Cost-sharing Model Research Articles

A fair grid connection cost-sharing model for electricity based on the random forest machine learning method

Developing countries should clarify the dedicated grid connection cost-sharing model when reforming electricity user price policy, which could be learned from developed countries’ experiences. We use the random forest method and monthly data from several developed countries or regions, including the United States and the United Kingdom in 2018–2020, to identify key features that influence decision-makers in choosing dedicated grid connection cost-sharing models and simulate the connection cost-sharing models suitable for various regions of China using provincial data. It provides experience and enlightenment for China and other developing countries to implement the connection price policy reform.

The impact of capping health system cost savings on the projected cost-effectiveness of etranacogene dezaparvovec compared with factor IX prophylaxis for the treatment of hemophilia B.

This viewpoint discusses cost-effectiveness estimates for EtranaDez, a gene therapy for hemophilia B, using the Institute for Clinical and Economic Review's (ICER) framework for single and short-term therapies (SSTs). EtranaDez offers long-term benefits from a single administration, in contrast to the high costs and frequent dosing required by current factor IX prophylaxis. However, the projected gains in health from EtranaDez are small relative to the cost implications of the therapy, and consequently, how the cost offsets associated with EtranaDez are counted has a substantial impact on assessing its cost-effectiveness. Strategies for assessing cost offsets used in the ICER SST framework include a 50/50 cost-sharing model between the health care system and the manufacturer and a cap of $150,000 annually on health care cost offsets. Results from the standard full cost-offset analysis as reported by ICER depicted EtranaDez as a dominant therapy with substantial cost savings compared with factor IX prophylaxis. However, while considering the ICER SST framework, particularly the $150,000 annual cap scenario, the cost-effectiveness was significantly reduced. The incremental cost-effectiveness ratio varied notably between these scenarios, challenging the conventional perception of value of gene therapy in health care. These cost-sharing scenarios highlight the potential of the ICER SST framework to help curtail inefficient health care spending. In cases in which the cost of existing treatment is exceedingly high, the application of such frameworks would improve efficiency in resource allocation, fostering a balance between incentives for innovation and economic sustainability in managed care systems.

Target setting and performance analysis: Promoting e-waste collection in China under the collection target responsibility models

The increasing volume of electronic waste (e-waste) poses significant challenges for efficient collection in China. Despite many measures were taken over the past two decades, the e-waste collection rate was still not high. To this end, the Chinese government issued a new policy, the collection target responsibility (CTR) policy. Under the CTR policy, however, it is essential for participants to know how to share the responsibility of collection and how much reasonable targets are set to ensure the efficiency of the collection models. Therefore, the purpose of this paper is to explore the determination of optimal collection targets and the corresponding performance from the perspective of responsibility sharing to support the successful implementation of the CTR. Firstly, the study focuses on participants including the government, manufacturers, and recyclers, and develops three CTR models, independent collection model, government cost-sharing model, and enterprise collaboration model. Secondly, collection target equations for each model are established by employing dynamic differential game analysis, and corresponding collection performances are derived. Thirdly, through practical case simulations, the evolution of collection performance is dynamically analyzed to determine reasonable collection targets for the three models, as 23.8%, 32.3%, and 34.4%, respectively. The findings highlight the effectiveness of CTR in improving e-waste collection targets and performance, with the highest levels attained when the collection responsibilities are shared by government cost-sharing and enterprise collaboration. This study provides theoretical support for setting reasonable collection targets under CTR, and assists decision-makers in developing targeted CTR implementation measures.

Willingness-to-pay for early childhood development: A field experiment in Western China

Given the size of the problem and the scientific evidence that timely intervention can improve long-term outcomes, an important question is how to best scale-up early childhood development (ECD) interventions in low- and middle-income countries (LMICs). A key component of the solution is financing. However, there has been little research on the question of whether cost-sharing models can equitably and sustainably finance ECD programs at scale in LMICs. We built parenting centers in two rural communities of Western China to teach caregivers how to stimulate child development through fun and interactive activities. We used the Becker-Degroot-Marschak (BDM) mechanism to elicit the household willingness-to-pay (WTP) for a one-month pass to the parenting centers. The results of the BDM suggest that a cost-sharing model would not be suitable for China's rural population at least in the short-run. Demand was found to be highly elastic. In addition, we found limited evidence of selection effects. We also found no evidence of sunk-cost effects.

The benefits of validation of methods for toxicity testing outweigh its costs

The 4th Annual Forum on Endocrine Disrupters organized by the European Commission brought together the authors of this article around the topic: “From bench to validated test guidelines: (pre)val­idation of test methods”. Validation activities are meant to demonstrate the relevance and reliability of methods and approaches used in regulatory safety testing. These activities are essential to facil­itate regulatory use, still they are largely underfunded and unattractive to the scientific community. In the last decade, large amounts of funding have been invested in European research towards the development of approaches that can be used in regulatory decision-making, including for the identification of endocrine disrupters. There is a vast pool of candidate test methods for potential reg­ulatory applications, but most of them will not be used due to the absence of consideration of their relevance and reliability outside the method developer’s laboratory. This article explains the reasons why such a gap exists between the outputs of research projects and the uptake in a regulatory context. In parallel, there are also increasing expectations from the regulatory science community that validation becomes more efficient with respect to time and resources. This article shares some of the lessons learned and proposes paths forward for validation of new methods that are not intended as one-to-one replacements of animal studies. This includes submitting only mature methods for validation that were developed following good practices and good documentation, proposing a greater emphasis on well-documented transferability studies, and adopting a cost-sharing model among those who benefit from validated methods.

Reflecting Social Reproduction in Chinese Policy: Learning from Sweden Successful Practices to Promote Gender Equality in Social Reproduction

With the development of society, women have become more involved in paid work in the production sphere, but they still mainly perform unpaid domestic work in social reproduction. Women spend much more time on domestic work than men. This results in a double burden on women from work and family and creates the problem of unequal gender division of la-bour in social reproduction. In this case, the improvement of the paternity leave system can effectively promote the sharing of responsibilities between the two sexes in childcare activities, thus breaking the gender division of la-bour in social reproduction and alleviating the double pressure on women. Using the research method of comparative policy analysis, the article focuses on the desirability of the Swedish paternity leave system and compares it with the Chinese paternity leave system. The article then puts forward feasi-ble policy recommendations in light of Chinas actual situation. The article finds that compared to Sweden, Chinas paternity leave system has three ob-vious shortcomings: there is no national legislation providing for male-only paternity leave, paternity leave is often short and rigid, and the cost-burden model is unreasonable. After identifying these three problems, the article suggests that China should improve its paternity leave system in these three aspects: specifying a male quota in the national law, extending the length of paternity leave and increasing the flexibility of the leave method, and estab-lishing a cost-sharing model for society.

Analysis of Emission Reduction Mechanism of High-Tiered Carbon Tax under Green and Low Carbon Behavior

This article studies the emission reduction mechanism of high-tiered carbon taxes under green and low-carbon behavior in single and two-stage supply chains. First, based on the Cournot game model, it explores the impact of high-tiered carbon tax policies on supply chain carbon reduction decisions in the green exchange market. By analyzing the effects of implementing a high-tiered carbon tax policy, the basic characteristics of its implementation are identified, and the advantages of a high-tiered carbon tax compared to a unified carbon tax are summarized. Second, it establishes a carbon reduction technology investment cost-sharing model and a carbon tax cost-sharing model under the high-tiered carbon tax policy. It analyzes and studies the impact of high-tiered carbon tax policies on balancing the relationship between members of the two-level supply chain through optimal decision-making of the two-level supply chain under two cost-sharing strategies, revealing the emission reduction mechanism of the two-level supply chain under high-tiered carbon tax policies. The results indicate that there are extreme points in the emission reduction rates of producers in the green exchange market under both the high-tiered carbon tax policy and the unified carbon tax policy. It shows that the two cost-sharing strategies can effectively alleviate the cost burden for producers, increase their marginal profits, and promote further improvement in emission reduction. It explores the emission reduction mechanism of high-tiered carbon taxes and future research should delve into the emission reduction mechanism of high-tiered carbon taxes in different carbon emission departments and regions.

Formation of Coordinated Alliance for China Railway Express Platforms Considering Logistics Cost Sharing

Lack of coordination, mutual independence and disorderly competition among China Railway Express platforms gives rise to high logistics costs; in contrast, horizontal collaboration could form a pool of logistics resources with a scale effect to effectively reduce operating costs. This paper presents a methodology to build a coordinated alliance of China Railway Express platforms in a cost-sharing model. A hybrid approach is proposed, using the gravity model of cross-border logistics, variable-weighted Shapley value, cargo volume decision-making model, and cross-border logistics cost analysis model. Seven China Railway Express platforms in southwest China: Chengdu, Chongqing, Guiyang, Kunming, Liuzhou, Nanning and Zunyi, are selected as examples for empirical analysis. The results demonstrate that alliance is an effective way to control costs, however, issues of railway connectivity can lead to deflection of the optimal alliance and insufficient capacity can affect the stability of the alliance.

An Evaluation of the Safety Effectiveness and Cost of Autonomous Vehicles Based on Multivariable Coupling.

There is a need for in-depth studies of autonomous vehicle safety that evaluate the effectiveness of safety functions and different "atomic" technology combinations for vehicles and roads. In this paper, we provide a crash avoidance effectiveness evaluation model for autonomous vehicles enabled with different sensor combinations based on multiple variables of 14 different "atomic" sensing technologies on the vehicle side and road side, 52 safety functions, and 14 accident types. Meanwhile, a cost-sharing model is developed based on the traveled distance during the life cycle of vehicles and based on the traffic flow over the life cycle of roads to evaluate the unit cost per km of different "atomic" technology combinations. The results clearly show that the cost increases with the addition of "atomic" sensing technologies on the vehicle side, while an increase in crash avoidance effectiveness decreases. It is necessary to switch to V2X and to introduce roadside "atomic" technology combinations to realize better safety effectiveness at a lower cost for vehicles. In addition, a map that covers the safety effectiveness and cost per kilometer of all "atomic" technology combinations is calculated for decision-makers to select combinations under the preconditions of cost and safety.

Cost Sharing and Funding of International Student Career Services: Public-Private Partnerships in the German Context

In some countries, employers are viewed as beneficiaries of international student mobility and thus as a funding source for supporting international student programming. In this study, higher education institutions in Germany were surveyed about career services for international students. From the responding institutions (n=141, 33.6%), one key result revealed that over 10% of career services for international students at German universities are funded in whole or in part by local employers, regional development agencies, or employer associations. This cost-sharing model exhibits that employers are increasingly active in providing support and that there is a tendency to fund services instead of scholarships.

Modeling traceability in food supply chain

PurposeCurrently, digital technology has been proposed as a new archetype for developing an effective traceability system in the perishable food supply chain (FSC). Implementation of such a system needs significant investment and the burden lies with the members of the supply chain. The purpose of this paper is to examine the impact on the profit of the supply chain members due to the implementation of an effective traceability system with such a large investment. The study also tries to explore the impact of the implementation of such a system by coordination among the members through a cost-sharing mechanism.Design/methodology/approachA two-level supply chain that comprises a supplier and retailer is analyzed using a game-theoretic approach. The mathematical models are developed considering the scenario for an individual, centralized and both members invest using a cost-sharing mechanism. For each of the models, the impact of product selling price, information sensing price and quality improvement level on profit is analyzed through numerical analysis.FindingsThe study reveals that consumer involvement can be a strong motivation for the supply chain members to initiate investment in the traceability system. Further, from an investment perspective cost-sharing model is beneficial compared to the individual investment-bearing model. This mechanism can coordinate as well as benefit the FSC members. However, the model is less beneficial to the centralized model from profit and quality improvement levels.Practical implicationsFood wastage can be less from supplier and retailer perspectives. Moreover, consumers can purchase food items only after verifying their shipping conditions. Consequently the food safety scandals can be reduced remarkably.Originality/valueDigital technology adoption in the perishable FSC is still considered emerging. The present study helps organizations to implement a traceability system in the perishable FSC through consumer involvement and a cost-sharing mechanism.

Optimization and Benefit Analysis of Intelligent Networked Vehicle Supply Chain Based on Stackelberg Algorithms

With the rapid development of intelligent technology, the construction of smart cities with the goal of creating a harmonious human life has become a new hot spot in the world. A new round of information technology revolution, represented by the Internet, big data, cloud computing, artificial intelligence (AI), and fifth-generation mobile communications (5G), is driving profound changes in the automotive industry. Smart vehicles (also known as intelligent connected vehicles) that integrate many high-tech technologies to provide safer, more convenient, and low-carbon comprehensive travel solutions have become an inevitable form of future vehicles. This paper constructs a three-level supply chain consisting of high-performance chip suppliers, smart car manufacturers, and retailers. On the basis of considering the level of product innovation and sales effort, Stackelberg game method is used to study the influence of each player in the supply chain on each parameter and the profit of each player under three scenarios: centralized decision making, nonsharing of innovation cost, and sharing of innovation cost. The results show that: when the level of sales effort has nothing to do with the level of innovation, the level of product innovation and the total profit of the supply chain increase with the improvement of the retailer’s sales ability; when the level of sales effort is related to the level of innovation, the level of product innovation under the cost-sharing decision model is greater than the case of no cost sharing, but the total profit of the supply chain is less than the case of no cost sharing.

Pricing strategies of low-carbon enterprises in the Yellow River Basin considering demand information and traceability services

PurposeThe purpose of this paper is to solve new pricing issues faced by low-carbon companies in the Yellow River Basin, which is caused by the change of key pricing factors in the mixed appliance background of Big Data and blockchain, such as product quality and carbon-emission reduction CER level (hereafter, CER level).Design/methodology/approachWe choose a low-carbon supply chain with a low-carbon manufacturer and a retailer as our research object. Then, we propose that using the ineffective effect of the CER level and the quality and safety level to reflect the relationships among the CER level, the quality and safety level and the market demand is more suitable in the new environment. Based on these, we revise the demand equation. Afterwards, by using Stackelberg game, four cost-sharing situations and their pricing rules are analyzed.FindingsResults indicated that in the four cost-sharing situations, the change trends and the magnitudes of the best retail prices were not affected by the changes of the inputs of the demand information and the traceability services costs (hereafter, DITS costs), the proportion about retailer's DITS costs undertaken by the manufacturer, the ineffective effect coefficient of the CER level and the quality and safety level and the cost optimization coefficient. However, the cost-sharing situations could affect the change magnitudes of the best revenues.Originality/valueThis paper has two main contributions. First, this paper proposes a demand function that is more suitable for the mixed appliance background of Big Data and blockchain. Secondly, this paper improves the cost-sharing model and finds that demand information sharing and traceability service sharing have different impacts on key pricing factors of low-carbon product. In addition, this research provides a theoretical reference for low-carbon supply chain members to formulate pricing strategies in the new background.

Practical mobile network planning and optimization for Thai smart cities: Towards a more inclusive globalization

Globalization has facilitated productivity gains and economic growth and for decades. It has helped integrate emerging economies, spread technology, knowledge, culture, and created an interconnected global community. Smart cities depend on a robust and flexible mobile network foundation, and yet, Thailand is leading the way in the ASEAN. Using Thailand as a case study, this paper presents a practical mobile network planning and optimization framework (PMNPO) that’s workable for the fourth-generation up to sixth-generation networks in smart cities, especially in an industrial estate. While theoretical frameworks play a vital role in optimizing network performance, such frameworks may not be practical enough. This study applies a mixed quantitative research method on actual applications (case studies) and qualitative research. The PMNPO is a management function of pseudo-codes. A workable cost-sharing model for mobile networks consists of CAPEX, OPEX, feasibility study, and site value management (mobile network operators). The fair factor (0.2), the payback (5 years), the NPV ($0.5 million), and the IRR (20%) reveal a promising financial prospect. The PMNPO is practical for Thailand, with a mean acceptance rate of 4.83. Therefore, the findings support stakeholders, policymakers, and decision-makers, in setting telecommunication policies. The results can apply to other developing countries or catalyze a similar research type.

The effect of contract methods on the lead time of a two-level photovoltaic supply chain: revenue-sharing vs. cost-sharing

In the photovoltaic industry, a large number of photovoltaic power plants are not delivered according to construction schedules, resulting in considerable impacts on various stakeholders. Lead time has been identified as one of the key issues that urgently needs to be resolved. In this paper, we study a two-level photovoltaic supply chain consisting of the customer, the assembler, and the module manufacturer. The basic model, revenue-sharing model, and cost-sharing model are established to analyze the lead time of the module manufacturer and the assembler considering the decline of government subsidies. The results indicate that the cost-sharing contract can effectively control the lead time of the module manufacturer, but the revenue-sharing contract cannot exert this control. Furthermore, if the government subsidy drops from 0.0553 USD/kWh to 0.01195 USD/kWh, the production capacity will be reduced by approximately 37% due to the reduction in installed capacity, and the lead time will decrease by about 27%. For the module manufacturer, when the non-production capacity costs drop by 20%, the profit increases by about 58%. However, when the production capacity costs are reduced by 20%, the profit increases by only about 6%.

Pricing rules of Green Supply Chain considering Big Data information inputs and cost-sharing model

Big Data provide an opportunity for decision makers to implement green production and order plans with accurate and timely consumer demand information. Thus, many enterprise begun to invest in consumer preference information based on big data (CPIBD) and green production technology. These will add their extra costs, and cost-sharing model is an effective way to improve chain members’ benefits. However, in the new environment, how to price can improve their outcomes in different cost-sharing models? And which model is the best? Aims of this paper are to solve the proposed issues considering CPIBD input and the green technology R&D cost. We chose a green supply chain with one green manufacturer and one retailer as study subject. Then, based on game theory, we proposed three cost-sharing models, and their benefit functions were developed. Using the reverse induction, we analyzed and discussed the change rules of the retail price and the wholesale price with the product green degree and the unit CPIBD cost. Then, using Matlab2014, a numerical example based on actual data was implemented. Findings: (1) with the increase of the unit CPIBD cost, the optimal retail prices will grow in the proposed three models, and the change trend of the wholesale price has a relationship with the situation whether the retailer undertakes the unit CPIBD cost or the green technology R&D cost. (2) With the growth of the product green degree, the optimal retail price and the optimal wholesale price in the three models will decrease. (3) With the increase of the unit CPIBD cost and the product green degree, benefits of supply chain members in the proposed three models will reduce. If the retailer can undertake the unit CPIBD cost or the green technology R&D cost, benefits of supply chain will be higher.

FINANCIAL ACCESSIBILITY IN COST-SHARING POLICIES IN HIGHER EDUCATION IN MOZAMBIQUE

The massive growth of the student population in higher education institutions has challenged traditional forms of public funding, and cost-sharing policies have been one of the options used by governments. In this sharing, it is important that, depending on the social and economic characteristics of students, issues related to equity and accessibility are safeguarded. This study seeks to understand how cost-sharing policies – taking into account the direct costs of attending higher education, indirect costs, other living expenses and the Mozambicans’ social and economic features – can help or hamper the access to higher education in Mozambique. The selected empirical research contexts encompass eight higher education institutions in the province of Gaza – universities and polytechnics – from the public and private sectors. Empirical data were collected from a questionnaire implemented with higher education students; furthermore, the authors carried out a document analysis on the financing of higher education in Mozambique and worldwide. Allows concluding that, in Mozambique, the cost-sharing model follows a dual-track policy. Also, the part of the financing still ensured by the State is far from meeting the real needs of students and families, due to the high study and living costs, which are well above the students/families’ income. There is no diversification of social support for students, and the only help students have comes from scholarships, whose allocation process is inefficient. This calls into question the issues of higher education equity and accessibility, especially for families with the lowest socio-economic conditions in the country.

#FeesMustFall: Lessons from the Post‑colonial Global South

The protests that engulfed South African universities in 2015 and 2016 revealed a dissatisfaction by students with regard to higher education fees. This article looks at some of the lessons that could assist South Africa in understanding the role of universal fee‑free higher education or fee‑free higher education for the poor. Most countries in the post‑colonial global South indicate a shift to cost-sharing as mounting financial pressures on state budgets make universal free education unsustainable. The current study shows that the cost-sharing model in South Africa has not resonated with students and may also be exclusionary to poor students. The lessons from the post‑colonial global South show that the trend in higher education is that the poor are often left out of most fee structures – including dual track, universal fee‑free, and cost-sharing models. The current study explores some implications and considerations of the current means test model that has been introduced by the current South African president, while using the global South as reference point for the implications of this fee structure, particularly in relation to poor and working-class students. Keywords: cost-sharing; funding; #FeesMustFall; global South; higher education; students; student movement; student politics

Cooperation Contracts Between Small and Major Scenic Spots in Peak Seasons

This study discusses the cooperation model between the small and major scenic spots in peak seasons of tourism. First, we create a tourism supply chain that contains only one major and one small scenic spots to divert some tourists to a nearby scenic spot, reduce large scenic spot pressure, increase the benefits of small scenic spots, and promote the healthy development of the tourism supply chain. Second, we build two cooperation models between the major and the small scenic spots: the revenue-sharing model and the cost-sharing model. Based on a numerical analysis, we give a more clear comparison about the revenue changes and the overall efficiency changes of the tourism supply chain in these two models. Our results confirm that the cost-sharing model is an ideal cooperation model. In the cost-sharing model, the two parties’ revenues in the tourism supply chain are better than those in the revenue-sharing model, and the entire supply chain efficiency could be improved.

How should government and users share the investment costs and benefits of a solar PV power generation project in China?

Under the circumstances of global carbon emissions reduction, it has become a trend to promote the adoption of clean energies, such as solar energy. With the increasing maturity of photovoltaic (PV) technology, household-type distributed solar PV power generation projects are increasingly popular in China. Nevertheless, compared with conventional power generation, the initial cost of a solar PV project remains relatively high. Therefore, to mobilize the incentives of the general public, there is an urgent need for studies on how to share the costs and benefits of a solar PV power generation project between the government and users. By adopting the Shapley Game methodology, this paper has conducted a theoretical analysis of the cost-sharing among the central government, local government, and users and has built an investment cost-sharing model (Ci′=P(i)−Vs(i)−Vri,i=1,2,3), which is able to coordinate the benefit of all three stakeholders. This is followed by a case study. The results show that, under China's central government subsidy of 0.42 yuan per kWh, the best strategy for the local government to encourage the public to install solar PV facilities is to provide a one-off compensation equal to 30% of the initial investment. Finally, this paper proposes relevant policy recommendations to promote the development of solar PV power generation for emissions reduction in China.