Recent literature about sustainability, resilience, and purpose in the corporate context (SRP) is abundant. Further, it seems reasonable that an organization with an implemented purpose enhances its resilience to be more sustainable. However, there is a lack of a component structured framework that presents how these three concepts are related and effectively merged for long-term corporate survival. To close this gap, we must first propose conceptualizations for each construct and their associated concepts since there is no univocal conception of them. Afterward, we propose a component structured framework that relates SRP. The framework shows that the relationship between SRP is cyclical rather than linear, i.e., pairs of concepts have a two-way relationship. This contribution will help professionals, researchers, consultants, and business leaders to understand better how these three concepts are related, prioritize initiatives and design operative methodologies to help organizations develop their SRP.
{"title":"Relationship between sustainability, purpose, and resilience in the context of corporations: a conceptual framework","authors":"M. Flórez-Jiménez, Á. Lleó","doi":"10.2139/ssrn.3951193","DOIUrl":"https://doi.org/10.2139/ssrn.3951193","url":null,"abstract":"Recent literature about sustainability, resilience, and purpose in the corporate context (SRP) is abundant. Further, it seems reasonable that an organization with an implemented purpose enhances its resilience to be more sustainable. However, there is a lack of a component structured framework that presents how these three concepts are related and effectively merged for long-term corporate survival. To close this gap, we must first propose conceptualizations for each construct and their associated concepts since there is no univocal conception of them. Afterward, we propose a component structured framework that relates SRP. The framework shows that the relationship between SRP is cyclical rather than linear, i.e., pairs of concepts have a two-way relationship. This contribution will help professionals, researchers, consultants, and business leaders to understand better how these three concepts are related, prioritize initiatives and design operative methodologies to help organizations develop their SRP.","PeriodicalId":175326,"journal":{"name":"PSN: Sustainable Development (Topic)","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114843966","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article examines the role of the IMF’s Debt Sustainability Assessments (DSAs) in achieving the UN’s Sustainable Development Goals (SDGs), which is a crucial agenda towards a resilient, sustainable, and inclusive post-pandemic recovery. Crucially, it advocates that the DSA should be reformed by de-emphasizing its commitment to austerity. Austerity measures are overwhelmingly associated with the need to guarantee debt service levels through a reallocation of budgetary resources otherwise allocated to public investment and services, typically by means of fiscal adjustment and regressive taxation. This threatens the post-pandemic recovery capacity of vast segments of the global economy and jeopardises the ability of societies to innovate and build capacity towards achieving the SDGs, as well as the state’s ability to ensure the fulfilment of fundamental human rights to its population. This article proceeds as follows. Section 2 explains what the DSA is, as well as its uses and legal framework. Section 3 discusses the importance of the DSA in sovereign debt crises. Section 4 analyses the macroeconomic and legal assumptions of the DSA and critiques their adequacy to achieve the SDGs. Section 5 discusses the legitimacy and accountability issues posed by the DSA. Section 6 concludes this piece with some considerations on the need for reforming the DSA towards a sustainable and resilient post-pandemic recovery for all.
{"title":"Reforming the International Monetary Fund’s Debt Sustainability Assessments towards Achieving the UN’s Sustainable Development Goals (SDGs): A Crucial Post-Pandemic Recovery Agenda","authors":"Karina Patrício Ferreira Lima","doi":"10.2139/ssrn.3935377","DOIUrl":"https://doi.org/10.2139/ssrn.3935377","url":null,"abstract":"This article examines the role of the IMF’s Debt Sustainability Assessments (DSAs) in achieving the UN’s Sustainable Development Goals (SDGs), which is a crucial agenda towards a resilient, sustainable, and inclusive post-pandemic recovery. Crucially, it advocates that the DSA should be reformed by de-emphasizing its commitment to austerity. Austerity measures are overwhelmingly associated with the need to guarantee debt service levels through a reallocation of budgetary resources otherwise allocated to public investment and services, typically by means of fiscal adjustment and regressive taxation. This threatens the post-pandemic recovery capacity of vast segments of the global economy and jeopardises the ability of societies to innovate and build capacity towards achieving the SDGs, as well as the state’s ability to ensure the fulfilment of fundamental human rights to its population. This article proceeds as follows. Section 2 explains what the DSA is, as well as its uses and legal framework. Section 3 discusses the importance of the DSA in sovereign debt crises. Section 4 analyses the macroeconomic and legal assumptions of the DSA and critiques their adequacy to achieve the SDGs. Section 5 discusses the legitimacy and accountability issues posed by the DSA. Section 6 concludes this piece with some considerations on the need for reforming the DSA towards a sustainable and resilient post-pandemic recovery for all.","PeriodicalId":175326,"journal":{"name":"PSN: Sustainable Development (Topic)","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128914303","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-06DOI: 10.18601/01229893.n50.07
Lina Muñoz Ávila, María Alejandra Lozano Amaya
Este artículo tiene como objetivo argumentar que, si bien Colombia cuenta con un marco jurídico avanzado respecto de los derechos de acceso a la información, a la participación y a la justicia en asuntos ambientales, así como sobre las personas defensoras del ambiente, basado en la Constitución Política, su implementación efectiva presenta grandes desafíos que podrían ser superados a través de la ratificación del Acuerdo de Escazú en esta materia. Este instrumento regional puede servir como una herramienta para mejorar los estándares ya alcanzados para la protección del ambiente en el país. Con base en la investigación realizada, se concluye que el tratado es completamente compatible con la Carta Política y es un potencializador del mandato constitucional. Su ratificación significaría un paso hacia el fortalecimiento de varios ejes estructurales de la Constitución de 1991 y demostraría coherencia entre los mismos. La implementación jurídica del Acuerdo de Escazú es una oportunidad única para reafirmar los compromisos contenidos en la Constitución Ecológica, treinta años después de su promulgación.
{"title":"La democracia ambiental y el Acuerdo de Escazú en Colombia a partir de la Constitución Ecológica de 1991 (Environmental Democracy and the Escazu Agreement in Colombia since the Ecological Constitution of 1991)","authors":"Lina Muñoz Ávila, María Alejandra Lozano Amaya","doi":"10.18601/01229893.n50.07","DOIUrl":"https://doi.org/10.18601/01229893.n50.07","url":null,"abstract":"Este artículo tiene como objetivo argumentar que, si bien Colombia cuenta con un marco jurídico avanzado respecto de los derechos de acceso a la información, a la participación y a la justicia en asuntos ambientales, así como sobre las personas defensoras del ambiente, basado en la Constitución Política, su implementación efectiva presenta grandes desafíos que podrían ser superados a través de la ratificación del Acuerdo de Escazú en esta materia. Este instrumento regional puede servir como una herramienta para mejorar los estándares ya alcanzados para la protección del ambiente en el país. Con base en la investigación realizada, se concluye que el tratado es completamente compatible con la Carta Política y es un potencializador del mandato constitucional. Su ratificación significaría un paso hacia el fortalecimiento de varios ejes estructurales de la Constitución de 1991 y demostraría coherencia entre los mismos. La implementación jurídica del Acuerdo de Escazú es una oportunidad única para reafirmar los compromisos contenidos en la Constitución Ecológica, treinta años después de su promulgación.","PeriodicalId":175326,"journal":{"name":"PSN: Sustainable Development (Topic)","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125342394","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-27DOI: 10.9734/SAJSSE/2021/V12I330304
S. Chatterjee
As the world inches towards 2030, there is barely a precious decade left towards achieving the United Nations Sustainable Development Goals. Given the socio-economic fragility of the economies proven during the ongoing COVID-19 pandemic, it becomes imperative to strive maximum in order to achieve a harmony between economic, environmental and social progress in these economies. With 17.7% of share in the total world population, India has a very high degree of responsibility towards achievement of world SDGs. The spill over score for India is 98.8 which implies that India is in a strong position to create very positive spillover effects to other countries. With a federal structure comprising of 28 states and 8 UTs, the progress made by the Indian economy will depend on the progress made by these states and UTs. In this context the current article is an attempt to understand the extent of progress made in India towards achieving the various sustainable development goals. The analysis of the progress made on the various SDG goals is done at two levels: Global Level and State level. At a global level, a comparison is done on the progress of SDGs made in India with other developed and developing economies respectively. To do the comparison the economies have been ranked on the basis of their progress in SDG goal achievement based on UN reports and their per capita incomes. This comparison is done to understand whether wealthier nations are faring better in the achievement of SDGs. An important finding from this table is that the countries with highest per capita income do not necessarily have the highest rankings. This finding could have very meaningful implications on policy making and resource mobilization for the various goals in under developed and developing economies, including India. Further the analysis progress on various SDGs is done at a state level for India. This analysis is done to understand which states are doing good in terms of goal achievement and which states are lagging behind. The state level analysis can also point out to the best practices that are in practice and which can be adapted by other lagging states. The analysis is done based on the Global Sustainable Development Report as well as the Sustainable Development Report prepared by NITI Ayog, Government of India. As the Central government as well as the State governments along with various stakeholders make efforts towards achieving these goals, a macro level analysis of the progress made on these goals can help in course correction at the correct time and thus optimize precious time and resources.
{"title":"Implementing Sustainable Development Goals in India: Progress So far","authors":"S. Chatterjee","doi":"10.9734/SAJSSE/2021/V12I330304","DOIUrl":"https://doi.org/10.9734/SAJSSE/2021/V12I330304","url":null,"abstract":"As the world inches towards 2030, there is barely a precious decade left towards achieving the United Nations Sustainable Development Goals. Given the socio-economic fragility of the economies proven during the ongoing COVID-19 pandemic, it becomes imperative to strive maximum in order to achieve a harmony between economic, environmental and social progress in these economies. With 17.7% of share in the total world population, India has a very high degree of responsibility towards achievement of world SDGs. The spill over score for India is 98.8 which implies that India is in a strong position to create very positive spillover effects to other countries. With a federal structure comprising of 28 states and 8 UTs, the progress made by the Indian economy will depend on the progress made by these states and UTs. \u0000In this context the current article is an attempt to understand the extent of progress made in India towards achieving the various sustainable development goals. The analysis of the progress made on the various SDG goals is done at two levels: Global Level and State level. At a global level, a comparison is done on the progress of SDGs made in India with other developed and developing economies respectively. To do the comparison the economies have been ranked on the basis of their progress in SDG goal achievement based on UN reports and their per capita incomes. This comparison is done to understand whether wealthier nations are faring better in the achievement of SDGs. An important finding from this table is that the countries with highest per capita income do not necessarily have the highest rankings. This finding could have very meaningful implications on policy making and resource mobilization for the various goals in under developed and developing economies, including India. Further the analysis progress on various SDGs is done at a state level for India. This analysis is done to understand which states are doing good in terms of goal achievement and which states are lagging behind. The state level analysis can also point out to the best practices that are in practice and which can be adapted by other lagging states. The analysis is done based on the Global Sustainable Development Report as well as the Sustainable Development Report prepared by NITI Ayog, Government of India. As the Central government as well as the State governments along with various stakeholders make efforts towards achieving these goals, a macro level analysis of the progress made on these goals can help in course correction at the correct time and thus optimize precious time and resources.","PeriodicalId":175326,"journal":{"name":"PSN: Sustainable Development (Topic)","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126145181","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study the effect that neighboring parties have on the economic rents from owing the rights to a natural resource. Our application uses winning bid prices from state timber auctions in three western states. We model and show how differing nearby neighbors increase the costs and risks associated with purchasing certain rights. Consistent with our hypotheses, the winning bid price of state-run timber auctions is inversely related to the length of the border that a third party shares with the harvesting area. The lower winning bid prices reflect an increase in the expected costs of protecting the rents due to the presence of potential third parties’ challenges to property rights. We further test our model when there is third party demand for other uses to the timber such as a scenic view. The results consistently show that when third parties potentially threaten property rights, the winning bid decreases.
{"title":"The Effects of Neighboring Parties on the Value of Rights: Evidence from Timber Harvests","authors":"Colin Doran, Thomas Stratmann","doi":"10.2139/ssrn.3911453","DOIUrl":"https://doi.org/10.2139/ssrn.3911453","url":null,"abstract":"We study the effect that neighboring parties have on the economic rents from owing the rights to a natural resource. Our application uses winning bid prices from state timber auctions in three western states. We model and show how differing nearby neighbors increase the costs and risks associated with purchasing certain rights. Consistent with our hypotheses, the winning bid price of state-run timber auctions is inversely related to the length of the border that a third party shares with the harvesting area. The lower winning bid prices reflect an increase in the expected costs of protecting the rents due to the presence of potential third parties’ challenges to property rights. We further test our model when there is third party demand for other uses to the timber such as a scenic view. The results consistently show that when third parties potentially threaten property rights, the winning bid decreases.","PeriodicalId":175326,"journal":{"name":"PSN: Sustainable Development (Topic)","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128841029","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The virus that caused a localized shock in China is now causing a widely spread panic throughout the world. Using a typical local analysis, this study evaluates the probable impact of COVID-19 on GDP, tourism, poverty, employment, household income, exchange rates, remittance Under-utilization of labour and capital, increased international trade costs, a decline in transport services, and a shift in demand away from activities that require people to be in close proximity. In the event of a global pandemic, the world's gross domestic product was fallen by 2%, 2.5% for poor countries, and 1.8% for industrial countries. And also employment rate is declined according to the analysed data.Moreover, this study provides a basic knowledge regarding the history of the global pandemic and ranged from plague of Justinian to the COVID 19 in 2019/20 period. Among number of countries which have undergone with different situations during those pandemics, Sri Lanka also has been influencing. Further it is discussed about the impact of COVID 19 on Sri Lankan economy. Due to the fact that GDP, employment, tourism, poverty, household income, exchange rates and remittance issues were arisen and influenced on sector performance, economy was suffered adversely. When considering COVID 19 impact, finally it can be suggested to the country that it should be prepared to face challenges for COVID-19 situation.
{"title":"Impact of COVID-19 on Economic Sustainability: Evidence from Sri Lanka","authors":"P. Madushani","doi":"10.2139/ssrn.3908115","DOIUrl":"https://doi.org/10.2139/ssrn.3908115","url":null,"abstract":"The virus that caused a localized shock in China is now causing a widely spread panic throughout the world. Using a typical local analysis, this study evaluates the probable impact of COVID-19 on GDP, tourism, poverty, employment, household income, exchange rates, remittance Under-utilization of labour and capital, increased international trade costs, a decline in transport services, and a shift in demand away from activities that require people to be in close proximity. In the event of a global pandemic, the world's gross domestic product was fallen by 2%, 2.5% for poor countries, and 1.8% for industrial countries. And also employment rate is declined according to the analysed data.Moreover, this study provides a basic knowledge regarding the history of the global pandemic and ranged from plague of Justinian to the COVID 19 in 2019/20 period. Among number of countries which have undergone with different situations during those pandemics, Sri Lanka also has been influencing. Further it is discussed about the impact of COVID 19 on Sri Lankan economy. Due to the fact that GDP, employment, tourism, poverty, household income, exchange rates and remittance issues were arisen and influenced on sector performance, economy was suffered adversely. When considering COVID 19 impact, finally it can be suggested to the country that it should be prepared to face challenges for COVID-19 situation.","PeriodicalId":175326,"journal":{"name":"PSN: Sustainable Development (Topic)","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124096807","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Central Appalachia, a region encompassing parts of West Virginia, Kentucky, Tennessee, and Virginia, often is characterized as a “national sacrifice zone.” Fossil fuel industries have devastated the landscape here and in broader Appalachia for more than a century. They also have profoundly exploited the people along lines of class, race, and gender—all in pursuit of maximum profits. I was raised in Appalachia, and I live and work there now at the West Virginia University College of Law. In my new book, Remaking Appalachia: Ecosocialism, Ecofeminism, and Law, I have concluded that legal reform alone from within our unjust and ecologically unsustainable capitalist system will never guarantee Appalachia a healthy environment where people can live safely. Modern environmental law has failed Appalachia because it works through institutions that have been shaped for decades to ultimately support destructive industry over genuine public and ecological interests. Instead, I believe Appalachia needs radical social change to make genuine environmental progress—and that it has the ingredients. Many Appalachians are ready to change the course of our region’s future by demanding true system change rather than niche environmental reforms alone.
{"title":"Environmental Law Has Failed. Can Transformative Ecological Change Begin in Appalachia?","authors":"N. Stump","doi":"10.2139/ssrn.3898052","DOIUrl":"https://doi.org/10.2139/ssrn.3898052","url":null,"abstract":"Central Appalachia, a region encompassing parts of West Virginia, Kentucky, Tennessee, and Virginia, often is characterized as a “national sacrifice zone.” Fossil fuel industries have devastated the landscape here and in broader Appalachia for more than a century. They also have profoundly exploited the people along lines of class, race, and gender—all in pursuit of maximum profits. I was raised in Appalachia, and I live and work there now at the West Virginia University College of Law. In my new book, Remaking Appalachia: Ecosocialism, Ecofeminism, and Law, I have concluded that legal reform alone from within our unjust and ecologically unsustainable capitalist system will never guarantee Appalachia a healthy environment where people can live safely. Modern environmental law has failed Appalachia because it works through institutions that have been shaped for decades to ultimately support destructive industry over genuine public and ecological interests. Instead, I believe Appalachia needs radical social change to make genuine environmental progress—and that it has the ingredients. Many Appalachians are ready to change the course of our region’s future by demanding true system change rather than niche environmental reforms alone.","PeriodicalId":175326,"journal":{"name":"PSN: Sustainable Development (Topic)","volume":"102 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122519771","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We posit that consumers' preferences for more sustainable products depend on the perceived social norm, which in turn is shaped by average consumption in society. We explore the implications of such preferences for firms' incentives to introduce more sustainable products and to co-operate in order to either foster or forestall their introduction. Our main motivation lies in the increasing pressure put on antitrust authorities to exert more leniency towards horizontal agreements that are motivated by sustainability considerations.
{"title":"Competition and Co-Operation When Consumers' Sustainability Preferences Depend on Social Norms","authors":"R. Inderst, E. Sartzetakis, A. Xepapadeas","doi":"10.2139/ssrn.3911997","DOIUrl":"https://doi.org/10.2139/ssrn.3911997","url":null,"abstract":"We posit that consumers' preferences for more sustainable products depend on the perceived social norm, which in turn is shaped by average consumption in society. We explore the implications of such preferences for firms' incentives to introduce more sustainable products and to co-operate in order to either foster or forestall their introduction. Our main motivation lies in the increasing pressure put on antitrust authorities to exert more leniency towards horizontal agreements that are motivated by sustainability considerations.","PeriodicalId":175326,"journal":{"name":"PSN: Sustainable Development (Topic)","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124408308","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Since the third phase of the European Emission Trading system, sectors that are classified as carbon leakage risky receive all allowances for free up to a specific benchmark. In contrast, sectors that are not classified as being at risk, face an increasing share of allowances that are needed to be purchased by auction. The exact allocation rule based on a sharp cutoff value and historical data is exploited to estimate whether the allocation of free allowances has successfully addressed carbon leakage for sectors at the margin. Due to a time lag in the information publication and its implementation, it is possible to differentiate between firms' reactions in the transition to the third phase (2010-2012) and its actual implementation (2013-2014). Based on changes in the trends of trade flows, I find that sectors at the margin of receiving free allowances did not experience strong changes in trading patterns compared to sectors that were obliged to purchase the allowances by auction. Thus, sectors at the margin of receiving free allowances were similarly affected by the allocation rule in the beginning of the third phase of the EU ETS.
{"title":"Free allowances and the risk of carbon leakage in the beginning of the third phase of the EU ETS","authors":"Clara Ulmer","doi":"10.2139/ssrn.3880946","DOIUrl":"https://doi.org/10.2139/ssrn.3880946","url":null,"abstract":"Since the third phase of the European Emission Trading system, sectors that are classified as carbon leakage risky receive all allowances for free up to a specific benchmark. In contrast, sectors that are not classified as being at risk, face an increasing share of allowances that are needed to be purchased by auction. The exact allocation rule based on a sharp cutoff value and historical data is exploited to estimate whether the allocation of free allowances has successfully addressed carbon leakage for sectors at the margin. Due to a time lag in the information publication and its implementation, it is possible to differentiate between firms' reactions in the transition to the third phase (2010-2012) and its actual implementation (2013-2014). Based on changes in the trends of trade flows, I find that sectors at the margin of receiving free allowances did not experience strong changes in trading patterns compared to sectors that were obliged to purchase the allowances by auction. Thus, sectors at the margin of receiving free allowances were similarly affected by the allocation rule in the beginning of the third phase of the EU ETS.","PeriodicalId":175326,"journal":{"name":"PSN: Sustainable Development (Topic)","volume":"64 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123789003","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Illegal or unwanted waste disposal methods such as dumping and export are prevalent in practice. To minimize the negative impact of these methods, policymakers have implemented laws and regulations designed to combat them. Even so, violations are rampant as a high degree of heterogeneity between firms and proprietary information render monitoring imperfect. Decentralized waste disposal chains, a common form of inter-business organization in this sector, compound this problem as firms also have limited information available on the other waste chain partner, which creates complex interactions between firm behavior and policy interventions. Against this background, we analyze the effects of domestic and international waste regulations targeting dumping and export, respectively, on firm incentives and compliance. We develop a two-tier waste chain with a manufacturer that generates waste and an operator that treats it. The manufacturer's waste quality and the treatment operator's efficiency are private information. Both can avoid compliance cost by violating regulations where the manufacturer can arrange for the export of the waste and the operator can dump it. We characterize equilibrium waste outcomes and examine the impact of the regulatory climate. Our analysis reveals that primarily focusing on penalizing dumping by treatment operators can worsen waste chain outcomes. Solely focusing on penalizing low-quality waste exports, a common intervention in practice, can also backfire. Instead, penalizing manufacturers for downstream dumping should be given consideration. In addition, the asymmetry in export burden between waste quality levels should be reduced, which improves both waste outcomes and treatment operator profits.
{"title":"Treat, Dump, or Export? How Domestic and International Waste Management Policies Shape Waste Chain Outcomes","authors":"Sytske Wijnsma, D. Lauga, L. B. Toktay","doi":"10.2139/ssrn.3876398","DOIUrl":"https://doi.org/10.2139/ssrn.3876398","url":null,"abstract":"Illegal or unwanted waste disposal methods such as dumping and export are prevalent in practice. To minimize the negative impact of these methods, policymakers have implemented laws and regulations designed to combat them. Even so, violations are rampant as a high degree of heterogeneity between firms and proprietary information render monitoring imperfect. Decentralized waste disposal chains, a common form of inter-business organization in this sector, compound this problem as firms also have limited information available on the other waste chain partner, which creates complex interactions between firm behavior and policy interventions. Against this background, we analyze the effects of domestic and international waste regulations targeting dumping and export, respectively, on firm incentives and compliance. We develop a two-tier waste chain with a manufacturer that generates waste and an operator that treats it. The manufacturer's waste quality and the treatment operator's efficiency are private information. Both can avoid compliance cost by violating regulations where the manufacturer can arrange for the export of the waste and the operator can dump it. We characterize equilibrium waste outcomes and examine the impact of the regulatory climate. Our analysis reveals that primarily focusing on penalizing dumping by treatment operators can worsen waste chain outcomes. Solely focusing on penalizing low-quality waste exports, a common intervention in practice, can also backfire. Instead, penalizing manufacturers for downstream dumping should be given consideration. In addition, the asymmetry in export burden between waste quality levels should be reduced, which improves both waste outcomes and treatment operator profits.","PeriodicalId":175326,"journal":{"name":"PSN: Sustainable Development (Topic)","volume":"160 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123006733","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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