Economic Incentive Mechanisms Research Articles

Экономическое стимулирование как механизм заинтересованности работодателей в улучшении условий труда

The international experience of motivating employers to provide safe working conditions for workers is considered. The economic incentive mechanisms applied were aimed at improving working conditions, workers' health, personal protective equipment and upgrading facilities. In order to achieve the effectiveness of the economic incentive’s mechanism as one of the most effective tools to motivate employers, it is proposed to amend the current legislation on occupational safety and health. It is proposed to improve the international experience of the mechanism for economic incentives for employers. To do this, it is necessary to exempt employers from value added tax, customs duties and fees for the purchase of imports of protective equipment, as well as equipment, materials, apparatus used to survey working conditions and implement measures to improve them. Introduce tax incentives for organizations producing means of individual and collective protection of workers.

Prosumer Impact on Cellular Power Systems

This paper explores the impact of an increasing number of prosumers in electricity supply systems and investigates how market mechanisms can mitigate the negative effects. The Regional Energy Market Model simulates a supply system based on cellular structures, employing agent-based modeling to capture individual behaviors and simulate real market dynamics. This study includes various supply scenarios, such as a solely photovoltaic scenario and a technically diversified scenario with biogas-fueled combined heat and power units. For each scenario, fixed and flexible pricing scenarios are simulated to analyze their effects. The findings reveal that systems heavily reliant on photovoltaics experience negative effects at certain points due to seasonal limitations, while technically diversified supply scenarios demonstrate fewer drawbacks. Flexible pricing systems stimulate demand in a manner beneficial to the system, creating regional added value, and contributing to the balance between generation and consumption, depending on the supply scenario. However, the study underscores that economic incentives alone are insufficient for balancing generation and consumption. The results highlight the importance of exploring opportunities through the interplay of economic incentive mechanisms and technical possibilities.

Evolution of trust in the N-player trust game with the margin system

Investigations into trust behavior between investors and trustees using trust games have gained significant attention in recent years. However, understanding the process of trust evolution remains challenging. The margin system, widely employed in the financial industry as an economic and behavioral incentive mechanism, aims to maintain order in financial markets and protect participants' rights and interests. Despite its extensive use, the precise influence of the margin system on trust evolution dynamics remains unclear. To address this gap, we propose an N-player trust game model that incorporates a margin system within an infinite well-mixed population. In our model, a third-party institution collects a proportionate amount of margin from trustees, which is returned upon fulfilling their obligations but forfeited otherwise. By utilizing replicated dynamic equations, we find that implementing the margin system can establish a stable coexistence state between investors and trustworthy trustees, representing a significant advancement in trust evolution. Additionally, an intriguing finding arises from our observation of an inverted U-shaped relationship between the magnitude of the attraction domain for coexistence and the coefficient of the margin. This suggests that excessively high margin proportions can discourage trustees' participation, while excessively low proportions may fail to effectively deter dishonest behavior. Optimal margin proportions can effectively promote trust evolution.

Introduction of innovative solutions to ensure the preservation of the country’s natural ecosystems

In the context of increasing anthropogenic impact on the environment, the preservation of Russia’s natural ecosystems is of paramount importance. Degradation of biogeocenoses, loss of biodiversity, pollution of water resources and atmospheric air, climate change - these challenges require the immediate search and implementation of innovative solutions. Research into innovation opportunities should cover a wide range of areas, i.e. include the development and application of new methods for monitoring the state of ecosystems, the introduction of technologies for treating wastewater and air emissions, the development of renewable energy sources, biotechnologies and methods for reclamation of disturbed lands. Particular attention should be paid to exploring the potential of using digital technologies, including artificial intelligence, big data and the Internet of things, to optimize natural resource management and predict environmental risks. The introduction of innovative solutions in the field of environmental protection requires an integrated approach, including scientific research, development of a regulatory framework, economic incentive mechanisms and educational work with the population. Only this approach will ensure the preservation of Russia’s natural ecosystems for future generations.

Reliable and Sustainable Product Evaluation Management System Based on Blockchain

To facilitate the consumers’ online shopping, it is very necessary to build a reliable and sustainable product evaluation management (PEM) system to store, secure, and retrieve the evaluation data of products. To this end, we propose a novel PEM system based on blockchain technologies. In this PEM system, the evaluation data of products including evaluation scores and comments are stored in the interplanetary file system (IPFS), and then the data hash addresses are returned and stored on the blockchain. Then, the retrieval of evaluation data is implemented by designing and deploying smart contracts on the Ethereum blockchain. Since it is almost impossible to change any data stored in blockchain and IPFS, the proposed PEM system can protect the comment data from intentional or unintentional modifications. Moreover, the proposed PEM system allows users to efficiently and reliably retrieve the relevant evaluation data of a certain product by a given query keyword with the increase of data stored on the blockchain. In addition, to achieve high sustainability, the proposed system also contains an economic incentive mechanism, which is beneficial to form a virtuous circle in online shopping. The proposed system is simulated on the popular blockchain platform, i.e., Ethereum with Solidity programming language. The experimental results and analysis demonstrate that the proposed PEM system achieves desirable usability, reliability, and sustainability.

An Economic Incentive Mechanism for Resilient Hardening and Expansion Based on the Nash Bargaining Theory

An Economic Incentive Mechanism for Resilient Hardening and Expansion Based on the Nash Bargaining Theory

Health system barriers to timely routine measles vaccinations in rural southwest China: a qualitative study on the perspectives of township vaccination professionals and village doctors

ObjectivesA well-functioning health system ensures timely routine measles vaccinations for age-appropriate children, minimising measles risk. However, there is limited knowledge about the impact of the performance of immunisation programmes in...

Impact of environmental protection policy on non-point source pollution of planting industry

The control of agricultural non-point source pollution, especially the problem of planting non-point source pollution, is of great significance to comprehensively promote rural revitalization. First, based on the panel data from 2006 to 2020 and using the DID model 30 provinces were classified in China. It is found that environmental protection policies have a significant inhibitory effect on the non-point source pollution of the planting industry, and the effect is more obvious over time. From the perspective of heterogeneity analysis, the eastern region, the economic crop planting region, and the rural areas close to the provincial capital have more significant pollution control. Secondly, the environmental protection policy plays a role in reducing the non-point source pollution emissions of the planting industry through the intermediary effects such as the guiding mechanism, the economic incentive mechanism, and the supervision mechanism. Finally, the corresponding policy implications are proposed. Bangladesh J. Bot. 52(2): 559-567, 2023 (June) Special

Impact of environmental protection policy on non-point source pollution of planting industry

The control of agricultural non-point source pollution, especially the problem of planting non-point source pollution, is of great significance to comprehensively promote rural revitalization. First, based on the panel data from 2006 to 2020 and using the DID model 30 provinces were classified in China. It is found that environmental protection policies have a significant inhibitory effect on the non-point source pollution of the planting industry, and the effect is more obvious over time. From the perspective of heterogeneity analysis, the eastern region, the economic crop planting region, and the rural areas close to the provincial capital have more significant pollution control. Secondly, the environmental protection policy plays a role in reducing the non-point source pollution emissions of the planting industry through the intermediary effects such as the guiding mechanism, the economic incentive mechanism, and the supervision mechanism. Finally, the corresponding policy implications are proposed. Bangladesh J. Bot. 52(2): 559-567, 2023 (June) Special

Economic incentive in enhancing community waste separation and collection: A panel data analysis in China.

While incentive mechanisms have been proven to motivate residents to separate their waste, empirical research is still needed to determine whether this separation behaviour could be maintained over time. The main objective of this paper is to investigate waste separation management activities in the city of Dongying, China, as a case study to clarify how local community citizens' waste separation participation and recycling activities change over time cross-sectionally under the influence of an economic incentive mechanism - PS. This study used least square dummy variable analysis to investigate local waste separation behaviour in 98 communities over 22 months. Results showed that community resident waste participation and recycling behaviour tend to grow in the early stages and gradually show saturation without growth in the middle and late stages. This result implies limitations to the incentive mechanism, such that it could only motivate a part of residents to participate in waste separation; for those unaffected by financial incentives, it was suggested that educational or compulsory means be used to make them separate their waste.

An Analysis of the Channels for Accessing Economic Benefits in the Commons Governance Regime of Space Resources

On September 22, 2022, the world’s first transaction on space resources took place, highlighting the need for an international space mining regime. Although outer space is often considered global commons, there is a concern that the commons governance regime may hinder the commercial use of space resources. The current research does not provide an in-depth analysis of the incentive mechanism under the global commons governance regime, let alone the economic incentive mechanism. This paper explores how to construct the channels for accessing economic benefits in the commons governance regime of space resources. The channels will constitute a critical incentive mechanism for the regime, and they should conform to two principles closely related to the commons and incentives: the common benefit principle contained in international law and the 2B principle proposed by Ostrom. This paper summarizes the basic types of channels and their combinations and finds that the channels and their combinations in previous studies and the latest international instruments do not fully meet the requirements of the two principles. Based on the principles, this paper puts forward a new proposal, which integrates four existing channels and one new channel. Compared with previous research, the proposal suggested in this article has advantages in the following aspects: promoting the realization of the two principles, incentivizing diverse countries to accept commons governance of space resources, and encouraging space cooperation between spacefaring nations and non-spacefaring nations.

Environmental economic co-benefits and offsets effects of China's unified energy-carbon market

China pushed for the unification of markets for natural resources and emissions, wherein initial allocation mechanisms have a significant impact on how well the market functions. To identify how the market works well, this paper builds an integrated framework, comprised of permits initialization and reallocation processes. Additionally, we simulate variables by 2030 through scenario analysis and machine learning methods. At the unified energy-carbon market, GDP could increase by more than 49%, while the total energy consumption and the total carbon emission increase by around 410 million tons and 711 million tons, respectively, in China. This illustrates how joint trading markets favor economic growth and emission reduction simultaneously. Besides, most of China's provinces obtain improved energy consumption and carbon emission intensities, which proves the effectiveness and importance of the unified market. However, two rebound effects are found, one is that the increased investment is not always promoting positive effects, and the other is that provinces with higher GDPs have less incentive to cut their energy use. Further, the accumulated per capita initialization type favors energy conservation, while per GDP initialization benefits economic growth and carbon reduction. It's needed that simultaneously constructing an economic and efficient incentive mechanism while effectively playing up the government's role.

Rule of law as a determinant of the export performance of Italian provinces

AbstractOur article presents an empirical investigation of the relationship between the export performance of Italian provinces and the quality of their local institutions, specifically the rule of law, over the period 2004–2016. According to the results obtained by different econometric approaches (OLS, FE, SYS-GMM), in general a secure and well-defined legal framework – by reducing transaction costs and uncertainty, facilitating capital accumulation and an increase in the firms' scale of production – is associated with better export performance. Interestingly, when the analysis is replicated at the level of the Italian macro-areas (North, Centre and South), the results indicate that the rule of law has a statistically significant and positive association with export performance only in northern provinces, thus suggesting that the effectiveness of this institutional dimension might depend on the level of development of the socioeconomic and institutional features at the local level, i.e. only when a set of suitable economic incentive mechanisms are already in place.

On Sidechain-Assisted Transaction Service Management for Internet of Things: A Random Contract Approach

With the evolution of industrial technologies, the Internet of Things and blockchain show enormous potential. Different institutes with heterogeneous devices indicate diversity in their private information, including service demand and risk-bearing capability. Low efficiency and rising transaction prices of the public blockchain have been significant barriers to these potential service purchasers. The sidechain is recognized as one of the scalability solutions to a public chain. However, it is challenging to design the economic incentive mechanism and study the transaction fee pricing for transaction services on a sidechain due to the uncertainty of the network's performance and the miner's effort. Considering the asymmetric information (i.e., anonymous private information) and uncertainty, we propose a random-contract-based scheme to maximize the sidechain service provider's revenue and assign the service buyers the feasible service price under the framework of a sidechain linked to the public blockchain. Furthermore, we show that random contracts outperform the deterministic contracts under the increasing absolute risk-aversion assumption. We investigate service pricing in various scenarios using Geometric Brownian Motion. The simulation findings reveal that random contracts can increase the sidechain's revenue by 24.70%, compared with deterministic contracts. The efficient service payments have been reduced by 44.65%, compared with the main chain's cost.

Economic stimulation of rational use of land in protected areas

An analysis of the use of agricultural land has now shown that a large amount of land is being transferred for non-agricultural needs, including for the construction and operation of engineering communications. Thus, restrictions on the use of land are established in security zones along high-voltage
 power lines, communication lines, protective zones of trunk pipelines, sanitary protection and other
 zones along highways, in territories adjacent to industrial enterprises, in coastal strips and water protection zones of rivers that are located on the lands of rural producers. The article presents classifications of protected zones. The damage resulting from the placement of high-voltage power lines is shown. In order to improve the condition of the land, it is necessary to introduce an economic incentive mechanism, as a result of which it is necessary to fully compensate landowners for losses and
 losses.

Modeling reverse auction-based subsidies and stormwater fee policies for Low Impact Development (LID) adoption: a system dynamics analysis

Many urban areas around the world are facing increasing pressure on stormwater management systems due to urbanization and extreme weather events caused by climate change. Low impact development (LID), including blue-green infrastructure such as rain gardens, has become an attractive addition to traditional gray infrastructure for managing stormwater. Municipalities have a limited suite of policy instruments for incentivizing installation of LID on private property. We built a system dynamics model of integrated socio-economic and hydrologic systems in Oslo, Norway to illustrate implementation of two economic incentive mechanisms: subsidies based on reverse auctions and stormwater fees. We find that policy effectiveness depends on 1) communicating realistic expectations of LID performance to landowners and 2) municipal subsidies to reach landowners without intrinsic interests in LID. Under certain conditions, lower municipal economic incentives can outperform higher economic incentives and lead to sustained long-term adoption of LID on private property.

Formation of an economic incentive mechanism to increase the efficiency of the implementation of infrastructure projects for the development of railway transport hubs to improve the socio-economic level of development of territories

Formation of an economic incentive mechanism to increase the efficiency of the implementation of infrastructure projects for the development of railway transport hubs to improve the socio-economic level of development of territories

Environmental problems during the disposal of decommissioned agricultural machinery

Together with industry and transport, agriculture contributes significantly to environmental degradation. This is especially true for industrialized countries and territories with a high population density. Given the projected population growth, it is obvious that the intensifi cation of agricultural production is the only way to avoid food shortages. In the agro-industrial complex (AIC) of Russia, when carrying out the disposal of agricultural machinery (SHT), this issue is particularly acute, since it is related to the environmental safety of the environment. To reflect the most urgent problems related to environmental safety in agriculture in the creation and effective functioning of the "Agricultural Recycling" system. The introduction of a new energy-saturated SHT and the decommissioning of the spent 1, or even 1.5–2 depreciation period of the SHT is one of the main factors in the formation of a resource-saving eco-oriented system "Agricultural recycling". It is important that this system ensures not only the receipt of secondary resources in maximum quantities, but also ensures the environmental safety of the environment. The problem of handling agricultural waste in the agro-industrial complex (AIC) is one of the key environmental problems due to the fact that the equipment used in agricultural farms, as a rule, is far beyond the depreciation resource. Decommissioned machinery (VET) contains a large number of secondary resources — useful substances and materials, the irrational use of which significantly reduces the economic efficiency of agricultural production. The main directions of ensuring sustainable and environmentally safe agriculture are the promotion of relevant initiatives, the creation of economic incentive mechanisms, the formation of public opinion, technological re-equipment. The main link of these measures is the technological modernization of agricultural production, the essence of which is to create workshops (sites) for the utilization of agricultural waste on the basis of existing enterprises of the agricultural sector. The creation of an eff ective system for the utilization of agricultural waste in the next 2–3 years at the regional level in the most developed agricultural regions will significantly solve the problem of environmental safety in the agro-industrial complex.

A New Theoretical Framework of Pyramid Markov Processes for Blockchain Selfish Mining

In this paper, we provide a new theoretical framework of pyramid Markov processes to solve some open and fundamental problems of blockchain selfish mining under a rigorous mathematical setting. We first describe a more general model of blockchain selfish mining with both a two-block leading competitive criterion and a new economic incentive mechanism. Then we establish a pyramid Markov process and show that it is irreducible and positive recurrent, and its stationary probability vector is matrix-geometric with an explicitly representable rate matrix. Also, we use the stationary probability vector to study the influence of orphan blocks on the waste of computing resource. Next, we set up a pyramid Markov reward process to investigate the long-run average mining profits of the honest and dishonest mining pools, respectively. As a by-product, we build one-dimensional Markov reward processes and provide some new interesting interpretation on the Markov chain and the revenue analysis reported in the seminal work by Eyal and Sirer (2014). Note that the pyramid Markov (reward) processes can open up a new avenue in the study of blockchain selfish mining. Thus we hope that the methodology and results developed in this paper shed light on the blockchain selfish mining such that a series of promising research can be developed potentially.

ЕКОНОМІЧНЕ СТИМУЛЮВАННЯ ВПРОВАДЖЕННЯ ЗАХОДІВ ЩОДО ВИКОРИСТАННЯ ТА ОХОРОНИ ЗЕМЕЛЬ

Ensuring the effectiveness of the economic incentive mechanism is impossible without the development and adoption of an appropriate procedure that will determine the organizational principles, conditions and grounds for economic incentives for rational and environmentally friendly land use. This procedure should, inter alia, contain clearly defined criteria for economic incentives, principles, tools and sources of funding. As for the incentives established by the relevant regulations, they do not have the proper economic impact. There is a need to develop such a mechanism. It should be based on the provision of state budget funds on a reciprocal basis free of charge or partially paid to the relevant entities for the implementation of measures in accordance with land use and protection programs. The legislator calls the fact of land degradation the condition of providing funds not due to the fault of the entities carrying out improvements, but only the restoration of land as the purpose of the funds. It seems that it would be more appropriate to consolidate the possibility of stimulating any deterioration of land, including those whose condition was deteriorating through no fault of land users. Unfortunately, the existing regulations on land conservation do not regulate the principles of compensation, and the laws on the State Budget traditionally do not provide for the allocation of funds for such compensation. It should be emphasized that the mechanism of land conservation and its component - compensation for reduced incomes of landowners and land users - can work only if there is a financial basis – the funds provided in the budget.The article considers the peculiarities of land use and problematic issues regarding the circulation of quantity and quality of lands of Ukraine. The mechanisms of interaction of components of different types of land use that are directly related to all other business systems in which rapid economic growth, taking into account the needs and interests of the population coincide with the principles of preservation and restoration of the environment, including land resources. The increase of the average annual income from the use of land for its intended purpose is calculated in accordance with the damage caused in violation of land legislation. The existing measures of stimulation of rational land use in accordance with the current normative-legal base and components of the economic mechanism of stimulation of rational land use are analyzed and substantiated.