Reducing carbon emissions in the forestry sector by means of market-based schemes is considered a cost-effective measure for tackling climate change impacts. However, the transaction costs (TCs) ...involved are typically unknown or unquantified and therefore often neglected. In this study three types of TCs (search, design and negotiation costs) were measured in person-days and monetary terms based on a global survey of forestry carbon projects implemented across Latin-America, Asia and Africa. Cost estimates vary between zero and 1.201/tCO2 for person-days and from zero to US$ 1.738/tCO2 for monetary costs. Key drivers of TCs are identified based on the characteristics of the project in general, the transaction, the transactors involved and institutional design. The latter type of characteristic is shown to have a particularly large impact on TCs.
•We measured transaction costs incurred by project developers of forestry carbon in monetary and non-monetary terms.•We tested if the transaction costs depend on characteristics of the transaction, transactor, and institutional design.•TCs are found to be significantly influenced by various factors, especially market type.•CDM-market-related projects face significantly higher TCs than non-CDM-related projects.
•A novel model of W&T-CoGen participation in direct power purchase transaction of large consumer is established.•A novel W&T-CoGen system interior profit distribution method is specially ...designed.•The dynamic selection process of participants' strategies is described with game tree.•The reverse induction method is adopted to solve the game model.
The participation of thermal power in the direct power purchase transaction (DPPT) of large consumer (LC) reduces the ability of transmission to consume wind power. This article proposes a novel strategy decision game approach framework of the wind-thermal combined generation (W&T-CoGen) participating in the DPPT of LC, to promote the consumption of wind power under the background of Renewables Portfolio Standards (RPS). The game model, with the goal of maximizing the profit of W&T-CoGen and LC, is established based on dynamic non-cooperative game theory. A novel profit distribution method, considering the power generation cost, risk cost and the satisfaction of wind and thermal power generation, is specially designed based on Nash negotiation method. The reverse induction method is adopted to solve the Nash equilibrium of the proposed full-information dynamic game model. The feasibility and effectiveness of this framework is verified by specific example, which shows that the participation of W&T-CoGen in the DPPT of LC can increase profits of all participants, promote the consumption of wind power and improve the energy system flexibility. This novel framework provides a novel way to construct power market optimal model in the power system containing large scale wind power.
The goal of the paper is to assess the social implications of an ineffective legal intervention, which consists of introducing ownership restrictions concerning residential real estate located in the ...vicinity of airports. The paper evaluates Polish law in the context of the legislator's environmental aims and compares current regulations in Poland with solutions adopted in English law and American jurisdictions. The social and economic impact of ineffective legal intervention is calculated for the KTW airport case study with the use of information about the structure and value of filed and awarded claims for damages. With the use of this data, in the empirical part of the paper, we evaluate the factual transaction costs of public intervention for that airport, as well as ones which would occur if, instead of the Polish model, the American and the English models of compensation were applied. This allows us to explain the socio-economic consequences of adopting a given solution as well as to assess whether it fulfils desirable objectives. It also provides an opportunity to assess the models in the context of devising legally and economically justified compensation for landowners near airports affected by aircraft noise. The paper narrows the gap in the legal and economic knowledge related to the types and implications of ownership restrictions introduced in the vicinity of airports.
In the Grossman–Hart–Moore property rights theory, there are no frictions ex post (i.e., after non-contractible investments have been sunk). In contrast, in transaction cost economics ex-post ...frictions play a central role. We bring the property rights theory closer to transaction cost economics by allowing for ex-post moral hazard. As a consequence, central conclusions of the Grossman–Hart–Moore theory may be overturned. In particular, even though only party A has to make an investment decision, B-ownership can yield higher investment incentives. Moreover, ownership matters even when investments are fully relationship-specific (i.e., when they have no impact on the parties’ disagreement payoffs).
•In the Grossman–Hart–Moore property rights theory, there are no ex-post frictions.•In transaction cost economics, ex-post frictions play a central role.•We introduce ex-post moral hazard into the Grossman–Hart–Moore theory.•Ownership by a non-investing party can yield higher investment incentives.•Ownership matters even when investments are fully relationship-specific.
Responding to increased demands from stakeholder groups, many companies have instituted corporate citizenship programs in recent years, leveraging their specialized resources to create public goods ...and services at home and abroad. Significant suspicion nonetheless remains about the motives and impact of corporations acting in domains traditionally served by government and "third-sector" organizations. We argue that such ambivalence undermines the perceived legitimacy of private investments in public goods, and that this fundamental liability of privateness (LOP) constitutes a significant obstacle to corporations acting in the public domain through corporate citizenship initiatives. For multinational corporations (MNCs), the challenges stemming from the LOP are further amplified by the liability of foreignness (LOF) commonly associated with international business operations. We discuss the origins of the LOP and derive implications of the "dual liability" of LOP and LOF for partnering choices in MNCs' corporate citizenship programs. We highlight limitations on the set of credible governance mechanisms available to participants in these partnerships, describe a set of alternative governance arrangements that serve to realign incentives among alliance partners, and link these to the severity of the LOP in a particular setting. We illustrate our arguments with a case description of Microsoft's Partners in Learning program.
•Effects of supermarkets on farmgate prices for vegetables analyzed with data from India.•Differences in quality and transaction costs between supermarket and traditional channels.•Also after ...controlling for these differences, prices paid in supermarket channels are higher.•Net price effects are in a magnitude of 20% or more for most vegetable types.•The rise of supermarkets can contribute to increased market efficiency and farm revenues.
Supermarkets have gained in importance in the food systems of many developing countries, with profound implications for smallholder farmers. Several studies analyzed effects of selling to supermarkets on smallholder productivity and income. However, no previous work systematically analyzed effects of supermarkets on farmgate prices, even though prices are important determinants of farmers’ profits and livelihoods. Here, we use data from smallholder vegetable growers in India to compare output prices received in supermarket and traditional market channels. We also quantify farmers’ transport and transaction costs in both channels. Even after controlling for quality differences, prices are significantly higher in supermarket channels. Positive price effects are confirmed through hedonic price models and propensity score matching. Average effects of supermarkets on farmgate prices are in a magnitude of 20% or more. Higher farmgate prices are due to fewer intermediaries and lower transaction costs in supermarket channels. In the absence of binding contracts, supermarkets also need to pay higher prices to ensure regular supply of high-quality vegetables. These results suggest that the rise of supermarkets can contribute to increased market efficiency with positive effects on farmgate prices and revenues.
Applying and advancing internalization theory Narula, Rajneesh; Asmussen, Christian Geisler; Chi, Tailan ...
Journal of international business studies,
10/2019, Letnik:
50, Številka:
8
Journal Article
Recenzirano
Odprti dostop
Internalization theory has provided a resilient analytical framework that explicitly or implicitly underlines much of International Business scholarship. Internalization theory is not a monolithic ...body of knowledge; instead, it has devolved into several ‘streams’, each of which focuses on the interests of particular epistemic communities, while also acting as a more generic organizing framework for those more broadly interested in its application to real-world challenges. Following a review of the various streams, we trace the frontiers of current research of the broader internalization framework and identify emerging themes raised by the papers in the special issue. These include transaction cost considerations in the bundling and recombination of assets across diverse contexts, the growing relevance of quasi-internalization, the theoretical challenges of (bounded) rationality for internalization theory, and the increasing disconnect between ownership, control and responsibility. These developments point to new research frontiers for scholars looking to apply or advance internalization theory.
Building from the interest-group theory of regulation, we posit that trust alters the payoff from regulatory rent-seeking relative to profit-seeking. Trust reduces the costs of productive economic ...exchange by lowering transaction costs, thus raising the cost of rent-seeking behavior. In addition, trust increases political accountability, discouraging politicians from creating regulatory rents. We therefore hypothesize that trust reduces the extent of business regulation while simultaneously facilitating market efficiency. To test that hypothesis, we construct an overall business regulation index measuring procedures, time, and cost along eight dimensions of doing business in a country. The empirical results reveal that trust negatively relates to business regulation but positively relates to market efficiency. Interaction and split-sample results further indicate that trust and business regulation are substitutes. Collectively, the findings reported herein suggest that business regulation itself is not the root cause of market inefficiency, but rather lack of trust is the dominant factor.
We develop a new methodology to estimate the impact of a financial transaction tax (FTT) on financial market outcomes. In our sequential trading model, there are price-elastic noise and informed ...traders. We estimate the model through maximum likelihood for a sample of 60 NYSE stocks in 2017. We quantify the effect of introducing an FTT given the parameter estimates. An FTT increases the proportion of informed trading, improves information aggregation, but lowers trading volume and welfare. For some less liquid stocks, however, an FTT blocks private information aggregation.
In order to achieve greater flexibility in portfolio selection, transaction cost, short selling and higher moments should be considered, and actual transactions should be reflected. In this paper, ...five portfolio rebalancing models, with consideration of transaction cost and consisting of some or all criteria, including risk, return, short selling, skewness, and kurtosis, are compared to determine the important design criteria for a portfolio model. Two examples are used to perform simulated transactions, and the results indicate that the investment strategy of ‘buy and hold’ does not produce better returns for all the portfolios in the first example, and the models with higher moments or adopting short selling strategy perform better while rebalancing in the second example.
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