project based mechanisms for emissions reductions balancing trade offs with baselines project based mechanisms for emissions reductions credits like the clean development mechanism pose important challenges for policy design because of several inherent characteristics participation is voluntary so it will not occur without sufficient credits evaluating reductions requires assigning an emissions baseline for a counterfactual that cannot be measured some investments have both economic and environmental benefits and might occur anyway uncertainty surrounds both emissions and investment returns and parties to the project are likely to have more information than the certifying authority the certifying agent is limited in its ability to design a contract that would reveal investment intentions as a result rules for benchmarking emissions may be systematically biased to overallocate and they also risk creating inefficient investment incentives this paper evaluates in a situation with asymmetric information the efficacy of the main baseline rules currently under consideration historical emissions an average industry emissions standard and expected emissions

interest rate expectations and interest parity abstract this paper examines an hypothesis for explaining divergences from interest parity that is based on interest rate expectations if interest rates are expected to rise significantly within the arbitrage oppurtunity implies riskless profit waiting in ths way has been noted in the historical literature seems to make sense theoritically if portfolio adjusment cost in the capital market outweigh any costs of being out of long term equilibrium and explains a significant portion of us uk interest parity divergences using onshore assets in a recent floating preiod

preparing hydropower projects for the post paris regime an econometric analysis of the main drivers for registration in the clean development mechanism abstract the 2015 paris climate accords promises to reign in a new era in the fight against global climate change the agreement supports the establishment of new cooperative approaches including internationally transferred mitigation outcomes through which individual countries can meet their nationally determined contributions hydropower projects however are in danger of being left out in the new regime mainly due to its dubious position as a renewable energy source hydropower in the clean development mechanism cdm has been criticized for non conformance to additionality and sustainability objectives originally set out in the kyoto protocol to confirm such issues and to provide recommendations that may mitigate them this study conducted an econometric analysis of 2717 hydropower projects in the cdm pipeline leading up to 2016 specifically a logit model was constructed to identify the main drivers for registration success results of the analysis showed the capacity and expected carbon credits of hydropower projects to be the dominant factors for registration rather than their financial requirements or technological barriers most problematically large scale projects not requiring carbon credits were registered while their social and environmental impacts have not been extensively scrutinized policy recommendations to rectify the verification process are proposed so that when implemented the right hydropower projects may be included in the new market mechanisms of the post 2020 regime

rent extraction with a type by type scheme an instrument to incorporate sustainable development into the cdm although the cdm is supposed to assist developing countries in achieving sustainable development sustainable development is not incorporated into the market aspect of the cdm by participating in the cdm developing countries may end up losing all cheap emissions reduction possibilities while obtaining little sustainability benefits this paper proposes rent extraction with a type by type scheme as an instrument to incorporate sustainable development into the cdm the rent extraction with a type by type scheme makes it possible for the cdm host country government to discourage the low cost projects that have little sustainability benefits and to extract more rent from the projects that are developed the main challenge of implementing this instrument is the uncertainty of the opportunity cost but the host country government can adjust the scheme for the uncertainty to achieve its goal therefore the type by type scheme will better assist the host country in achieving sustainable development than a single rate scheme

an estimation of the swiss hydropower rent the electricity generation in switzerland is mostly based on hydropower 58 and nuclear power 38 the exploitation of water in the hydropower sector can generate significant economic rent one possibility to capture this rent is through royalties or fees this system has been used in switzerland since many decades however the actual water fee system is not flexible and does not take into consideration different production costs between the type and location of hydropower plants furthermore storage plants can sell electricity to a higher price than run of river plants a flexible system is needed in a liberalized electricity market to take into account these different production situations and the fact that prices may vary considerably over time the main goal of this paper is to calculate the potential economic rent that could be generated in the swiss hydropower sector under a future liberalized market based on the results of the paper it can be concluded that the introduction of a flexible fee system could improve the competitiveness of the hydropower sector and promote an energy system based on renewable energy sources

a real option based model for promoting sustainable energy projects under the clean development mechanism abstract the clean development mechanism cdm provides a way of assisting sustainable development in developing countries for developed countries to reduce greenhouse gas ghg emissions despite its intended benefits the primary cdm market decreased from us 5 8 billion in 2006 to us 1 5 billion in 2010 one of the primary reasons for the reduction of market size is that developed countries as investors have a high level of risks caused by the volatility of the market price for certified emission reductions cers another issue to be resolved is that developing countries as host countries cannot claim any right to the cers produced on their own land this paper presents a real option based model for both parties developed and developing countries to have their fair share of profits and risks by controlling the uncertainty associated with the future value of cers a case study illustrated that the proposed model can effectively attract investors to cdm projects leading to mitigation of climate change

the interrelationships between u s and foreign equity market yields tests of granger causality this study examines the interrelationships between yields on the u s and several foreign market portfolios over the 1980 89 period tests of granger causality are used to investigate the effects of uni directional causality bi directional causality and contemporaneous adjustment in the determination of market rates of return the results indicate that international equity market returns are largely contemporaneously determined and the significance of contemporaneous effects varied over time uni directional and bi directional causality were found to be relatively weak

capital market integration over the past decade the case of the us dollar abstract this study investigates changing capital market integration over the decade 1973 83 as measured by the relationship between eurodollar and domestic us dollar yields the findings reveal that capital market integration has increased appreciably since the end of 1981

conflict management style accounting for cross national differences a problem in joint ventures between u s and asian firms is that cultural differences impede the smooth resolution of conflicts between managers in a survey of young managers in the u s china philippines and india we find support for two hypotheses about cultural differences in conflict style and the cultural values that account for these differences chinese managers rely more on an avoiding style because of their relatively high value on conformity and tradition u s managers rely more on a competing style because of their relatively high value on individual achievement

the term structure of eurodollar interest rates and its relationship to the us treasury bill market abstract this paper examines an efficient market of the term structure of eurodollar interest rates and its relationship with the us treasury bill market standard test procedures and granger causuality tests are conducted which provide evidence showing that past changes in short term eurodollar or domestic interest rates are not useful in predicting changes in long term eurodollar interest rates the eurodollar market appears to be efficiently integrated with the us domestic financial market

on the contribution of labelled certified emission reductions to sustainable development a multi criteria evaluation of cdm projects abstract the clean development mechanism cdm has a twofold objective to offset greenhouse gas emissions and to contribute to sustainable development in the host country the contribution to the latter objective seems marginal in most cdm activities also cdm activities are unevenly spread among developing countries in response to these concerns initiatives with the objective of promoting cdm projects with broad local sustainable development dividends have been launched such as the gold standard and the community development carbon fund the gold standard label rewards best practice cdm projects while the community development carbon fund focuses on promoting cdm activities in underprivileged communities using a multi criteria method the potential contribution to local sustainable development of those cdm projects with particular attributes is compared with ordinary ones this evaluation suggests that labelled cdm activities tend to slightly outperform comparable projects although not unequivocally

china s transition and its implications for international business this paper focuses on institutional change as the central and most consequential contextual aspect of china s transition identification of key characteristics of china s emergent institutions leads to propositions on their relevance for international business practice china s transition also raises issues for theory development including the way that transition is modeled the need to draw upon multiple perspectives and the concomitants of a contextual approach

the monetary compensation mechanism an alternative to the clean development mechanism abstract one of the key challenges in resolving global warming problem is how to induce developing countries to reduce emissions the cdm was proposed in the kyoto protocol as a means of obtaining the cooperation of developing countries in controlling greenhouse gases but it has some intrinsic problems and has generated considerable controversy this paper presents an alternative mechanism the monetary compensation mechanism mcm i study the characteristics of this mechanism with a dynamic principal agent model by solving the model numerically i obtain the optimal solution for a scenario based on 1990 data the monetary compensation rate under the mcm is comparable to the price of cers in the cdm but the mcm has several advantages over the cdm

the international transmission of eurodollar and us interest rates a cointegration analysis abstract the relationship between us and eurodollar certificate of deposit cd rates for the period 1981 1988 is examined using an error correction model results indicate that there is a structural change in the cd rates in the earlier sub period 1981 1983 there exists unidirectional causality leading from the domestic to the external markets in the more recent sub period 1984 1988 however significant reverse causality is observed these results are likely due to expansion in the size of the eurodollar market and an increase in the volume of eurodollar futures trading

money and monetization in china s economic reform in addition to privatization marketization liberalization and pragmatization monetization has been argued as the fifth feature in china s economic reform if monetization is taken to mean a process through which variations in money supply or interest rate are to affect macroeconomic variables the construction of four causality relationships between interest rate and investment and money and national income do not support the evidence of such a process in china between the late 1970s and early 1990s

risk transactions charges and the market for foreign exchange services this paper suggests that transactions charges in foreign exchange markets rather than being solely brokerage fees represent exchange rate uncertainty in periods of great fluctuations by including remuneration for the assumption of risk by foreign exchange dealers since most of the cost of exchange rate uncertainty may be largely endogenously included in the foreign exchange markets attempts to examine the efficient market hypothesis in these markets should most appropriately include specific consideration of transactions costs there appears to be empirical support for the premise that transactions charges are positively related to exchange rate risk and as well inclusion of contemporaneous bid ask spreads into the interest parity schedule leaves few unexplained profits from dollar pound covered interest arbitrage during the 1970 s and underscores the notion of classifying periods by degree of turbulence in analyzing covered interest arbitrage

the impact of strategy on conflict a cross national comparative study of u s and japanese firms an empirical test of 290 u s and 653 japanese managers using the miles and snow typology provides a cross national examination of strategy s impact on conflict results substantially support the study s predictions and indicate that firms should 1 monitor their conflict handling mechanisms 2 emphasize integrative approaches and 3 appropriately use formalization for conflict handling despite a convergence of management practices globally findings indicate that considerable differences still exist between u s and japanese firms

the international financial market and us interest rates abstract this paper examines the linkages between the eurodollar and us domestic financial markets it is shown that using weekly data allows the isolation of significant fluctuations being transmitted between markets in both directions in particular financial markets in the us are affected significantly by foreign events it is impossible to reach precise conclusions about the causes of historical variation in the rates however this paper provides evidence that at most 40 of the variation in eurodollar interest rates over the 1975 1978 period can be traced to domestic us sources and that between about one fifth and two thirds of the variation in domestic rates can be traced to foreign sources

measuring global money market interrelationships an investigation of five major world currencies abstract this paper extends the study of global money market integration in two primary directions first a technique which combines stationarity and cointegration tests as a basis for constructing an error correction model is applied to assess the existence of long run equilibrium relationships between money market series second analysis for the increasingly significant asian offshore markets of singapore and hong kong is added to traditional european and national markets analysis major findings are 1 the error correction model is an appropriate technique for identifying causality relationships and 2 major domestic markets and included offshore markets are partially segmented

the federal funds market and the overnight eurodollar market abstract this paper investigates the effect of daily management of federal reserve accounts by us depository institutions on the interest rate outside the us spindt and hoffmeister journal of financial and quantitative analysis 23 1988 401 griffiths and winters journal of banking and finance 19 1995 1265 and hamilton journal of political economy 104 1996 22 found that the fed funds rate exhibited calendar day effects caused by federal reserve regulations i find that the overnight eurodollar rate shows similar predictable daily changes as does the fed funds rate although the absolute magnitudes are slightly less the empirical results support the hypothesis that the tendencies in daily changes in the two overnight interest rates are caused by the characteristics of the fed funds market

wind farm investment risks under uncertain cdm benefit in china abstract china has set an ambitious target to increase its wind power capacity by 35 gw from 2007 to 2020 the country s hunger for clean power provides great opportunities for wind energy investors however risks from china s uncertain electricity market regulation and an uncertain energy policy framework mainly due to uncertain clean development mechanism cdm benefits prevent foreign investors from investing in china s wind energy the objectives of this paper are to 1 quantify wind energy investment risk premiums in an uncertain international energy policy context and 2 evaluate the impact of uncertain cdm benefits on the net present values of wind power projects with four scenarios this study simulates possible prices of certified emissions reductions cers from wind power projects project net present values npvs have been calculated the project risk premiums are drawn from different and uncertain cer prices our key findings show that uncertain cdm benefits will significantly affect the project npvs this paper concludes that the chinese government needs revising its tariff incentives most likely by introducing fixed feed in tariffs fits and re examining its cdm granting policy and its wind project tax rates to facilitate wind power development and enable china to achieve its wind energy target

long run implications for developing countries of joint implementation of greenhouse gas mitigation joint implementation ji calls for cooperation between industrialized and developing countries in the mitigation of greenhouse gas ghg emissions however a major concern of potential host countries is that if they utilize their low cost options for ji now they will be left with only high cost options in the future thereby penalizing them at a time when they may be obligated to mitigate ghgs themselves this paper formalizes this hypothesis by utilizing an optimal control framework analogous to the hotelling model of non renewable resource extraction the results are that cumulative abatement effects can impose costs on the future but that they can be offset by technological change market power or compensation

the effects of cultural adaptation on business relationships americans selling to japanese and thais a 2 4 culture of participants degrees of cultural adaptation experimental design with 145 thai and 101 japanese professionals is used to investigate the effect of cultural adaptation on attraction and outcomes when americans adapt to japanese and thais this study extends the research of francis 1991 the curvilinear relationship between adaptation and attraction found in francis is not replicated for thais the relationship appears monotonic positive for japanese it reaches a plateau beyond moderate adaptation

exchange rate risk and transactions costs evidence from bid ask spreads abstract this paper develops a model of exchange rate bid ask spreads which is used to examine the relationship between exchange rate risk and volatility and to measure transactions costs the empirical results indicate that market makers judge the probability of exchange rate changes based on both recent and long term volatility and that the second moment alone is not a complete measure of volatility while a proxy for trading volume does not have the expected relationship with spreads weekend and holiday effects conform to theory transactions costs vary over time and seem responsive to the imposition of exchange controls

institutions and the resource curse countries rich in natural resources constitute both growth losers and growth winners we claim that the main reason for these diverging experiences is differences in the quality of institutions more natural resources push aggregate income down when institutions are grabber friendly while more resources raise income when institutions are producer friendly we test this theory building on sachs and warner s influential works on the resource curse our main hypothesis that institutions are decisive for the resource curse is confirmed our results contrast the claims of sachs and warner that institutions do not play a role

task success based on contingency fit of managerial culture and embeddedness the article extends research on the contingency of fit in international management at the level of managerial tasks foreign firms managerial tasks are embedded in two environments with different profiles and different managerial cultures fit them to ensure task success study 1 analyzes 18 critical incidents summarizes chinese and japanese managerial cultures and identifies three types of managerial tasks we hypothesize that task success depends on the fit between task type and the chosen managerial culture such that foreign firms can have their operational local and people tasks successfully completed using home host or integrated managerial cultures respectively study 2 tests our hypotheses using 112 critical incidents the fit pattern at the level of managerial tasks advances the contingency perspective in international management and equips managers with cultural agility to confront international challenges

the international transmission of interest rates a note on causal relationships between short term external and domestic u s dollar returns abstract this study extends the literature of capital market integration by investigating the relationship between u s dollar yield behavior in the domestic and in the external dollar market recognizing recent increases in world capital market speed of adjustment the analysis is based on daily changes in yields using granger causality tests much of the adjustmemt appears to be contemporaneous if contemporaneous is defined as weekly as opposed to daily changes and the eurodollar market adjusts more rapidly and more completely to changes in the domestic market than the domestic market adjusts to changes in the eurodollar market

a note on euroyen and domestic yen interest rates abstract this study examines interest rate transmission between the london euroyen market and the japanese domestic cd market the results which span 1984 through the beginning of 1993 indicate that these two interest rate series are cointegrated in the earlier part of the sample period causality is strongest from the euroyen market to domestic yen interest rates however strong feedback effects are observed in both directions in more recent years the use of both vector autoregressive modeling and cointegration analysis for forecasting is supported over random walk models

an expectancy model of chinese american differences in conflict avoiding this paper develops an expectancy model for chinese american differences in conflict avoiding and tests this model using a scenario study with respondents from taiwan and the us our results show that a higher chinese tendency to avoid conflict is explained by higher chinese expectations that direct conflict will hurt the relationship with the other party and by greater concern for the other party among chinese it is not however explained by differences in the expected career costs benefits of good bad relations with others also chinese are more sensitive to hierarchy than americans so that avoiding is heightened more for chinese than for americans when the other party is of higher status qualitative results suggest that chinese american differences in time frames may also explain differences in avoiding implications for businesses and management are suggested journal of international business studies 2006 37 76 91 doi 10 1057 palgrave jibs 8400172

emerging technologies and ethics a race to the bottom or the top does national success with an emerging technology require ethical sacrifices this question is considered through the simultaneous consideration of ethics investment and outcomes in the nine jurisdictions that are making the largest investments in nanotechnologies an important emerging technology it is found that while ethical environment has no notable effect on pure and applied research a more positive ethical environment is associated with measures associated with invention and commercialization in summary a race to the top supports invention and commercialization of emerging technologies a critical finding as it suggests that issues such as corruption and regulation could be critical in limiting the extraction of social and economic benefit from emerging technologies like nanotechnologies

causal linkages between us and eurodollar interest rates further evidence this study examines causal linkages between us and eurodollar interest rates during 1983 2002 recursive cointegration analysis shows that a stable cointegration relationship between the two interest rates emerges only since the early 1990s when the fed used federal funds rate targeting and eliminated the reserve requirement on eurocurrency deposits the study further reveals that bidirectional causality exists between the two rates over the period of 1993 to 2002 while unidirectional causality from eurodollar rate to the us rate is found to exist over the period of 1983 to 1991 these findings consistently support increased interest rate linkages especially since the early 1990s

beyond pure offsetting assessing options to generate net mitigation effects in carbon market mechanisms the current project based carbon market mechanisms such as the clean development mechanism cdm and the joint implementation ji do not have a direct impact on global greenhouse gas emission levels because they only replace or offset emissions nor do they contribute to host country s national greenhouse gas emission reduction targets contributions to net emission reductions in host countries is likely to become mandatory in new mechanisms under development such as in the framework for various approaches a new market based mechanism and even in a reformed ji this research analysed the question if approaches for carbon market based mechanisms exist that allow the generation of net emission reductions in host countries while keeping project initiation attractive we present a criteria based assessment method and apply it for four generic options in existing mechanisms and derive implications for future mechanism frameworks we identified the application of discounts on the amount of avoided emissions for the issuance of carbon credits and standardisation below business as usual as most promising options over limiting the crediting period and over conservativeness we propose to apply these options differentiated over project types based on internal rate of return to ensure cost efficiency and attractiveness

when in rome the effects of cultural adaptation on intercultural business negotiations drawing on social identity and similarity attraction theories as well as empirical studies in intercultural communication hypotheses were developed to test the effects of three degrees of adaptive behaviors during intercultural buyer seller negotiations hypotheses covered both the positive and negative effects of adaptation on the adjudged interpersonal attractiveness of the adaptor these hypotheses were tested in two experimental studies using scenario based manipulations the first study looked at american subjects responses to adaptive behaviors of japanese business people to test the generalizability of these findings to a less familiar culture a replication looking at american subjects responses to adaptive behaviors of korean business people was also conducted the findings partially support the notion that moderate adaptation may be the optimal strategy in intercultural negotiations moderate adaptation was found to improve the adjudged attraction of the japanese business people relative to no adaptation and substantial adaptation however this finding was not replicated with korean business people

acting on anger cultural value moderators of the effects of consumer animosity the recent rise in protectionism and demonization of foreign countries has increased the risk of brands falling victim to the negative effects of consumer animosity or strong negative affect directed at a foreign country we investigate the role of cultural values as moderating the relationship between consumer animosity and willingness to buy the combined results of a meta analysis and six experiments in the us and china offer strong evidence that collectivism and long term orientation mitigate the negative effects of consumer animosity and support the contention that animosity s effect on willingness to buy is much stronger than on product judgments

transactions costs and covered interest arbitrage theory and evidence the extent to which deviations from covered interest parity can be attributed to transactions costs has been exaggerated in the economic literature because the swap market in foreign exchange has been ignored it is shown that such deviations should be no greater than the lowest of the transactions costs in one of three markets the swap market or either of the two relevant securities markets this reconciles the theory with the data which show spreads of no more than a few basis points however the empirical results have no direct bearing on the conventional market efficiency hypothesis

face and favor the chinese power game western research on interpersonal behavior patterns and rules of exchange needs to move beyond the assumption of isolated individuals socialized to make rational decisions on the basis of self inte

a multivariate cointegration analysis of interest rates in the eurocurrency market abstract a multivariate cointegration methodology is utilized to analyze relations among interest rates on us dollars uk pounds german marks french francs and japanese yen in the eurocurrency market over a period with major capital market deregulations and increasingly globalized money market trading three major results appear it is appropriate to model these interest rates as a multivariate cointegrated system no interest rate may be excluded from the cointegrating relations a recursive cointegration approach indicates that the number of cointegration vectors increases in the later part of the sample period consequently this study supports the hypothesis of a substantial increase in euromarket interest rate comovements jel e40 f02 1997 elsevier science ltd

causal relationships among economic aggregates in china using china s macro data from 1952 to 1989 the stationarity and causality tests to two types of economic aggregates are applied the first type relates to the conventional money income and consumption relationship and the other is associated with the interest rate money and investment income relationship as embodied in a financial repression model stationarity test results show that a different direction of causality exists when different measurement of price is used a causal relationship between interest rate money and investment income is also found

how to make the clean development mechanism sustainable the potential of rent extraction the clean development mechanism cdm should foster sustainable development and greenhouse gas emission reductions the design of the cdm and first experience suggest that it may not achieve these goals developing countries hosting cdm projects may lose cheap emission reduction possibilities for their own future use and sustainable development and technology transfer may not take place on the other hand the cdm has the potential to generate considerable rents if permit prices are high or costs low to account for equity and distributional issues a deliberate decision on how to distribute these rents could be taken and the potential failure of the cdm in meeting its goals calls for some further regulation i suggest to combine these two issues and to extract the rents by a profit tax ideally the tax revenues could contribute to national sustainable development strategies to offset external costs imposed by cdm projects and to extract part of the resource rent they may generate the international character of the cdm could offer a frame for internationally coordinated tax design this would hedge against a potential race to the bottom

from the editors student samples in international business research the jibs statement of editorial policy states that empirical submissions utilizing undergraduate student samples are usually discouraged wording is important here usually does not imply always this statement suggests that while student samples are appropriate in principle undergraduate ones are not except in unusual situations the purpose of this from the editors column is to discuss the pros and cons of student samples in international business ib research are student samples appropriate for developing and testing ib theories when are student samples appropriate and when are they not appropriate is there a difference between undergraduate and graduate samples what are the best practices this editorial is intended to provide ib researchers with guidelines as to when student samples and which types of student samples are appropriate in ib research

extracting the resource rent from the cdm projects can the chinese government do better the revenue generated from a cdm project in china will be shared by the government and the project owner and is also subject to the corporate income tax this paper studies the impacts of the revenue sharing policy and income tax on the cdm market the economic model presented in this paper shows that higher cost cdm projects will be more affected by the cdm policies than lower cost projects in addition the majority of cers will be generated from lower cost projects this kind of distribution of cers across different types of cdm projects which is in line with the current picture of the cdm market in china is not consistent with the goal of sustainable development a simulation shows that a type by type tax fee scheme would be more effective in assisting sustainable development than the current cdm policies the study also suggests the government use negative tax fee with the type by type scheme to subsidize the cdm projects that generate large sustainability benefits but would otherwise not be developed due to high costs if all of the revenue from the cdm is recycled it is estimated that cers generation will increase by 98 28 mtc mainly from the cdm projects that have substantial sustainability benefits for the host country