Impact Of Externalities Research Articles

The asymmetric impact of leisure externalities on economic growth

Leisure generates externalities for the economy as a whole, as individuals generally get some (dis-)utility from their leisure-time. However, the sign and the extent of the effect that these externalities have on a specific worker's productivity and on the productivity of all other factors used in combination with labor (hence on long-term economic growth) may be asymmetric across different economic activities. The objective of this paper is to shed light on the impact that sector-specific leisure-time externalities have on the innovation rate, on the sectorial allocation of (skilled) labor, and eventually on the long-run economic growth rate, without making any prior assumption on their sign and magnitude. In the baseline model the growth rate of per capita income moves together with all types of leisure externalities, whereas the innovation rate moves together with (and depends solely on) the R&D-sector-specific leisure externality. From numerical analyses, we conclude that sector-specific leisure-time externalities provide asymmetric effects on the growth rate of real per capita GDP and on the way skilled labor is allocated across different economic activities. The robustness of these conclusions is analyzed by using various definitions of leisure along with different utility functions (including leisure as an argument).

Tourists’ preferences for managing invasive species in national parks: a choice experiment study in Taiwan

ABSTRACT This research study utilises the choice experiment methodology to examine tourists’ preferences regarding the adverse effects of managing invasive species in national parks. The study estimates the willingness of tourists to pay for mitigating various negative externalities associated with invasive species management. By understanding these willingness to pay estimates, national park management authorities can develop invasive species management strategies that have minimal impact on tourists. The study focuses on tourists visiting Yushan National Park and Taroko National Park in Taiwan. The findings indicate that tourists recognise the significant impact of negative externalities resulting from invasive species management, yet they still exhibit a preference for management over non-management. Among the negative externalities, tourists prioritise avoiding ecological disturbances and health risks over reducing recreational areas. National parks that are more easily accessible tend to have lower travel costs, making them more attractive to tourists visiting other destinations, particularly those on group tours. However, these characteristics result in stronger reactions from tourists towards management measures or lesser impacts from not managing invasive species, leading to reduced support for management initiatives. Furthermore, the study’s questionnaire format and sampling method are deemed consistent and reliable, effectively addressing potential biases associated with on-site visitor sampling.

Applying Fuzzy Decision-Making Trial and Evaluation Laboratory and Analytic Network Process Approaches to Explore Green Production in the Semiconductor Industry

As environmental awareness grows, society emphasizes green business. Thus, semiconductor companies encompass energy-saving processes and innovative product development. This study employs the fuzzy decision-making trial and evaluation laboratory (DEMATEL) analysis method to assess the impact of four key dimensions, externalities, market orientation, green technology, and corporate social responsibility, on semiconductor companies’ green production decisions. This study uses the DEMATEL-based analytic network process (DANP) approach to rank the criteria order in green production decision-making. The results from the DEMATEL causality diagram highlight externalities as the most critical dimension influencing other dimensions of green production decisions. This study suggests that regulatory pollution punishment and subsidies emerge as the primary drivers for green production decisions. Companies adopt environmentally friendly production practices to prevent regulatory pollution penalties or reduce carbon trading costs. Additionally, the DANP results reveal that corporate image criteria in the corporate social responsibility dimension hold the utmost priority in semiconductor firms’ green production decision-making. This implies that considerations for improving a company’s image should take precedence as semiconductor companies seek shareholder support and governmental subsidies to ensure sustainable operations. Externalities arise as the secondary priority dimension in green production decision-making, aligning with the impact of externalities identified in DEMATEL findings.

The influence of externality in the graph model for conflict resolution under fuzzy preferences

The Graph Model for Conflict Resolution (GMCR) is a flexible and comprehensive methodology for systematically investigating strategic conflicts. However, most existing studies solely focus on internal conflicts among decision makers (DMs), often disregarding the influence of external stakeholders (ESs) on DMs’ preferences. Consequently, this leads to insufficient stability in equilibrium outcomes. The objective of this study is to address the conflict issue faced by DMs with subjective uncertain preferences who are influenced by externality. Building upon the framework of GMCR, this study proposes the graph model for conflict resolution with fuzzy preference based on externality (FEGMCR) which introduces fuzzy numbers to measure both uncertain preferences of DMs and uncertain expectations of ESs. Furthermore, four forms of stability are extended-- Fuzzy Nash Stability based on externality (FER), Fuzzy General Metarationality based on externality (FEGMR), Fuzzy Symmetric Metarationality based on externality (FESMR), and Fuzzy Sequential Stability based on externality (FESEQ). The optimal equilibrium is achieved by dynamically adjusting the weight of the impact of externalities. Finally, the method is applied to the case of plastic ban in Hainan. It is found that the expectations of ESs do change the preferences of DMs and affect the final equilibrium, which provides a sustainable solution for the issue.

Impact of Digital Content Quality and Network Externalities on the Development of Young Consumers’ Online Brand Trust and Loyalty

Studies have shown that young consumers continue to be the target of digital marketing communications. They are also a source of revenues from online platforms that provide digital content. This research aimed to investigate whether young consumers’ online brand trust and online brand loyalty would be significantly influenced by such independent variables as creators’ digital content quality and network externalities. The study employed purposive sampling of 402 Thai undergraduate respondents who regularly view contents from their followed or subscribed channels. The research results were statistically analyzed using Structural Equation Modeling. The analysis revealed that creators’ digital content quality (.745, p < .001) and network externalities (.152, p < .001) had a significant impact on online brand trust. Furthermore, online brand trust (.960, p < .001) also had a significant impact on online brand loyalty. The findings provide empirical evidence for social media and digital marketing communications. In addition, the findings reveal that enhancing trust is still crucial to branding.

Understanding the Impact of Spatial Externalities on Two-Stage R&D Efficiency: Empirical Evidence from 285 Chinese Prefecture-Level Cities

Understanding the Impact of Spatial Externalities on Two-Stage R&D Efficiency: Empirical Evidence from 285 Chinese Prefecture-Level Cities

Does digital-industrial technology integration reduce corporate carbon emissions?

The integration of digital technology and industrial technology emerges as a pivotal avenue for enterprises to attain Sustainable Development Goals (SDGs), promoting the transition towards a sustainable and green trajectory of development. The panel data utilized in this paper encompasses financial, operational, and carbon emission metrics of publicly listed companies in China from 2008 to 2019. This longitudinal dataset enables us to perform robust statistical analyses to evaluate the impacts of Digital-Industrial technology integration on carbon emission intensity over time. The results indicate that: (i) Digital-Industrial technology integration significantly reduces the carbon emission intensity of enterprises, the conclusion remains robust when subjected to endogeneity and sensitivity analyses. (ii) Digital-Industrial technology integration mainly reduces the marginal cost of production and enhances the accumulation of knowledge to reduce the carbon emission intensity of enterprises. (iii) Digital-Industrial Technology Integration manifests more pronounced effects in curbing carbon emissions in regions characterized by robust property rights protection and well-developed digital infrastructure. (iv) Further research finds that Digital-Industrial technology integration increases the green technology innovation and ESG (Environmental, Social, and Governance) performance of enterprises. The results of this study provide empirical evidence for the carbon emission reduction function of the Digital-Industrial technology integration, and also verify the positive externality impact of the Digital-Industrial technology integration on the enterprise green innovation and SDGs.

The Impact of the Digital Economy on Supply Chain Security: Evidence from China’s Wooden Furniture Industry

Supply chain security is a major prerequisite for China’s successful industrial modernization, while the digital economy has significantly contributed to industrial transformation and upgrading. This study considers China’s wooden furniture industry as its research object, constructing an evaluation index system of the digital economy and supply chain security of the wooden furniture industry. Then, it studies the impact of the digital economy on supply chain security through theoretical analysis and empirical methods using the two-way fixed model of provinces and time. The findings demonstrate that the digital economy effectively enhances the level of supply chain security in China’s wooden furniture industry, further validating the digital economy’s positive externality impact on the traditional real economy. The impact mechanism test shows that inventory turnover capacity is the focal point for the digital economy to improve the supply chain security of the wood furniture industry, specifying the starting point for that industry’s digital transformation. The heterogeneity findings show that the role of the digital economy in improving the wood furniture industry’s level of supply chain security is more significant in inland areas than in coastal areas. Additional analyses found a threshold effect of the digital economy’s impact on supply chain security, indicating its limitations. This study explores the impact of the digital economy on the real economy from a traditional manufacturing industry, enriching research on the positive externalities of the digital economy as well as providing a reference for traditional manufacturing industries, such as that of wooden furniture, to probe the embedding points of the digital economy and appropriate digital transformation.

Consumption externalities, elastic labor supply and wealth distribution

This study employs a neoclassical growth model to investigate the impact of consumption externalities on the distribution of wealth. It also jointly accounts for heterogeneity in the degree of consumption externalities, heterogeneity in the initial wealth endowments, and endogenous labor supply. First, we demonstrate that catching-up occurs when an initially poorer household works more than an initially wealthier one, after which the additional income acquired through hard work offsets the initial wealth difference. Second, a reduction in wealth inequality is only consistent and systematic if an initially wealthier household works relatively less than the social average. When this condition is not met, a reduction in wealth inequality only occurs if the initial wealth is highly and unevenly distributed.

The Impact of Environmental Externalities on Pediatric Dermatologic Conditions.

The Impact of Environmental Externalities on Pediatric Dermatologic Conditions.

The Externality Impact of Urban Rail Transit on Urban Real Estate Prices in China

China has the largest and fastest growing urban rail transit system in the world. The system plays an important role in China's urbanization process, city governance and residents' daily commutes. The development of urban rail transit (URT) has influenced China's urban spatial structure and real estate supply, and has produced externalities on real estate value, including both positive and negative externalities. The research shows a positive correlation between URT and China’s real estate prices in general. The closer rail transit systems are, the greater the premium on real estate prices. In addition, the impact of rail transit on real estate prices shows a trend of first increasing and then decreasing. Different land use types and urban areas will also be affected. The research also found that the three stages of URT construction: planning, engineering construction and traffic operation have different effects on housing prices. At the same time, the impact of URT on land price will also change with China's economic situation and urbanization process. These influencing mechanisms above between URT and real estate prices may be linked to some factors. This research attempts to explain it by introducing urban spatial and land rent transformation, changes in real estate supply and demand, gentrification process, and different employment and housing pattern. This research points out the shortcomings and possible research directions of existing studies. In order to provide a reference for academic research and government policy making.

Study on Data Supply Chain Pricing Decision Considering Network Externalities

Nowadays, data has become an important productive factor in the world. Data as an asset to management and realizing its value are important factors for its flowing smoothly. However, how to price the data scientifically and reasonably has been a difficult and key problem for the data element market development. After analyzing the transaction process of data products from data resource acquisition to production and sales, a three-level data supply chain consisting of data providers, data trading platforms and users is constructed. In this chain, government subsidies for data trading platforms are considered. Based on that, a centralized and a decentralized differential game pricing model of data supply chain under the influence of network externalities are proposed respectively. The impact of network externalities and government subsidy elasticity coefficients, among others, on the two decision models is analyzed from a theoretical perspective.

Electric vehicle subsidy structure considering network externality under carbon neutrality constraints

PurposePromoting electric vehicles (EVs) is an effective way to achieve carbon neutrality. If EVs are widely adopted, this will undoubtedly be good for the environment. The purpose of this study is to analyze the impact of network externalities and subsidy on the strategies of manufacturer under a carbon neutrality constraint.Design/methodology/approachIn this paper, the authors propose a game-theoretic framework in an EVs supply chain consisting of a government, a manufacturer and a group of consumers. The authors examine two subsidy options and explain the choice of optimal strategies for government and manufacturer.FindingsFirst, the authors find that the both network externalities of charging stations and government subsidy can promote the EV market. Second, under a relaxed carbon neutrality constraint, even if the government’s purchase subsidy investment is larger than the carbon emission reduction technology subsidy investment, the purchase subsidy policy is still optimal. Third, under a strict carbon neutrality constraint, when the cost coefficient of carbon emission reduction and the effectiveness of carbon emission reduction technology are larger, social welfare will instead decrease with the increase of the effectiveness of emission reduction technology and then, the manufacturer’s investment in carbon emission reduction technology is lower. In the extended model, the authors find the effectiveness of carbon emission reduction technology can also promote the EV market and social welfare (or consumer surplus) is the same whatever the subsidy strategy.Practical implicationsThe network externalities of charging stations and the subsidy effect of the government have a superimposition effect on the promotion of EVs. When the network effect of charging stations is relatively strong, government can withdraw from the subsidized market. When the network effect of charging stations is relatively weak, government can intervene appropriately.Originality/valueComparing previous studies, this study reveals the impact of government intervention, network effects and carbon neutrality constraints on the EV supply chain. From a sustainability perspective, these insights are compelling for both EV manufacturers and policymakers.

Benefits evaluation of ecological restoration projects based on value realization of ecological products

Ecological restoration project is the premise to realize the value of ecological products. The current ecological product value accounting and ecological restoration project benefit evaluation methods are interlinked. The benefit evaluation of ecological restoration projects can not only analyze the completion of ecological restoration projects, but also quantify the impact of externalities on regional development. This study proposes a hypothesis that the benefit evaluation results of ecological restoration projects can affect the realization of urban ecological product value. In order to verify the above hypothesis, this study designed a benefit evaluation framework to evaluate the economic benefits, ecological benefits and project costs of ecological restoration projects. In this study, the benefit evaluation results are divided into three cases to calculate the benefit-cost ratio under different conditions. The three cases are only considering the direct economic benefits (DEB), considering the indirect economic benefits (TEB) and considering the comprehensive benefits (AEB). Taking Jiangyin City of Jiangsu Province as an example, the benefit evaluation of water source protection project in Jiangyin City is carried out. The results show that the benefit-cost ratios in the three cases are 6.68,7.60 and 9.36, respectively. The results show that the benefit-cost ratio is different in different benefit situations. Therefore, when discussing the realization path of ecological product value in ecological restoration areas, it is also necessary to discuss the situation. The evaluation system can provide reference for the benefit evaluation of ecological restoration projects, and also provide data and theoretical support for the realization of regional ecological product value.

Eco-Innovation, Reducing Carbon Emission and its Impact on Firm Performance (Case Study in Pt Semen Indonesia)

Objective: This research was conducted at PT Semen Indonesia Gresik aims to determine the extent of the application of eco-innovation in the company and the extent of the role of management in implementing eco-innovation. This study wants to find out whether the application of eco-innovation carried out at PT Semen Indonesia is able to reduce carbon emissions which is the government's commitment to reduce carbon emissions to the level of 29% by the end 2030. Theoritical Framework: The impact of environmental degradation and environmental externalities becomes a concentration of attention on social issues that encourage companies to pay attention to their business practices and find solutions to the impacts the environment it causes. Resource-Based View Theory (RBV) is a managerial framework used to define strategic resources with the potential to provide a comparative advantage to company. These resources can be leveraged by companies to achieve sustainable competitive advantage. Innovation theory addresses a number of innovation policies and measurement issues such as why companies innovate, what forces drive innovation and what factors hinder it. Related issues are the internal functioning of the company and the types of business practices used to promote innovation. Method: This research uses a qualitative approach inspired by research of Horbach (2008) and Triguero et al. (2013), which proposes three types of eco-innovation: eco-process, eco-product, and eco-innovation organization, but in this study using four types of eco- Innovations as listed in the Oslo manual developed by the Organization for Economic and Cooperative Development (OECD) are: eco-innovation organizations, eco-innovation products, eco-process innovation, and eco-marketing innovation. Data collection techniques carried out in this study include interviews, observations, documentation studies on emission reports and sustainability reports. The data were analyzed by case study research process stated by Creswel (2007). Findings: PT Semen Indonesia has implemented various programs in the context of efforts to reduce greenhouse gas emissions, namely through several programs, namely: (1) Diversification of blended cement products use of clinker which will reduce the emission of CO2 gas (carbondioxide) produced; (2) Utilization of alternative fuels using biomass products, also processing municipal waste into alternative fuel at the Ngipik Gresik landfill; (3) Utilization of flue heat gas operations as power plants which has been implemented at the Tuban plant and is able to reduce CO2 by 130,000 tons per year; (4) Upgrade/Improve equipment (high efficiency tech) Implications: This research has implications that the application of eco-innovation will be able to reduce carbon emissions, which is the Indonesian Government's commitment to reduce carbon emissions by the end of 2030.

How does cross‐platform externality impact pricing strategies? A two‐stage discriminatory pricing model analysis

AbstractThis study delves into the impact of cross‐platform externality on the pricing strategies of platforms, employing a two‐stage discriminatory pricing model. The research reveals several significant findings. Initially, cross‐platform externality exacerbates the “killing the loyal customers” strategy on the access platform, prompting consumers to favor a “one‐time” consumption approach to avoid potential intensification of this strategy. Furthermore, cross‐platform externality serves as a critical trigger for independent competitive platforms; surpassing a critical consumer threshold leads to a shift from the former “killing the loyal customers” strategy to offering more favorable prices for existing customers. Finally, cross‐platform externality leads to reduced prices for consumers on both platforms in both stages, assuming the drainage effect of the open platform is substantially weaker than its enhancement effect on the cross‐network externality of the access platform. During such instances, the cross‐platform externality proves advantageous to consumers. However, with a strengthening drainage effect and increased merchant attraction by the access platform, both platforms may face potential price increases. Notably, cross‐platform externalities provide access platforms with substantial advantages over independent competitors in terms of user scale and profit levels. This advantage progressively grows as cross‐platform externalities increase. However, for the access platform itself, the influx of consumers from the open platform must surpass a minimal threshold before cross‐platform externalities contribute to an increase in the access platform's profit levels. Consequently, if the objective of engaging in platform discriminatory pricing competition is to overcome competitors, integrating with an open platform proves to be an effective approach. However, if the goal is solely to boost one's own profits, embracing an open platform entails certain risks, necessitating the selection of a platform capable of delivering sufficient traffic.

Measuring network effects of digital industrial platforms: towards a balanced platform performance management

Firms increasingly establish digital industrial platforms to cope with the adaption of the industrial internet of things (IIoT) paradigm. The tremendous success of digital platforms in many platform-mediated industries can be traced back to the ignition of network externalities. However, the impact of network externalities is still under discussion in the IIoT domain, and their measurement remains a challenge for platform companies. This paper outlines how network effects were measured in the existing research, deriving three dimensions of network effects for IIoT: (1) ecosystem utility, (2) complementarity, and (3) compatibility. This conceptualization is further used in an empirical study with practitioners from digital industrial platform organizations to enable performance measurement of network effects in IIoT by developing 20 key performance indicators (KPIs). Based on the empirical study results, this paper proposes a framework for balanced platform management. Utilizing the goals of a balanced scorecard, the framework emphasizes the trade-off between the contradicting perspectives on costly network effect simulation and platform earnings that platform managers need to balance. The KPI portfolio can support platform managers in implementing the framework.

Supply Chain Green Manufacturing and Green Marketing Strategies under Network Externality

This paper discusses the impact of network externalities on the green strategies of enterprises at each node of the supply chain. The existing related research mainly addresses the influence of factors such as government regulation, consumer behavior characteristics, and node enterprise behavior on green supply chain decision making. While these studies provide excellent ideas, the impact of network externalities on both green manufacturing and green marketing strategies is often disregarded. This paper uses evolutionary game theory to construct a utility function based on network externalities and consumer green preferences. The Stackelberg game is used to analyze the revenue function of supply chain members under different strategies, showing that under different strategies, network externalities and consumer green preferences have different effects on revenue in the supply chain. To understand the influence of network externalities on green supply chain strategy choices, the evolutionary game model is used. This model allows analyzing the evolutionary stable strategies of manufacturers’ green manufacturing and retailers’ green marketing. The mechanism underlying the influence of network externalities and consumer green preferences on green supply chain decision making is demonstrated. This helps to explain the green strategy decisions of upstream and downstream enterprises in the supply chain.

Using Library Resource Materials to Integrate Deep Information and Externality Impacts into Semi-Live Finance Case Course Analyses

This paper focuses on the manner in which business library research can be integrated into an upper-level case course in financial management to allow students to study the impact of externalities and what shall be referred to here as “deep information” in examining business decision making. The case class discussed herein analyzes firms contemporaneously, i.e., those facing current financial and operating situations. This differs greatly from traditional case courses that focus instead on historical company situations. In particular, the approach developed at The University of Toledo in its Advanced Financial Management course is examined. Tangentially, the interaction with other courses in the finance curriculum is also discussed.More particularly, the incorporation into the case analysis of the impacts of various factors that are outside of the control of a firm’s management, but that strongly influence and channel its performance, is showcased. Examples of these external factors include the impacts of economic trends and conditions, demographics, international developments, competition, and industry effects. In addition to research on external factors, two other areas in which library assistance can aid in the analysis of concurrent case companies include -- finding data and information that delves more deeply into company activities, e.g., by using corporate and other databases, and utilizing EDGAR to study the footnotes of a firm to uncover obscure and often less comprehensible issues behind its activities and behavior. In doing this, focus is placed upon the manner in which the synergistic efforts of the librarian and case instructor can effectively present and integrate this information into these contemporaneous cases to enhance student learning experience.

Analysis of Internet Rent from the Perspective of Marx's Rent Theory: A Case Study of Mobile Internet Applications

People are now tightly connected through mobile Internet applications, whether they are platform owners, renters, business professionals, or users. The presence of Internet Rent is concealed between platform owners and renters of mobile Internet applications, according to Marx's rent theory. Owners of platforms lease out data land and charge Internet Rent to renters. Similar to land rent, Internet Rent demonstrates differential rent. However, due to the instantaneous replicability of data flow activities and the impact of network externalities, the former still differs from the latter in terms of social relationships, the existence of Absolute Rent, and the form of Differential Rent II.