Financial Subsidies Research Articles

Analyzing the Relationship between Risk Management Strategies and Supply Chain

Purpose: The purpose of this article examined how different risk management strategies affect supply chain resilience in Malaysia. It aims to identify effective strategies, such as supplier diversification and digitalization, that help Malaysian companies mitigate disruptions. The findings offer insights to enhance operational continuity and adaptability within Malaysia's unique risk environment. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study found that effective risk management strategies, like supplier diversification and real-time monitoring, significantly enhance supply chain resilience in Malaysia. Companies adopting these strategies experienced fewer disruptions and quicker recovery times. However, challenges such as high costs and limited technology access still hinder broader adoption among smaller firms. Unique Contribution to Theory, Practice and Policy: Resource-based view (RBV), contingency theory & high reliability theory (HRT) may be used to anchor future studies on the relationship between risk management strategies and supply chain resilience in Malaysia. Practically, companies should implement risk management strategies that are tailored to their specific supply chain contexts and risks. At the policy level, governments and industry bodies should support the adoption of resilience-enhancing technologies by offering financial incentives or subsidies, particularly for small- and medium-sized enterprises.

Financial subsidy optimization to promote renewable energy development for sustainable development goal

Enhancing the efficacy of financial subsidies holds paramount significance in fostering sustainable development due to their influence on energy utilization, installation scalability, and the crucial pursuit of decarbonization. Despite a surge in scholarly interest surrounding financial subsidies for renewable energy, the literature studies fall short in comprehensively addressing the factors that impact on the accuracy and reliability of the model for identifying optimal financial subsidies. This paper introduces a robust approach to optimize financial subsidies to achieve the predefined target for renewable energy installation, considering the equilibrium between investor remuneration and government subsidy outlay. Center to this approach is the integration of a forward-looking price forecasting model and the establishment of an economic evaluation approach based on empirical data encompassing weather patterns, technical factors, investor expectations, subsidy disbursements, market risk assessments, and other pertinent parameters. The case study of Taiwan is conducted, and the results indicate that, in the baseline scenario, the financial subsidy is only effective in the risk-neutral market with a small solar system; in the mix scenario, the benefit of energy system increased at least 4.5%, however, the mix scenario is still ineffective to encourage the renewable energy development; and in the optimal scenario, by providing accurate recommendations for optimal financial subsidies, government can achieve the predefined target, even with reduced subsidies due to declining installation costs.

Implementation Status and Suggestions of “Coal-to-gas” Policy in Beijing-Tianjin-Hebei Region of China

With the acceleration of industrialization for the past few years, the level of air pollution has also increased significantly. The Beijing-Tianjin-Hebei region is one of the regions that need to be improved urgently. The air pollutants produced by coal burning are the main source of pollution in this region, so it is of great practical necessity for the Beijing-Tianjin-Hebei region to replace coal burning with clean energy. At present, the status of the "coal-to-gas" policy of the Beijing-Tianjin-Hebei region has achieved remarkable results. With the strong support of the government, air pollution has been effectively improved. However, there are still many problems such as "one-size-fits-all" policy, imperfect financial subsidy mechanism, tight gas source, differentiated scope of policy implementation, and hidden dangers of rural equipment safety. For these reasons, the government should formulate differentiated policies according to local conditions, implement "coal-to-gas" and "coal-to-electricity" synchronously, improve the subsidy mechanism, strengthen technical and equipment support, enhance gas supply security, stabilize gas price and strengthen publicity and training.

Narrowing the gaps between perception and adoption behavior of integrated pest management by farmers: Incentive and challenge

Integrated Pest Management (IPM) is an important strategy in global agriculture, aimed at maintaining the growth trend of food production without compromising environmental integrity or human health. Despite various measures taken by the government to encourage farmers to adopt IPM technologies, the adoption rate of IPM in China remains insufficient. This study finds that the number of farmers who adopt IPM to a high degree is significantly lower than those who view IPM as a win-win solution for profits and the environment. To address the gap between attitudes and behaviors, this research utilizes data from a survey of 480 households in Dengkou County, Inner Mongolia, China, employing structural equation modeling to analyze the impact of farmers' perceived factors on IPM adoption rates. Additionally, a generalized linear mixed model is used to assess farmers' attitudes toward financial subsidies, while an Ordered Logit model conducts an empirical analysis of the factors influencing barriers to IPM adoption. The findings indicate that: (1) Farmers' overly optimistic expectations regarding the initial costs of IPM hinder their adoption; (2) Farmers who are skeptical about the economic benefits of IPM demonstrate greater interest in cash subsidies; (3) Land characteristics and farmer attributes influence farmers' evaluations of barriers to IPM adoption. To develop reasonable and effective policies aimed at narrowing the adoption gap for IPM, it is essential to thoroughly understand the characteristics of farmers and their perceptions of IPM, and to design incentive measures that account for group differences. Findings of the study provide information regarding the IPM adoption gap among farmers in China, thereby offering practical insights and empirical evidence to assist policymakers in developing appropriate policies. It also provides a framework for countries in similar situations globally to examine and address the adoption gap.

Identifying the policy configurational conditions for off-site construction development: a case of China

PurposeA series of policies have been formulated to promote off-site construction (OSC) development. However, the effectiveness of these policies has yet to be fully explored. This study aims to explore the practical policy configurational conditions for achieving a high level of OSC development.Design/methodology/approachData on policy configurational conditions and the OSC development level were collected from 28 provinces/municipalities in China using text mining. A mixed-method approach was used to conduct data analysis involving text analysis and qualitative comparative analysis (QCA). Text analysis was used to identify current policies with frequencies as independent variables and obtain the proportion of OSC projects in new construction projects as the dependent variable. QCA is employed to analyze the necessary and sufficient conditions of policy conditions for the high-level development of OSC by exploring the complex causal relationships between policy configurational conditions and the OSC development level.FindingsNine policies are obtained from the current policy framework for promoting OSC development using text analysis: industry supports, land policies, presale policies, reputation rewards, regulation controls, tax incentives, floor area rewards, financial subsidies, and loan subsidies. Four policy configurational conditions are identified that can achieve a high development level of OSC: three incentive-driven policy conditions with industry supports, presale policies, tax incentives, and floor area rewards as the core conditions, and one compulsory-driven policy conditions with land policies, financial supports, and loan supports as the core conditions using fuzzy set QCA. Moreover, our study found that a single policy cannot achieve a high level of OSC development as a necessary condition, and the policy configurational conditions that lead to high and nonhigh levels of OSC development are asymmetrical.Research limitations/implicationsThe study did not test the policy’s dynamic effects on the OSC development. A longitudinal study will be conducted to further identify the impact of policy on OSC implementation.Practical implicationsIt provides policymakers with four practical policy configurational conditions to promote OSC development and guides policymakers to optimize effective policies considering the interaction effects of effective policies such as industry supports, presale policies, tax incentives, and floor area rewards instead of their net effects.Originality/valueIt contributes to the existing literature concerning the effects of policy on emerging technology (i.e. OSC) promotion by elucidating configurative effects rather than net effects. Meanwhile, it enriches the research on the antecedent conditions that affect the implementation of other emerging technologies in the architecture engineering and construction industry.

Breaking through the Key Challenges to Further Electrification of Public Transport in Beijing

In recent years, with the improvement of people's awareness of environmental protection and the increasingly serious problem of urban traffic congestion, the Beijing Municipal Government has actively promoted the development of green transportation, among which electric buses, as a low-carbon, environmentally friendly and energy-saving mode of transportation, are regarded as an important measure to improve air quality and reduce pollution emissions, which has attracted much attention. As electric buses grow, so do the operational challenges of the promoted electric buses, including high initial investment costs, inadequate charging infrastructure, technical limitations in terms of vehicle range and charging speed, and a lack of more supportive policies and regulations. This paper summarizes and analyzes the current situation of electric buses in Beijing. And proposes to solve the challenges encountered in the operation of electric buses by implementing targeted strategies. For example, optimize government financial subsidy measures and implement diversified financial support; The government supports companies to carry out technological innovation and invest in R&D to enhance electric vehicle technology; further promote the construction of charging infrastructure and improve the level of charging services; Effectively deploy battery recycling; promote the integrated development of intelligent vehicles and networking, and accelerate the construction of intelligent public transportation systems; strengthening international cooperation and resource sharing; and the development of a comprehensive policy to promote and facilitate the electrification of public transport in Beijing. Inject new impetus into Beijing's sustainable urban development.

The Impact of the WTO Agricultural Agreement on Developing Countries

Abstract: Agricultural insurance, as an agricultural risk management tool to disperse agricultural risks, compensate farmers' losses and safeguard agricultural production, has become an indispensable part of the agricultural security system in various countries. However, due to the high cost of agricultural insurance, many countries provide financial subsidies for agricultural insurance. This paper introduces the help of agricultural insurance subsidies to countries in World Trade Organization (WTO), summarizes the main features and inadequacies of relevant WTO rules, and analyzes the existing problems of agricultural insurance subsidies from four aspects based on the practice of American agricultural insurance subsidies. The main conclusions of this paper include: first, the rules of agricultural insurance subsidy are limited and the classification is not clear, which seriously harms the agricultural development of developing countries; second, income insurance and natural disaster insurance in premium subsidies are regarded as "green box" tools, which need to meet certain conditions, otherwise there is still the possibility of being regarded as "amber box" tools; third, the current WTO rules on agricultural insurance subsidies are more conducive to the development of developed countries, but the agricultural insurance subsidies in developing countries lag behind and are difficult to implement, and the rules on agricultural insurance subsidies urgently need to be improved. Fourth, the double standards of developed countries and developing countries have caused differences in the classification of agricultural insurance subsidies. Finally, the thesis puts forward some suggestions on the compliance development of China's agricultural insurance subsidies under the framework of WTO rules.

Pathways to corporate green technological innovation: An analysis from the perspective of dynamic capabilities

Green technological innovation has become a pivotal tool for driving economic restructuring and achieving environmental sustainability. However, in the face of complex and volatile market and policy environments, a critical question remains: how can enterprises effectively select and implement innovation pathways to address environmental turbulence? Drawing on data from 14,751 Chinese listed companies from 2012 to 2022, this study employs dynamic capabilities theory and a fixed-effects panel model to examine the impact of dynamic capabilities on firms’ choice of green innovation pathways. Results show a significant positive influence of dynamic capabilities on green innovation, although this effect varies depending on the research and development model and the level of environmental turbulence. Firms with high dynamic capabilities tend to favor independent research and development, with an effect coefficient of 0.778 (p<0.01); firms with moderate dynamic capabilities benefit more from cooperative research and development, with a coefficient of 0.045 (p<0.01); and firms with lower dynamic capabilities primarily pursue green innovation through technology transactions, with a coefficient of 0.052 (p<0.01). Furthermore, environmental turbulence significantly moderates the relationship between dynamic capabilities and green innovation negatively, with an interaction coefficient of -0.088 (p<0.05), indicating that environmental uncertainty weakens the positive impact of dynamic capabilities.These findings suggest that firms can select suitable research and development models aligned with their level of dynamic capabilities and adopt flexible innovation strategies to effectively manage environmental turbulence. This study proposes the following policy recommendations: enterprises should strengthen their dynamic capabilities, particularly in knowledge acquisition, resource integration, and adaptability to environmental changes, to enhance their green innovation capacity. Additionally, the government should increase policy support for green technological innovation by offering financial subsidies, tax incentives, and intellectual property protections, helping enterprises maintain their innovation momentum amid environmental turbulence.

Horti-IoT: a new data framework for Dutch horticulture

Abstract Consistency issues limit the sharing of horticultural data across multiple systems, resulting in challenges for users to analyze data effectively across various systems utilizing artificial intelligence technology. Introducing data governance principles can help standardize and unify data practices, making it easier for analysts to locate, comprehend, transfer and integrate data from diverse sources to enable data-driven horticulture. Implementing data governance and principles specific to horticulture can assist in standardizing the layout and format of data structures from different sources. This study aims to propose a new governance framework, Horti-IoT, based on the Data Management Body of Knowledge and several structured frameworks for the Internet of Things (IoT) governance that will lead to data-driven horticulture. This study is empirical in nature. The Dutch horticulture stakeholders are involved in this initiative, providing the data, knowledge, and experiences needed for this study. The data stream from various sources, including camera images, sap flow sensors, climate sensors and manually measured growth data. The key findings following the implementation of the Horti-IoT framework’s principles are reduced workload for data analysts, efficiency in plant monitoring, savings time in pre-processing, enhanced water resource management, reduced system administrator contacts and compliance with General Data Privacy Regulation. The new proposed Horti-IoT framework, compatible with Dutch horticulture, is presented. The data were obtained from the Lab greenhouse at the World Horti Centre in the Netherlands, in the framework of the Regionale SIA RAAK MKB call March 2022-September 2024 subsidy funds for project title ‘Gewasgroei Goed Gemeten (GeGoGe). This project is a collaboration between three educational institutions. Inholland University of Applied Science, the Hague University of Applied Science, Lentiz Vocational School, and stakeholders.

The Unique Impacts of COVID-19 on Low-Income and Diverse Canadian Women's Mental Health Profiles: A Latent Transition Analysis.

There is evidence of an overall decline in women's mental health, particularly those with young children, in the wake of the COVID-19 pandemic. However, research has also found heterogeneity in women's mental health responses. This longitudinal study sampled low-income women with young children by recruiting from the government's child care financial subsidy waitlist. To examine heterogeneity in women's mental health responses to COVID-19, a latent transition analysis was employed to identify profiles of anxiety, depression, and stress among 289 low-income mothers. Using these identified profiles, we examined the transitional patterns between profiles before and during COVID-19 and the sociodemographic and familial factors related to these profiles. A three-profile solution was identified prior to COVID-19 and a four-profile solution during COVID-19, with some profiles exhibiting qualitatively different defining characteristics. Latent transition analyses found diverse patterns of mental health changes after the onset of COVID-19. Mothers with better mental health prior to COVID-19 tended to have the most stable mental health during COVID-19. In contrast, mothers who were highly stressed prior to COVID-19 were equally likely to improve or decline after the onset of the pandemic. In addition, the relationships between race, parenting practices, child temperament, and child mental health were significantly related to mothers' mental health profiles. These findings describe mothers' experiences and areas where policymakers and practitioners can tailor support to low-income women with young children.

Financial subsidies, digital finance, and corporate industrial investment level

This study examined the impact of digital finance and financial subsidies on enterprises’ industrial investment based on data from China A-share listed companies in Shanghai and Shenzhen from 2011 to 2020. Results show that the development of financial subsidies and digital finance positively impact industrial investment, further easing the financial constraints of enterprises. Based on results, suggestions such as rational resource usage and a clear investment direction are made.

Access to credit and scale efficiency: Evidence from family farms in East China

Productivity improvement is an important driving force for developing countries to accelerate the development of agricultural sectors and promote the transformation of economic structures. However, few studies have focused on the impact of credit access on family farms’ scale efficiency, a contributor to productivity changes. We address this gap by using data collected from a survey of 565 family farms in East China. The stochastic frontier input distance function (SFIDF) is utilized to measure the scale efficiency, and the endogenous switching regression model (ESRM) is employed to estimate average treatment effect (ATT) and address the selection bias. The empirical results show that the average scale efficiency is 0.768, with credit users and non-users averaging 0.802 and 0.737, respectively. Most family farms operate below their optimal production scale, and only about 14.5% of family farms exceed this optimal scale. Access to credit has significantly improved the scale efficiency of family farms and has not contributed to the excessive pursuit of scale expansion for financial subsidies. These findings are validated by robustness checks. The conclusions of our study have important implications for developing countries seeking to increase financial support for agricultural development.

Clean innovation, heterogeneous financing costs, and the optimal climate policy mix

Access to finance is a major barrier to clean innovation. We incorporate a financial sector in a directed technological change model, where research firms working on different technologies raise funding from financial intermediaries at potentially different costs. We show that, in addition to a rising carbon tax and a generous but short-lived clean research subsidy, optimal climate policies include a clean finance subsidy directly aimed at reducing the financing cost differential across technologies. The presence of an endogenous financing experience effect induces stronger mitigation efforts in the short-term to accelerate the convergence of heterogeneous financing costs. This is achieved primarily through a carbon price premium of 39% in 2025, relative to a case with no financing costs.

A Study on the Key Factors for the Sustainable Development of Shared Mobility Based on TDM Theory: The Case Study from China

This study is based on an investigation of shared mobility in Chinese cities, which identifies the factors affecting the sustainable development of shared mobility based on the theoretical framework of TDM (travel demand management). Through a literature review and expert interviews, the FUZZY-DEMATEL-ISM-MICMAC integration model was used to screen 21 influencing factors from aspects that fit the research theme. Triangular fuzzy numbers are used to quantify the subjective scores of nine expert groups and weaken the subjective influence of expert scores. The logical relationships among DEMATEL technology-building factors and ISM technology-based factors are divided into levels. The MICMAC technique is used to divide the types of factors according to the driving power and dependency. The results show that (1) the influence factors of the “soft strategy” and “hard strategy” in the framework of TDM are determined. In the soft strategy, we should focus on “shared mobility education” (shared mobility education, shared mobility publicity and shared mobility “environment” information) and “community organization” (community organization and advocacy and organizational interaction). In the hard strategy, we should focus on “traffic planning and measures”, “dedicated lanes”, “parking facilities”, and “financial subsidies”. (2) The ISM recursive structure model is divided into five layers. Among them, shared mobility education, shared mobility operating technology, and organizational interaction are at the deep root level, which can continuously influence other factors in the long run. (3) In MICMAC, the number of related factors is large. When making decisions on these factors, managers should comprehensively consider the correlation of factors and adjust the use of factors from an overall perspective. This study can help managers identify the key factors affecting the sustainability of shared mobility and make targeted recommendations.

A two-stage distributionally robust maximum expert consensus model with asymmetric costs and risk aversion

The maximum expert consensus model (MECM) emerges as a widely used consensus optimization model in group decision making (GDM). However, contemporary complexities in decision-making environment lead to the asymmetry and uncertainty of adjustment costs of decision-makers (DMs), which are critical during the consensus reaching process (CRP). Additionally, the risks emerging with the uncertainty during CRP should also be analyzed. Therefore, this paper focuses on developing the two-stage distributionally robust MECM (DRO-MECM) with asymmetric adjustment costs under an uncertain environment to improve the CRP. Specifically, we propose a MECM with asymmetric costs. Moreover, we build the two-stage DRO-MECM based on the mean-CVaR under two uncertain scenarios, allowing it to manage uncertain costs effectively while considering the risk preferences of DMs. The first stage aims to maximize the number of DM within consensus and the second stage seeks to minimize the consensus cost. Finally, the applicability of the proposed models is demonstrated by applying them to the allocation of healthcare and security capacity enhancement subsidy funds in China. The efficiency of the models is further corroborated by sensitivity analysis and comparison analysis.

Are HPV Vaccines Well Accepted among Parents of Adolescent Girls in China? Trends, Obstacles, and Practical Implications for Further Interventions: A Five-Year Follow-Up Study.

In 2020, the WHO proposed the global strategic goal of accelerating the elimination of cervical cancer (CC). One of the key strategies is that, by 2030, 90% of girls will complete HPV vaccination by age 15. In 2017, HPV vaccines were first marketed in China. This study aimed to explore the changes in parents' knowledge about CC, HPV, HPV vaccines, and acceptance of HPV vaccination 5 years after the introduction of HPV vaccines into China. Associated factors and reasons for refusal by parents were also explored. A school-based follow-up study was conducted among parents in China from May 2018 to May 2023. Comparison using Chi-square tests was performed to measure the changes. Univariate and multivariate analyses were used to explore factors associated with HPV vaccination among teenage girls. The overall cognitive level in terms of CC- and HPV-related knowledge among parents increased, and they expressed more willingness to vaccinate their daughter (35.4% in 2018 vs. 56.6% in 2023). The HPV vaccination rate among teenage girls remained at a low level (4.4% in 2018, 9.8% in 2023). The main obstacles reported by parents were limited knowledge (42.0%), scarcity of the HPV vaccine (29.2%), waiting until their daughter was older (27.5%), safety concerns (14.7%), high cost (9.0%), and effectiveness concerns (4.6%). Parents who are elderly, local residents, have received HPV vaccines themselves, have had experience of vaccinating their children with influenza vaccines, and have a higher knowledge level of CC, HPV and HPV vaccines are more likely to vaccinate their children with HPV vaccines. Although we observed an increment in parents' knowledge level in terms of CC, HPV, HPV vaccines, and HPV vaccine uptake over the past 5 years, the HPV vaccine coverage among girls still falls short of the WHO's 2030 target. Comprehensive intervention strategies, including tailored health education among adolescents and their parents, doctor recommendations, and providing financial subsidies or free HPV vaccines are needed in China.

The Impact of Participation Ratio and Bidding Strategies on New Energy’s Involvement in Electricity Spot Market Trading under Marketization Trends—An Empirical Analysis Based on Henan Province, China

As new-energy electricity increasingly enters the post-subsidy era, traditional fixed feed-in tariffs and guaranteed purchase policies are not conducive to the optimal allocation of large-scale, high-proportion new-energy power due to the high pressure of subsidy funds and the fairness issues of power-generation grid connection. Encouraging new energy to participate in electricity market transactions is considered an effective solution. However, existing studies have presupposed the adverse effects of new energy in proposing market mechanism optimization designs for new-energy participation without quantitative results to support this, which is not conducive to a true assessment of the comprehensive impact of individual instances of new-energy participation in the market. To this end, this study, based on the actual experience and data cases of China’s electricity spot market pilot provinces, considers both unit commitment and economic dispatch in the electricity distribution process, and constructs a two-stage optimization model for electricity spot market clearing. According to the differences in grid connection time and the construction costs of new-energy power, differentiated proportions of new-energy participation in the market and bidding strategies are set. By analyzing the quantitative results of new energy participating in spot market transactions under multiple scenarios, using both typical daily data for normal loads and peak loads, the study provides theoretical support and a data basis for the optimized design of market mechanisms. The research results show that there is a non-linear relationship between the scale of new energy entering the market and its bidding strategies and market-clearing electricity prices. In the transition phase of the low-carbon transformation of the power sector, the impacts of thermal power technology with a certain generation capacity and changes in the relationship between power supply and demand on electricity prices are significant. From the perspective of the individual interests of new-energy providers, the analysis of their bidding strategies in the market is important.

Financial Subsidies, Tax Incentives, and Innovation Quality: Empirical Evidence from High-Tech Enterprises in Sichuan Province, China

Financial Subsidies, Tax Incentives, and Innovation Quality: Empirical Evidence from High-Tech Enterprises in Sichuan Province, China

공공재정 부정이익환수제도에 관한 고찰

The Public Finance Recovery Act was enacted in April 2019 in addition to the disciplinary surcharge system for public officials under the National Public Officials Act and the Local Public Officials Act as subsidies, R&D expenses, allowances, etc. of the state, local governments, and public organizations continue to make false claims and excessive claims. In order to prohibit public financial fraudulent claims and to recover the full amount of fraudulent income, which is unearned income, a sanction surcharge of up to five times is imposed and recovered in consideration of the intention and habitability of fraudulent claims. In this paper, after examining the concept, scope, and legal nature of public finance fraud recovery, we examine the Improper Payment lnfonnation Act of 2002, the False Claims Act, the Federal Improper Payments Coordination Act of 2015, and the Payment Integrity Information Act of 2019 in the United States, and the Subsidy Appropriation Act of Japan to seek implications for Korea In addition, we examine legal issues related to the systematization of pre- and post-systems to reduce fraudulent profits in public finance payments, securing the effectiveness of the whistleblowing system for public finance subsidy recovery, and activating the anonymous proxy reporting system, and suggest improvement measures to enhance the effectiveness of the Public Finance Recovery Act. Before recovering the illicit profits of public finance payments, relevant administrative agencies and public institutions should actively operate programs to strengthen the risk assessment and eligibility review of illicit payments, and after disbursing public finance support funds, they should strictly conduct an audit by an external auditor independent of the administrative agency and public institution to prevent illicit receipt of public finance support funds, and the results of the audit should be posted on the website of the relevant administrative agency to enhance transparency. In addition, in order to eradicate the negative organizational culture toward whistleblowers and the secret receipt of public finance support funds in Korea, whistleblowers should be allowed to file a U.S.-style qui tarn lawsuit only in cases where they make false claims to administrative agencies or public institutions. However, if the relevant administrative agency or public institution allows intervention in the lawsuit and recovers the illicit profits of public finance funds, they should be compensated 35% of the recovered amount to the whistleblower. Given the nature of fraudulent receipt of public financial support funds, the regional National Human Rights Commission's anonymous proxy reporting advisory group should be expanded in a balanced manner to ensure that the anonymous proxy reporting system is activated, and the anonymity of internal reporters should be guaranteed.

Subsidizing a sports arena in a bankrupt city: Detroit's Little Caesars Arena

AbstractObjectivesThe potential for ancillary real estate transformation and downtown revitalization has moved to the forefront of sports venue subsidy arguments. Despite the City of Detroit being in the largest municipal bankruptcy in U.S. history at the time, $324 million in public funding was directly provided to Little Caesars Arena, a new home for the Detroit Red Wings hockey team. Using the Detroit context, this article examines how a major arena subsidy deal arose in a severely financially distressed city.MethodsUsing a snowball technique, documents were collected from government, media, industry, community, legal, and academic sources to inform a retrospective, single case study. Over 300 documents covering a period from 1992 to 2021 were then reviewed for prospective relevance. A review of secondary media sources was conducted in lieu of traditional interviews.ResultsThe arena funding outcome is best explained by three interrelated aspects: local growth coalitions, real estate development promises, and lacking procedural and financial transparency exacerbated by both the chosen funding mechanism of tax increment financing (TIF) and the bankruptcy.ConclusionsWhere flexible financial subsidies and arena deal making are concerned, procedural transparency matters. Growth coalitions and rent‐seeking team owners can use the earmarked nature of TIF to circumvent traditional budgetary processes and mute prospective opposition through promises of self‐financing subsidies that will not result in new tax rate hikes. For venue deals where the substance is in the details of contractual obligations, transparency and adequate time for scrutiny are especially important.