Soft budget constraint theories: From centralization to the market

This paper surveys the theoretical literature on the effect of soft budget constraints on economies in transition from centralization to capitalism; it also reviews our understanding of soft budget constraints in general. It focuses on the conception of the soft budget constraint syndrome as a commitment problem. We show that the two features of soft budget constraints in centralized economies – ex post renegotiation of firms' financial plans and a close administrative relationship between firms and the centre – are intrinsically related. We examine a series of theories (based on the commitment-problem approach) that explain shortage, lack of innovation in centralized economies, devolution, and banking reform in transition economies. Moreover, we argue that soft budget constraints also have an influence on major issues in economics, such as the determination of the boundaries and capital structure of a firm. Finally, we show that soft budget constraints theory sheds light on financial crises and economic growth.     

Investment decisions and the soft budget constraint

This paper investigates the investment behaviour of a large panel of Hungarian firms in the period 1989–99, in order to assess the impact of institutional and regulatory changes on the efficiency of credit allocation. We find that the role of financial factors for investment decisions has changed significantly after the introduction of major financial reforms, and that firms were affected differently depending on their ownership type. Reforms have hardened the budget constraint of private domestic firms, particularly small ones, and reduced informational problems for foreign‐owned firms. State‐owned firms remained subject to a soft budget constraint. In particular, small state firms became more sensitive to financial conditions, whereas large state firms were unaffected and kept operating under a soft budget constraint.     

The Korean financial crisis and the soft budget constraint

A panel of Korean firms is used to test for the soft budget constraint (SBC) in bank lending before and after the 1997–1998 financial crisis. SBC is present if a firm can borrow from its bank despite being in financial distress, which we define by a low Altman's z-score. We find that prior to 1997 financially distressed firms were able to borrow while after the crisis their ability to borrow declined substantially. We also demonstrate that SBC was a significant factor in the firms’ propensity to default during the crisis.     

Trade liberalization, heterogeneous firms and the soft budget constraint

We analyze the interaction between the soft budget constraint (SBC) and international trade by placing Segal’s (1998) SBC model within Melitz’s (2003) framework of international trade with heterogeneous monopolistically competitive firms. As in Segal’s model, SBC may result in moral hazard. The opening to international trade adds another sort of inefficiency. Some firms that would have become exporters in the absence of SBC choose to apply low effort and not export in order to extract a subsidy from the government. This effect takes place when the trade costs are sufficiently low. Overall, however, trade liberalization reduces inefficiencies generated by SBC. The number of firms subject to moral hazard SBC decreases, aggregate effort level increases and aggregate profits lost due to SBC-induced sub-optimal effort decline as trade costs decrease.     

Aid effectiveness and the soft budget constraint: EU development aid to the former Soviet Union

Aid effectiveness is defined as contractual completeness. EU development aid constitutes the new soft budget constraint in the former Soviet Union. Transnational sovereignty means that development policy is decided by the post-Soviet planner and financed by the European Commission.     

Dynamic sustainability assessment: The case of Russia in the period of transition (1985-2008)

Russia has experienced twenty years of economic and social change, which had a substantial impact on the regional and sectoral patterns of the development of its economy, infrastructure, the quality of the environment and the well-being of its people. The current economic revival offers new opportunities and presents new challenges for the sustainable development of Russia.The paper employs the UN Sustainable Development framework of indicators and assesses sustainability of Russia using multi-criteria evaluation methods, namely the uncertainty randomization multi-criteria evaluation method “Analysis and Synthesis of Parameters under Information Deficiency” (ASPID). The analysis covers economic, environmental and social trends in Russia's development in 1985-2008 and assesses sustainability of this development from the point of view of multiple criteria.The results show the potential of employment of multi-criteria methods for the sustainability assessment at the macro level and offer useful insights into multidimensional nature of sustainability and the role of priority setting in the evaluation process. Such an analysis reveals the degree of harmoniousness of sustainable development policy. It shows how different sets of priorities determine the outcome of multidimensional analysis of sustainability and could potentially help in assessing progress and designing new policy instruments. This paper is one of the first to apply multi-criteria methods to the macro sustainability analysis in the dynamic setting.     

Environmental Analysis of Packaging for Soft Drinks Using the Life Cycle Assessment Methodology

The knowledge of a product＇s life cycle is the first step on the search of sustainable development. The life cycle assessment （LCA） is an important method because it allows an environment accounting, where the extraction of natural resources and energy of the nature are considered and the ＂returns＂ to the same one and allows in evaluating relative potential the environment impacts generated. The present work had as objective to make an analysis of material and energy flows of the life cycle of three types of packaging for soft drinks： glass bottles of 390 mL, aluminum cans of 350 mL, and bottles of PET of 2,000 mL. The study considered processes since the extraction of raw materials for production of the packaging until the stages of recycling, after the consumption of the soft drink. For the research, an inventory analysis followed the LCA methodology. The main critical points of generation of negative environmental impact during the life cycle of each packaging had been the identified and quantified data in this study. The consumption of natural resources like water and other raw materials and energy, the generation of atmospheric emissions, solid wastes and wastewaters had been the analyzed categories. The results showed that, in accordance with the scenes and defined variables, the most important conclusion was that the bottle of glass presented a less favorable scene to the environment in comparison with other packaging.     

Economic impact assessment of mega infrastructure pipeline projects

The economic development features for the decades after the Second World War provide evidence that investments to new infrastructures are a key driver in strengthening the national economy and enhancing nation’s productivity, as it creates economic benefits and additional income. However, the decision for fund allocation and investments in mega infrastructure pipeline projects often must be made in conditions that are much more fraught with uncertainty. The key question in such decisions is if the economic impact caused by the new project could be able to essentially boost the economy by creating new jobs and generating new income on one hand; and which are the business sectors expected to archive the benefits of this investment. This article deals with the estimation of the mega infrastructure pipeline project economic effects in economy. The methodological framework is based on input–output approach providing quantitative estimations about the economic impact of the project in terms of new income and jobs. The numerical application deals with the assessment of a cross-border crude oil pipeline project, connecting the ports of Burgas (Bulgaria) and Alexandroupolis (Greece), establishing a new transportation corridor for the crude oil from Black Sea to Southeast Mediterranean.     

Product classification to support approximate life-cycle assessment of design concepts

Many companies are beginning to change the way they develop products due to increasing awareness of sustainable development. Designers, who play a key role in product development, are being asked to incorporate environmental criteria into the design process. The need for analytically based conceptual design methods for integrated life-cycle assessment (LCA) has motivated the development of an approximate life-cycle assessment concept based upon learning algorithms. Although preliminary tests on general approximate models showed promise, it was observed that grouping products to create specialized learning surrogate LCA models for different classes of products might further improve results. This paper presents work to develop an automated classification system to support the specialization of surrogate LCA models for different groups of products. Hierarchical clustering is used to guide a systematic identification of product groups based upon environmental categories. These groupings are then used to create automated classification schemes using the C4.5 decision tree algorithm. Although further data are needed to induce good generalization performance, resulting product classification systems are considered to be a viable approach to support specialized learning surrogate LCA models for different classes of products.     

Exploring the future of ecological genomics: Integrating CTA with vision assessment

Interactive approaches to technology development provide opportunities for the development of innovative technologies which clearly connect with social practices and address the positive and negative effects as perceived by relevant actors. The challenge is to start an interactive approach early in the development of new technologies, when many options are still open for exploration and there are good possibilities for steering. Early involvement of societal actors is, however, challenged by the absence of concrete applications on which they can develop their own visions from the perspective of their own needs, interests, norms and values. Integrating Constructive Technology Assessment (CTA) with vision assessment is proposed as an approach to overcome this dilemma in the field of ecological genomics and bridge the knowledge gap between parties closely involved with ecogenomics research and other relevant actors. We present, evaluate and discuss the process of identifying guiding visions of the technology developers as a first step in this approach and end with some suggestions on how desirable futures for ecogenomics can subsequently be assessed from the perspectives of different actors.     

碳足迹概念、特征、内容框架与标准规范

碳足迹作为温室气体排放测度指标,其重要性愈显突出,引起了诸多学者与组织机构关注。通过归纳分析学者与组织机构相关研究,明晰碳足迹定义。以生命周期评价为切入点,将其特征归纳为目的性、完整性、一致性、透明性、准确性和可操作性。根据学者与组织机构的研究将其内容框架梳理为11点,并与生命周期评价4个阶段形成对应关系。将出台的碳足迹标准规范归纳为地域、企业和产品3大类,并对各类标准规范的主要内容进行比较分析。最后,对后续研究重点进行了展望。     

Significance of environment in the assessment of sustainable development: The case for south west Victoria

The assessment of sustainable development is often based on the three pillars of sustainability model using social, economic and environmental indicators. It is thought that by measuring the performance of each system, information can be gained about the sustainability of the whole system. However it seems there has been no attempt to evaluate if such an assumption is true. During the development of a sustainability assessment framework for south west Victoria, Australia, it has become evident that this approach to sustainability assessment does not provide an accurate assessment of system sustainability. The project found that environmental indicators were considered the most important for assessing regional sustainability. As a consequence, the assessment produced shows that in south west Victoria, sustainability is largely determined by the condition of the environment. This finding highlights the current disconnection between the theory and reality of sustainability. Here, we describe a framework for sustainability assessment that attempts to re-connect theory to practice.     

Quantitative analysis on the contribution of industrial structure change to sustainable development： a case study of Fujian Province

Development and sustainability are the core connotation of sustainable development. Sustainability of economic development and the provision capability of resources and environment are two aspects of sustainable development. The former ones are the foundation of the latter ones＇. Industrial structure has a close relationship with sustainable development. The optimization of industrial structure is the important base for the sustainable development of modern economy and also the important ways of the sustainable utilization of resources and environment; The intensive growth effect of industrial structure change has the meaning of sustainable development. This paper reviews and explains the theory on the contribution of indus＇trial structure change to sustainable development, builds the calculation model through introducing the coefficient of industrial structure change, makes an empirical study on the contribution of industrial structure change to sustainable development in Fujian, and puts forward ways and policies of optimizing industrial structure both among industries and inside the industry in the process of industrial structure change.     

A positive vision for the forerunner economies in the present global context

In this paper, the normative content of the concept of GNP growth is questioned, challenging the welfare implications of the traditional notions of input and output. It is argued that the attainment of sustainable development requires a reorientation towards a qualitative rather than quantitative framework of analysis.     

论生物多样性保护与社会经济持续发展的关系

本文在介绍生物多样性的概念及其丧失现状的基础上，重点分析了生物多样性保护与社会经济持续发展的关系，即生物多样性保护是社会经济持续发展的物质基础，社会经济持续发展为生物多样性保护提供了物质保障。虽然生物多样性丧失这一问题产生于经济发展过程中，但是也必然会随着社会经济的持续发展而得到解决。     

Dynamic multidimensional assessment of sustainability at the macro level: The case of Austria

This paper explores the issue of sustainability at the macro scale employing multi-criteria decision aid (MCDA) methods. The incommensurability of values and the essentially multi-dimensional and dynamic nature of sustainability challenge the use of composite measurement indices. This determined the choice of MCDA methods. Austria was chosen as a case study, due to the wide availability of data, especially on indicators of strong sustainability. The structure of the multi-criteria problem comprised the evolution of different sustainability dimensions over time. The process for selecting criteria included a critical assessment of institutional sustainability agendas (UN, EU and Austrian Government) and theoretical recommendations.After an assessment of MCDA methods, the NAIADE method demonstrated the most suitable properties for sustainability assessment. The application of this outranking approach was undertaken in three separate settings: long-term from 1960 to 2003, medium-term, 1970-1995, and short-term, 1995-2003 with varying numbers of criteria. The response of results to the addition of evaluating criteria and periods was tested. The degree of credibility for accepting preference relations was also employed for sensitivity analysis.According to the results of long-term and medium-term assessments, especially in the weak sustainability setting, sustainable progress is taking place in Austria. In the short term, in the stronger sustainability setting and, especially as the number of criteria increases, more incomparable periods appear and trends are less determined. Moreover, it is shown how results crucially depend on the methodological choices.This is one of the first applications of the multi-criteria tools to the dynamic analysis of sustainability at the macro scale.     

国外持续发展研究概况

本文从“持续发展”提出的背景,“持续发展”的基本意图与本质,研究与讨论的热点诸方面,概述了国外“持续发展”研究动态。并介绍了近年来活跃在“持续发展”研究领域的一些国际机构。     

Designing trans-disciplinary research to support policy formulation for sustainable agricultural development

The article shows how existing multidisciplinary studies on sustainable agricultural development can be joined into a trans-disciplinary approach. Three interdisciplinary projects have been combined in a participatory discussion platform, in which researchers from different disciplines (economists, ecologists, social scientist and geographers) were brought together with a variety of stakeholders. The specific application of the developed method on agricultural development in Belgium, has revealed the need for crossing system boundaries within research, articulation of definitions on sustainable development, development of a coherent sustainability labelling policy and increasing the access to nation wide data both for researchers and policy makers.     

积极实施"走出去"战略促进对外贸易可持续发展

从我国对外贸易发展面临的问题出发，分析我国“走出去”战略对促进对外贸易的重要作用，提出有效实施“走出去”战略的主要设想。     

Developing newly emerging high-end industries in the low-carbon economy

Global warming has exerted severe challenges on the sustainable development of economic society and the food security,resource security,energy security and ecological security of the world.Low-carbon economy has become the current trend of the global economic development.Thus,the industrial development of China must seek the institutional innovation and technological innovation so as to improve the efficiency of energy.High-end industry has become the main factor of the future development of the economic society.Thus,to develop the high-end industry is an important approach to realize low-carbon economy.This paper explores the strategies of the development of newly emerging high-end industries against the background of low-carbon economy form such perspectives as effective use of resources,the improvement of independent innovative ability,and leading the high-end,high quality and high efficiency industries to the important region.