Impact Valuation Research Articles

Shareholder primacy or stakeholder governance?

Externalities happen largely in the private sector and cannot be fully separated from production decisions. Decision-making in companies thus co-determines the degree of sustainability of an economy. Advances in impact valuation allow us to express the stakeholder interests in finance and valuation terms. We can thus compare investment decisions and payout decisions for three types of models: the shareholder value model, the shareholder welfare model, and the stakeholder model. Our results show that stakeholder-driven companies are better able to pursue a sustainable economy. Corporate governance should be adjusted accordingly.

Leading to Social Impact Communication: Understanding Corporate Social Advocacy (CSA) from Industry Professional Perspectives

ABSTRACT This study aims to understand how practitioners define and describe corporate engagement with social issues within the larger context of their organization’s social obligations. Semi-structured online interviews were conducted with 20 communication professionals involved in CSA practices of large U.S. corporations. This study proposes an expanded definition of CSA as a part of social impact communication. Additionally, we present a social impact valuation process model, offering an initial theoretical grounding for understanding CSA decision-making processes. The study contributes to public relations literature by extending our understanding of the dynamics of CSA in practice and bridging the gap between practice and theory.

Revolutionary Design and Optimization of Railway Electrification Overhead Equipment in High-Altitude Tunnels: A Case Study of the Magnificent T-80 Tunnel

Railway electrification systems are critical for modernizing railway infrastructure, enhancing efficiency, and reducing environmental impact to obtain zero emissions targets. In high-altitude regions, such as mountainous terrains, unique challenges arise due to extreme weather conditions, terrain complexities, and operational requirements. This case study focuses on the innovative and optimized design of overhead equipment (OHE) for railway electrification in high-altitude tunnels, presenting a comprehensive analysis of the planning, design, and implementation process for 25kV AC Overhead equipment. The study begins with an overview of significant considerations in designing 25kV AC OHE systems for high-altitude tunnels, including altitude effects on electrical performance, weather effects, structural safety checks, fire scenarios, vibration effects, and tunnel bolt drilling for OHE equipment installation. It also covers aspects such as the selection of auto tensioning devices, electrical clearances, and earthing & bonding according to railway/EN/IEC standards. Also, the paper examines the monetary feasibility and environmental sustainability of the proposed OHE design, emphasizing the importance of life-cycle cost analysis and environmental impact valuation. It underscores the significance of adopting a holistic approach that balances technical requirements, operational efficiency, and environmental stewardship in railway electrification projects.

Identification of Economic Impact Valuation on Small Industrial Centers (Study on the Sukaregang Leather Tannery Industrial Center)

Identification of Economic Impact Valuation on Small Industrial Centers (Study on the Sukaregang Leather Tannery Industrial Center)

Back to the Future: The Impact Valuation of Net Zero Transition Plans

Back to the Future: The Impact Valuation of Net Zero Transition Plans

Economic valuation of artisanal small-scale gold mining impacts: A framework for value transfer application

Illegal artisanal and small-scale gold mining (ASGM) activities have serious environmental and health consequences. In this study, we developed a framework for calculating the economic costs associated with the negative environmental and social impacts of ASGM in the Brazilian Amazon. Based on a literature review on impact valuations of deforestation, land degradation, and mercury contamination, we used multiple parameters to develop a generalizable value transfer formula. The formula relates input variables, such as mining site area, pit depth, gold extraction productivity, and other context variables (population density, per capita income, average daily fish consumption, and transportation cost for restoration) to calculate the average monetary values associated with the impact. Additionally, we propose an enhancement to the model used by Bakker et al. (2021) for estimating mercury impacts on human health. Our findings show that values associated with social and environmental damage range from US$ 187,200 to US$ 389,200 per kilogram of gold, which is mostly attributable to health outcomes related to mercury contamination, which represents more than twice the market value of gold. Furthermore, we conducted a case study for the Tapajós Basin, which revealed that the socioeconomic costs generated by 4,547 ha of alluvial ASGM in the basin surpasses US$ 1 billion for the year 2020.

Impact valuation of droughts in soybean and maize production: the case of Argentina

PurposeIn Argentina, soy and maize represent 28% of the total country exports, affecting the balance of payments, international reserves accumulation and sovereign credit risk. In the past 10 years, three extreme and moderate droughts have affected the agricultural areas, causing significant losses in soybean and maize production. This study aims to estimate the economic impact generated by different drought levels for soy and maize production areas through a financial perspective that allows the estimation of the cash flow and income losses.Design/methodology/approachBy analyzing the extreme deviations in yields during dry periods, the losses generated by droughts were valuated among 183 departments nationwide.FindingsThe aggregated results indicated a total loss of US$24.170m, representing 57.45% of the international reserves of the Argentinean Central Bank in 2021. This estimate shows the magnitude of the climate impact on the Argentinean economy, indicating that severe droughts have macroeconomic impacts, with the external sector as the main transmission channel in an economy with historic restrictions on the balance of payments, international reserve accumulation and sovereign credit risk.Originality/valueThis study analyses the macroeconomic impact of drought on Argentinean soybean and maize production.

Ravines and gullies, a review about impact valuation

Gullies and ravines affect human lives and the environment in many countries worldwide, however, few studies have assessed the impacts of the damage caused by these large linear erosions and clarified their influencing parameters. This work systematizes available information about the variables relevant to analyze the impacts of ravines and gullies on socioeconomic conditions and ecosystem services. Based on keyword searches performed in the Scopus, Web of Science and Dimensions databases, more than 120 articles from 27 countries were identified that addressed and valuated these different types of impacts. Although many studies discuss the impacts of ravines and gullies, few studies have performed valuations of these impacts. We compiled the impacts in urban and rural areas, considering the changes caused by ravines and gullies throughout a hydrographic basin. The results allowed for the elaboration of a theoretical model of the possible impacts of gullies and ravines and how they can be valued. The results demonstrate that the most significant impacts, according to the literature, are in South America, Africa, China and India, which are related to disordered land occupation. In some cases, the lack of capacity to respond to environmental and social problems aggravates the scenario and leads to significant losses. Implementing the evaluation is challenging due to the high number of different forms of possible impacts, in the short, medium and long term, related to environmental, economic and social changes.

Sustainable wind energy planning through ecosystem service impact valuation and exergy: A study case in south-central Chile

Wind energy has great potential to drive Chile's energy sector towards a more sustainable model; however, it could induce landscape changes impacting ecosystem services. Accordingly, this study aimed to identify the best areas for wind energy development in Biobío and Ñuble regions, by integrating metrics from suitability analysis, ecosystem service valuation and exergy. The trade-offs between ecosystem services and wind electricity generation were assessed through biophysical indicators. Then, a new indicator based on ecosystem services impacts and exergy concept was developed to determine the most sustainable sites for wind energy development. Results showed that deploying wind energy could have the highest adverse effects on erosion regulation services, with an increase of 40%–50% in soil loss for Ñuble and Biobío. Moreover, the crop and timber provision were also reduced by 10%, while water-related services were favored by an increment of 10% in water savings. The proposed indicator took negative values in all suitable zones under analysis (−25 to −307 GJex/GWh), indicating that ecosystem services losses exceeded gains. Results suggest that seven zones are potential sites for wind energy development based on their impacts which were up to −39 GJex/GWh. This work provides evidence for promoting sustainable wind energy planning by locating the projects in zones with the lowest detrimental ecosystem services impacts.

Impact Assessment of the COVID-19 Pandemic on Shrimp Exports in Thailand: An Empirical Study Using Time Series Analysis

This study aims to assess the impact of the Coronavirus disease 2019 (COVID-19) pandemic on Thailand’s shrimp exports in 2020 by applying the Box-Jenkins forecasting technique. A monthly time series from January 2011 to December 2019, comprising 108 months in total, which is the period before the COVID-19 pandemic, was used to forecast Thailand’s shrimp exports of frozen and flavored shrimp from January to December 2020. Subsequently, the impact assessment was calculated by comparing the shrimp export values for the case with and without the effects of the COVID-19 pandemic. The empirical results reveal that the most suitable models for the estimate are (1) SARIMA(4,1,0)(0,1,1)12 for the export volume of frozen shrimp, (2) SARIMA(1,1,0)(0,1,1)12 for the export price of frozen shrimp, (3) SARIMA(2,2,3)(0,1,0)12 for the export volume of flavored shrimp, and (4) SARIMA(2,1,0)(0,1,1)12 for the export price of flavored shrimp. The impact assessment of the COVID-19 pandemic on shrimp exports in Thailand indicates that the COVID-19 pandemic has positively affected frozen shrimp export at an impact valuation of 1325 million baht and flavored shrimp export at an impact valuation of 1632 million baht. The reason for this is due to the demand for shrimp exports from Thailand to replace the sharply reduced shrimp supply in the world market.

Policy for sustainable entrepreneurship: A crowdsourced framework

Sustainable entrepreneurship can contribute to sustainable development by seeking synergies between social, environmental and economic outcomes, turning market failures into commercial opportunities. However, institutional conditions often act to obstruct sustainable entrepreneurs. While policy is instrumental in shaping conditions for entrepreneurship, how policy can best support sustainable ventures specifically is under-researched. This study uses a novel crowdsourcing approach with multiple actors in the sustainable entrepreneurship ecosystem to explore how policy can create conditions conducive to sustainable entrepreneurship. An emergent multi-level policy framework outlines six mechanisms by which this may be achieved: resource prioritisation, competency building, sustainable market creation, networked sharing, collaborative replication, and impact valuation. These mechanisms enable three interconnected policy objectives: enterprise creation, system transformation, and impact reorientation. The study thereby makes four main contributions to literature on sustainable entrepreneurship and policy. First, it reveals the importance of a ‘meso level’ of policy that supports the sustainable entrepreneurship ecosystem, complementing micro-level supply-side and macro-level demand-side policies. Second, it proposes a policy focus not just on enterprises and how they are grown, but on sustainability-oriented innovations and how they are replicated. Third, it identifies the need for ‘impact re-orientation’ policies that track and optimise entrepreneurs' individual and collective triple-bottom-line impacts. Fourth, the study exemplifies a promising crowdsourcing method of co-creating policy.

THE ECONOMIC IMPACT OF CULTURE: STUDIES AND EXPERIENCE IN LATVIA

The first economic impact studies in Latvia were done 10 years after the iconic research by John Myerscough [Myerscough 1988]; we lag behind not only in time, but also in the content of such researches. Cultural managers and cultural institutions still do not consider economic impact valuation relevant. The present paper analyses why it is so and whether there any options for stimulating economic impact evaluation practices in Latvia. The paper evaluates the motivation for performing economic impact research and arguments against such studies together with the general research trends and experiences of foreign researchers. The study shows that currently custom designed calculators with guidelines available in the form of web pages are a successful and useful tool for calculating the economic impact of cultural events. The paper notes that the economic impact of various cultural phenomena, infrastructure buildings, and the whole field has been analysed by R. Karnīte, R. Ķīlis, I. Strode, I. Rozenberga, K. Goppers, the alumni of the Latvian Academy of Culture, and others. Mostly these studies are detached and accidental, moreover, each study uses a different methodology; consequently, the economic impact studies in the field of culture in Latvia are not regular and constant, and usually they are fuelled by the private interest of the event organizers or researchers. The author has created a template for a calculator, which is adapted to the economic situation of Latvia. It could promote popularity and regularity of the economic impact analysis studies in Latvia.

Do Investors Care about Impact?

Abstract We assess how investors’ willingness-to-pay (WTP) for sustainable investments responds to the social impact of those investments, using a framed field experiment. While investors have a substantial WTP for sustainable investments, they do not pay significantly more for more impact. This also holds for dedicated impact investors. When investors compare several sustainable investments, their WTP responds to relative, but not to absolute, levels of impact. Regardless of investments’ impact, investors experience positive emotions when choosing sustainable investments. Our findings suggest that the WTP for sustainable investments is primarily driven by an emotional, rather than a calculative, valuation of impact.

Impact valuations in social finance: emic and polyvocal stakeholder accounts

PurposeThis paper aims to understand how social finance and impact measurement experts include stakeholders' voices in valuations of social and environmental impact.Design/methodology/approachThe paper used the content analysis of an online discussion forum where experts discussed impact valuation approaches.FindingsMany experts seek impact valuations that take into account the experiences of those whose lives are most affected. Ideally, these accounts need to be emic to (in the language of) those stakeholders, and polyvocal (representing many different stakeholders' voices). However, these experts also seek to effect systemic change by encouraging mainstream financial markets to use social and environmental valuations in their decision-making. These experts consider full plurality too complex to be useable by financial markets, so the experts argue in favor of etic valuations (stated in the language of investors), to appeal to mainstream finance, while endeavoring nonetheless to represent multiple stakeholders' voices. The authors identify two discursive strategies used to resolve this tension: effacing of differences between diverse stakeholders, and overstating the universality of money as a common language.Social implicationsThe terms emic and polyvocal provide experts with nuanced ways to understand “stakeholder voice.” The authors hope these nuances inspire new insights and strategies and help the community with their goal of bridging to mainstream finance.Originality/valueThe paper presents a theoretical framework for describing plurality in impact valuations and examines the challenges of bridging from social finance, which seeks to give voice and representation to those whose lives are most affected, to mainstream finance.

Accounting infrastructures and the negotiation of social and economic returns under financialization: The case of impact investing

Impact investing has emerged as a topical subject-matter for scholars working at the intersection between finance and social policy. By and large, it is seen as a product of financialization: some argue that the social is colonized by financial actors and methods, others see it as a site where boundary work produces a state of value plurality in which competing values—social and financial—co-exist. This article takes the latter perspective further and unpacks the endogenous dynamics underpinning the creation of social values in impact investing programs. It analyzes how high-level organizations in the field prescribed specific social impact valuation processes and mechanisms for collecting, measuring, and reporting data about value creation. It argues that the social values circulating in the impact investing field emerge from the interplay between a wide array of stakeholders, impact investors included. The social impact accounting tools that capture them materialize therefore as sites of political battles and negotiations between stakeholders, with both emancipatory but also exploitative potential. This has consequences upon our understanding of how financialization travels and how the social dynamics underpinning accounting devices (re)draw boundaries between competing values and fields.

Impact of Wind Farm Integration on LMP in Deregulated Energy Markets

The integration of renewable energy generation affects the operating characteristics of a power system, such as electric losses, voltage profile, generation cost, system stability, and reliability of the system. The installation of renewable energy generation units in non-optimal locations may increase system losses, costs, voltage fluctuations, etc. The main hurdle in integrating renewable energy generation units with an existing electrical grid is the uncertainty of renewable sources. This paper presents the impact of wind farm integration on the system economy in a wind-integrated deregulated power market. The importance of deregulation in terms of the system generation cost, bus voltage profile, and locational marginal pricing (LMP) are also studied in this work. LMP is the main parameter responsible for handling the system economy (i.e., profit of generating units and profit of customers). Considering the variable nature of wind flow, three different real-time wind speed datasets are used to validate this work. Bus sensitivity factor (BSF) is considered for equating the optimal position of the wind farm in the integrated system. Five different optimization techniques, i.e., sequential quadratic programming (SQP), artificial bee colony (ABC) algorithms, particle swarm optimization (PSO), ant colony optimization (ACO) algorithm, and slime mold algorithm (SMA), are introduced to solve the optimal power flow problem. The SMA and ACO are used for the first time in this type of economic assessment (i.e., impact valuation of LMP) in a deregulated power system, which is the novelty of this work. The entire work is performed in a modified IEEE 30 bus test system.

Impact Valuation of mGreen

In recent decades, environmental protection has received increased attention, paving the way for socially responsible investment (SRI) and blended value accounting (BVA) to become increasingly favored by investors in assessing performance of businesses. Unlike traditional accounting tools, blended value accounting monetizes social impact alongside financial returns, which is suitable for valuation of social enterprises and enables investors to see a more thorough picture of both financial and social value of businesses. mGreen is a social enterprise in Vietnam that operates in the industry of waste management software. This company has contributed greatly to waste classification at source, recycling and raising environmental awareness in Vietnam. This paper conducts an impact valuation for mGreen through three main steps. First, I analyse the business model of mGreen and its industry. Second, I use cost-benefit analysis to measure the impact of mGreen through monetization. Third, I project its value in five years and make some recommendations for future activities of mGreen. Therefore, the paper concludes that mGreen has created a net blended value of 40,480.988 USD in 2021 and net present values of $253,391.05 in the upcoming 5 years. Its terminal value comes at $950,000.

Research on classification method of new energy vehicle information security risk assessment

With the rapid development and popularization of intelligent Internet connected vehicle, the automobile and the physical world are combined together, which makes users have strong technology experience and life convenience. While enjoying the convenience and experience brought by the intelligent Internet connected vehicle, we are also faced with the risk of information security in the network world, even the security problems of the network world directly affect the security of the physical world. With the improvement of automobile ‘four modernizations’, the research on information security has become an important topic and research hotspot in the field of automobile. Risk assessment is one of the important research and work contents of automobile information security. Impact valuation is an important indicator of risk assessment. It is very important to determine the optimal cluster number for risk assessment model and risk assessment. In this paper, the fuzzy clustering impact estimates are divided into 2-12 categories during Evergrande’s risk assessment of an electric vehicle. The optimal number of clusters is determined by calculating the mixed F-statistics of each type of data. Conclusion shows that the best clustering number of impact estimates is 5.

Risk Aversion, Inequality and Economic Evaluation of Flood Damages: A Case Study in Ecuador

While floods and other natural disasters affect hundreds of millions of people globally every year, a shared methodological approach on which to ground impact valuations is still missing. Standard Cost-Benefit Analyses typically evaluate damages by summing individuals’ monetary equivalents, without taking into account income distribution and risk aversion. We propose an empirical application of alternative valuation approaches developed in recent literature, including equity weights and risk premium multipliers, to a case study in Ecuador. The results show that accounting for inequality may substantially alter the conclusions of a standard vulnerability approach, with important consequences for policy choices pertaining damage compensation and prioritization of intervention areas.

Introducing public procurement tenders as part of corporate communications: a typological analysis based on CSR reporting indicators

PurposeCorporations have to increasingly include corporate social responsibility (CSR) communication by responding to public procurement tenders because of the recently revised Government Procurement Agreement (GPA) concluded by the World Trade Organization (WTO). The authors argue that procurement tenders are to be seen as part of corporate communications, particularly when aligned with CSR reporting and performance indicators as proposed by the Global Reporting Initiative (GRI). The recently published ISO 20400 on sustainable procurement lacks a clear usage indication of sustainability indicators (SIs). This paper aims to close this gap.Design/methodology/approachThe paper performs a typological analysis of sustainability indicators in a sample of 665 currently used SIs. Furthermore, the paper conceptualizes a SIs selector for Sustainable Public Procurement (SPP) which is based on the typological analysis and acknowledges recent developments in the evolution of SIs.FindingsThe SIs typology results in three indicator types. The typology leads to the conceptualization of SI’s selector for sustainable public procurement. It enables professionals to build indicators for SPP considering the context of sustainability with impact valuations and allows scholars to advance research on measurement and decision-making.Originality/valueTo the authors’ best knowledge, this is the first introduction of procurement tender processes as part of corporate communications. Furthermore, the derived typology contributes an overview of existing SIs used in CSR communication. The paper contributes a self-responsible and pragmatic approach to CSR theory as private business self-regulation and a definition of SIs for corporate communications.