THE EFFICIENCY OF SEQUESTERING CARBON IN AGRICULTURAL SOILS

Agricultural tillage practices are important human-induced activities that can alter carbon emissions from agricultural soils and have the potential to contribute significantly to reductions in greenhouse gas emission (Lal et al., The Potential of U.S. Cropland, 1998). This research investigates the expected costs of sequestering carbon in agricultural soils under different subsidy and market-based policies. Using detailed National Resources Inventory data, we estimate the probability that farmers adopt conservation tillage practices based on a variety of exogenous characteristics and profit from conventional practices. These estimates are used with physical models of carbon sequestration to estimate the subsidy costs of achieving increased carbon sequestration with alternative subsidy schemes.     

Hierarchical Models for the Analysis of Likert Scales in Regression and Item Response Analysis

Appropriate modelling of Likert‐type items should account for the scale level and the specific role of the neutral middle category, which is present in most Likert‐type items that are in common use. Powerful hierarchical models that account for both aspects are proposed. To avoid biased estimates, the models separate the neutral category when modelling the effects of explanatory variables on the outcome. The main model that is propagated uses binary response models as building blocks in a hierarchical way. It has the advantage that it can be easily extended to include response style effects and non‐linear smooth effects of explanatory variables. By simple transformation of the data, available software for binary response variables can be used to fit the model. The proposed hierarchical model can be used to investigate the effects of covariates on single Likert‐type items and also for the analysis of a combination of items. For both cases, estimation tools are provided. The usefulness of the approach is illustrated by applying the methodology to a large data set.     

The Consequences of Cobenefits for the Efficient Design of Carbon Sequestration Programs

In this paper, we study the social efficiency of private carbon markets that include trading in agricultural soil carbon sequestration when there are significant cobenefits (positive environmental externalities) associated with the practices that sequester carbon. Likewise, we investigate the efficiency of government run conservation programs that are designed to promote a broad array of environmental attributes (both carbon sequestration and its cobenefits) for the supply of carbon. Finally, policy design and efficiency issues associated with the potential interplay between a private carbon market and a government conservation program are studied. Empirical analyses for an area that represents a significant potential source of carbon sequestration and its associated cobenefits illustrate the magnitude and complexity of these issues in real world policy design.     

The Time Path and Implementation of Carbon Sequestration

We develop a dynamic model to investigate the optimal time paths of carbon emissions, sequestration, and the carbon stock. We show that carbon sinks should be utilized as early as possible, and carbon flow into sinks should last until the atmospheric carbon concentration is stabilized. We rule out any cyclical patterns of carbon sequestration and release. We propose and assess three mechanisms to efficiently introduce sequestration into a carbon permit trading market: a pay-as-you-go system, a variable-length-contract system and a carbon annuity account system. Although the three mechanisms may not be equally feasible to implement, they are all efficient.     

Quality Diversity and Prices in Markets for Experience Goods

We analyze vertical product differentiation in a model where a good’s quality is unobservable to customers before purchase, a continuum of quality levels is technologically feasible, and minimum quality is supplied by a competitive fringe of firms. After purchase the true quality of the good is revealed. To provide firms with incentives to actually deliver promised quality, prices must exceed unit variable costs. We show that for a large class of customer preferences there is “quality polarization,” that is, only minimum and maximum feasible quality are available in the market. For the case without quality polarization we derive sufficient conditions for the incentive constraints to completely determine equilibrium prices, regardless of demand, for all intermediate quality levels.     

Merkmale einer vertrauensvollen Kommunikation zwischen Organisationen – eine empirische Analyse

In the business world one of the key drivers to reduce uncertainty is trust. It is based on an empirical study (Kano-analysis, 60% return rate) and identifies relevant factors of a trustful communication in long-term business relationships between organizations. Three types of factors can be identified: Must-be factors are a prerequisite of any relation and have a fundamental character in long-term relationships. The customers expect such factors to be an unquestionable part of any business relation (e.g. honesty). While attractive factors always boost the stability of trust in the relation (e.g. sympathy), one-dimensional factors not only stabilize trust if implemented, but can also deteriorate the relation if ignored (e.g. timeliness).     

Organizational culture as differentiator in international retailing

Much of the international retailing literature echoes major retailers' assertions that inimitable organizational cultures can create competitive advantage. However, the culture concept remains ill-defined and systematic international empirical analysis is lacking. Based on website analyses of nine international retailers, the paper investigates how organizations define their cultures, codify and transfer them into practice, and aim to homogenize them across borders. Although some evidence for organization-specific cultural aspirations is identified, findings suggest that retailers' cultures become homogenized within and between countries. This supports previous work on the existence of industry-specific macro cultures and challenges the resource-based view, which sees culture as a source of competitive advantage.