The Economics of the Greenium: How Much is the World Willing to Pay to Save the Earth?

Environmental and Resource Economics - Sadly, not much. This paper provides a theoretical and empirical analysis of the greenium, the price premium the investor pays for green bonds over...     

Fertility and climate change*

A quarter of the total increase in emissions is attributable to the growth of emissions per capita, whereas three-quarters are due to population growth. This evidence notwithstanding, demography in climate–economy models typically follows exogenous trends. We develop a climate–economy integrated model with endogenous fertility through a quality–quantity trade-off. The decentralization of the social optimum requires two complementary instruments: a carbon pricing policy and family planning interventions. Global population increases and reaches a peak, depending on the scenario, between 11.6 billion in the social optimum and 14.6 billion if only carbon prices are implemented. Fertility costs (i.e., the net present value of the climate-related costs per child) are in 2020 estimated to be about 22,000 euros in the “social optimum” scenario, and about 88,000 euros in the “second-best with fertility taxes” scenario. Carbon pricing tends to have a rebound effect as it increases population growth leading to higher future emissions. Our results highlight the effects of fertility choices and global population on climate change, quantifying the cost of neglecting the interaction.     

Risk preference interactions between individual farmers and small farmer groups: Experimental evidence from rural Ethiopia

The understanding of risk preference interactions among poor farmers in developing countries has important policy implications, as many programs that aim to alleviate poverty and address risk constraints are provided on a collective basis. We conduct a randomized field experiment in the drought-prone parts of Northern Ethiopia and elicit from poor, vulnerable farmers their hypothetical willingness to pay using individual and group lottery games. Analyzing the certainty equivalent ratios (CERs), we find that farmer groups are more risk averse than individual farmers. When the risk of the lottery is high, the group CER is primarily determined by the most-risk-averse farmer of the group, and to a lesser extent, by the least. The median farmer contributes to the group CER only when the lottery risk is moderate. After participating in the group elicitation, individual farmers also become as risk averse as the group on average. Specifically, the median and the least-risk-averse farmers become significantly more risk averse while the most-risk-averse farmer is unaffected. Our results show that policymakers should carefully consider how social interactions in rural communities affect individual and group risk preference and whether social interactions also affect the participation and effectiveness of development programs.     

Effective entrepreneurial narrative design in reward crowdfunding campaigns for social ventures

One of the most important challenges for social venture entrepreneurs is acquiring resources. Reward crowdfunding is considered a suitable tool for meeting the financing needs of social ventures, whose backers are particularly interested in firm ideas and core values rather than in collaterals or business plans. A strategic factor that is able to influence the outcome of crowdfunding campaigns is the entrepreneurial narrative. Very few scholars have examined the key factors that support a crowdfunding campaign, particularly those on reward-based crowdfunding platforms, and the effects of entrepreneurial narratives on investors’ decisions. Aiming to fill this research gap, this paper investigates how entrepreneurs in the technology industry describe their social ventures and projects on Eppela, an Italian reward-based crowdfunding platform. Thematic analysis was applied to detect the five following key factors of effective entrepreneurial narratives in reward-based crowdfunding campaigns for social ventures: 1) problem/need; 2) project; 3) product; 4) team; and 5) venture. Each key factor includes specific subfactors. Lexical data analysis was then performed to identify the following expected effects of the examined entrepreneurial narratives on potential investors, leading these investors to understand, trust, and approve the project proposal, and thus, finance the social venture’s project: 1) reassurance, 2) reliability, and 3) credibility. Based on these results, this study proposes an explanatory model about how to design effective entrepreneurial narratives to be presented to contribute as much as possible to the success of projects in crowdfunding platforms.

     

Technical progress and induced innovation in China: a variable profit function approach

Journal of Productivity Analysis - We propose a new methodology to estimate empirically the input price-induced technical change and total factor productivity (TFP) growth in China. Our primary...     

Production and hedging under correlated price and background risks

Decisions in Economics and Finance - This paper examines the competitive firm that has to make its production and hedging decisions under correlated price and background risks. The background risk...     

Residence after retirement: A review and bibliometric analysis

This study reviews the literature on the residence after retirement via Systematic Literature Network Analysis, which consists of the systematic literature review and bibliometric network analysis. There are three research questions, including (1) what the most recent studies are on the residence after retirement, (2) Who the most significant authors, documents, and sources are in residence after retirement, and (3) whether the extant research structure could guide the future agenda for the residence after retirement. Based on the systematic literature review, this study extracts 50 publications from the Scopus database by keyword, document type, source type, publication period, language, and subject area relevant to the residence after retirement. This study analyzes data employing Nvivo, VOSviewer, and SciMAX. The clusters of authors, countries, keywords, documents, and sources linked with relevant studies on the residence after retirement are according to the co-authorship (1) author, (2) country/territory, (3) keyword, and (4) document. Skitmore, M., Xia, B., Buys, I., Hu, X., Hu, Y., and Chen, Q. who the most influential authors are in residence after retirement. The themes of aging, continuing care retirement community, retirement village, and their associated keywords contribute to future research on the residence after retirement.     

The influence of the entrepreneurial ecosystem model on sustainable innovation from a macro-level lens

International Entrepreneurship and Management Journal - The present article investigates entrepreneurial sustainable innovations (ESIs) that work against the five elements (policy, finance, human...