Measuring consumer understanding and perception of eco‐labelling: Item selection and scale validation

The use of “eco‐labels” by businesses, both as communication and positioning strategies, is increasing. For these eco‐labels to be effective, however, it requires consumers to understand and value what eco‐labels are communicating. Research suggests that there are many factors impeding consumers’ understanding of eco‐labels . Most of these studies have focused on single dimensions of a complex phenomenon and in doing so they have ignored the multifaceted aspects of the construct, suggesting that a more integrated representation is warranted. The work herein undertakes four studies to empirically test and validate a multidimensional measure that can be used to assess how consumers psychometrically understand and perceive eco‐labelling. The four‐study process involves qualitative interviews to extend the issues identified within the literature, followed by two studies using principal component analysis, confirmatory factor analysis and structural equation modelling analysis, each using separate samples, to test the reliability and validity of the proposed eight‐dimensional 27‐item ECOLSCALE. Another study is then undertaken to assess the nomological validity of the scale regarding to consumers’ environmental orientation. The ECOLSCALE developed in this work can be used to assist marketers, policy makers and researchers to evaluate the impact of eco‐labelling schemes on consumers’ understanding of eco‐labels, thereby enabling consumers to make more environmentally informed decisions.     

Evaluating willingness to pay for the temporal distribution of different air quality improvements: Is China's clean air target adequate to ensure welfare maximization?

Stated preference analyses seeking to determine the public's value for air quality improvements often estimate willingness to pay (WTP) for days at a specified minimum quality threshold (e.g., days with clean air), but do not consider the temporal distribution of pollution levels below this threshold. This paper develops a choice experiment designed to evaluate WTP for a more complete distribution of air quality improvements, including the number of days per year at multiple air quality levels. The model is applied to a case study of air quality improvement in the core districts of Xi'an City, China. Results from a linearly constrained mixed logit model demonstrate that average household WTP for improving a lightly polluted, moderately polluted, heavily polluted, or severely polluted day to a clean air day is 7.42, 8.90, 13.06, and 24.28 RMB per year, respectively. These results show that WTP depends not only on the total number of clean air days, but on the total distribution of pollution levels across all days of the year. Results are directly relevant to the development of clean air policies in China, for which benefit estimates are currently unavailable.     

Factors explaining shared clothes consumption in China: Individual benefit or planet concern?

Shared clothes represent one example of the sharing economy whereby users provide a variety of clothes to people at fees representing mutual value through online platforms. Sharing creates a more circular economy and represents one form of sustainable consumption. Many studies have proposed environmental concern as a key influencer of customer intention and behaviour, yet other motivations may be driving sustainable consumption behaviours such as sharing clothes. This study aims to expand our understanding of shared clothes in line with attitude–intention–behaviour theory. The aim is to examine the moderating role of environmental concern in the relationship between perceived economic, functional (app quality/platform) benefit, reputation and trust of the app/platform on (a) intention to use online clothes‐sharing platforms and (b) spending behaviour of current users of the same sharing platform. A total of 250 and 232 usable questionnaires were gathered from potential and current users of shared clothing. Results reveal that environmental concerns are higher for current users when compared with potential users of the sharing platform. Results of this study identify that personal considerations such as economic benefit outweigh environmental considerations for shared clothes consumers. Practical implications, limitations, and future directions are highlighted.     

Board monitoring and covenant restrictiveness in private debt contracts during the global financial crisis

We examine the association between board independence and restrictiveness of covenants in U.S. private debt contracts around the global financial crisis (GFC). We show that board independence is associated with less restrictive covenants suggesting lenders willingness to delegate some monitoring of firms with independent boards. More nuanced analysis between the pre-GFC, GFC and post-GFC periods shows mixed results and we suggest that, during the GFC and its aftermath, lenders place more emphasis on ex ante screening relative to ex post monitoring. We contribute to the literature by providing evidence on covenant use and lenders choices in periods of credit rationing.     

A bottom-up re-estimation of global fisheries subsidies

Using a recently developed database of fisheries subsidies for 148 maritime countries spanning 1989 to the present, total fisheries subsidies for the year 2003 is computed. A key feature of our estimation approach is that it explicitly deals with missing data from official sources, and includes estimates of subsidies to developing country fisheries. Our analysis suggests that global fisheries subsidies for 2003 are between US25 and 29 billion, which is higher than an earlier World Bank estimate of between US 25 and 29 billion, which is higher than an earlier World Bank estimate of between US 14–20 billion. This new estimate is lower than our 2000 global subsidies estimate of US$ 30–34 billion. We find that fuel subsidies compose about 15–30% of total global fishing subsidies, and that capacity enhancing subsidies sum to US$ 30–34 billion. We find that fuel subsidies compose about 15–30% of total global fishing subsidies, and that capacity enhancing subsidies sum to US 16 billion or about 60% of the total. These results imply that the global community is paying the fishing industry billions each year to continue fishing even when it would not be profitable otherwise—effectively funding the over-exploitation of marine resources.     

Estimating national road crash fatalities using aggregate data

Injuries and fatalities from road traffic crashes have emerged a major public health challenge in Pakistan. Reliable estimates of road crash fatalities (RCF) of a country, is a vital element needed for identification and control of key risk factors, road-safety improvement efforts and prioritizing national health. Reliability of current annual RCF estimates for Pakistan becomes highly questionable due to serious underreporting. This study aimed to predict annual RCF for Pakistan using data from World Health Organization and International Road Federation sources. An ordinary least square (OLS) regression model that relates fatality rate with different explanatory variables was developed. RCF were predicted for Pakistan for year 2012 and 2013, and results were compared with national police reported estimates. Study results indicated that there is serious underreporting of RCF in Pakistan and immediate measures are needed to improve the existing road crash recording and reporting system at the national and subnational levels.     

Use of rules in decision-making in government outsourcing

The paper reports research on the nature of use of rules in decision making process by government entities in outsourcing commercial activities. The study used multiple data sources such as in-depth personal interviews of multiple categories of respondents, documentary evidence, and observation. The findings indicated that Government organizations use un-written ground rules as the main means of managing outsourcing processes.     

Footprints of water and energy inputs in food production – Global perspectives

During the second half of the 20th century the global food production more than doubled and thus responded to the doubling of world population. But the gains in food production came at a cost, leaving a significant environmental footprint on the ecosystem. Global cropland, plantations and pastures expanded, with large increases in fossil energy, water, and fertilizer inputs, imprinting considerable footprint on the environment. Information from pre eminent publications such as Nature, Science, PNAS and scholarly journals is synthesized to assess the water and energy footprints of global food production. The data show that the footprints are significant, both locally, national and globally and have consequences for global food security and ecosystem health and productivity. The literature nearly agrees that global food production system generates considerable environmental footprints and the situation would likely get worrisome, as global population grows by 50% by 2050. Investments are needed today to buffer the negative impacts of food production on the environment. Investments to boost water productivity and improve energy use efficiency in crop production are two pathways to reduce the environmental footprint.     

The elasticities of substitution of inputs: A case study of Canada

Zusammenfassung Die Substitutionselastizit?ten der Inputs: Eine Fallstudie für Kanada.-Dieser Aufsatz analysiert die Rolle der realen Kassenbest?nde als Produktionsfaktor in der kanadischen Wirtschaft von 1947-1973. Unter Verwendung einer Translog-Kostenfunktion mit drei Faktoren wird best?tigt, da? Geld von realen Faktoren nicht getrennt werden kann und in den Produktionsproze? ebenso eingeht wie prim?re Inputs. Paarweise werden partielle Substitutionselastizit?ten für Kapital, Arbeit und realen Kassenbestand gesch?tzt sowie die Elastizit?ten der Nachfrage nach Inputs in bezug auf den eigenen Preis. Die realen Kassenbest?nde verhalten sich w?hrend der untersuchten Periode wie Substitute für Kapital, sind aber komplement?r zum Faktor Arbeit. Au?erdem haben die Elastizit?ten der Nachfrage in bezug auf den eigenen Preis die theoretisch korrekten negativen Vorzeichen und sind kleiner als Eins.

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Résumé Les élasticités de substitution des inputs: une étude de cas pour le Canada. -Dans cet article l'auteur analyse le r?le des balances réelles comme facteur de production dans l'économie canadienne, 1947-1973. En utilisant une fonction des co?ts trans-log à trois facteurs il vérifie que la monnaie n'est pas séparable des facteurs réels et entre dans le processus de production comme d'autres ressources primaires. Les élasticités partielles de substitution par paires sont estimées pour le capital, la main d'oeuvre et des balances réelles ensemble avec les élasticités d'auto-prix de la demande de ressources. Les balances réelles se comportent comme substituts pour le capital mais comme compléments à la main d'oeuvre pendant toute la période d'observation. De plus, les élasticités d'auto-prix ont les signes négatifs théoriquement corrects et sont inélastiques.

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Resumen La elasticidad de sustituci?n de insumos: el caso del Canadá. -Este trabajo analiza el papel que juega el dinero en términos reales como factor de producción en la economía canadiense en el período 1947-1973. Utilizando una funcíon de costos logarítmica con tres factores se verifica que le dinero no es separable de los factores reales, y que forma parte del proceso de producción al igual que los insumos primarios. Se estima la elasticidad de sustitución parcial para pares de los factores capital, trabajo y dinero, y la elasticidad de demanda para cada uno de estos insumos. El dinero se comporta como sustituto de capital pero como factor complementario a trabajo en el período muestral. Además, las elasticidades de demanda para cada uno de los insumos presentan los signos negativos esperados y resultan no elásticas.

     

On the existence of a stationary optimal stock for a multi-sector economy: A primal approach

Using a purely primal approach, we show the existence of a non-trivial stationary optimal stock for a multi-sector economy. Our result generalizes earlier work by dropping the δ-productivity assumption and by replacing the continuity hypothesis on the utility function by upper semicontinuity.