Impact Of Externalities Research Articles

ADAM: A web platform for graph-based modeling and optimization of supply chains

Modeling and optimization are essential tasks that arise in the analysis and design of supply chains (SCs). SC models are essential for understanding emergent behavior such as transactions between participants, inherent value of products exchanged, as well as impact of externalities (e.g., policy and climate) and of constraints. Unfortunately, most users of SC models have limited expertise in mathematical optimization, and this hinders the adoption of advanced decision-making tools. In this work, we present ADAM, a web platform that enables the modeling and optimization of SCs. ADAM facilitates modeling by leveraging intuitive and compact graph-based abstractions that allow the user to express dependencies between locations, products, and participants. ADAM model objects serve as repositories of experimental, technology, and socio-economic data; moreover, the graph abstractions facilitate the organization and exchange of models and provides a natural framework for education and outreach. Here, we discuss the graph abstractions and software design principles behind ADAM, its key functional features and workflows, and application examples.

The Impact of Negative Externality of Waste on The Coastal Beach of Lampung for The Community from an Islamic Economic Perspective

The impact of negative coastal externalities in Lampung Bay has produced waste that pollutes the marine environment around the coast of Lampung Bay. Although it is not visible to the naked eye, residents feel negative impacts that have become serious problems that have not yet been entirely handled. This article aims to research, study and produce decisions regarding the externalities felt by the surrounding community regarding the impact of negative externalities generated from waste which is the source of all environmental problems in Lampung Bay, and what consequences they have from an Islamic economic perspective. In our research, the method used is field research carried out directly in the field based on population and sampling to determine the negative impact of waste on the community. Garbage is produced from a production process that inevitably has negative and negative externalities. The testimonies of residents, several magazines, and direct observations led this article to the conclusion that it is essential to conduct a particular study to decide which negative externality impact is more dominant regarding the causes of continued accumulation of waste from year to year as well as the factors and implications of problems related to waste in Lampung Bay.

Promoting Sustainability through Assessment and Measurement of Port Externalities: A Systematic Literature Review and Future Research Paths

In an attempt to mitigate and balance economic, environmental, and societal externalities that ports exert, port sustainability is becoming increasingly important as a key priority. This work embarks on an effort to explore the boundaries, provide a holistic view, and establish a knowledge map of contemporary research in the field of port externalities and impacts, by conducting a systematic literature review (SLR) by carrying out a three-stage procedure (planning, execution, and reporting), enhancing objectivity, while limiting errors and bias. The literature under study pertains to research domains focusing on: (a) identifying port externalities and impacts, (b) utilizing metrics and indicators to measure and quantify the positive or negative impact of port externalities, and (c) promoting an inclusive framework for sustainable port development. Our results include, among others, the classification of methodologies and particularly, of indicators established per type of externality to measure and monitor sustainable port performance, as well as identification of trends and gaps within the contemporary literature. We find considerable room for exploring new concepts and research paths within the domain of port impacts and externalities, both within individual dimensions of sustainability (economic, social, environmental), and on a multidisciplinary level.

Complex Adaptive System Approach for Studying the Impact of Externalities on the Success of Restoring Stream Functions

Complex Adaptive System Approach for Studying the Impact of Externalities on the Success of Restoring Stream Functions

The Spatiotemporal Non-Stationary Effect of Industrial Agglomeration on Urban Land Use Efficiency: A Case Study of Yangtze River Delta, China

All over the world, Industrial agglomeration has become a key to improve the efficiency of urban land use and regulate the process of urbanization. Industrial agglomeration, as a universal economic geographical phenomenon, has been extensively studied, but few scholars have discussed the relationship between industrial agglomeration and urban land use efficiency. Based on this, after classifying the type of agglomeration externalities, our study uses OLS and GTWR models to explore the complex mechanism of interaction between industrial agglomeration externalities and urban land use efficiency, especially the spatiotemporal non-stationary characteristics. We found that the impact of industrial agglomeration externalities on urban land use efficiency is significantly unstable in time and space, and the coexistence, substitution and aging mechanism of agglomeration externalities among different types were also observed. Our research can provide reference for city managers to formulate reasonable industrial policies and enterprises to choose the location. Meanwhile, our research has made some contributions to the academic research on urban land use efficiency.

The impact of network externalities and altruistic preferences on carbon emission reduction of low carbon supply chain

This paper explores the manufacturer's carbon emission reduction in the presence of network externalities and altruistic preferences. Existing literature mainly analyzes the impact of government regulations and firms' behavior characteristics on manufacturers' decisions, while little literature investigates the role of network externalities and altruistic preferences in promoting carbon emission reduction of manufacturers. Our results show that network externalities and altruistic preferences are conducive to improving manufacturers' profits and carbon emission reduction levels. However, we find that manufacturers' carbon emission reductions are more likely to be optimal without network externalities and altruistic preferences when the cost of low-carbon technologies is low, and consumer preferences are high. Interestingly, when the low-carbon technologies cost is high, the combined effect of network externalities and altruistic preferences is more favorable for manufacturers to implement carbon emission reductions. However, when the cost of low-carbon technologies is moderate, we find that the combined effect of network externalities and retailers' altruistic preferences does not always increase the level of carbon emission reductions. In addition, we also find that network externalities or altruistic preferences enhance manufacturers' ability to afford the costs of low-carbon technologies, which implies that manufacturers are more inclined to reduce carbon emissions compared to scenarios without network externalities and altruistic preferences.

Impacts of the COVID-19 pandemic on grocery retail operations: An analytical model.

The COVID‐19 pandemic has had profound effects on grocery retailers, forcing them to make many operational changes in response to public health concerns and the shift in customers' shopping behavior. Grocery retailers need to understand the impact of pandemic conditions on their operations, but the literature has not modeled and analyzed this issue. We bridge this gap through economic models that consider the documented changes in the customers' shopping behavior during the COVID‐19 pandemic, including less frequent in‐store shopping and bulk‐shopping tendency. We capture the impact of occupancy limitation guidelines on grocery retailers' service capacity, customers' shopping behavior, and, consequently, on the retailers' store traffic and profit. We find that though store occupancy limitations reduce the in‐store foot traffic (which helps with curbing the disease spread), interestingly, they do not necessarily result in a profit decline. Under occupancy limitations and when the retailer offers the delivery or curbside pickup service, our analyses highlight the externality impact of online customers on the shopping behavior of in‐store customers. When the retailer adds the delivery service, such externalities may increase the store traffic (higher infection risk inside the grocery store) and reduce the retailer's profit. When the retailer adds the curbside pickup instead, it has more control over the impact of externalities, which helps in lowering the store traffic and increasing the profit. Our results offer valuable insights into how retailers should regard occupancy limitations and health safety measures. Our results also highlight conditions under which various operating modes may help retailers reduce infection risk and achieve higher profit.

Does Network Externality of Urban Agglomeration Benefit Urban Economic Growth—A Case Study of the Yangtze River Delta

Scholars have conducted a large number of empirical studies on agglomeration externalities and network externalities at the urban scale, but there are relatively few studies at the urban agglomeration scale. For the integrated development of the Yangtze River Delta (YRD), analyzing the impact of network externalities and agglomeration externalities on urban development can provide academic references for the integrated development of urban agglomerations. The results show that: (1) From 2000 to 2010, the average GDP growth rate of the cities in the YRD region showed a rapid growth trend but began to slow down after 2010, showing an outward spatial distribution pattern. (2) From 2000 to 2020, the growth rate of Shanghai’s investment in cities in the YRD showed a downward trend and an outward spatial diffusion. The growth rate of investment within the YRD showed a slowing trend from 2000 to 2015 and increased after 2015, showing a spatial distribution from northwest to southeast. From 2000 to 2020, the growth rate of investment from other cities in China to cities in the YRD showed a continuous upward trend, and spatially formed a distribution characteristic from northwest to southeast. (3) The growth of internal investment in the YRD and that of other cities across China can accelerate urban economic growth, and the growth of internal investment in the YRD has a greater role in promoting economic growth, indicating that the “agglomeration externalities” and “network externalities” at the urban agglomeration scale both can promote urban economic growth, but the effect of the “agglomeration externalities” within the urban agglomeration is more obvious. (4) The growth of investment in the core city Shanghai does not play a significant role in the long-term economic growth of cities in the region.

How Customer Demand Reactions Impact Technology Innovation and Security

Innovation is a very important concern for both managers and governmental policy makers. There is an important interplay between security and technology innovation that is largely unrecognized in the literature. This research considers the case where technology innovation in the form of additional product features increases demand through greater functionality. However, the likelihood of a security breach increases with the number of product features as the features interact in unintended ways, thereby increasing the attack surface. Using a two-stage game, we demonstrate how potential demand changes (from direct risk or externalities) impact firm technology innovation strategy. The analysis shows that the type and extent of customer demand reaction has a significant impact on innovative feature development. This research identifies two potential impacts on the level of innovation that can be strategically managed - the impact of externalities on demand and industry risk - explaining how these forces alter the level of innovation in the product ecosystem. Additionally, high-security development is disincentivized, and leads to a type of competitive behavior where the opportunity window for high-security development for all firms is small.

The Impact of Economic Externalities on the Development of China’s Property Insurance

This article aims at the impact of changes in the economic environment on China’s property insurance industry, using comprehensive literature analysis and empirical analysis, selecting variables, and using the National Bureau of Statistics of China and Wind database 2013–2019 data to conduct a principal factor analysis. It proves the role of such factors as promoting the development of China’s property insurance, economic system reform, demographic changes, and technological progress. The research was funded by the CSC Committee. The article provides a theoretical reference for the analysis of China’s property insurance development policies and measures, and explains the role of selected variables in the development of the property insurance industry. The specific role of external economic factors in the development of China’s property insurance is the future Research direction. The research results can provide references for developing countries and regions to formulate property insurance industry policies.

The interaction between direct and indirect network externalities in the early diffusion of mobile social networking

The early diffusion of mobile social networking (MSN) reflected the interplay of different factors: the affordability of better Internet connectivity and the diffusion of Smartphones suitable for Social Networking Applications. These key technology and cost drivers facilitated both the direct and indirect network externalities, which are necessary to overtake critical adoption barriers and facilitate users' decisions. However, a key challenge in modeling MSN diffusion is in distinguishing among the impact of these two types of network externalities. This paper addresses such a challenge by adopting a two-stage estimation strategy. In the first stage, we focus on direct network externalities by estimating a set of country-specific adoptions peaks that allow differentiating between early and late adopters. In the second stage, we estimate the impact of indirect network externalities on MSN diffusion while also considering the role of pricing strategies. Our results provide significant evidence that indirect network externalities can exert opposite effects on adoption between early adopters and followers, depending on whether they adopt before or after a country's MSN diffusion peak.

Stacked Revenues Maximization of Distributed Battery Storage Units Via Emerging Flexibility Markets

Power system flexibility is seen as a key for addressing the management challenges in the future smart grids. Distributed Energy Resources (DERs) can provide the necessary flexibility to: a) maintain a stable frequency and a secure energy supply in an overall system perspective, and b) maintain bus voltages and secure transfer capacities in their local networks. In this context, Flexibility Service Providers (FSPs) facilitate the management of the transmission and the distribution network, while at the same time they optimally exploit their DERs. This work proposes a bilevel model for an FSP owning distributed Battery Storage Units and participating in: i) wholesale Energy, Reserve and Balancing Markets, and ii) a novel distribution-level Flexibility Market. The developed model is applied to the IEEE 33-bus radial distribution system and the results demonstrate that it achieves superlinear gains. Finally, a sensitivity analysis is conducted to study the impact of several externalities on the FSP's decisions.

Resilience of hydropower plants to flow variation through the concept of flow elasticity of power: Theoretical development

Fluctuation in hydro-electricity production is primarily attributed to natural and human-induced flow variations. Reduced electricity generation because of unavailability of flow inflicts significant upward pressure on the sources and prices. Despite studies on the impact of externalities on river flow variation, there is a distinct research gap on the responsiveness of hydropower plants to change in flow. This study has introduced a novel concept of flow elasticity of power (ε) to assess the resilience of hydropower projects to flow variation. The theoretical aspect has been established for run-of-river (ROR) and storage-type (ST) cases separately and validated at two projects, one of each type, located in the Budhigandaki Basin in central Nepal. Responsiveness of hydro-projects to the topographical parameters are also dealt with here. For ROR systems, wide-ranging values of ε indicate varying levels of resilience to power generation and loss of resources. For ST projects, the response differs according to emptying, filling and ROR-equivalent phases. Furthermore, strong topographical implications on power production and its elasticity are evident. This concept of ε sets out a significant research contribution in the hydropower sector and demonstrates its possibility of direct application in projects ‘inpriori’ as well as ‘posteriori’ while planning/designing and operating/updating stages, respectively. The ε coefficient scientifically informs the planners and developers on the sensitivity of the powerplants to hydrological variations and topography ultimately benefitting the existing global challenge to minimize the loss of precious resources for sustainable hydropower development.

Investigating the economic impact of noise barriers on single-family housing markets

Noise has important consequences on health, and these impacts are internalized into real estate prices. From a landscape and public policy perspective, the construction of noise barriers appears to be an effective solution to reduce the impact of negative externalities. However, barriers also create local negative externalities for owners, such as a reduction in sunshine hours and visual encumbrance. The aim of the paper is to investigate the local net effect of noise barriers for the Greater Montreal area using single-family house transactions between 2000 and 2017. The analysis is based on a matching methodological framework with a difference-in-difference approach applied on various noise levels along highway segments. The estimated net impact appears to be place-dependent, with a price premium being assigned to houses located closer to the core of the metropolitan area. This conclusion points towards considering those specificities when authorities aim at implementing such an infrastructure.

A Virtuous Circle of Governance Contests with Externalities

Governments create contests to allocate resources to stakeholders, e.g., grants, contracts. The actions of these stakeholders can generate a positive externality for themselves—the contest winner can attract additional outside funding and donations from third-parties who want to jump on the winner’s bandwagon. Herein we examine the externalities arising from these contests created by governance and their impact on a virtuous circle of governance contests. Among various conditions that make governance virtuous, we focus on the equilibrium expected payoffs of stakeholders, the difference in them, and the rent-dissipation rates. Our study shows that the impact of externalities on the efficiency of governance depends on two key factors: (i) the choice of governance contests, the player-externality and the winner-externality, and (ii) the relative efficiency of stakeholders’ efforts.

Impact of Externalities on the Design and Management of Multimodal Logistic Networks

It is now widely accepted that the locations of intermediate facilities, such as logistics platforms or inland ports, are key elements of multimodal freight distribution networks and heavily influence their effectiveness. This crucial role of localization decisions is even more significant if we consider their impact on the external costs of the entire logistic corridor, with reference to the cost components associated with environmental sustainability. This paper faces a facility location problem concerning a port system network serving inbound container flows arriving by sea and travelling via road and/or rail towards the hinterland. The aim is to evaluate the impact of externalities on the overall management of the distribution network, including location decisions, flow routing and transport mode choice. We present a Mixed Integer Linear Programming (MILP) model having the goal of minimizing both the location and shipping costs, while accounting for external cost components. In particular, as a novel environmental issue, we propose three different objective functions including congestion, air pollution, and, incidentally, noise and infrastructure deterioration. We allow the containerized flows to be split among several capacitated facilities and road and rail transport modalities. The reported computational experimentation refers to different intermodal freight logistic networks through real data derived from the logistic network departing from the maritime terminals associated with the port of the Ligurian region towards their main destinations in the north-west side of Italy. Finally, we evaluate the impact on both flows and total costs due to a closure or a capacity reduction on some links of the network. The evidence of the impact of sustainability external costs on the design and management of the multimodal logistic network under analysis is emphasized.

COVID-19 vaccines and treatments: When speed is necessary and not enough.

COVID-19 vaccines and treatments: When speed is necessary and not enough.

Effect of Network Externality on the Price Competition in Vertically Differentiated Market

The information products dramatically reduce the production costs of vertically differentiated products. Information products are also more likely to be affected by network externalities. Thus the proliferation of digital products is increasing the interests in network externality and vertical product differentiation. In step with this trend, the impact of network externalities on price competition in vertically differentiated markets has been continuously studied. Existing studies related to this topic have assumed that network externalities increase consumers' willingness to pay per unit quality. The results show that higher quality products are affected more by network externality. However, network externality is essentially a concept affected by the size of the consumer, not a concept associated with quality. In this work, unlike previous studies, we present a new market model that reflects the essential definition of network externality. Based on the proposed market model, we derive both simultaneous and sequential Nash equilibria and analyze them numerically. The main results obtained from the analysis can be summarized as follows. First, network externalities primarily increase the demand for low-quality products and have a secondary impact on the demand for high-quality products. Second, the larger the quality difference between products, the more profitable they are. It also has been shown that sequential pricing methods are more advantageous in terms of revenue than simultaneous pricing method.

Assessment of negative infrastructural externalities when determining the land value

The work forms and substantiates the concept of land value, based on a new institutional theory. The infrastructural component of the cost of land in the presented concept determines, on the one hand, the efficiency of the use of natural resources, properties, demand for land on the market, on the other hand, the costs, which are determined not only by capital investments in construction of engineering infrastructure, but also by losses associated with restrictions on activities within zones with special conditions for territory use, creation of unfavorable conditions for economic activity, small contours, irregularities and others on a specific land plot, which are external negative infrastructural externalities that create losses of rights holders of land plots that are not compensated by the market, falling within the boundaries of these zones. Methods for assessing the impact of such negative infrastructural externalities on the cost of land encumbered by zones in different conditions of land market activity have been developed and tested, based on an expert-analytical approach (depressed market); the ratio of market values of land plots encumbered and unencumbered by a specific zone, and qualimetric modeling (inactive market); modeling by introducing into the model the factor of presence of zones with special conditions for territory use, based on the grouping of zones according to similar regulations for use, or by introducing the parameters of this factor (active market). Methods for taking into account spatial deficiencies and compensating for restrictions and prohibitions on activities on the territory of land plots with an individual market assessment are proposed.

Climate change and climate migration: issues and questions around an in-transition Tunisian economy

This article presents an initial attempt to investigate the issue of climate migration in Tunisia. Precipitation and temperature are used as climate-representative variables. Indeed, using a new analysis on spatial modeling, this work demonstrates the direct and indirect effects of precipitation as well as temperature on the climate migration of a governorate and those of neighboring governorates through the production of irrigated and non-irrigated plants. In addition, spatial modeling shows that the impact of climate change on migration through cereal and olive production differs from that of irrigated plants, thus demonstrating the importance of taking explicit account of the spatial effects between governorates. The decline in a farmer’s income in (a) governorate is a factor in rural exodus and migration to other governorates with water and a more favorable climate. This cause-and-effect phenomenon is known as negative externalities because some regions are forced to suffer from the consequences of the arrival of a new population. The originality of this method is that it allows the impact of spatial externalities to be taken into account in an effective way. The data used describe the 24 Tunisian governorates.