optimal production and carbon emission reduction level under cap and trade and low carbon subsidy policies abstract in recent years massive carbon emissions have caused serious global environmental damage such as a worsening greenhouse effect and thick haze to curb carbon emissions as well as maintain sustainable economic development governments promote the development of low carbon economy by issuing multiple policies among which the cap and trade policy ctp and low carbon subsidy policy lcsp are widely adopted moreover manufacturers are increasingly adopting carbon emission reduction technology to produce greener products considering related government policies and rising environmental awareness among consumers to give policy making insights to governments as well as production and carbon emission reduction decision making insights to manufacturers this paper investigates the impacts of ctp and lcsp on the production and carbon emission reduction level of a manufacturer and explores which policy is better for society the results show that the carbon emission reduction level increases as the carbon trading price increases whereas it is independent of the unit low carbon subsidy interestingly the carbon trading price does not always have a negative effect on the manufacturer s profit and the cap does not always produce a positive effect on the manufacturer s profit more importantly we find that lcsp is more beneficial to society when the environmental damage coefficient is less than a threshold but otherwise ctp is more beneficial

remanufacturing as a marketing strategy the profitability of remanufacturing systems for different cost technology and logistics structures has been extensively investigated in the literature we provide an alternative and somewhat complementary approach that considers demand related issues such as the existence of green segments original equipment manufacturer competition and product life cycle effects the profitability of a remanufacturing system strongly depends on these issues as well as on their interactions for a monopolist we show that there exist thresholds on the remanufacturing cost savings the green segment size market growth rate and consumer valuations for the remanufactured products above which remanufacturing is profitable more important we show that under competition remanufacturing can become an effective marketing strategy which allows the manufacturer to defend its market share via price discrimination

cultural values and international differences in business ethics we analyze ethical policies of firms in industrialized countries and try to find out whether culture is a factor that plays a significant role in explaining country differences we look into the firm s human rights policy its governance of bribery and corruption and the comprehensiveness implementation and communication of its codes of ethics we use a dataset on ethical policies of almost 2 700 firms in 24 countries we find that there are significant differences among ethical policies of firms headquartered in different countries when we associate these ethical policies with hofstede s cultural indicators we find that individualism and uncertainty avoidance are positively associated with a firm s ethical policies whereas masculinity and power distance are negatively related to these policies

economic and political determinants of budget deficits in developing countries abstract the evidence from a large sample of developing countries tends to reject the empirical implications of optimizing models of the process of determination of fiscal deficits tax rates seigniorage and inflation the paper also presents some preliminary evidence that an important reason for the failure of the equilibrium approach to fiscal policy is that fiscal deficits are partly determined by political factors and that cross country differentials in budget deficits may depend on measures of political instability in particular as suggested by a number of recent theoretical approaches an increase in the degree of political instability appears to lead to greater budget deficits

a case analysis of a sustainable food supply chain distribution system a multi objective approach abstract sustainable supply chain management is a topical area which is continuing to grow and evolve within supply chains downstream distribution from producers to customers plays a significant role in the environmental performance of production supply chains with consumer consciousness growing in the area of sustainable food supply food distribution needs to embrace and adapt to improve its environmental performance while still remaining economically competitive with a particular focus on the dairy industry a robust solution approach is presented for the design of a capacitated distribution network for a two layer supply chain involved in the distribution of milk in ireland in particular the green multi objective optimisation model minimises co2 emissions from transportation and total costs in the distribution chain these distribution channels are analysed to ensure the non dominated solutions are distributed along the pareto fronts a multi attribute decision making approach topsis has been used to rank the realistic feasible transportation routes resulting from the trade offs between total costs and co2 emissions the refined realistic solution space allows the decision makers to geographically locate the sustainable transportation routes in addition to geographical mapping the decision maker is also presented with a number of alternative analysed scenarios which forcibly open closed distribution routes to build resiliency into the solution approach in terms of model performance three separate ga based optimisers have been evaluated and reported upon in the case presented nsga ii was found to outperform its counterparts of moga ii and hybrid

culture income and co2 emission given the devastating effects of global warming the problem of human induced climate change and in particular carbon dioxide emissions has been high on the global policy agenda in this study we examine the relationship between national culture carbon dioxide emissions and economic growth in the framework of the environmental kuznets curve ekc applying system gmm panel estimator across 69 developed and developing countries we confirm the existence of ekc and show that culture significantly affects the income emission relationship moreover the effects of the six cultural dimensions on ekc can be collapsed into two i masculinity power distance and indulgence move the ekc upward and shift the income turning point to the left and ii individualism uncertainty and long term orientation move the ekc downward while shifting the income turning point to the right the impact of culture on ekc remains also robust for alternative specifications future policy and global initiatives in sustainable development should incorporate the multidimensional impact of culture on national behavior towards environment and economic growth a relationship that has been largely ignored in economic decision making models

ethical influences on the evolution of the us tradable permit approach to air pollution control abstract in 1975 a novel approach to air pollution control was implemented in the usa from this rather humble beginning this approach has now been expanded rather dramatically in several different directions this paper describes this evolution shows how the design of the system has been adapted to accommodate ethical concerns and describes how the latest versions of this approach have transformed the regulatory process which spawned the approach in the first place

environmental policy government and the market environmental policy is made in a context of both market failure and government failure on the one hand leaving environmental protection to the free market relying on notions of corporate social responsibility and altruistic consumer and shareholder preferences will not deliver optimal results on the other hand nationalizing the delivery of environmental protection is likely to fail because nation states rarely have the depth and quality of information required to instruct all the relevant agents to make appropriate decisions thus as for many areas of policy appropriate models of environmental intervention will lie between these two extremes while it is impossible to specify general rules concerning the precise form of intervention in part because the type of intervention depends upon value judgements this paper sets out some of the considerations that are particular to environmental policy and explores several principles for policy design including information coordination and principal agent problems with a particular focus on the international context

tax base variability and procyclical fiscal policy in developing countries abstract based on a sample of 56 countries we show that fiscal policy in the g7 countries appears to be acyclical while fiscal policy in developing countries is procyclical i e fiscal policy is expansionary in good times and contractionary in bad times to explain this puzzle we develop an optimal fiscal policy model in which running budget surpluses is costly because they create pressures to increase public spending given this distortion a government that faces large fluctuations in the tax base as is the case for developing countries will find it optimal to run a procyclical fiscal policy

what can we learn from the grand policy experiment lessons from so2 allowance trading stable url http links jstor org sici sici 0895 3309 28199822 2912 3a3 3c69 3awcwlft 3e2 0 co 3b2 tthe journal of economic perspectives is currently published by american economic association your use of the jstor archive indicates your acceptance of jstor s terms and conditions of use available athttp www jstor org about terms html jstor s terms and conditions of use provides in part that unless you have obtainedprior permission you may not download an entire issue of a journal or multiple copies of articles and you may use content inthe jstor archive only for your personal non commercial use please contact the publisher regarding any further use of this work publisher contact information may be obtained athttp www jstor org journals aea html each copy of any part of a jstor transmission must contain the same copyright notice that appears on the screen or printedpage of such transmission the jstor archive is a trusted digital repository providing for long term preservation and access to leading academicjournals and scholarly literature from around the world the archive is supported by libraries scholarly societies publishers and foundations it is an initiative of jstor a not for profit organization with a mission to help the scholarly community takeadvantage of advances in technology for more information regarding jstor please contact support jstor org http www jstor orgtue jun 26 16 25 17 2007

cap and trade policy challenges a tale of three markets cap and trade policy instruments have been applied to a number of environmental problems with varying success this article examines cap and trade programs for so2 allowances fishery quotas and water rights design and implementation of cap and trade mechanisms involves challenging policy tradeoffs accommodating equity concerns balancing use levels with resource conditions facilitating transactions accounting for externalities assuring adequate monitoring and documenting welfare gains efficient trading mechanisms are more readily implemented when there is a strong political or legal mandate to cap resource use and trades are perceived as a means to ease adjustment to use limits

why did the energy intensity fall in china s industrial sector in the 1990s the relative importance of structural change and intensity change there have been a variety of studies investigating the relative importance of structural change and real intensity change to the change in china s energy consumption in the 1980s however no detailed analysis to date has been done to examine whether or not the increased energy efficiency trend in the 1980s still prevailed in the 1990s this article has filled this gap by investigating the change in energy consumption in china s industrial sector in the 1990s based on the data sets of value added and end use energy consumption for the 29 industrial subsectors and using the newly proposed decomposition method of giving no residual our results clearly show that the overwhelming contributor to the decline in industrial energy use in the 1990s was the decline in real energy intensity indicating that the trend of real energy intensity declines in the 1980s at the 2 digit level was still maintained in the 1990s this conclusion still holds even if we lower the growth rate dramatically in line with the belief that the growth rate of china s gdp may be overestimated

comparisons of initial carbon allowance allocation rules in an o2o retail supply chain with the cap and trade regulation abstract this paper focuses on an o2o retail supply chain in the context of low carbon environment the decision models are constructed under three cases without cap and trade regulation cap and trade regulation based on grandfathering mechanism and cap and trade regulation based on benchmarking mechanism the emission reduction strategies of the supply chain members in the three cases are then discussed the paper compares the effects of the grandfathering and benchmarking mechanisms on the firm s decisions profits and social welfare firstly the results show that the unit carbon quota plays a decisive role in firm s decisions compared with the grandfathering methodology the benchmarking one can more effectively push manufacturers to produce low carbon products and motivate retailers to promote low carbon products secondly it is profitable for the retailer to cooperate with a manufacturer who has lower emission reduction cost simultaneously the retailer will prefer the benchmarking mechanism to the grandfathering mechanism thirdly for the government it is beneficial to use grandfathering mechanism for low carbon emission firms and use benchmarking mechanism for high carbon emission firms also the paper provides government and firms with conditions where the benchmarking allocation method is more suitable for sustainable development the government s decision on benchmarks is a critical factor in maximizing the social welfare

an equilibrium model of consumer energy choice using a personal carbon trading scheme based on allowance price abstract changes in consumer behavior due to a personal carbon trading pct scheme are theoretically attractive yet untested in practice in this paper simulations on the basis of an equilibrium model are used to examine the effects of carbon allowance prices on energy use choice under a particular pct scheme it is shown that the equilibrium price of allowances would emerge under the pct scheme considered here further analyses indicate that the quantity of energy consumption under pct is a nonlinear function of the allowance price with a sharp kink at the point of equilibrium when the allowance price is below the equilibrium price consumers would prefer higher carbon energy in contrast when the allowance price is above the equilibrium price consumers would choose lower carbon energy however when the allowance price equals the equilibrium value consumers would purchase lower carbon energy and higher carbon energy simultaneously furthermore it is shown that the initial allowance allocation could also affect energy use choice on the basis of these results one of the main implications is that the allowance price should exceed the breakeven price to stimulate consumers to switch to green energy and progressively live a low carbon lifestyle

an interim evaluation of sulfur dioxide emissions trading ide iv of the 1990 clean air act amendments established the first large scale long term environmental program to rely on tradable emissions permitscalled allowances in this program to control pollution this program was designed to cut acid rain by reducing sulfur dioxide so2 emissions from electric generating plants to about half their 1980 level beginning in 1995 it is of interest both as a response to an important environmental issue and as a landmark experiment in environmental policy this experiment comes at a particularly important time since emission trading is under serious consideration with strong u s backing for use to deal with global climate change by curbing emissions of carbon dioxide co2 the economic stakes in climate change surpass those in acid rain by several orders of magnitude intergovernmental panel on climate change 1996 this article summarizes the results to date of our ongoing empirical analysis of compliance costs and allowance market performance under the u s acid rain program

a framework to update hofstede s cultural value indices economic dynamics and institutional stability this study offers an update of the hofstede cultural value dimensions we argue that changes in economic conditions are the source of cultural dynamics while the endurance of institutional characteristics provides the foundation for cultural stability it is found that national wealth measured by gdp per capita has a curvilinear relationship with individualism long term orientation and power distance scores relatively speaking uncertainty avoidance and masculinity mainly reflect some rather stable institutional traditions such as language religion climate ethnic homogeneity and legal origin and are less likely to change over time

low carbon production with low carbon premium in cap and trade regulation abstract manufacturers face a choice of whether to reduce their carbon emissions through employing low carbon technologies though many carbon regulations are set up to curb carbon emissions some firms choose not to take low carbon production because the additional cost of low carbon progressing is high however low carbon production would be a better alternative when we consider consumer s low carbon premium in the cap and trade system in this work we solve the manufacturer s multi product joint pricing and production problem when consumers value the low carbon product higher than the ordinary product our findings provide firms with conditions where low carbon production is profitable furthermore we find that the cap and trade would constrain the total carbon emissions and promote low carbon production simultaneously under certain conditions

cyclicality of taxes and external debt abstractin their work vegh and vuletin have shown that statutory tax rates are acyclical in developed economies and procyclical in developing ones this article extends their analysis by checking the interaction of statutory tax rates with countries external public debt in general we found that the value added tax rates are changed procyclically in both developed and developing countries i e taxes are raised in bad times and reduced in good times however when the external debt is high in the developing countries the procyclicality increases while the opposite result holds for developed economies this pattern occurs mainly in times of recession when the need for loans is the highest although we found that there was a reduction in procyclicality after the 2000s these findings pose a challenge to policy makers who should think of ways of dealing with lack of foreign funds in difficult times

design of sustainable supply chains under the emission trading scheme increase in environmental concerns together with legislations are forcing industries to take a fresh look at the impact of their supply chain operations on the environment this paper introduces a mixed integer linear programming based framework for sustainable supply chain design that considers life cycle assessment lca principles in addition to the traditional material balance constraints at each node in the supply chain indeed the framework distinguishes between solid and liquid wastes as well as gaseous emissions due to various production processes and transportation systems the framework is used to evaluate the tradeoffs between economic and environmental objectives under various cost and operating strategies in the aluminum industry the results suggest that current legislation and emission trading schemes ets must be strengthened and harmonized at the global level in order to drive a meaningful environmental strategy moreover the model demonstrates that efficient carbon management strategies will help decision makers to achieve sustainability objectives in a cost effective manner

sources of production inefficiency and productivity growth in china a global data envelopment analysis abstract the current mode of production in china is extensive and inefficient and has caused great stress on both resources and the environment this paper focuses on analyzing the sources of production inefficiency and productivity growth in china here a developed slacks based measure is utilized to decompose production inefficiency into three components input inefficiency economic output inefficiency and environmental inefficiency furthermore by applying a method based on global data envelopment analysis we take a further step to analyze the key factors responsible for the change of environmental productivity during 2003 2011 from the point of view of technical progress productive scale and management level the results show that redundancy in energy and labor inputs and excessive emission of sulfur dioxide chemical oxygen demand and ammonia nitrogen are the main sources of production inefficiency in china during the sample period the efficiency in all inputs and environmental emissions has improved except for capital input efficiency which had a decreasing trend further analysis shows that the overall environmental productivity in china has begun to follow an ascending path technical progress is the most powerful contributor to china s productivity growth while the decreases in scale and management efficiency are the two main obstacles preventing productivity improvement

evaluating renewable portfolio standards and carbon cap scenarios in the u s electric sector this report examines the impact of renewable portfolio standards rps and cap and trade policy options on the u s electricity sector the analysis uses the national renewable energy laboratory s regional energy deployment system reeds model that simulates the least cost expansion of electricity generation capacity and transmission in the u s to examine the impact of a variety of emissions caps and rps scenarios both individually and combined the generation mix carbon emissions and electricity price are examined for various policy combinations simulated in the modeling

the market for tradable renewable energy credits abstract as states seek to foster the development of renewable energy resources some have introduced renewable portfolio standards rpss which require retailers of electricity to derive a specified amount of their energy supply from renewable energy resources rpss in texas arizona wisconsin and nevada allow for or require the use of tradable renewable energy credits the price of such credits is expected to reflect the cost premium for generating electricity from renewable resources relative to the market price of conventionally generated electricity using the market to trade renewable energy credits exposes buyers and sellers to risks of imperfect information poor performance and opportunism these risks can be managed through contractual arrangements and regulatory requirements pertaining to property rights in credits pricing term of the contract and assurance of performance

production optimization considering environmental performance and preference in the cap and trade system abstract many countries like china are in a dilemma between economic growth and environmental deterioration e g smog weather simultaneously a growing people concern the product s environmental performance along with their improving environment awareness this paper focuses on the impacts of carbon footprint and low carbon preference on the production decision of emission dependent firms in the cap and trade system the cap and trade system uses the total cap to attain environmental goals and allows trade to achieve the effective scheduling through market regulation under this mechanism through analyzing the influence of carbon footprint and low carbon preference on the market supply and demand we build a production optimization model and develop the optimal decisions several interesting management insights on environmental preference and policy are concluded

fiscal federalism and procyclical spending the cases of argentina and brazil este trabajo estudia las fuentes de la prociclicalidad del gasto para gobiernos subnacionales en argentina y brasil encontramos que los esquemas de coparticipacion de los impuestos explican solo una parte menor de la prociclicalidad de los recursos de las entidades subnacionales siendo la mayor parte explicada por la prociclicalidad de los propios recursos esto es especialmente visible cuando esa prociclicalidad se mide relativa al producto de cada entidad subnacional usando evidencia de corte transversal para distintas jurisdicciones podemos concluir que a su vez la prociclicalidad del gasto resulta de la prociclicalidad de los recursos mediante el llamado voracity effect la conclusion es que el debate sobre la prociclicalidad del gasto de entidades subnacionales debiera concentrarse mucho mas en mejorar los sistemas impositivos locales que en cambiar los regimenes de coparticipacion

the political economy of market based environmental policy the u s acid rain program the u s acid rain program enacted in 1990 gave valuable tradable sulfur dioxide emissions permits called allowances to electric utilities we examine the political economy of this allocation though no senate or house votes were ever taken hypothetical votes suggest that the actual allocation would have beaten plausible alternatives while rent seeking behavior is apparent statistical analysis of differences between actual and benchmark allocations indicates that the legislative process was more complex than simple models suggest the coalition of states that produced and burned high sulfur coal both failed to block acid rain legislation in 1990 and received fewer allowances than in plausible benchmark allocations some of these states may have received additional allowances to cover 1995 99 emissions by giving up allowances in later years and some major coal producing states seem to have focused on benefits for miners and on sustaining demand for high sulfur coal

estimating the rebound effect in us manufacturing energy consumption abstract the energy price shocks of the 1970s are usually assumed to have increased the search for new energy saving technologies where eventual gains in energy efficiencies will reduce the real per unit price of energy services and hence the consumption of energy will rise and partially offset the initial reduction in the usage of energy sources this is the rebound effect which is estimated for the us manufacturing sector using time series data applying the dynamic ols method dols when allowing for asymmetric price effects the rebound effect is found to be approximately 24 for the us manufacturing sector

tactical supply chain planning under a carbon tax policy scheme a case study greenhouse gas emissions are receiving greater scrutiny in many countries due to international forces to reduce anthropogenic global climate change industry and their supply chains represent a major source of these emissions this paper presents a tactical supply chain planning model that integrates economic and carbon emission objectives under a carbon tax policy scheme a modified cross entropy solution method is adopted to solve the proposed nonlinear supply chain planning model numerical experiments are completed utilizing data from an actual organization in australia where a carbon tax is in operation the analyses of the numerical results provide important organizational and policy insights on 1 the financial and emissions reduction impacts of a carbon tax at the tactical planning level 2 the use of cost emission tradeoff analysis for making informed decisions on investments 3 the way to price carbon for maximum environmental returns per dollar increase in supply chain cost

the political transaction costs and uncertainties of establishing environmental rights abstract the significance of transaction costs for the analysis of environmental policy is increasingly recognized this article focuses on one aspect of the topic the political uncertainty and transaction costs of establishing environmental rights our contribution is to model the political process around the rights establishment and to monetize the associated welfare costs the model includes both policy related and political institutional parameters including the extent to which environmental rights are shared with polluters the environmental benefits of the policy the policy s abatement costs and the relative political power of polluters and environmentalists the model is solved to give unique nash equilibria for the transaction costs of lobbying and for the probability of the policy s political success these results are then used to show the degree to which political actions can dissipate the expected economic surplus from environmental policymaking

the market for sulfur dioxide emissions the 1990 clean air act amendments initiated the first large scale use of the tradable permit approach to pollution control the theoretical case for this approach rests on the assumption of an efficient market for emission rights the authors empirical analysis shows that the emission rights market created by the 1990 amendments had become reasonably efficient by mid 1994 they also show that the auctions specified in the amendments to jump start trading had become a small part of the overall market finally the authors demonstrate that the strategic bidding behavior discussed in the literature has had no effect on market prices copyright 1998 by american economic association

a comparative study on the production efficiencies of china s oil companies a true fixed effect model considering the unobserved heterogeneity abstract with the promotion of one belt one road obor initiative china s oil companies have speeded up the pace of going global strategy to expand their business internationally the efficiency problems of china national petroleum corporation cnpc and sinopec group which determine the international competitiveness have drawn ever increasing attention from both the general public and from decision makers the wide variation in cultural economic and institutional characteristics of different international oil companies may result in a large amount of unobserved heterogeneity distinguishing the time invariant unobserved heterogeneity from time variant inefficiency could avoid heterogeneity bias and thus ensure consistent efficiency estimates considering that the production efficiencies of the sample oil companies are influenced by various heterogeneous factors this paper evaluates the production efficiencies of the world s 10 biggest oil companies during 2003 2013 based on the stochastic frontier analysis sfa method and the true fixed effect tfe model results suggest that 1 estimation techniques that do not account for unobserved heterogeneity would produce biased efficiency estimates 2 compared with other oil companies the production efficiencies of cnpc and sinopec group were relatively improved after the global financial crisis 3 china s state owned oil companies should be further enhanced with the ability of internationalization management

managing carbon footprints in inventory management abstract there is a broad consensus that mankind must reduce carbon emissions to mitigate global warming it is generally accepted that carbon emission trading is one of the most effective market based mechanisms to curb the amount of carbon emissions this paper investigates how firms manage carbon footprints in inventory management under the carbon emission trading mechanism we derive the optimal order quantity and analytically and numerically examine the impacts of carbon trade carbon price and carbon cap on order decisions carbon emissions and total cost we make interesting observations from the numerical examples and provide managerial insights from the analytical results

retail store density and the cost of greenhouse gas emissions the density size and location of stores in a retailer s network influences both the retailer s and the consumers costs with stores few and far between consumers must travel a long distance to shop whereas shopping trips are shorter with a dense network of stores the layout of the retail supply chain is of interest to retailers who have emission reduction targets and urban planners concerned with sprawl are small local shops preferred over large big box retailers a model of the retail supply chain is presented that includes operating costs such as fuel and rent for floor space as well as a cost for environmental externalities associated with carbon emissions a focus on exclusively minimizing operating costs may substantially increase emissions by 67 in one scenario relative to the minimum level of emissions a price on carbon is an ineffective mechanism for reducing emissions the most attractive option is to improve consumer fuel efficiency doubling the fuel efficiency of cars reduces long run emissions by about one third whereas an improvement in truck fuel efficiency has a marginal impact on total emissions this paper was accepted by yossi aviv operations management

bringing biophysical models into the economic laboratory an experimental analysis of sediment trading in australia abstract experimental economics has emerged and matured as a formal method for questioning and testing economic theory and assumptions concerning individual behavior more recently experimental methods have been used successfully in an economic laboratory to test alternative environmental policy options the data underpinning these experiments is often stylized or hypothetical in nature ecologists and experimental economists have much to gain by exploring ways to underpin economic experiments with data generated from biophysical models the study makes a contribution by demonstrating how underpinning experiments with regionally modeled biophysical data may give insights which would not necessarily arise from stylized data in this study sediment data generated from an environmental management support system emss a software model of sediment runoff in catchments was used to populate the players decision space the study investigated the relative performance of four different instruments closed first and second price call tenders cap and trade and command and control regulation these market instruments will be compared with the aim of promoting riparian management and reducing total suspended solids exiting a catchment the study finds that the cost of meeting regulatory requirement of sediment reduction through command and control is less than either first or second price auction however cap and trade produced high levels of convergence and production which moved towards minimizing the cost of achieving the cap reduction level

empirical generalizations in eco innovation a meta analytic approach abstract although discussions on eco innovation are ongoing and the concept is evolving its central idea is highly stimulating thus a great number of studies has been conducted in recent years around the world based on different perspectives contexts and outcomes therefore the identification and analysis of factors related to eco innovation are essential if knowledge in this field is to be improved and consolidated this research aimed to advance our understanding of the different dimensions of eco innovation through a meta analytical review of its antecedents or drivers consequents and moderators thus a total of 71 studies was analysed generating 818 effect sizes and 220 582 cumulative samples the main findings revealed that barriers company capabilities environmental regulation market turbulence information sources r d and company size were significant antecedents to eco innovation it was also noted that a significance relationship exists between eco innovation and firm performance regarding the moderating effect it was observed that culture the economic situation of the country and context influence the relationship between eco innovation and performance the results revealed that countries with a lower hdi presented stronger effects between eco innovation and firm performance than countries with a higher hdi these findings were interesting because they could demonstrate that eco innovation tends to promote more competitive advantage in countries with environmental problems and consequently a lower hdi

output fluctuations and fiscal policy u s state and local governments 1978 1994 abstract we study the cyclical properties of u s state and local government fiscal policy the budget surpluses of both are procyclical over short and medium term horizons procyclical surpluses are the result of strongly procyclical revenue and weakly procyclical expenditure these results hold whether aggregate u s wide fluctuations are controlled for or not federal grants to state and local governments are procyclical but this is due to aggregate output fluctuations with respect to state level output fluctuations federal grants are countercyclical the budget surpluses of trust funds and utilities are also procyclical but there is no evidence that this effect is stronger in states where balanced budget rules are tighter the cyclical patterns of state and local budget surpluses are affected by various political institutions for example budget surpluses are less procyclical in conservative states in an election year that occurs in good times state governments refrain from accumulating a larger surplus in bad times no such asymmetry between election and non election years is apparent

company delistings from the un global compact limited business demand or domestic governance failure while a substantial amount of the literature describes corporate benefits of corporate social responsibility csr initiatives the literature is silent concerning why some companies announce csr initiatives yet fail to implement them the article examines company delistings from the un global compact delistings are surprising because the csr agenda is seen as having won the battle of ideas the analysis proceeds in two parts i first analyze firm level characteristics focusing on geography while controlling for sector and size i find that geography is a significant factor while small firms are more likely to be delisted than large firms and some sector characteristics determine delistings next i proceed to uncover country level characteristics including the degree of international economic interdependence as well as the quality of governance institutions multivariate regression analysis shows that companies are less likely to be delisted from countries where domestic governance institutions are well functioning to a lesser extent i find that firms from countries with international economies are more willing to comply with the un global compact requirements countries with a high share of outward fdi capita have a lower share of delisted firms as do countries that are internationally competitive

government spending cyclicality evidence from transitory and persistent shocks in developing countries we revisit the debate of whether government spending is procyclical in developing countries our main contribution is to argue that beyond exogeneity of the income shock an empirical analysis of government spending cyclicality must be carefully tailored to the shock s persistence we first illustrate this point in a simple intertemporal model we then use instrumental variables estimation to characterize the response of government expenditures to exogenous shocks with different degrees of persistence our estimation strategy exploits that i year to year variations in rainfall have a significant positive contemporaneous effect on sub saharan african countries real gdp but this effect is transitory ii year to year variations in the gdp of sub saharan african countries oecd trading partners have a significant positive contemporaneous effect on sub saharan african countries real gdp and this effect is persistent using rainfall as an instrument for sub saharan african countries gdp yields a government consumption expenditures elasticity response of around 0 4 standard error 0 3 when the instrument is the gdp of sub saharan african countries oecd trading partners the estimated government consumption expenditures elasticity response is around 1 1 standard error 0 2 the elasticity response of government consumption expenditures to persistent income shocks is thus significantly higher relative to transitory shocks

foreign direct investment the role of institutional and cultural determinants abstractusing panel data for 29 source and 65 host countries in the period 1995 2009 we examine the determinants of bilateral fdi stocks focusing on institutional and cultural factors the results reveal that institutional and cultural distance is important and that fdi has a predominantly regional aspect fdi to developing countries is positively affected by better institutions in the host country while foreign investors prefer to invest in developed countries that are more corrupt and politically unstable compared to home the results indicate that foreign investors prefer to invest in countries with less diverse societies than their own

carbon pricing versus emissions trading a supply chain planning perspective abstract carbon pricing taxes and carbon emissions trading are two globally practiced carbon regulatory policy schemes this paper presents an analytical supply chain planning model that can be used to examine the supply chain performance at the tactical operational planning level under these two policy schemes model implementation and analyses are completed using actual data from a company operating in australia where these environmental regulatory policies are practiced numerical results provide important managerial and practical implications and policy insights in particular the results show that there are inflection points where both carbon pricing and trading schemes could influence costs or emissions reductions an erratic nonlinear emissions reduction trend is observed in a carbon pricing scheme as the carbon price increases steadily whereas emissions reduction in a carbon trading scheme follows a relatively linear trend with a nonlinear cost increase overall a carbon trading mechanism although imperfect appears to result in better supply chain performance in terms of emissions generation cost and service level even though a carbon tax may be more worthwhile from an uncertainty perspective as emissions trading costs depend on numerous uncertain market conditions

the impact of carbon pricing on a closed loop supply chain an australian case study concerns about industrial and supply chain implications on our natural environment have existed for decades climate change and greenhouse gas emissions have caused countries to implement various instruments ranging from taxes permits and voluntary incentives to required regulatory policies given this environment we develop a unified optimization model for a closed loop supply chain in which the carbon emission is expressed in terms of dollar carbon cost this study is one of the first to evaluate the forward and reverse supply chain influences on the carbon footprint a comparative analysis is completed with a decomposition of cost and environmental influences across supply chain functions we utilize data from a company located in australia where the government is currently introducing a carbon pricing scheme we find that variations in cost and environmental impacts occur over ranges of carbon pricing characteristics and patterns of the numerical results over these ranges provide insights for corporate key strategies and potential additional government policies these results and implications are analyzed along with limitations and directions for future research

the efficacy of the european union emissions trading scheme depicting the co movement of carbon assets and energy commodities through wavelet decomposition abstract environmental system thresholds have been crossed for a number of dimensions of global environmental pollution such as greenhouse gas emissions under this scenario institutions and corporations are required to implement sustainable policies as a condition for humanity staying within planetary boundaries accordingly the european union created the largest emissions trading scheme in the world with the aim of properly managing corporations carbon dioxide reductions this paper aims to contribute to the literature focused on testing the effectiveness of institutional environmental management policies specifically this research evaluates whether the objectives of the european union emissions trading scheme are partially achieved by analyzing the dynamics of carbon assets and the main energy commodities worldwide this paper provides relevant information both for policy makers and company managers so that contributions towards the common goal of developing a clean energy future and curbing climate change are ameliorated based on wavelet coherence analysis this paper proposes a model free way of estimating the time varying correlations between carbon assets and energy commodities at both high and low frequencies our central results reveal that carbon assets and energy commodities present a changing lead lag behavior at different frequencies the energy commodities lead the european union allowances returns at medium frequencies but the contrary was true for the highest investment horizons this finding should be in line with the goal of significantly reducing emissions because during long cycles if the majority of companies have not switched to cleaner industrial processes they must buy more carbon assets increasing their prices in that case energy commodities would be more expensive because of the energy commodities market behavior during long term horizons with european union allowances lead the certified emissions reductions lead in a negative way most of the energy commodities at medium frequencies thus indicating that investors handling energy commodities oriented portfolios could incorporate the mentioned carbon assets for diversification purposes these specific findings suggest that polluting activities would be more expensive which would provide an incentive to companies to implement environmentally friendly industrial processes the european union emissions trading scheme can result in significant emission reductions and compliance of the european union with the objectives of the kyoto protocol

multi item production planning with carbon cap and trade mechanism abstract carbon emission control becomes a challenge in recent years and carbon emission trading is an effective way to curb carbon emission this paper investigates the multi item production planning problem with carbon cap and trade mechanism in which a firm uses a common capacity and carbon emission quota to produce multiple products for fulfilling independent stochastic demands and the firm can buy or sell the right to emit carbon on a trading market of carbon emission a profit maximization model is proposed to characterize the optimization problem the optimal policy of production and carbon trading decisions is analyzed and an efficient solution method with linear computational complexity is presented for solving the optimal solution the impacts of carbon price carbon cap on the shadow price of the common capacity production decisions carbon emission and the total profit are investigated the comparisons of the carbon cap and trade policy and the taxation policy are given to show the effectiveness of the policies numerical analyses are presented for illustrating our findings and obtaining some managerial insights and policy implication

corporate social responsibility and different stages of economic development singapore turkey and ethiopia the u s and u k models of corporate social responsibility csr are relatively well defined as the phenomenon of csr establishes itself more globally the question arises as to the nature of csr in other countries is a universal model of csr applicable across countries or is csr specific to country context this article uses integrative social contracts theory isct and four institutional factors firm ownership structure corporate governance openness of the economy to international investment and the role of civil society to examine csr in singapore turkey and ethiopia field research results illustrate variation across the institutional factors and suggest that csr is responsive to country differences research findings have implications for consideration of the tradeoff between global and local csr priorities and practices

the impact of carbon policies on supply chain design and logistics of a major retailer abstract the energy used to move freight comprised about 17 of all the energy consumed in the united states in 2010 this percentage was an increase from 8 7 in 1970 even though fuel efficiency gradually improved over the period one major reason of this phenomenon is that the longer supply chains of many industries caused by globalization increase freight movement various carbon policies have been discussed and even implemented for some industry sectors in the european union to reduce carbon emissions however the emissions of surface transportation have not been well studied this paper investigates three of the most common carbon policies carbon emission tax inflexible cap and cap and trade the impact on a company may include the redesign of its supply chains and different choices of transportation modes truck rail or waterway this paper proposes optimization models for major retailers who make a huge contribution to freight movement to design their supply chains under various carbon policies the results from the models can help policy makers to predict the impact of policies on overall emissions in the freight transportation sector the model may also be incorporated into the integrated assessment models for climate change analyses furthermore a sensitivity analysis is conducted to study the impact of the policy parameters on carbon emissions and logistics cost this research uses the supply chain of a major u s retailer i e wal mart to demonstrate how to use the models and conduct the sensitivity analysis in order to realize significant emission reduction a redesign of supply chains of major retailers is necessary and will be triggered only by a high carbon tax rate a high carbon price or a very strict carbon cap which all may involve high social and or economic complexity numerical experiments show that different policies have different impacts on the costs and the effectiveness of emission reduction how to choose policy parameters is critical to the effectiveness of a carbon policy the different sensitivity also implies different challenges during the implementation of the policies such as the high cost preventing retailers from accepting any carbon taxes and the difficulty of reaching an agreement on the carbon caps between retailers and policy makers

the effects of national culture on corporate social responsibility disclosure a cross country comparison this article presents a cross country analysis of the influence of national culture on corporate social responsibility csr disclosure we analyse the relationship between the hofstede s cultural