Economic Matters Research Articles

Sustainable operation of geothermal power plants: why economics matters

This paper, based on a novel hybrid techno-economic model for geothermal power plants with endogenized plant lifetime, investigates the economic feasibility of a sustainable exploitation of geothermal resources for electricity generation. To this end, standard terminology and classifications from the literature are reviewed, such as “sustainability”, “sustainable operation”, “renewability”, “recovery”, “recharge”, and “regeneration”. An illustrative conventional, convective high-enthalpy hydrothermal system is contrasted with an enhanced, conductive low-enthalpy petrothermal system. Furthermore, different (mostly geophysical) sustainable operation criteria for the use of geothermal energy are derived from the literature. The conditions for complying with these criteria are compared with the economic criteria of cost minimization (levelized cost of electricity, LCOE) and profit maximization (net present value, NPV), respectively, revealing differences that vary in intensity, particularly depending on the type of reservoir and their respective properties. For the two case studies, LCOE of 2.9 €-ct/kWh and 16.9 €-ct/kWh are found, which are further scrutinized by a detailed sensitivity analysis. The hydrothermal system, in contrast to the petrothermal system investigated, is found to be able to meet several of the sustainability criteria examined (extraction equals recharge, operating lifetime of 100 to 300 years), whereas economically optimal operation leads to excessive overexploitation in both cases, showing a distinct trade-off between profit maximization and sustainable operation that has not been discussed in the literature so far.

Sejarah Kedatukan Urung Sepuluh Dua Kuta Hamparan Perak Kabupaten Deli Serdang, 1823-1946

This article discusses the history of Kedatuan Urung Sapuluh Dua Kuta Hamparan Perak. The establishment of Kedatuan Hamparan Perak originated from the migration made by Karo people. Those who originally lived in the highlands, moved to the lowlands. Some of the reasons are that the soil conditions in the lowlands are much more fertile than the highlands. In addition, in the Karo community, the king's son is required to migrate and also open a new kingdom outside of his father's power and kingdom, with the aim of making the power of their descendants be greater. This writing uses the historical writing method, with four stages, namely; heuristics, criticism or verification, interpretation and historiography. Based on the information the writer got, the arrival of the Karo people to the lowlands seemed to be welcomed by the Malays who inhabited the area. This is because there has always been a relationship between highland and lowland people, especially in terms of trade. Not only in the trade sector, but also in matters of marriage, religion and economy. Many Karo descendants are married or intermarried with Malays. During the time of the Aru Kingdom, many Karo people had settled and became residents who had embraced Islam, they married Malays. Generally, the Karo people who have settled in the lowlands have embraced Islam, the Islamization is carried out by the Malays.

The Challenges of Cruise Tourism in Cozumel, Mexico

Tourism on the island of Cozumel begins in the fifties, having three well-defined market segments in the era of the capital, cruises, diving and high performance sports. The academic literature on the subject mentions that the former has a poor economic impact on the receiving communities; environmental effects such as pollution of seas, destruction of habitats, transformation of the coastal landscape, large amounts of solid waste; Socially, the benefits of employment have been precarious by the transfer of employer's obligations to the worker, specifically in the area of ​​health. The effects of cruise tourism on the island of Cozumel have lacked promoting local development, capital has been concentrated and the distribution of wealth is limited, for an activity that generates millions of dollars has capital concentration, leaving a scarce resource in the locality, which is distributed in the first frame of the destination, however it only contributes with less than 50% of the income but with 89.6% of the visitors. From 1999 to date, organized civil society has developed several attempts to manage cruise tourism from a sustainable perspective, however tourism policy linked to the usufruct of the coasts, pressures and imposes actions aimed at the massive attraction of visitors, which highlights the null political will for a management that promotes the sustainability of an activity that has manifested its power to destroy habitats. In this way, the tourist destination of Cozumel presents important challenges in social, environmental and economic matters derived from the management of tourism from a capitalist perspective.

Joyce P. Jacobsen, Advanced Introduction to Feminist Economics

This book is a schematic summary of the nature of feminist economics and its possible applications to economic theory and economic matters. Jacobsen intends to provide such a summary by focusing on the most recent developments within the discipline. She also provides a sort of feminist economics framework to understand gender issues and inequality as well as how to address them. Although officially recognized as an independent research field only in 2005, when it was provided a JEL code (B54)...

THE ANALYSIS OF FOREIGN DIRECT INVESTMENT AND ITS AFFECTING FACTORS IN INDONESIA

Foreign Direct Investment gave benefits in improving Indonesia's economics matters in Indonesia. Conseptually, Foreign Direct Investment (FDI) more benefecial because no return to the investor such as debt in foreign country, beside Foreign Direct Investment (FDI) in a country will be followed by transfer of technology, know-how, management skills, the risks of business was smaller and more profitable. However, the problem of global economic that occured affecting the development of Foreign Direct Investment (FDI) in Indonesia decreased and the growth became slowly. Then domestic and global factors weren’t stable influencing the decrease Foreign Direct Investment (FDI) in Indonesia. Therefore, it’s needed to examine the factors influencing Foreign Direct Investment (FDI). This study aimed to know and analyze some factors affecting Foreign Direct Investment (FDI) in Indonesia consisting gross domestic product, the level of real interest, exchange rates, labour produtivity, and exports. The affecting analysis be done in short-time by using Error Correction Mechanism = ECM technique. It was used time series data from 2000 to 2013 using Eviews 6.0. The type of data used was secondary data obtained from Indonesia Bank (BI), Central Bureau of Statistics (BPS), Federal Reserve Bank of St. Louis and United Nations Economic Social Commision for Asia and the Pacific (UNESCAP). The results of this study showed that gross domestic product, the level of real interest, exchange rates, and labour productivity had positive affection significantly on Foreign Direct Investment (FDI) in Indonesia. While the exports had negative affection significantly on Foreign Direct Investment (FDI) in Indonesia. From determination coefficient (R2) showed that the variables explained 97.13 percent on Foreign Direct Investment (FDI) in Indonesia while the rest 2.87 percent was explained by variables out of models (not studied).

Rent for Germany or Why it Needs the EU

The analysis of interactions and mutual influence of Germany and the EU demonstrates a multidirectional causation of political and economical integration. Germany as the biggest European economy and the most influential political actor in EU plays a pivotal role in the Union defining the strategical and tactical approaches to political and economic matters. However, the robust German economy despite having a unique technical, scientifical and qualitative potential, is limited by a material resources base dependent on external partners. This factor determines relentless efforts of Germany to unite Europe which can be observed in chancellor A. Merkel’s foreign policy actions. It is especially true under conditions of inevitable turbulence, caused by Brexit and the pandemic of coronavirus. Only a cohesive European Union can guarantee economic prosperity and political stability of Germany. Stabilization and development of internal policy of Germany are seen as its actions to consolidate EU

THE ANALYSIS OF FOREIGN DIRECT INVESTMENT AND ITS AFFECTING FACTORS IN INDONESIA

Foreign Direct Investment gave benefits in improving Indonesia's economics matters in Indonesia. Conseptually, Foreign Direct Investment (FDI) more benefecial because no return to the investor such as debt in foreign country, beside Foreign Direct Investment (FDI) in a country will be followed by transfer of technology, know-how, management skills, the risks of business was smaller and more profitable. However, the problem of global economic that occured affecting the development of Foreign Direct Investment (FDI) in Indonesia decreased and the growth became slowly. Then domestic and global factors weren’t stable influencing the decrease Foreign Direct Investment (FDI) in Indonesia. Therefore, it’s needed to examine the factors influencing Foreign Direct Investment (FDI). This study aimed to know and analyze some factors affecting Foreign Direct Investment (FDI) in Indonesia consisting gross domestic product, the level of real interest, exchange rates, labour produtivity, and exports. The affecting analysis be done in short-time by using Error Correction Mechanism = ECM technique. It was used time series data from 2000 to 2013 using Eviews 6.0. The type of data used was secondary data obtained from Indonesia Bank (BI), Central Bureau of Statistics (BPS), Federal Reserve Bank of St. Louis and United Nations Economic Social Commision for Asia and the Pacific (UNESCAP). The results of this study showed that gross domestic product, the level of real interest, exchange rates, and labour productivity had positive affection significantly on Foreign Direct Investment (FDI) in Indonesia. While the exports had negative affection significantly on Foreign Direct Investment (FDI) in Indonesia. From determination coefficient (R2) showed that the variables explained 97.13 percent on Foreign Direct Investment (FDI) in Indonesia while the rest 2.87 percent was explained by variables out of models (not studied).

The Concept of State intervention in economic Affairs: study of Islamic Injunctions

Islam is a Religion in line with nature. It introduced its own economic system that up to the man’s needs and requirements. It contradicts the communism and capitalism and claims that Islamic economic structure guarantees the welfare of humanity. In this setup, the buyers and sellers are free to make their deals and every person has the equal opportunities to be a wealthy and prosperous trader. Muslims had implemented this system in their golden era and showed the benefits of this setup to world The basic question has been raised either state has authority to interfere the economic deals, why state is interested to involve or what would be the limits of their involvement. In this paper Descriptive Method and Comparative Study are used to study the concept of interference of state in economic matters. This research paper is an effort to understand the Islamic point of view that to what extent the Islamic State can interfere in economic policies, according to the Islamic injunction. In this article, it has been elaborated that the State has the legal and ethical right to intervene the economic matters when hoarding usury and gambling is rampant.

Tanggung jawab sosial PT.Chevron Pasifik Indonesia di Provinsi Riau untuk pembangunan berkelanjutan

Sustainable development is development that pays attention to the three main aspects; they are economy, social and environment aspects. Riau Province is one of the province that have great quantities of corporate, either foreign or local corporate. Sustainable corporate social responsibility in this province, is obligated by district regulation, no. 6, 2012. The development of companies in Riau Province increased in the oil and natural gas, plantation, forestry and mining sectors. The existence of the company give positive impact such as the raising of the economics matter and increasing the local income by the responsibility fell on the economic, social and environment condition where the company operate. The purpose of this research is: to study how is the responsibility of CPI Ltd. In Riau Province in the effort to support economy, social and sustainable development. The method used in this research is the use of descriptive qualitative method. Qualitative method is used for describing the authentic relationship between variables in the research problem empirically by the big amount of simultaneous influence sharpening together and toward value pattern be faced. CSR program done in Riau Province is the program in social, economics and environmental program. The CSR become the effort to support sustainable development because the advantages can be felt by the society for today and future

A behavioral economic risk aversion experiment in the context of the COVID-19 pandemic.

We investigated what degree of risk of infection with COVID-19 is necessary so that people intend to stay home, even when doing so means losing their salary. We conducted an online survey across Brazil during the initial outbreak, in which 8,345 participants answered a questionnaire designed to identify the maximum tolerated risk (k’) necessary for them to disregard social distancing recommendations and guarantee their salaries. Generalized linear mixed models, path analysis structural equation, and conditional interference classification tree were performed to further understand how sociodemographic factors impact k’ and to establish a predictive model for the risk behavior of leaving home during the pandemic. We found that, on average, people tolerate 38% risk of infection to leave home and earn a full salary, but this number decreased to 13% when the individual risk perception of becoming ill from severe acute respiratory syndrome coronavirus-2 is considered. Furthermore, participants who have a medium-to-high household income and who are older than 35 years are more likely to be part of the risk-taking group who leave home regardless of the potential COVID-19 infection level; while participants over 45 years old and with good financial health are more likely to be part of the risk-averse group, who stay home at the expense of any salary offered. Our findings add to the political and public debate concerning lockdown strategies by showing that, contrary to supposition, people with low socioeconomic status are not more likely to ignore social distancing recommendations due to personal economic matters.

The Ideological Shade of the Constitutional Order: Public Law and Political Economy in the Eurozone

This paper argues that the Economic and Monetary Union (EMU) created at Maastricht conformed to the neoliberal theory of interstate federalism in seeking to constitute structural conditions that circumscribed the effective exercise of activist public authority at both the Member State and European level. A response to a perceived ‘crisis of governability,’ it was designed to address the problem of excessive, and ineffective, governmental interventions in economic matters. By separating monetary and fiscal policy, the EMU ensured that no single public authority at the Member State or European level could control all the main levers of economic government. The Eurozone Crisis challenged this construct by emphasising the need for a coherent and effective exercise of public authority. The problem was thus no longer an excess of government but the absence of effective governmental authority for the EMU as a whole. Eurozone Crisis reforms introduced a greater scope for federal interventions in the domestic affairs of Member States and such reforms have elicited a new constitutional imaginary, expressed by European elites, that emphasises the need to generate ‘European sovereignty.’ This imaginary departs radically from the original EMU by foreseeing an omnicompetent European governmental apparatus that is able to intervene in, and control, economic developments across the Union in accordance with political objectives. The constitutional imaginary of the EMU can thus no longer meaningfully be called neoliberal. The early response to the COVID-19 Crisis, furthermore, highlights that the objectives pursued under the reformed EMU may depart from the set of policies traditionally associated with neoliberalism. What it should be called instead, however, remains unclear.

Adam Smith, Allyn Young, Amartya Sen and the Role of the State

This paper examines the views of Adam Smith, Allyn Young and Amartya Sen on the role of the state. Smith has been widely interpreted as advocating non-interference in economic matters with the state confining itself to three basic tasks of defence, justice and public works. However, this traditional view gives a misleading impression that Smith was a champion of laissez faire. We examine and develop Young’s contention that the main message from Wealth of Nations is not laissez faire but competition. Interpreted thus, a more active role for government is consistent with Smith. Young favoured neither laissez faire nor excessive intervention, but viewed the role of the state in the context of the stage of a society’s development. Amartya Sen’s stress on entitlements is also consistent with Smith’s stress on distributive justice and the Smith-Young emphasis on the public interest (or communal welfare). The more recent approaches to development such as political entanglement and complexity economics view the dichotomy of state versus market as false as both have to join hands in the coevolution of appropriate institutions to solve communal problems of economic life.

DESIGN OPTIMIZATION OF THE HOLOS-QUAD MICRO-REACTOR CONCEPT

The Holos-Quad micro-reactor concept is proposed by HolosGen LLC to generate 22 MWt with a lifetime of approximately 8 effective full power years (EFPYs) for civilian applications. The design is based on a very innovative high-temperature gas-cooled reactor concept using four Subcritical Power Modules (SPMs) that fit into one commercial 40-foot transport ISO container. A rigorous design approach was employed in order to ensure that all input parameters were fully investigated and the best solutions possible were considered. The first step of this approach consisted of properly defining the Holos-Quad design problem by identifying the design objectives, the operational constraints, and the input parameters. In the second step, a sensitivity analysis was performed to enable a preliminary investigation of the input parameters to identify the correlations among input and output variables. Finally, the design optimization was performed in the third step, employing a genetic algorithm to effectively explore the highly constrained input parameters and find global optimal solutions. The multi-objective optimization identified various core solutions that would be optimum solutions for different types of applications. For applications where economics matters less and the ease of transportation matters more, a core weight of ~15 tons could achieve a lifetime of ~3.5 EFPYs. For applications where economics matters more and the ease of transportation matters less, a lifetime of 8.3 EFPYs could be achieved with a total core weight of ~26.7 tons.

Anticompetitive Effects and Market Definition in Platform (and Non-Platform) Markets

Market definition is a highly contested topic in antitrust. Courts’ approaches to market definition are admittedly flawed, and the case originating modern market definition, the Cellophane case, is best known in antitrust circles as the name of an economic blunder: the “Cellophane fallacy.” Yet market definition finds itself center-stage in antitrust regulation of modern platform markets and was the central issue in the Supreme Court’s first case explicitly addressing platforms, Ohio v. American Express. Justice Breyer’s dissent in that case went beyond challenging the majority’s market definition to challenge the need to engage in market definition at all. He argued that market definition was unnecessary because the district court had found actual anticompetitive effects. That notion has found purchase in both scholarship and legislative proposals that would eliminate market definition in antitrust cases if the plaintiff can show anticompetitive effects. This paper interrogates both modern criticisms of market definition and Justice Breyer’s assertion that market definition is not necessary if a court finds anticompetitive effects through direct evidence. That claim is mistaken on both economic and normative grounds. As an economic matter, the price increases the court observed in American Express are not probative of anticompetitive effect absent an understanding of their effects on the broader market, which cannot be determined without a market definition. American Express (and platform markets) present a particularly strong case against relying on market observations to infer anticompetitive effects, but the point holds for non-platform markets as well. As a normative matter, Justice Breyer’s presumption ignores that, in order to determine whether a particular practice is “anticompetitive,” it is necessary to define what are and are not legitimate sources of market power. A similar error is present in most criticisms of market definition. Market definition is usually performed in service of measuring market power, and most criticisms relate to its accuracy in doing so. But market definition not only measures market power, it characterizes it. As informed by the content of antitrust law, market definition distinguishes between permissible and impermissible accumulations of market power. Instead of something to be avoided because of its economic fallibility, market definition should be embraced as a way to give meaning to antitrust inquiries. Debates over market definition have been had largely along economic lines, but the market definition inquiry is inherently normative. That has always been the case. Donald Turner’s original identification of the Cellophane fallacy was based not on abstract economics but on his views on what the antitrust law should permit. Recognizing market definition as a step in both identifying and defining legitimate forms of competition resituates market definition from being a step in an algorithm to informing the competition that antitrust law seeks to protect.

НОВОЕ СРЕДСТВО СВЯЗИ И СТАРАЯ СИСТЕМА (ИНТЕГРАЦИЯ ТЕЛЕФОННОГО ДЕЛА В СИСТЕМУ ГОСУДАРСТВЕННОГО РЕГУЛИРОВАНИЯ СВЯЗИ В РОССИИ В КОНЦЕ XIX – НАЧАЛЕ XX ВЕКА)

The paper analyzes the process of formulating the main principles of the state regulation of the telephone activities in Russia in the late 19th and early 20th centuries. Even though the emergence of the telephone in Russia matched the process of the whole unified postal and telegraph service’s organizing, crucial necessity of including the telephone into the system of the state management of communications did not become just a step in these reforms’ development. It caused the discussion on another matter, namely on the main principle of the system’s functioning, i.e. perception of the communications as the subject of the state monopoly. Thus, the Russian government’s attempts to adopt the telephone to a broadly settled system of the state regulation happened to be followed by the debates on neither administrative no technical, but on the legal and economic matters. Lately, they moved to the principle of the state monopoly in the communications sphere as a whole and to perception of the latter as a source of the state income. Nevertheless, during the analyzed period, the focus of all the disputes was made on responding to the private capital’s threat to the monopoly status of the government. However, its main concern was not the monopoly itself, but one of its aspects, i.e. the most commercially profitable way to build and use the telephone communications.

Экономическое развитие КНДР в контексте советско-северокорейских отношений, 1955–1964 гг.

This article looks at the Soviet-North Korean alliance from the mid-1950s to the early 1960s, with a focus on the often understudied connection between international politics and domestic economic development strategies. It traces and explains the changes in bilateral relations, from a relatively disinterested provision of assistance on the Soviet part and the desire to emulate the USSR on the part of North Korea, to an investment interest of the Soviet Union in the North Korean economic policies, and back to the Soviet Union as a donor of aid aiming to retain the DPRK within its orbit, with North Korea striving to assert self-sufficiency and distance itself. The article also explores the differences in the position of North Korea and the Soviet Union on economic matters and the disputes over prioritizing heavy industry development that took place at the time. Based on a variety of primary sources, it shows how the alliance dynamics was reflected in the economic sphere. It argues that economic matters played a significant role in the cooling of bilateral relations by the mid-1960s.

The Climate Crisis as a Product of Globalization

Research background: the processes of globalization have led to an increasing interdependence and integration of states, societies, economies, and cultures, which result in the emergence of one world that produces the same products. However, little do people realize that global products have also a negative influence on the global economy. A clear example is the climate crisis, which can be treated as a product of globalization. Purpose of the article: therefore, the main aim of the paper is an attempt to answer the question: what is the impact of unlimited globalization processes on the climate crisis. The main hypothesis of the research is that the adoption of a degrowth model can effectively stop the negative effects of the climate crisis, which may lead to a global economic recession in the future. However, this will require inter-state simultaneous cooperation, because no single country can solve the climate problem separately. Methods: to confirm such a hypothesis, and to formulate the main findings, the method of critical analysis of the literature on climate and economic matters was used. Findings & Value added: the main added value of the paper is the synthetic forecast of the economic effects caused by global climate change. It may enrich the discussion about the effects of climate change through dissemination and acceptance of scientific knowledge. The negation of this knowledge, still frequently observed in public debates, may delay the implementation of urgent and necessary solutions.

Perspective directions of improving the social policy in Ukraine based on the experience of European countries

The current state, directions, and basic conceptual principles of the state social policy of the EU are studied, their distinctive features are characterized. The level of social development of the EU member states, the main strategic directions of state support of development, features, and needs of the social sphere of Ukraine in the course of the European integration, and strategic goals of their settlement are analyzed. Particular attention is paid to the implementation of European experience to improve the social model of development and political stability of Ukraine. Modern approaches to the implementation of social policy are outlined. The relationship between social and economic matters in the policy of sustainable human development is shown. Emphasis is placed on the priority of active and effective state social policy, which results in the creation of conditions for the development of the welfare state, ensuring the social orientation of the economy, protection of social interests of on individual, society, and state. The practice of foreign countries on the implementation of social protection and regulation of social development processes is analyzed. Priority areas for reforming Ukraine's state social policy in the context of adaptation to the EU standards are identified. The conditions of functioning of the current system of social protection of the population of Ukraine are analyzed; the experience of leading "welfare states" in the formation of models of social policy is studied; weaknesses and ways to improve the domestic social protection system are identified; approaches to solving the problems of financing in social protection are proposed. Insufficient institutional capacity of the authorities hinders the realization of the potential of the European integration course in full, correct determination of the sequence of steps, calculation of the ways to achieve tasks, search for the necessary solutions for stakeholders to take full advantage of all benefits.

The Role of SMEs in Strengthening the UK-USA Partnership

UK-U.S. Partnership has a historical legacy in the political, cultural, and economic matters concerning both countries mutually. Trade has played a significant role in boosting economic relationships between both countries. This study aims to study SMEs’ role (Small and Medium Enterprises) in the post-COVID trade policy with an emphasis on technological transformation and economic recovery. Data shows that SMEs have risen to prominence in the last decade in both countries; SMEs consists of more than 95% of businesses and are employing close to 50% or more in both countries. SME traders from the U.K. mutually identify the U.S. as a significant destination for imports and exports in the next three years. COVID-19 has disrupted businesses worldwide, forcing businesses to rethink their business strategies, especially the SMEs. We aim to look at how global pandemic, trade, business policy blend together under the context of changing technology and supply chains around the world. We suggest the need for rigorous and integrated approach to trade policy going forward which will play a major role in the business ecosystems for the two countries. This study points to the research noting the importance of SME entrepreneurial employers’ presence in the last economic recovery. The key is to achieve a cluster of SME supply chains collaborating and inter-linked with inherent entrepreneurial leadership and innovation within specific markets. In the present scenario, it is not the size but the quality of business relationships that can accelerate core competencies and tie companies to each other across the supply chain. SMEs’ flexibility is a vital tool to gain efficiencies, and bilateral free trade agreements can prove to be a useful tool to gain greater flexibility due to better trust and trade connectedness, as observed in the literature.

The Economics of Internet of Things: An Information Market System

The Internet of Things (IoT) is one of the leading forces in modern-day technology. The concept has been proposed to be a new way of interconnecting a multiplicity of devices and rendering services to a variety of applications. According to the industry’s insiders, IoT will make it possible to link transport, energy, smart cities, and healthcare together. The purpose of this paper is to understand the economics of the Internet of Things. It is meant to shed light on how world IoT applications can affect the information market. When every sector and industry of the world has been connected via this technology, what will become of the ICT niche? The information economic approach is currently being adopted and presented with its possible applications in IoT. Firstly, this paper reviews the kinds of economic models that have been designed for IoT services. Secondly, it focuses on the two major subject matters of information economics that are critical to IoT. While one considers the value of the information itself, the other addresses information with good pricing. Lastly, the paper proposes a game-theoretic model to examine the price competition of IoT-based services. We take a look at how these two sectors will fare against each, both at full capacity.