territorial innovation models a critical survey moulaert f and sekia f 2003 territorial innovation models a critical survey reg studies 37 289 302 this paper provides a critical review of the literature on territorial innovation models industrial districts milieux innovateurs new industrial spaces local production systems etc the review is organized in two stages first the main features of each of these models and their view of innovation are compared second their theoretical building blocks are reconstructed and evaluated from the point of view of conceptual clarity and analytical coherence it is found that despite some semantic unity among the concepts used economies of agglomeration endogenous development systems of innovation evolution and learning network organization and governance territorial innovation models tims suffer from conceptual ambiguity the latter is mainly a consequence of the way territorial innovation is theorized i e in terms of technologically driven innovation and a business culture that is ma

sustainability at home policy measures for energy efficient appliances abstract residential energy consumption is now an important component of total energy consumption and its related emissions in addition this consumption has significant potential for growth in both developed and developing countries as average incomes increase and domestic appliance numbers rise reduction in this energy use may be achieved both through conservation measures and through increased efficiency in its use this paper focuses on energy efficiency in appliances those many devices through which household energy is consumed the policy instruments available to promote the uptake of more efficient devices and issues associated with their use are reviewed drawing on developed country experiences to date the instruments available are more limited than in other energy applications and largely comprise information dissemination forms of subsidy and regulation the last is commonly used in the form of minimum energy performance standards assessment of the three instrument types and issues with their use suggests that regulation is the most important measure albeit with several qualifications on the manner of its use

the philippine electricity sector reform and the urban question how metro manila s utility is tackling urban poverty in the early 2000s the philippine government reformed its electricity sector following neoliberal principles unbundling of the power industry privatisation of assets and commodification of electricity this paper shows that the reform was primarily driven by the need to secure electricity supply and cut down tariffs these national objectives ousted other issues and notably those that find their expression at the urban level among which the question of access to electricity in metro manila s urban poor communities the central state withdrew its attention from the issue of electrification and local actors had to react as they were confronted to social tensions and practices of pilferage as a consequence city governments and local administrations are getting involved in this issue which opens the way to participation of civil society this paper shows how the rolling back of the central state led to new partnerships and arrangements between the distribution utility local governments and community organisations this movement points to an urbanisation of energy issues which could bring positive results for end users provided that it is accompanied by a clearer regulatory framework

risk pooling along a fixed delivery route using a dynamic inventory allocation policy this paper examines static and dynamic policies for replenishing and allocating inventories amongst n retailers located along a fixed delivery route each retailer faces independent normally distributed period demand and incurs a proportional holding or backorder cost on end of period net inventory a warehouse places a system replenishment order every m periods which is received after a fixed leadtime of t periods immediately upon receipt a delivery vehicle leaves the warehouse with the system replenishment quantity and travels to the retailers along a fixed route with fixed leadtimes between successive retailers the warehouse holds no inventory under the static policy allocations are determined for all retailers simultaneously at the moment the delivery vehicle leaves the warehouse under the dynamic policy allocations are determined sequentially upon arrival of the delivery vehicle at each retailer our major analytical results under appropriate dynamic static allocation assumptions are 1 optimal allocations under each policy involve bringing each retailer s normalized inventory to a corresponing normalized system inventory 2 optimal system replenishments are base stock policies 3 the minimum expected cost per cycle of dynamic static policy can be derived from an equivalent dynamic static composite retailer given this we prove that the risk pooling incentive a simple measure of the benefit from adopting dynamic allocation policies is always positive our simulation tests confirm that dynamic allocation policies yield lower costs than static policies regardless of whether or not their respective allocation assumptions are valid however the magnitude of the cost savings is very sensitive to some system parameters

urban co2 mitigation strategies under the covenant of mayors an assessment of 124 european cities abstract in 2008 the european commission ec launched the covenant of mayors com a voluntary agreement under which local governments commit to reduce co2 emissions by at least 20 within 2020 in order to reinforce local authorities in designing strategies to mitigate climate change in coherence with the european union s climate policy the com may be defined as a coordinated collection of experiments based on common rules established by the ec cities signing the com commit to follow guidelines and standardized methodologies in setting co2 emission reduction targets and in designing and implementing policies and measures to reach them through the definition of key tools such as the baseline emission inventory bei and the sustainable energy action plan seap the present study analyses the emission reduction strategies of a sample of 124 cities with more than 100 000 inhabitants signatories of the com which delivered a seap by february 2014 more than 5500 actions planned by the sample cities were analysed and categorized the most relevant actions in terms of recurrence and mitigation impact were assessed finally a set of variables was tested through a regression so as to determine their influence on emission reductions strategies the main results of this study show that the sample cities accounted for a total of 370 million tons of co2 emissions in selected baseline years and 94 million tons of intended emission reductions per year the total emission reductions planned by cities reached 25 of the baseline emissions buildings and transport stood out as the sectors where cities intend to deliver the largest emission reductions furthermore the analysis showed that cities administrations attribute higher potential to actions in subsectors under their direct control municipal buildings public transport municipal fleet and public lighting compared to actions in subsectors managed by private actors households and firms in the building sector the category of action delivering the highest share of co2 emission reductions was represented by integrated actions which combine several types of intervention so as to maximise the energy efficiency of buildings in the transport sector it was the modal shift which implies a transition from private transport to public and cleaner transport modes in both the building and transport sectors cities plan to reduce the major amount of co2 emissions through the implementation of management and organization infrastructure construction and awareness raising policy levers our results may be useful to urban policy makers to shape their mitigation strategies in coherence with cities commitments and plans and to replicate policies and actions on the basis of com signatories experiences

from production based to consumption based national emission inventories abstract under the united national framework convention of climate change unfccc countries are required to submit national emission inventories nei to benchmark reductions in greenhouse gas ghg emissions depending on the definition and system boundary of the nei the mitigation options and priorities may vary the territorial system boundary used by the unfccc has been critiqued for not including international transportation and potentially causing carbon leakage to address these issues past literature has argued in favour of using consumption based nei in climate policy this article discusses several issues in moving from the standard production based nei to consumption based nei first two distinct accounting approaches for constructing consumption based nei are presented the approaches differ in the allocation of intermediate consumption of imported products second a consistent method of weighting production based and consumption based nei is discussed this is an extension of the previous literature on shared responsibility to nei third due to increased uncertainty and a wide system boundary it may be difficult to implement consumption based nei directly into climate policy several alternative options for incorporating consumption based inventories into climate policy are discussed

on the concept of territorial competitiveness sound or misleading in an era of globalisation the issue of territorial competitiveness is of increasingly central importance for regional development policies this paper aims to deal directly with the issue from a theoretical viewpoint in particular examining two related questions more thoroughly the question of the soundness of the concept of territorial competitiveness itself in terms of economic theory and the question of the new foundations on which this competitiveness is based using a cognitive evolutionary type approach

jockeying for position what it means and why it matters to regional development policy when places compete malecki e j 2004 jockeying for position what it means and why it matters to regional development policy when places compete regional studies38 1093 1112 the realization that places compete for investment has expanded in recent years to encompass competition among places for the attention of migrants tourists and media glow as well as investment the most competitive places have been multidimensional in their attractions and have made the transition to the knowledge based economy the latest priority is being placed on attracting mobile workers and mobile investment creative workers are the core of the knowledge economy and of its geographies such as intelligent places and learning regions knowledge metrics innovation indices and report cards are increasingly common each seemingly developed to sort the list of places in a different order lists or league tables of the best places for business to live retire and visit are key features of economies and societies whose factors of success

exact and approximate cost functions for product aggregates we show that certain large multiproduct problems can be well approximated by smaller models of the same form representing only one aggregate product or a few such products this reduction follows from a new technique to approximate the minimal cost of a special allocation or disaggregation problem by a simple closed form aggregate cost function this function moreover has the same form as the cost functions for the original individual products for special cases the approximation is exact this latter result is related to economic theoretic research on aggregation with homothetic preferences the results are applied to a one stage multiperiod multi item production smoothing model and then to a similar model of a two stage system yielding a reduction in the number of items to one or to relatively few

competitiveness indices and developing countries an economic evaluation of the global competitiveness report developing countries policy makers worry about national competitiveness and closely watch indices ranking international competitive performance this paper analyzes from a development economics perspective if competitiveness is a legitimate concern and if the leading indices deserve the attention they get it assesses the best known index the global competitiveness report of the world economic forum and finds deficiencies at several levels its definitions are too broad the approach biased and the methodology flawed many qualitative measures are vague redundant or wrong these weak theoretical and empirical foundations reduce the value of the indices for analytical or policy purposes

mega urban regions and world city formation globalisation the economic crisis and urban policy issues in pacific asia summary in pacie c asia the globalisation of trade production and e nance underlies an accelerated urban transition focusing on a limited number of mega urban regions intercity competition for world city status among these regions has intensie ed following the 1997 economic crisis with governments compelled to devote greater amounts of public resources to creating a built environment to host global investment a number of key policy issues are emerging these include demands for inclusive governance and more livable cities the appearance of new forms of urban poverty low economic resilience in the face of growing global economic turbulence and the spatial unevenness of global economic growth with the rise of civil society as a political force addressing these issues calls for a sharper focus on cities not simply as economic agglomerations or collectivities of consumers in the world market but also as arenas for the formation of political communities

capacitated multi item inventory systems with random and seasonally fluctuating demands implications for postponement strategies we address multi item inventory systems with random and seasonally fluctuating and possibly correlated demands the items are produced in two stages each with its own lead time in the first stage a common intermediate product is manufactured the production volumes in the first stage are bounded by given capacity limits we develop an accurate lower bound and close to optimal heuristic strategies of simple structure the gap between them evaluated in an extensive numerical study is on average only 0 45 we use the model to investigate the benefits of various delayed product differentiation postponement strategies as well as other strategic questions including i the benefits of flexible versus dedicated production facilities ii the trade off between capacity and inventory investments and iii the trade off between capacity investments and service levels

the new wave of regional innovation networks analysis characteristics and strategy today the number one priority for competitive advantage is innovation a new approach to regional business development has been pioneered in europe and the u s a this involves building a regional innovation infrastructure learning through networking has proven to be a successful approach in some of europe s more dynamic regional economics such as baden wurttemberg and emilia romagna this involves maximising the complete range of regional innovation assets the state of pennsylvania and other older industry centres are showing that such an approach is transferable from europe to the u s a the paper assesses knowledge transfer at the regional level and outlines the key elements for successful regional innovation networking practices the major finding s are that business networking is an effective way of increasing company turnover that not for profit organizations are excellent for setting up networks because they are trusted and that innovation networks are perhaps the most difficult thought requiring but important of the types of business network conceivable

does everyone lose through a short term trough in oil prices abstract the recent collapse in oil prices is predicted to have rapid and disastrous effects on the world economy

dynamic balancing of inventory in supply chains abstract we consider the dynamic version of the classic problem of allocation of inventories to a set of retailers to rectify the imbalance of inventories amongst them while most research is focussed on analyzing different allocation strategies with a predetermined time of shipment static policy we investigate the benefit of using real time demand inventory information to schedule rebalancing shipments in a retail network we model the dynamic rebalancing problem that has two decisions the timing of the balancing shipments and determination of the new stocking levels at the retailers as a dynamic program dp we obtain structural properties for the optimal allocation rebalancing and timing strategies we also present conditions under which a greedy heuristic to decide how much to ship from one retailer to another is optimal the dp for determining the optimal timing and quantity of shipments has a very large state space we present an algorithm to solve this dp efficiently we also provide a heuristic solution procedure to the dynamic problem that performs very close to optimal numerical results show that dynamic allocation policies can lead to substantial benefits over the static policy especially in systems in which the starting inventories at the retailers are balanced or when high service levels are required

hard and soft networks for urban competitiveness the concept of competitiveness has grown significantly and it is now common for cities regions and nations to assess improve and publicise their competitive standing vis a vis other places yet it remains rather unclear just what competitiveness is when applied to places which have objectives distinct from those of private sector organisations for whom share price and profitability serve as common metrics the blurring of the responsibilities of the public and private sectors also complicates matters with the former making increasing use of the terminology and priorities of business this paper takes the view that both public and private sectors and their interactions are sustained by networks to be effective these networks must operate at the global national regional and local scales gathering knowledge via social interaction that is through soft networks to a growing degree competitive networking also demands technological capability whether in high tech sectors smokestack industries

globalisation competition and the politics of local economic development the study of urban politics in the us is now dominated by issues of local economic development these are situated analytically with respect to a more global space economy this is the new urban politics the central logic of the new urban politics is one of cities or communities competing for mobile capital this competition supposedly has adverse distributional consequences for those living in cities or communities three areas of critical contention are focused on the identity of the competing agents the concept of firm competition underpinning the central idea of mobile capitals and the distributional consequences of the competition for those capitals serious problems in abstraction and in the concept of capital adopted in this literature are identified

price and prospects for oil carrying the burden of excess capacity in the 1980s and beyond abstract the continuing decline in world oil prices will not be halted in the short term and prospects for the long run are not encouraging there is a problem of unprecedented gravity in the surplus capacity of the oil industry a glut of 10 million bbl day of crude oil remains unsold the cohesion of the opec cartel is becoming more strained and a sizeable proportion of refinery plant has been taken off stream the basic difficulty is that high interest rates have curbed international capital formation and depressed demand upward pressures on the us dollar have been created by the deficit on us domestic and external accounts and have retarded the recovery of the global economy today the cost of money exceeds the factor price of oil and the market is highly unstable the devastating costs of carrying surplus capacity are likely to survive through the 1980s

the global and local dimensions of place making remaking shanghai as a world city shanghai the largest socialist industrial city in china is now experiencing dramatic restructuring under global and local forces this paper provides a preliminary account of remaking this city into a world city the case study suggests the tremendous and pervasive impact of globalisation on the city in transitional economies although it is still not comparable with a truly global city the growth of inward investment particularly its penetration into real estate development has exerted direct impacts on the urban structure it is argued that however that this global influence can only be realised through the coincidence of indigenous changes in the political economy system specifically the willingness of the central government to give more autonomy to local governments the new policy to set up a window for china s open policy the incentive for making money from selling the space the injection of public money into infrastructure and fierce promotional development strategies all contributed to the process of urban restructuring the effect of combined global and local changes has led to an extremely optimistic growth atmosphere and a building boom since the mid 1990s shanghai highlights the local as well as the global dimensions of urban change in the post socialist economies

territorial competition in china and the west chien s s and gordon i territorial competition in china and the west regional studies in modern western societies and most other economies to which it has spread territorial economic competition is associated with a combination of competitive electoral politics and private land ownership in mainland china however a very strong form of this competition has emerged without either of these supports in general the development of such local collective action and its particular effects reflect an interaction between materially interested local agents and structural pressures the difference in china is that these agents are principally local government leaders whose career prospects within a still centralized system depend upon performance in terms of economic criteria set from above chien s s et gordon i la competition territoriale en chine et dans l ouest regional studies dans les societes occidentales d aujourd hui et dans la plupart des autres economies auxquelles elle s est etendue la

approximate aggregation under uncertainty abstract for a collection of agents with von neumann morgenstern preferences a price independent income distribution and identical probability beliefs there exists a von neumann morgenstern approximate aggregator the risk tolerance of the approximate aggregator is equal to the sum of the individual agent risk tolerances at prices which yield constant risk free contingent consumption the application of the approximate aggregator to standard asset pricing models in finance is discussed briefly

design for postponement a comprehensive characterization of its benefits under unknown demand distributions recent papers have developed analytical models to explain and quantify the benefits of delayed differentiation and quick response programs these models assume that while demands in each period are random they are independent across time and their distribution is perfectly known i e sales forecasts do not need to be updated as time progresses in this paper we characterize these benefits in more general settings where parameters of the demand distributions fail to be known with accuracy or where consecutive demands are correlated here it is necessary to revise estimates of the parameters of the demand distributions on the basis of observed demand data we analyze these systems in a bayesian framework assuming that our initial information about the parameters of the demand distributions is characterized via prior distributions we also characterize the structure of close to optimal ordering rules in these systems for a variety of types of order cost functions

approximations of dynamic multilocation production and inventory problems consider a central depot or plant which supplies several locations experiencing random demands orders are placed or production is initiated periodically by the depot the order arrives after a fixed lead time and is then allocated among the several locations the depot itself does not hold inventory the allocations are finally received at the demand points after another lag unfilled demand at each location is backordered linear costs are incurred at each location for holding inventory and for backorders also costs are assessed for orders placed by the depot the object is to minimize the expected total cost of the system over a finite number of time periods this system gives rise to a dynamic program with a state space of very large dimension we show that this model can be systematically approximated by a single location inventory problem all the qualitative and quantitative results for such problems can then be applied

correlating the knowledge base of cities with economic growth the competitive advantage of cities in the developed world is increasingly thought to lie in their superior access to the knowledge base the generation of new knowledge through investment in research and development leads to new products services and processes which form the basis of the new economy attempts to correlate knowledge creation with economic growth have therefore tended to use r d measures such as the numbers of research establishments in a rather narrow sense this paper develops a much wider measure of the knowledge base comprising tacit knowledge codified knowledge and knowledge infrastructure for 19 european cities with the exception of the two world cities london and paris which significantly underperform there is a broad relationship between the quality of the knowledge base and economic change as measured by the competitive shift share residual

outlook for the international oil market and options for opec abstract a fundamental misinterpretation of post 1970 events in the international oil market has severely curbed oil demand and led to conditions in which much of the world s lowest cost reserves of energy are in danger of remaining unexploited there is instead an increasing use of inherently higher cost sources of energy so undermining world economic growth prospects a return to the preferential use of low cost oil and gas without further exacerbating already strained north south relationships can now only be achieved in the context of a difficult to negotiate opec oecd agreement on a long term development strategy

levelling the uneven playing field inward investment interregional rivalry and the planning system tewdwr jones m and phelps n a 2000 levelling the uneven playing field inward investment interregional rivalry and the planning system reg studies 34 429 440 concern has been mounting recently over the increasing intensity of competition among british regions for foreign direct investment this competition has been at its fiercest in the case of a number of recent very largest inward investment projects with public concern focusing on wasteful bidding up of total incentives packages this government has been alerted to the unfair playing field across the uk in terms of the financial capital grants made to overseas companies to locate to certain regions of the uk particularly wales and have responded by developing initiatives intended to enhance the english regions however little attention has been focused to date on the other factors utilized by successful regions in the interregional rivalry for scarce inward investment these other factors comprise firstly the unique ways in whic

the coming regional crisis and how to avoid it the analysis of regional development and the formation of development policies is currently excessively influenced by the assumption that globalization represents the overriding causal influence and policy imperative this bias seems to derive from insufficiently critical borrowings from the management literature and the emergence of a stratum of economic development actors concerned primarily with regional competitiveness the article suggests that the objectivity of analysis and the economic rationality of policy making can be improved by paying more attention to localized activities to regional economic welfare and to the impact of regionalization on macroeconomic policy making

coordinated replenishments in a multi item inventory system with compound poisson demands in many practical applications or multi item inventory systems significant economies of scale can be exploited when coordinating replenishment orders for groups of items this paper considers a continuous review multi item inventory system with compound poisson demand processes excess demands are backlogged and each replenishment requires a lead time there is a major setup cost associated with any replenishment of the family of items and a minor item dependent setup cost when including a particular item in this replenishment moreover there are holding and penalty costs we present an algorithm which searches for a simple coordinated control rule minimizing the long run average cost per unit time subject to a service level constraint per item on the fraction of demand satisfied directly from on hand inventory this algorithm is based on a heuristic decomposition procedure and a specialized policy iteration method to solve the single item subproblems generated by the decomposition procedure the model applies to multi location inventory systems with similar cost structures for coordinated deliveries

energy requirements of consumption urban form climatic and socio economic factors rebounds and their policy implications household consumption requires energy to be used at all stages of the economic process thereby directly and indirectly leading to environmental impacts across the entire production chain the levels structure and determinants of energy requirements of household consumption therefore constitute an important avenue of research incorporating the full upstream requirements into the analysis helps to avoid simplistic conclusions which would actually only imply shifts between consumption categories without taking the economy wide effects into account this paper presents the investigation of the direct and indirect primary energy requirements of australian households contrasting urban suburban and rural consumption patterns as well as inter and intra regional levels of inequality in energy requirements furthermore the spatial and socio economic drivers of energy consumption for different categories of energy requirements are identified and quantified conclusions regarding the relationships between energy requirements household characteristics urban form and urbanization processes are drawn and the respective policy implications are explored

planning to forget informal settlements as forgotten places in globalising metro manila as metro manila s economy has become increasingly integrated into global flows of trade and investment it has also experienced a shelter crisis as the number of people who cannot afford legal housing and consequently illegally settle in informal settlements has increased in both absolute and percentage terms this paper discusses such informal settlements as forgotten places in the global era it makes two arguments first it argues that this shelter crisis is inherent to globalising cities in developing countries as a contradiction emerges between the extensive redevelopment and rising property values that accompany global city development and the shelter needs of low income people the second is that informal settlements have increasingly been forgotten by urban planners despite this housing crisis as planners have consciously abandoned place based poverty alleviation efforts based on the rationale that they are no longer tenable in the global era

regions in competition inward investment and regional variation in the use of incentives 2000 regions in competition inward investment and regional variation in the use of incentives regional studies vol 34 no 3 pp 291 296

budgeting costs of nursing in a hospital this paper examines issues in building decision support models for budgeting nursing workforce requirements in a hospital we determine regular time overtime and agency workforce levels for various skill classes in a budget cycle we introduce a family of eight models ranging from a single period aggregate and deterministic model to a multiperiod disaggregate and probabilistic model in a single period model we ignore the time varying nature of demand for nursing hours aggregation is done over the nurse skill class mix for probabilistic models we consider demand uncertainty using empirical data we evaluate the effects of level of sophistication in model building and in information requirements on their relative performances the results suggest that ignoring the time varying nature of demand does not induce gross errors in budget estimates however ignoring demand uncertainty produces underestimates about five to six percent of budget needs a consequence of a madansky madansky a 1960 inequalities for stochastic linear programming problem management sci 6 197 204 inequality it also induces added costs to the system due to implementing nonoptimal regular time workforce levels finally we find that a simple formula using a single period demand estimate gives excellent approximations to the budget estimates obtainable from the more precise models

a multiechelon inventory model with fixed replenishment intervals this paper develops a new model for studying multiechelon inventory systems with stochastic demand for the model we assume that each site in the system orders at preset times according to an order up to policy that delivery times are deterministic and that the demand processes are stochastic with independent increments we introduce a new scheme for allocating stock in short supply which we call virtual allocation and which permits significant tractability we exercise the model on a set of test problems for two echelon systems to get insight into the structure of good policies the primary findings are that both the central warehouse upper echelon and the retail sites lower echelon should hold safety stock but that most of the safety stock should be at the retail sites consequently the central warehouse will stock out with high probability furthermore we show that the virtual allocation rule is near optimal for the set of test problems

to each their own the greenhouse gas impacts of intra household sharing in different urban zones abstract decreasing household size is a global trend driven by urbanization and multiple other socioeconomic trends going solo poses a great environmental challenge as the possibility to benefit from scale economies in consumption and its greenhouse gas impacts is not taken advantage of in other words understanding of intra household sharing patterns of different consumption categories is increasingly important in climate change mitigation this paper explores the relationship between household sizes urban structures and greenhouse gas impacts of lifestyles when urban areas grow outwards the household sizes also grow as a result of this the increase in intra household sharing seems to alleviate the negative ghg implications of urban sprawl which is highly logical but yet not comprehended thus the rise of collaborative consumption offers potential to reduce the greenhouse gas emissions of solo dwellers and compensate for the lower intra household sharing with inter household sharing

coming home and not moving in examining reshoring firms subnational location choices in the united states the relation between firm characteristics i e size and domestic location choice i e home state versus other of reshoring firms contingent on place i e labour cost innovation intensity

new patterns of governance for industrial change perspectives for brazil brazil is one of many developing countries that are struggling to upgrade their industries to attain international competitiveness sustained industrial competitiveness this article argues rests not only on firms capabilities micro level and a stable economic framework macro level but also and in particular on a tissue of supporting sector specific and specialised institutions and targeted policies meso level and on governance structures that facilitate problem solving between state and societal actors meta level the concept of systemic competitiveness seeks to address the interrelationship between the four levels the article analyses various obstacles to achieving systemic competitiveness in the particular case of brazil

petroleum exploration in the non opec ldcs the effects of recent world developments abstract the recent decline in world petroleum prices and the uncertainty with respect to future oil prices is having an adverse effect on exploration in non opec ldcs particularly in the oil importing developing countries the fiscal regimes of ldcs as applied to petroleum investment have tended to limit incentives for foreign investment especially in countries without high reserve potential recent developments have exacerbated these fiscal deterrents to petroleum investment particularly in countries where there is little likelihood of discovering large oil fields in addition the external debt crisis in a number of ldcs where petroleum operations are largely in the hands of government oil enterprises is likely to reduce the availability of external financing for oil exploration and development