Investment and emission control under technology and pollution externalities

This paper studies incentives to develop advanced pollution abatement technology when technology may spillover across agents and pollution abatement is a public good. We are motivated by a variety of pollution control issues where solutions require the development and implementation of new pollution abatement technologies. We show that at the Nash equilibrium of a simultaneous-move game with R&D investment and emission abatement, whether the free rider effect prevails and under-investment and excess emissions occur depends on the degree of technology spillovers and the effect of R&D on the marginal abatement costs. There are cases in which, contrary to conventional wisdom, Nash equilibrium investments in emissions reductions exceed the first-best case.     

How professional service firms compete in the market: an exploratory study

Abstract

This study investigates how professional service firms (PSFs) compete in the market. Drawing on strategic marketing literature, a managerial rather than customer perspective is adopted. The study investigates the competitive positions sought by professional service providers and the specific marketing activities actually undertaken to achieve these positions. Thirty-seven depth interviews with senior management from a range of PSFs indicate that firms seek to differentiate themselves by developing long-term relationships, providing better service quality and greater value, and developing brands with strong reputations. Organisations typically seek such interrelated competitive positions simultaneously. A list of marketing activities used by the PSFs to achieve these competitive positions offers practical insights into the specific activities needed to achieve the various competitive positions sought.     

The political economy of public debt

Public debt (as opposed to current taxation) alters the inter-temporal pattern of tax rates??it reduces current rates and increases future rates. Accordingly, whether the share of the cost of a given public expenditure is reduced or increased by debt for a given individual depends on the time profile of that individual??s income (tax base) vis-à-vis others?? incomes. Therefore, given the age-profile of income in virtually all Western countries, individuals will tend to be better off under current taxes the younger they are. If (as most standard models of political economy assume) individuals vote according to their economic interests, and if they are tolerably well-informed, then the pattern of support for public debt will track age. And increases in the median age of the population will lead to larger public debt. In other words, public debt policy collapses to a kind of demographic politics. This explanation may, however, be sensitive to assumptions about motives for bequest. Specifically, if bequestors seek to leave positive bequests and are motivated exclusively by the lifetime consumption of their heirs (as well as themselves) then the aged may, under plausible assumptions about the age of their heirs, prefer current taxes over debt.     

Global Heritage and Local Problems: Some Examples from Indonesia

This article examines what happens to those who live in and around monuments as a result of World Heritage designation. Using the examples of Borobudur and Prambanan in Indonesia as study sites, it is argued that the values that local people attach to heritage are often different from, although not necessarily less important than, the values ascribed by international agencies, government officials, tourism developers and others. However, their perspectives are often not adequately represented or respected by other participants in the planning and management of sites, to the detriment of both the plans and the people. The tendency to adopt top-down, rational comprehensive planning procedures has resulted in the disenfranchisement of local people, giving greater prominence to expressions of national, 'official' culture and nationalism at the expense of local culture. It has tended to freeze sites and displace human activities, effectively excluding local people from their own heritage.     

Harmonious Society and Chinese CSR: Is There Really a Link?

In 2005, Chinese President Hu Jintao instituted a “Harmonious Society” policy marking a new China’s approach toward development. This generated intense excitement among observers of Corporate Social Responsibility (CSR) who perceive an overlap in objectives between CSR and Harmonious Society and believe that Harmonious Society will lead to increased CSR engagement in China. However, there is little exploration of how Harmonious Society will contribute to increasing CSR engagement. This article seeks to explore whether Harmonious Society will meet this promise. It does so by drawing up a list of actions that if taken by the government would increase the level of CSR in China and make Harmonious Society a relevant factor in the development of Chinese CSR. To do so, my article studies comparative literature on CSR development to develop a framework that divides causes of CSR in a country into environmental constraints and discretionary responses. Understanding what drives the development of CSR allows us to understand what measures the Chinese government can take to influence the level of CSR. Using this framework, my article suggests that Harmonious Society is unlikely to promote CSR in China’s growing private sector because policy measures that affect the “constraints” driving CSR are bounded by other political considerations.     

Adoption of Environmental Reporting and Management Practices: An Analysis of New South Wales Public Sector Entities

This paper analyses the level of environmental disclosure and the corresponding adoption of environmental management practices by New South Wales public sector entities in 1996. From the analysis of 35 entities, it was found that the development of environmental management practices and the level of environmental disclosure were significantly associated. The results suggest that entities were responding to increased political visibility through higher levels of environmental disclosure, however they were also responding through the development of environmental management practices.     

Land Development under the Threat of Taking

This paper presents a model of the land developer's response to the threat of regulatory taking. It shows that the threat of regulation affects development timing and density differently than the regulation imposed with certainty. Planned development proceeds at a more rapid pace under the taking threat, whereas the development density varies systematically by location in a spatial land market. Further, property on which regulations are actually imposed will be developed later than planned when the demanded density is falling over time. Regulated property, however, may be developed even more quickly than planned when the demanded density is rising over time.     

Tests of Income Pooling on Household Budget Data: The Australian Evidence

The unitary household model implies pooling of all individual incomes. This study distinguishes between various types of income pooling and tests them on Australian household income/expenditure data. The tests recognise the endogeneity of both earned and unearned income and are performed using a 3 SLS estimation procedure that allows feedback between the various equations. The results support income pooling for some items, though not for others. Moreover, income pooling across gender seems much less likely for old people than for the younger individuals. The study, also, provides evidence on the interaction between the various types of income.