A science-driven market-based instrument for determining the cost of environmental services: A comparison of two catchments in Australia

An auction-based approach (or MBI for “market-based instrument”) was used to purchase environmental services from landowners and to establish a long-term economic resource (forest plantations) in two catchments in the state of Victoria (Australia). The policy goal of the MBI was to encourage the conversion of cleared land to forest plantations. It was desired to achieve this while also reducing the amount of land affected by dryland salinity with minimum impact on water available for irrigation. Operationally, interested landowners identified areas on which they would be willing to establish forest plantations, and stated the amount of money they would require from the government to undertake plantation establishment; this constituted a landowner bid. The proposed planting area associated with each bid was processed through a quantitative hydrological model to estimate off-site impacts on dryland salinity and the change in water yield resulting from the conversion of individual non-forested areas to forest plantations. Landowner bids were then accepted or not based on the economic trade-offs among dollars requested by a landowner, reduction in water yield, and decrease in dryland salinity. To enable a comparison of costs, the MBI was independently trialled in two catchments. For both, the cost to government of a hectare of plantation and/or a hectare of salinity benefit was calculated a number of ways. Assuming the existence of a calibrated hydrological model, costs associated with distributing money via such an MBI were publicity, fieldwork, processing the bids through the model, probity, legal, and administration. In the Gippsland catchment, the total cost to establish forest plantations was $5340 per ha whereas it was $1635 per ha in the Corangamite catchment. No salinity benefit was obtained in Gippsland, but in Corangamite, if considered in isolation of the economic forest plantation benefit, the cost per hectare of salinity benefit was $5020.Operational aspects of the MBI are presented and discussed and a comparison is made to the expected costs of a conventional, non-science driven approach to landowner incentives.     

Europe—Past Imperfect

Pegged exchange rates imply instability in domestic economices - a reconstifuted ERM is likely to re-emerage but with special provisino to deal with 'crises'     

Should we do away with teleworking? An examination of whether teleworking can be defined in the new world of work

This empirical paper analyses data gathered from self-employed teleworkers, matching this against teleworking's defining characteristics, which appear in the literature. Our evaluation leads us to question whether the term 'teleworking' has lost much of its value in today's working world. We therefore suggest the new term 'home-anchored worker' as a less complex and more useful replacement.     

Japan as number one?: Social problems of the next decades

Japan's post-war economic success should be seen as situationally as well as culturally determined. As the conditions that prompted the ‘Japanese miracle’ change, a number of problems will emerge in Japanese society; the ageing of the population and the effects of modernization on the attitudes of workers towards their corporate employers will inhibit further economic growth. Western management, searching for the key to the miracle, should take note.     

Innovation in service internationalization: the crucial role of the frantrepreneur

This paper introduces the concept of a new entrepreneurial role in services that we call the frantrepreneur. This is based on two case studies of the internationalization of two US franchisors, one in temporary services (Sweden) and the other in computer training (Australia). The frantrepreneur is defined as a franchisee who innovates by adapting a standard service concept to meet local conditions. This role is a further refinement of a series of earlier concepts concerning entrepreneurship roles such as the intrapreneur. This paper provides an indepth evaluation of the roles adopted by the frantrepreneurs and how they changed the original service concept. They did not passively accept the standard service concept and they developed an unusual partnership role with their franchisors with a two-way influence over the business. Although the innovations of frantrepreneurs were mostly in the form of small and incremental changes they standardized their developments to facilitate further adoption. The frantrepreneurs appear to play an important role in smoothing the adaptation and adoption of innovation in the internationalization of a franchise operation.     

Telecom Regulation: Lessons from Independent Central Banks

Consumers do not choose their preferred central bank base rate in the way that they buy, say, telephone services from one of a number of competing companies: independent central banks (ICBs) and utility regulators have different tasks. However, those concerned with the emerging field of utility regulation can still learn much from research on ICBs, not least because, for historical reasons, there is much more of it. The authors of this article argue that the key to the success of both ICBs and utility regulators is proper governance arrangements. They reject the arguments for procedures that are totally rule-based with little or no discretion. Within clear rules, they say, both ICBs and regulators should be given discretion combined with high accountability.     

Assessing Total Factor Productivity Growth in Sub‐Saharan African Agriculture

The importance of the agricultural sector in the economic development process is well known. Improvements in agricultural productivity are often found to spill into other areas of a developing economy, potentially improving the standards of living of urban and rural workers alike. Given the importance of this sector, accurate measures of total factor productivity (TFP) across countries can be helpful in identifying conditions, institutions or policies that promote agricultural development. In this article, we estimate TFP growth in agriculture for a panel of 39 sub‐Saharan African countries from 1961 to 2007. We also develop a set of development outcome measures theoretically consistent with strong agricultural performance to serve as external validation of our results. We find that three estimation methods (stochastic frontier, generalised maximum entropy, and Bayesian efficiency) generate relative rankings that are consistent with the development outcome measures, providing external validation of the methods. However, the data envelopment analysis approach performs poorly in this regard.