Voluntary Contributions with Uncertainty: The Environmental Quality

This article presents a model in which production causes pollution that diminishes the welfare of its agents. Each agent is concerned with the quality of its environment and may voluntary contribute to improve it by financing depollution technology. The effectiveness of this technology on the quality of the environment is uncertain. We show that if an agent is sufficiently risk averse, voluntary contribution is a decreasing function of the average efficiency of depollution technology. If, on the contrary, the pollution effect is weaker than the substitution effect, the opposite holds. We show that precaution about environmental quality has two possible consequences that depend on agents' risk aversion. Therefore, the implications of a precautionary attitude lead us to consider the agents' risk-aversion characterization, which implies knowledge about prudent attitude.     

Why environmental management may yield no-regret pollution abatement options

Empirical evidence supports the existence of pollution abatement possibilities at negative costs, the so-called ‘no-regret options’. We provide a microeconomic rationale for the existence of such potential at the firm level. An econometric application confirms that pollution abatement cost curves with no-regret options are compatible with a standard production function, as stated in our theoretical model.     

Investment Choice with Polluted Capital

This paper develops a two-sector overlapping generations model in which one sector produces an externality on the environmental quality and the other has no effect. We assume that environmental quality degradation results from production activity of one sector. Then, we characterise the dynamical system globally and establish sufficient conditions for the global uniqueness of a perfect-foresight equilibrium path in the case of a Cobb-Douglas production function and a CES utility function. We show that the existence and the stability of the steady state depend on substitution and income effect and on the degree of pollution.     

Intergenerational Altruism and the Environment

We construct an overlapping generations model of pollution externality in which individuals are altruistically linked to their offspring as in Barro (1974). It is shown that steady-state consumption may be a decreasing function of the intergenerational degree of altruism. Despite individuals' altruism, the competitive equilibrium is not optimal. We thus study the social optimum and show that it can be decentralized.
JEL classification: D 62; D 64; D 91     

Hypothèses de salariés non membres et financement externe pour les firmes autogérées

Among the various questions raised by theoretical studies on self-managed firms, the author considers two key issues dealing with job rigidity in these enterprises and with their ability to get external financing: should the employment of non-member workers in these firms be encouraged or not? Should the external financing of these firms be deregulated or not? These two questions are related to an important part of the literature on self-managed firms which is dedicated to their so-called perverse behaviours and to the stability of this type of production organization. The theoretical models help to understand the difficulties experienced by this type of organization and to see how and why the constraints on employment of non-member workers and on the external financing possibilities can have positive effects on self-managed firms. Among these results, those coming from the analysis of the choice of structures and production techniques help to understand the development of self-managed firms in industries which require high level production techniques and high human skills.     

Longevity and environmental quality in an OLG model

Whereas existing OLG models with endogenous longevity neglect the impact of environmental quality on mortality, this paper studies the design of the optimal public policy in a two-period OLG model where longevity is influenced positively by health expenditures, but negatively by pollution due to production. It is shown that if agents, when choosing how much to spend on health, do not internalize the impact of their decision on environmental quality (i.e. the space available for each person), the decentralization of the social optimum requires a tax not only on capital income (to internalize the pollution externality), but, also, on health spending (to internalize the congestion externality). We also examine the second-best policy under a limited set of taxation instruments, and explore its sensitivity to the pollution process and to individual preferences.     

Types of technological scanning in manufacturing SMEs: an empirical analysis of patterns and determinants

As the component of environmental scanning that is concerned with science and technology, products, production processes, hardware and information systems, the concept of technological scanning, especially in small business, has received little empirical attention in the past. This paper aims to better define the different technological scanning practices of small and mediumsized enterprises (SMEs) and identify the main factors that determine these differences. This is done without relation to organizational effectiveness as technological scanning is but one of many potential influences on business performance. Using data obtained from a mail survey on the scanning practices of 324 SMEs, the study hopes to increase our understanding of how various entrepreneurs confront various environments in practice. The research model used is based on the notion that, to define different technological scanning practices in small business, four aspects must be considered: strategic orientation (objectives pursued); types of information sought (on technologies and their costs, human resources necessary, etc.); sources used (customers, fairs, specialized publications, suppliers, research centres, etc.); and scanning management practices (methods used, staff involved, level of formalization, and integration of activities). These aspects are contingent upon four factors: the managers' profile; their perception of the environment; their firm's characteristics; and their information network. A cluster analysis reveals that the sampled firms can be grouped into four separate categories, according to the intensity of their technological scanning activities and the type of strategy used. In the first category, where scanning is most developed, the SMEs emphasize cost reduction and control, followed by improvements in competitiveness; they seek mainly financial and human resource information, and use their own internal resources to obtain it. A second category, where scanning is least developed, puts the emphasis on increasing production capacity and flexibility; these SMEs seek very diverse information from many sources. Of the two intermediate groups, one aims to diversify and increase the quality of products and services; marketing information is obtained through customers, suppliers and subcontractors. The other, whose scanning is better organized, favours increasing production capacity through innovation and market information with the help of governmental and financial institutions. This research concludes that there is no ‘one best way’ to environmental scanning in manufacturing SMEs, and that it all depends upon the organization, its objectives and its environmental pressures.     

Understanding the residents’ social impact perceptions of an African Cultural Festival: the case of Macufe

ABSTRACT

The Macufe is one of the Africa’s largest cultural festivals, and takes place annually in Bloemfontein, South Africa. This 10-day event attracts approximately 140,000 attendees, meaning that the residents have to share facilities and services with tourists. The effects of such interactions can be both positive and negative. Community members are stakeholders in any tourism ventures that take place in their area, meaning that their goodwill is of utmost importance. Therefore, the social impacts of this event should be well managed to foster community support. For this reason, a quantitative study was done to determine residents’ social impact perceptions towards the event. A total of 425 questionnaires were completed by willing residents who lived in proximity to festival activities. From an exploratory factor analysis, four factors were extracted, namely community enhancement, community degradation, tourism growth and increased public spending and interaction. It was found that the event does not generate significant levels of positive social impacts, and that the negative social impacts are viewed almost equal to the positive social impacts. This was one of the first social impact perception studies done on an African arts festival, which contributes to the sustainable management of such crucial events.     

Testable implications of transferable utility

Although the Transferable Utility (TU) assumption is widely used in micro theory, little is known about its testable consequences, and in particular how one can, from the observation of a group's demand, test whether the TU assumption is satisfied within this group. We derive a set of necessary and sufficient conditions on demand that characterize the TU context. The conditions are of two types. First, TU requires the group to behave as a single decision maker. Secondly, within the unitary setting, the representative utility generated by a TU framework must be of the Generalized Quasi-Linear (GQL) form. We derive testable properties of the demand function that fully characterize GQL utilities. These additional restrictions only involve specific prices - namely, those of the goods that are publicly consumed within the group.     

UNITARY VERSUS COLLECTIVE MODELS OF THE HOUSEHOLD: IS IT TIME TO SHIFT THE BURDEN OF PROOF?

Most development objectives focus on the well-being of individuals.Policies are targeted to increase the percentage of individualswho avoid poverty, who can read, who are free from hunger andillness, or who can find gainful employment. Individual welfare,however, is based in large part on a complex set of interactionsamong family members. Until recently most policy analyses implicitly viewed the householdas having only one set of preferences. This assumption has beena powerful tool for understanding household behaviour, suchas the distribution of tasks and goods. But a growing body ofevidence suggests that this view is an expedience that comesat considerable, and possibly avoidable, cost. The article arguesthat more effective policy instruments will emerge from analyzingthe processes by which households balance the diverse interestsof their members.