Alternative Incentive Research Articles

TRIPS and the Life Sciences - Perspectives on Limitations to Patentability

This report is based on the material and input that was presented and discussed at the webinar with the title: “Perspectives on limitations to patentability”. The Webinar and the theme where introduced by Prof. Timo Minssen. Then Prof. Nari Lee gave a presentation introducing some of the context and considerations related to TRIPS art 27 and the concept of technological neutrality. Then Dr. Mike Snodin presented some central points form his recent article considering the so-called “Correa Guidelines” and their compatibility with the obligations enshrined in TRIPS art 27. After the introduction and the two presentations, the open discussion turned to questions, comments and considerations of related issues such as the need for alternative incentives, purpose bound product protection, user driven solutions and post-grant instruments.

Using raffles to fund public goods: Lessons from a field experiment

Despite a long tradition of using lotteries, raffles and similar mechanisms to fund public goods, there has been little systematic study of the design features of these mechanisms and how the resulting incentives affect the level of provision. Partnering with a charity that provides public goods locally, we conducted a field experiment in which participants were randomly assigned to one of four raffle treatments to examine the effectiveness of alternative incentive schemes designed to encourage either participation or “volume.” Contrary to theory which anticipates that gains can be made mostly on volume, our results indicate that significant revenue gains are available on both margins. Indeed, the large opportunity cost of using the standard linear raffle (in which the price per chance to win is fixed) that we find suggests the importance of mechanism design when considering the voluntary provision of public goods.

Replicating and Extending Our Understanding of How Managers Can Adjust the “Warm Glow Thermostat”

This article presents four studies that replicate and extend a recent article examining how guest participation in voluntary green programs (e.g., towel reuse) increases service satisfaction by evoking a “warm glow” response. Importantly for managers, we not only replicate across new hospitality and service contexts but also conceptualize alternative incentive paradigms, and test alternative mediators. In particular, we reconceptualize the “self-benefiting” versus “other-benefiting” incentive structure presented by Giebelhausen, Chun, Cronin, and Hult to consider “virtue,” “vice,” and “cash” incentives (i.e., three different types of self-benefiting incentives). The results provide managers with a better understanding of how they should promote and reward sustainable guest behavior. In addition to managerial implications, the present research also contributes to the academic literature on a growing phenomenon that has important implications for both business and society at large.

Farmer preferences for conservation incentives that promote voluntary phosphorus abatement in agricultural watersheds

Financial incentives are commonly used to promote voluntary adoption of agricultural best management practices (BMPs), but little is known about farmer preferences among alternative incentives. Using experimental procurement auctions, we evaluate how different conservation incentives affect farmer willingness to adopt BMPs that reduce phosphorus (P) runoff, a major driver of harmful algal blooms in Lake Erie. We rank incentives (e.g., payment, BMP insurance, tax credit, and certification price premium) by the cost per pound of P runoff reduction. Payments and tax credits that target high impact areas of the watershed are more cost-effective than untargeted price premiums for product certification. Farmers demand higher payments for contracts offering BMP insurance (i.e., protection against yield loss from BMP use) due to uncertainty about how the program will be implemented and the reliability of indemnities, as well as anticipated transaction costs associated with the program. Understanding farmer preferences for different types of conservation incentives is critical to design agri-environmental programs that engage more farmers and cost-effectively enhance ecosystem services.

Moral Suasion in Regional Government Bond Markets

In the context of the German regional government bond market, this paper studies the hypothesis that governments use moral suasion to persuade home government-owned banks to hold more home government debt. The empirical approach makes use of German banks' ownership structure, heterogeneity in the states' fiscal strength and detailed bank-level panel data on German banks' state bond portfolio on the security- and bank-level for the time period Q4:2005-Q2:2014. Results show that home state-owned banks hold a significantly higher amount of home state bonds than other home banks when fiscal fundamentals of the home state are weak. Banks located in other German states hold fewer state bonds in these situations. These findings are in line with moral suasion by state governments and are robust against controlling for observed and unobserved alternative incentives for banks' (home) state bond holdings such as risk-shifting by banks, lending opportunities or information asymmetries.

Estimating farmers’ stated willingness to accept pay for ecosystem services: case of Lake Naivasha watershed Payment for Ecosystem Services scheme-Kenya

Lake Naivasha watershed is recognized for its contribution to Kenya’s national gross domestic product from the export of horticultural products. Commercial horticultural investment downstream depends mainly on the Lake’s water. The fresh water lake lacks surface outflow, and its recharge depends on river Malewa flowing from upper catchment in Aberdare ranges. However, unsustainable land use practices in the upper catchment has led to increasing sediment loading and pollution in river Malewa which affects water quality in the Lake downstream. Payment for Environmental Services (PES) scheme has been initiated as an alternative incentive approach to motivate upstream smallholder farmers adopt sustainable land use practices for conservation of watershed services. This paper analyzes willingness to accept pay (WTA) as proxy economic measure of environmental service (ES) value and determines socio-economic factors influencing farmers WTA for watershed conservation. We analyzed the WTA and characterized WTA underlying socio-economic determinants in two PES intervention sites in Kenya. The objective of this study was to estimate WTA and determine socio-economic factors influencing WTA. Semi-structured questionnaire was used to collect data from 200 PES farmers through face-to-face interview. We applied contingent valuation (CV) and logistic regression for data analyses to elicit farmer’s WTA estimates to implement PES farm practices and determine socio-economic factors influencing WTA, respectively. Results revealed over 90 % of respondents were farmers and 60 % had primary level of education. Average household farm size was 2.305 acres and family size was six members on average. We recorded a monthly marginal household increase in gross income from Kshs. 6891.96 9 (US$68.92) before PES to Kshs. 11,011.48 (US$110.12) with PES interventions. The estimated annual lowest and highest WTA for PES farm practices were at Kshs. 8835 (US$88.35) for grass strip and Kshs. 21,847.500 (US$218.48) for fallowing. Household socio-economic characteristics had significant influence on WTA among farmers. The study revealed heterogeneity in WTA estimates among PES implementing farmers. The WTA reflects opportunity cost to farmers. We recommend PES mechanism as a policy tool to internalize negative watershed externalities to provide ecosystem services.

Toward More Patient-Centered and Prevention-Oriented Oral Health Care: The ADVOCATE Project.

ADVOCATE (Added Value for Oral Care) is a project funded by the European Commission's Horizon 2020 program, which aims to develop strategies for a system transition toward more patient-centered and prevention-oriented oral health care delivery within health care systems. This system should balance the restorative and preventive approaches in dental and oral health care. ADVOCATE is a partnership among 6 European Union member states, which involves collaboration among universities, state-funded health care providers, and private insurance companies in Denmark, Germany, Hungary, Ireland, the Netherlands, the United Kingdom, and Aridhia, a biomedical informatics company based in Scotland. There are 6 interrelated work packages, which aim to address the following objectives: 1) in-depth evaluation of oral health care systems in European Union member states to identify best system designs for oral disease prevention, 2) development of a set of measures to provide information on oral care delivery and oral health outcomes, 3) evaluation of a feedback approach in dental practice that aims to facilitate a change toward preventive oral health care delivery, and 4) economic evaluation of strategies to promote preventive oral health care and development of policy recommendations for oral health care systems. The project is novel in its use of data that are routinely collected by health insurance organizations, as well as the engagement of key stakeholders from dental teams, insurers, patients, and policy makers in guiding the development and progress of the project. This article outlines in detail the objectives and research methodology of the ADVOCATE project and its anticipated impact. Knowledge Transfer Statement: This commentary describes the development of policy options to promote a greater focus on disease prevention in general dental practice. The approach builds on identifying the comparative effectiveness of alternative incentive schemes, as well as methods to monitor clinical and patient-derived measures of success in creating health for patients. The article describes the development and application of the measures and the evaluation of their success in orienting clinical practice more toward disease prevention.

LEGAL AID IN INDIA: RETUNING PHILOSOPHICAL CHORDS

Legal aid in India has evolved over the last few decades since 42nd Amendment to the Indian Constitution. This paper attempts to provide philosophical underpinnings suggesting how legal aid model has evolved over the years and excogitate a newer trajectory for its future evolution. It delves into weighing Kant’s imperfect duty justifying a charity based regime and marks a transition to utilitarian model suggesting requirement of institutional need to address issues of basic liberty of ‘access to justice.’ It also spells out Rawls’ principles of justice and attempts to explore their applicability in the Indian context, to chart out a road map for future. While contrasting different models on legal aids, it makes a finding that, India doesn’t accord priority to liberty of access to justice. The Indian Supreme Court has emerged as a bastion of liberty but the finer details of the enactment has been messed up by the Indian lawmakers. The lower compensation to lawyers and lack of alternative incentives in attracting established litigators, testifies this. There is a convergence in Kantian duty of benevolence and Rawls’ liberty principle but in the world of moral relativism, a fair compensation must precede before imposing any obligation on lawyers to take up pro bono matters, as doing so, is likely to compromise their ‘true needs.’

New models for research and development in the treatment of mental illness

The pharmaceutical industry's investments in research and development of novel treatments for mental illness have heavily declined in the past decade. Major private investments are, by most experts, seen as necessary to develop new treatments. However, psychiatry is not the only area overlooked by the industry. For decades infectious diseases have also lacked investments in research and development.AimsThe aims of this study were to investigate the new models of research and development in infectious diseases that emerged after the pharmaceutical industry ceased their investments and to model how these can be used in psychiatry.MethodA systematic review. We searched PubMed, EMBASE and Web of Science for the keywords “infectious diseases”, “research and development” and “pharmaceutical industry”.Preliminary resultsThe searches gave a total of 248 references. Among the findings, we want to highlight the Drugs for Neglected Diseases initiative (DNDi) and the WHO Research and Development Treaty (R&D Treaty). DNDi is a non-profit organization that has developed six new drugs since 2003. The development costs were €150 millions per drug, which is considerably below the costs for drug development claimed by the pharmaceutical industry. The R&D Treaty will commit member states of the WHO to fund development for neglected health needs using alternative incentives like milestone prizes, patent pools and direct grants. The treaty has not yet been agreed upon.ConclusionsThough a low priority from the pharmaceutical industry, other funding models have proven able to deliver new treatments. This could also lead to more development of non-patentable treatments, e.g. psychotherapy.Disclosure of interestThe author has not supplied his/her declaration of competing interest.

Microgrid and renewable generation integration: University of California, San Diego

This paper is a microgrid study of the University of California, San Diego (UCSD), a large campus with diverse distributed energy resources (DER). It highlights a microgrid’s “missing money”, which sharply differs from a natural-gas-fired generation plant’s “missing money” due to large-scale wind generation development. In response to UCSD’s expressed financial interest, we assess three strategies for integrating renewable generation: peak load shifting, onsite photovoltaic firming and grid support. While all three strategies are technically feasible and can be cost-effective under certain conditions, California’s current tariff structures and market prices do not offer sufficient incentives to motivate UCSD to offer these services. Alternative incentive mechanisms, which may resemble to those used to encourage renewable generation development, are necessary to induce UCSD’s DER offer for renewables integration. Such mechanisms are also relevant to commercial and industrial loads across California, including the vast combined heat and power resources.

Tools for Improving the Effectiveness of Academic Partnerships in Informing Conservation Practices

ABSTRACT To identify effective strategies for managing and enhancing partnerships between conservation organizations (CO) and academic researchers, we interviewed 11 Canadian environmental nongovernmental and governmental organizations that manage conservation lands. Conservation organizations were asked to describe their strategies for setting research priorities, finding research partners, providing incentives, specifying and obtaining deliverables, applying results, and measuring the success of partnerships with academic researchers. Several effective strategies were identified for enhancing the success of academic partnerships. Many COs develop lists of internal research priorities to communicate to the research community beyond their existing networks. Funding is widely viewed as the most effective incentive; however, most COs are limited in the amount of direct research funding they can provide. Instead, they rely on alternative incentives, including providing access to land and data, accommodations...

Development of a Survey Tool to Quantify Health Impacts of Trail Use

While cost-benefit analysis has been employed in highway planning processes for decades, such analytical approaches are less frequently used in trail planning due to the limited availability of data and methodologies for quantifying trail benefits. As a result, even projects that provide critical access to safe, high-quality open space with real mobility and health benefits are often considered “amenities,” rather than “needs.” Individual agencies and trail project sponsors have measured trail use and benefits along local greenways, but there currently are no generalizable methods for predicting demand or conducting impact assessment on trails. To address this gap, the Rails-to-Trails Conservancy (RTC) is developing the Trail Modeling and Assessment Platform (T-MAP), a set of trail planning data collection and analysis tools, including a trail user survey. The T-MAP survey tool was developed to allow implementing agencies to learn more about trail use and users, especially users’ physical activity. This paper describes the development of a survey instrument and sampling protocol that yielded a response rate of 55% in field testing. The survey includes questions from the Global Physical Activity Questionnaire, an internationally validated instrument developed by the World Health Organization. We report the results of testing the effect of alternative survey distribution methods (in-person interview and online post-survey) and incentives on overall response rates and sample bias across multiple population variables, including gender, age, trail use mode, overall health status, and physical activity frequency. The highest response rates (64%) were achieved through a combination of personal intercept interview with incentive, followed by online participation after receiving a card from a surveyor on the trail. When designing a survey data collection and sampling plan, decisions such as whether to use field workers, to offer incentives, and the survey administration format all impact the response rate and the representativeness of the sample, and thus the cost and quality of the data collected. These findings can help trail managers, local planners, or advocates to estimate survey administration costs and maximize returns through efficient and valid data collection to conduct trail benefit assessments based on high-quality data.

A SYSTEM DYNAMICS ANALYSIS OF INCENTIVE MECHANISMS FOR DEMAND RESPONSE PROGRAMS IN CHINA

Severe power shortages and poor performance of administrative demand response (DR) in China have motivated exploration of potentially more effective market-based approaches to promote DR deployment. We present a systems dynamics model for estimating DR-related costs and benefits to stakeholders. The model is used to study the performance of DR programs under various alternative incentive mechanisms. The systems dynamics process can quantitatively explain incentive-related obstacles in China and provide insights on key issues in Chinese DR financing, program design, and implementation. Based on the analysis, a DR promotion mechanism combined with effective incentives for utilities and customers is recommended. Key factors affecting the performance of the suggested mechanism are also analyzed. The model can be used by policy makers to investigate strategies that influence how DR programs influence power sector investment and operations.

Untangling data sharing and reuse in social sciences

ABSTRACTThe discipline of social science has unique research norms and cultures regarding data sharing and reuse that can be affected by complex factors related to context, time and dependence on human subjects. Compared with STEM disciplines, social sciences emphasize the protection of study participants and observees. Extra effort is required from reusers to preserve data interconnectedness in order to guarantee the data's understandability and informative value. In this panel, the panelists will present their research findings and provide perspective on social science data sharing and reuse, including factors that may influence data reuse behavior, researchers' trust judgment in data for data reuse, and infrastructural barriers and incentives for data sharing among social scientists. This panel aims to provide an overview of the current state of social science data reuse and sharing, and, in collaboration with panel participants, elicit topics for future research. It also proposes a practical agenda to develop alternative incentives for individual researchers, and potential ways in which data sharing and reuse can be improved, coordinated, and encouraged among social scientists.

Environmental policy integration in terms of section 37d of the Income Tax Act 58 of 1962

Environmental policy integration is essential in achieving environmental sustainability goals across non-environmental sectors. Dilution of environmental goals in environmental policy integration should be avoided. The conservation tax incentive of the repealed section 37C(5) read with section 18A of the Income Tax Act 58 of 1962, replaced by section 37D, represents environmental policy integration in tax legislation. The study primarily aimed to determine whether the replacement will benefit contracted landowners, using historical comparative methodology. Secondarily, a historical review of the literature on environmental policy integration and alternative incentives for private conservation efforts was performed. Although contracted landowners might obtain a smaller tax benefit annually, they will receive the same total tax benefit over the entire period of the deduction. They will have certainty regarding their annual tax benefit. As certainty is preferred by most landowners, the study concluded that dilution of environmental policy integration goals will not result from the amended legislation.

Towards groundwater neutral cropping systems in the Alluvial Fans of the North China Plain

Groundwater levels in the North China Plain (NCP), the bread basket of China, have dropped more than one meter per year over the last 40 years, putting at risk the long term productivity of this region. Groundwater decline is most severe in the Alluvial Fans where our study site is located. Avoiding a foreseeable systems collapse requires region-wide changes in crop systems management, underpinned by sound environmental policies. Here, we explore the potential of crop system adaptation to remedy the excessive water use and quantify the likely yield penalties associated with more sustainable water use practices. Using simulations with the APSIM cropping systems model we explore production opportunities in an area within the NCP with intensive cropping and no access to irrigation from rivers. We estimate the attainable production levels for wheat and maize if agriculture were made groundwater neutral, through changes in crop sequence, irrigation practices and water conservation technologies (e.g. mulching with plastic film). Total grain production would drop by 44% compared to current practice if agriculture were made groundwater neutral. Water conservation by plastic film could limit this reduction to 21–33% but possible environmental impacts of plastic film need attention. This analysis facilitates a much needed debate on alternative agronomic practices and incentives through a quantitative comparison of adaptation options. Our biophysical analysis needs to be complemented with socio-economic considerations and discussions with all stakeholders. Similar analyses in other parts of the NCP are possible but require more accurate modelling of landscape hydrology and (towards the coast) risk of salt water intrusion.

Do we need rules for “what's mine is yours”? Governance in collaborative consumption communities

With collaborative consumption, people are provided with access to a good rather than owning it. The current study addresses the problem of regulation in collaborative consumption communities, investigating whether governance increases cooperation, if and why consumers support a governance system and whether supporters and non-supporters differ in their distrust in others. To address these questions, an experiment (within-subject design) was conducted. After reading vignettes, participants indicated how likely they would cooperate and whether they support governance or not—giving reasons for their evaluation. The majority of participants support governance and governance increases cooperation. Supporters argue that humans are egoistic, whereas non-supporters are concerned about negative consequences, asking for alternative incentives. Supporters of governance also differ from non-supporters according to their trust in others. The current study allows valuable recommendation, as more and more sharing networks are created, facing the problem of whether to regulate access or not.

The Effect Of Social Pressures On CEO Compensation

We find that social pressures have a positive effect on CEO compensation. Social pressures come from frequent interactions with other CEOs, wealthy people, and social elites in the local area; from attending industry events; and from comparing luxury homes. Pay premiums associated with social pressures (social premiums) are calculated after incorporating the effect of other known pay determinants. We show that social premiums are lower when the physical distance is longer and social interactions less frequent. Our results hold in a pay change regression. They are also robust to adding state fixed effects and firm fixed effects. Practically, our research suggests that social pressure contributes meaningfully to every rising CEO pay. This understanding enables policy makers, large institutional investors, and boards to use alternative incentives (other than increasing pay and regulations) to effectively address CEOs need for status.

Complications in Putting Unborn Spoiled Brats to Work: Using Lessons from Labor Supply Theory to Design Incentive Trusts

Labor Supply Theory has never been applied to estate planning, despite its relevance to the design of incentive trusts. I first discuss common incentive trust structures and goals, and possible alternative provisions designed to encourage a beneficiary to engage in productive work. Next, I give a brief presentation of labor supply theory and indifference curve modeling. I then apply the models to alternative incentive trust structures and will offer arguments for the adoption of a minimum salary structure with wage enhancements. I conclude by offering reasons to doubt certain underlying assumptions and to hesitate before advising clients to adopt the recommended structure.

Using an accelerated vehicle retirement program (AVRP) to support a mode shift: Car purchase and modal intentions following program participation

To stimulate the economy and reduce greenhouse gas emissions from older vehicles, most accelerated vehicle retirement programs (AVRPs) provide participants with incentives to purchase a new, less-polluting vehicle. The province of Quebec also designed its AVRP as a mode-shift tool by providing alternative travel incentives to participants. Alternatives include public transit passes, rebates on bicycles and car-sharing memberships. In the absence of post-program assessment, the theory of planned behavior is used to assess participants’ modal intentions and intentions to purchase a new or used vehicle following par-ticipation. A subset (22 percent) of program participants (2009-2011; n=9070) filled out an optional survey about vehicle purchases and travel intentions. Age, gender, income, distance traveled in the previous year and perceived access to public transit were used as independent variables in logit and multinomial logit regressions. Car purchase intentions and traveling by car were associated with greater distance traveled. Higher-income participants were more likely to purchase new vehicles, and lower-income people and students were more likely to purchase used vehicles or refrain from any purchase. Alternative travel intentions were each associated with different socio-demographic characteristics. Quebec’s program offers a promising incentive-based opportunity to influence mode shift if favora-ble circumstances are in place to enhance access to alternative travel modes.