombia in the 1980s and 1990s to investigate the relationship between protection and industry wage premiums we relate wage premiums to trade policy in an empirical framework that accounts for the political economy of trade protection accounting for time invariant political economy factors is critical when we do not control for unobserved time invariant industry characteristics we find that workers in protected sectors earn less than workers with similar observable characteristics in unprotected sectors allowing for industry fixed effects reverses the result trade protection increases relative wages this positive relationship persists when we instrument for tariff changes our results are in line with short and medium run models of trade where labor is immobile across sectors or alternatively with the existence of industry rents that are reduced by trade liberalization in the context of the current debate on the rising income inequality in developing countries our findings point to a source of disparity beyond the well documented rise in the economy wide skill premium because tariff reductions were proportionately larger in sectors employing a high fraction of less skilled workers the decrease in the wage premiums in these sectors affected such workers disproportionately

towards supply chain sustainability economic environmental and social design and planning abstract costumers and governments are pressuring companies to become more sustainable however the lack of research on how to incorporate these issues makes this a challenging task to fill this gap a generic multi objective mathematical programming model for the design and planning of supply chains integrating the three dimensions of sustainability is presented the economic pillar of sustainability is addressed in this work considering the costs of the supply chain then recipe an environmental assessment methodology indicated in the literature and by the european commission as the most developed one currently available is for the first time applied to supply chain design optimization finally a social indicator appropriate to assess strategic decisions is proposed this social indicator considers the impact of social and political concerns on company s performance the relevance of this model as a decision support system is highlighted with its application to a real case study of a portuguese battery producer and distributor a set of strategies to select the best solution among the obtained optimal ones is presented results show that the model allows improvements in all the three dimensions of sustainability and offers important managerial insights