Incentive Policies Research Articles

A real options-based framework for multi-generation liquid air energy storage investment decision under multiple uncertainties and policy incentives

Liquid Air Energy Storage (LAES) is a promising energy storage technology renowned for its advantages such as geographical flexibility and high energy density. Comprehensively assessing LAES investment value and timing remains challenging due to uncertainties in technology costs and market conditions. This study introduces a real options-based framework to evaluate investments in multi-generation LAES systems in China's power market by considering uncertain factors, such as investment cost and electricity price. Additionally, the impact of various incentives, including subsidies and preferential taxation policies, on LAES investment is investigated. The proposed investment decision framework is applied in a case study of a 10 MW-class multi-generation LAES system. Results show that the current economic environment is insufficient to trigger immediate LAES investment. The recommended optimal investment times are 2029 for Guangdong, 2031 for Jiangsu, and 2036 for Beijing and Qinghai without incentives. The levelized cost of storage at the optimal investment time is 0.105-0.174$/kWhe, and the optimal investment value is 882-9269k$. It is also found that preferential taxation policies can increase the LAES investment value. Increasing investment subsidies and technology learning effects have limited impacts on stimulating investments. In contrast, discharge subsidies are more favorable for promoting the deployment of LAES systems.

Assessing the effectiveness of financial incentives on electric vehicle adoption in Europe: Multi-period difference-in-difference approach

Electric vehicles (EVs) are considered a promising alternative to achieve a cleaner transportation sector. In the last decade, European countries have implemented financial incentive policies to boost EV adoption. This paper estimates the impacts of these policies on EV adoption in Europe using data from 30 countries from 2012 to 2021 and a multi-period difference-in-differences approach. Our results reveal that purchase incentive policies are associated with increased registrations of battery electric vehicles and plug-in hybrid vehicles, and that the effect holds over time. However, the magnitude and duration of these effects are more significant for battery electric vehicles. Ownership incentive policies do not contribute to EV registrations for either type. Further, the results suggest that policy impacts vary between countries with different levels of gross domestic product per capita and renewable energy consumption. These results contribute to the literature on evaluating financial incentive policies for EV adoption, enabling improved decision making by policymakers.

Changes in the Radiology Practice Landscape and Indicators of Practice Consolidation From 2014 to 2023.

BACKGROUND. A range of economic and health policy incentives are leading to ongoing consolidation among payers, hospitals, and physician practices. OBJECTIVE. The purpose of the present study was to evaluate consolidation among radiologists' affiliated practices through 2023, analyze the impact of consolidation on such practices' specialty mix and size, and assess radiologists' new affiliations after prior practices cease. METHODS. CMS data from 2014 to 2023 were used to identify all radiologists nationally along with their affiliated practices. Based on the specialty mix of all affiliated physicians, practices were categorized as radiology only or multispecialty; multispecialty practices were further categorized as radiology majority, other specialty majority, or no majority specialty. Practices that ceased (i.e., became absent within CMS data) were identified. Temporal shifts were assessed to infer consolidation patterns. RESULTS. From 2014 to 2023, the number of radiologists enrolled in Medicare increased 17.3% (from 30,723 to 36,024), whereas the number of affiliated practices decreased 14.7% (from 5059 to 4313). The number of radiology-only, radiology-majority, other-specialty-majority, and no-majority-specialty practices changed by -31.8% (from 3104 to 2118), 10.9% (from 402 to 446), -5.7% (from 615 to 580), and 24.6% (from 938 to 1169), respectively. The number of practices with one to two, three to nine, 10-24, 25-49, 50-99, and 100 or more radiologists changed by -18.7% (from 2233 to 1815), -34.4% (from 1406 to 923), -25.2% (from 910 to 681), 33.2% (from 352 to 469), 121.6% (from 125 to 277), and 348.5% (from 33 to 148). A total of 3494 practices ceased, including 2281 radiology-only practices. Among 3854 radiologists whose only affiliation was a ceased radiology-only practice, their subsequent-year affiliation was a radiology-only practice in 54.3% and a multispecialty practice type in the remaining instances. CONCLUSION. An overall decrease in the number of radiology practices and concurrent growth in the number of radiologists was mirrored by shifts from small toward large practices and from radiology-only toward multispecialty practices, consistent with ongoing practice consolidation. Although determining the causes of consolidation was beyond this scope of this study, the shifts may relate to economic incentives and legislative changes favoring large multispecialty practices. CLINICAL IMPACT. The continued consolidation of radiologists into large multispecialty practices may facilitate subspecialization and greater negotiating power in payer contracting. However, radiologists may prefer smaller and/or radiology-only practices for reasons of autonomy and influence on practice structure.

Research Methods SUMMATIVE

The purpose of this research is to explore the most effective methods of incentive policy and the impact on consumers behaviours. In the business case of “Starbucks' new sustainability commitment”, its main aim is to encourage greater consumer acceptance and use of reusable containers by understanding the characteristics of consumers behaviours and then designing incentive methods that are appropriate. This research can provide scientific insight into the most effective methods of incentivising. Based on the findings, Starbucks can motivate more consumers to use reusable containers.

Do regional tax incentive policies improve productivity?

The difficulty in transforming old industrial areas constitutes a significant factor contributing to regional development imbalances. Can regional tax incentives, as a crucial component of regional policies, polish the "rust belt" regions? This study leverages the inaugural Value-Added Tax (VAT) reform in China as an opportunity to explore the potential of regional tax incentives in achieving sustainable development in traditional industrial areas. Drawing upon a comprehensive industrial enterprise database, we employ a Propensity Score Matching-Difference in Differences (PSM-DID) approach to examine the efficacy of these tax incentives. Our findings reveal that: (1) Regional tax incentives primarily enhance firms productivity by stimulating investment in enterprises, yet they do not contribute to improved investment efficiency or spur innovation within firms. (2) Regional tax incentives have alleviated financing constraints for enterprises in old industrial bases, significantly enhancing the Total Factor Productivity (TFP) of firms with higher financing constraints. This policy has had an even stronger impact on improving the TFP of state-owned and monopolistic enterprises. (3) Regional tax incentives have impeded productivity growth by preventing the exit of low-efficiency firms and the entry of high-efficiency ones. These incentives also increased the likelihood of "zombie firms" forming and failed to promote endogenous economic growth in the Northeast region. Additionally, they have distorted the allocation of resources towards capital and technology-intensive industries in that area. In China's old industrial bases, regional tax incentives should be coordinated with market-oriented reforms; these regional tax incentive policies should also be further enriched.

Causal links between patents and economic growth: empirical evidence from OECD countries

Objective of the Study: This paper empirically investigates the reciprocal relationship and causality between patents and economic growth. Methodology/Approach: Utilizing the Generalized Method of Moments (GMM) Panel Vector Autoregression (PVAR) and panel VAR-Granger Causality frameworks, the study concentrates on Organisation for Economic Co-operation and Development (OECD) economies where a high fraction of global innovative activities take place. Originality/Relevance: The relationship and causality between patents and economic growth are investigated and evaluated by distinguishing the former variable into patent applications and grants. Main Results: The findings from the GMM panel VAR approach indicate that patent applications and grants significantly affect economic growth, whereas economic activities do not influence patent-related variables. The estimations from the panel VAR-Granger approach confirm these findings by presenting a unidirectional causality from patent applications and grants to economic growth. The impulse-response functions (IRFs) exhibit parallel findings, and further checks validate the stability of the findings obtained. The outcomes of this study point out two crucial implications. First, the impacts of patent applications and grants affect economic growth similarly while the impact of patent grants lasts longer. Second, while patents cause higher economic activity, the latter does not induce innovative activity through patents in the OECD. Theoretical/Methodological Contributions: It would be useful to conduct separate analyses for a selected product, sector, or country by including research and development (R&D) expenditures for different periods, country groups, and analysis methods. Social/Management Contributions: Countries should prioritize the establishment of an effective patent management system that will increase the pace of innovation and the implementation of incentive policies for the development of high-value-added technology products. JEL Classifications: O34, O40, O50, C23

Reshaping port-city relationships through underground logistics system: A mixed qualitative approach

Against the backdrop of explosive growth in freight demand, the negative impacts of the traditional road-system-based port-city logistics mode on urban transportation, environment and safety have become prominent livelihood issues, as well as significant economic and social problems. Port-city underground logistics system (PC-ULS) has been widely recognized as an innovative way to ensure the sustainable development of port cities. However, the influence mechanism of PC-ULS on the port-city relationships is still unclear. Thus, this paper attempts to explore the PC-ULS-based port-city relationships formation process and the main influencing factors using a mixed qualitative approach. The social, economic and environmental impacts of PC-ULS on the development of port cities were systematically analyzed using the Shanghe Port ULS and Shanghai Port ULS as the case studies. The results show that the impacts generated by PC-ULS are positive and widely distributed across the economic sphere, port-city traffic, logistics governance, urban equity, stakeholders, ports, and urban spaces, as well as ecological sustainability. Furthermore, the urban planning, technology compatibility and engineering risk related factors have a strong impact on the PC-ULS implementation. A set of incentive policies has been designed to promote the effectiveness of PC-ULS. The findings provide a unique perspective on underground space development and utilization to address port-city conflicts, as well as a reasonable implementation pathway for PC-ULS application.

Research on the Mechanism of Connecting the Training and Employment Market of Maritime Talents in Hainan Free Trade Port

Under the background of the construction of Hainan Free Trade Port, the mechanism of connecting the training and employment market of maritime talents is particularly important. This paper analyzes the current demand of the employment market for maritime talents in Hainan Free Trade Port and the specific requirements of enterprises for talents. It explores the existing docking mechanisms and their shortcomings, and proposes optimization suggestions such as strengthening school-enterprise cooperation, improving information sharing mechanisms, enhancing the quality of talent training, and optimizing policy support and incentives. The aim is to provide a theoretical foundation and practical guidance for the high-quality development of maritime talents in Hainan Free Trade Port.

Fine-grained digital twin sharing framework for smart construction through an incentive mechanism

Prefabricated construction is increasingly applied in the construction industry. Recent academic and industrial efforts highlight that Digital Twin as a Service (DTaaS) is an innovative solution to strengthen the advantages of prefabricated construction by enabling continuous monitoring, precise control, and optimized maintenance of each unique module. However, the complexity of digital twins presents significant challenges for both platforms and subcontractors to apply and fully understand this technology. It is, therefore, crucial to develop a well-designed sharing environment where stakeholders volunteer to share their digital twin resources for synergistic benefits. This research proposes an innovative blockchain-based fine-grained digital twin sharing framework, with detailed architecture focused on two key stages of prefabricated construction: on-site construction and logistics involving warehousing and transport. An incentive mechanism is introduced to encourage all the stakeholders engaged in digital twin sharing framework to contribute and share more digital twin resources. Evolutionary and cooperative games explore the effective settings of the incentive policies, aiming to ensure the feasibility and sustainability of the proposed system by motivating users to share digital twins with fine granularity. Mathematical and numerical results demonstrate the optimal subsidy policies with/without budgetary constraints and further highlight the effectiveness of well-crafted incentives. Findings reveal that better performance in terms of profitability and digital twin sharing is achieved under the proposed incentives. Subsidies are primarily allocated to offset costs with a certain budget, whereas the emphasis shifts towards quality improvement under an ample budget. This study lays a solid foundation for digital twin reuse and development.

The way out for urban household solid waste classification in China: From the perspective of multi-agent based behavior simulation

Rapid industrialization and urbanization drive China's massive urban household solid waste (HSW) generation. Classification and resource recycling of HSW is an effective way to address the “garbage-sieged city” dilemma and promote “urban mineral resources” exploitation. Despite efforts since 2000, HSW sorting and recycling remain at 30%. This study develops a multi-agent based behavior simulation model for HSW classification and recycling, incorporating the interactions and decision-making of key agents, including residents, enterprises, and the government. Taking Suzhou, China as a case study, field surveys were conducted, and behavioral decision-making functions were constructed to simulate micro-behavioral responses and macro-system evolution under different policy incentives, and to predict the implementation effect of domestic waste management approaches, provides the basis for decision-making. The results demonstrate that a combination of waste metering charges, recycling subsidies, and enhanced education program can effectively regulate agent behavior and optimize the system. One year after the implementation of the simulation, the number of “unclassification” residents has dropped from 1.85 million to 250,000 decreased by 86%; the number of “classification deposition” residents has declined from 1.28 million to 1.08 million, reduced by 16%; the number of “selling after classification” residents has risen from 1.05 million to 2.81 million, increased by 63%; the daily waste output per capita has decreased from 1.21 kg to 1.04 kg, reduced by 14%; the recovery rate of resources has been raised from 33.4% to 66.5%. The implementation effects of other policy scenarios are ranked as follows: the metering charge > the recycling subsides > the enhanced education program. The findings provide a basis for decision-making in HSW management. Concerning the metering charge and the recycling subsidies, they can benefit positive interactions encouraged by such economic stimulus. At the same time, it is suggested to strengthen classification and recycling infrastructure, and push forward the integration of HSW classification recycling.

Research on the Effect of Clean Energy Technology Diffusion on Energy Poverty

Addressing energy poverty is integral to the United Nations Millennium Development Goals, and clean energy technology serves as an essential tool in mitigating this issue. Existing studies pay less attention to the correlation between the two. In this study, we quantify the spread of clean energy technology using patent citation information and analyze balanced panel data from 30 provinces in China spanning the years 2004 to 2019. The findings reveal that the diffusion of clean energy technology not only directly reduces energy poverty but also indirectly alleviates it by enhancing energy efficiency and fostering employment. However, the positive impact of technology on poverty is affected by human capital. Specifically, when the number of college students per 10,000 people in a province surpasses 179, technology diffusion becomes effective in alleviating energy poverty. Furthermore, the efficacy of this mitigation varies significantly based on different regions. Technologies originating from developed economies such as the United States, Japan, and the European Union exhibit a more substantial impact than domestic alternatives. Additionally, the effect of alleviating energy poverty is more significant in the eastern region. Therefore, we make policy recommendations for alleviating energy poverty through the use of incentive policies, exploring differentiated models of clean energy technology development, and strengthening international cooperation.

ESG-Driven Investment Decisions in Photovoltaic Projects

As global climate change intensifies and environmental awareness increases, investing in renewable energy has become a primary economic and social development priority. Photovoltaic (PV) projects, as a clean and sustainable energy technology, have garnered significant attention due to their notable environmental and economic benefits. However, traditional investment evaluation methods such as net present value (NPV) analysis fail to adequately capture the flexibility and future uncertainties inherent in PV project investments. This paper presents a case study analysis proposing a delay option model that incorporates environmental, social, and governance (ESG) factors, providing a more scientific and flexible investment decision framework for PV projects. The case study results indicate that considering ESG factors significantly enhances the investment value of PV projects. This model not only provides comprehensive support for PV project investment decisions but also underscores the importance of establishing stringent carbon trading markets and policy incentive mechanisms to promote the widespread adoption and sustainable development of renewable energy projects.

The adoption of electric vehicle in Thailand with the moderating role of charging infrastructure: an extension of a UTAUT

ABSTRACT Electric vehicles (EVs) have the potential to greatly reduce the amount of gasoline consumed and carbon emissions produced during transportation. Consequently, the Thai government actively advocates for the widespread use of electric vehicles (EVs). This study has examined the factors that influence the adoption of electric vehicles in Thailand, with the moderation of charging infrastructure. The research builds upon the UTAUT2 model and incorporates new elements such as environmental concerns, satisfaction with incentive policies, trust, and the availability of charging infrastructure. Environmental concerns, price value, and hedonic motivation significantly affect use behaviour through trust and behaviour intentions; however, facilitating conditions do not affect them. Habits positively affect use behaviour through behaviour intention, though factors such as effort expectancy and social influence satisfaction with policies showed insignificant results when affecting use behaviour. The moderating effect of charging infrastructure showed an insignificant result.

Analysis of low-carbon technology transfer strategies based on a quadrilateral evolutionary game

Promoting low-carbon technology transfer is crucial for reducing global greenhouse gas emissions, combating climate change, and fostering sustainable development. Based on the “efficient market” and “active government” concepts, a “government-intermediary-receiver-sender” game model was constructed, identifying evolutionary stable strategies and key factors affecting strategy selection. It was found that (1) receiver and sender needs and government policy incentives increase intermediaries' willingness to participate, reducing input costs and shifting government support from incentives to compensatory regulations; (2) optimal strategies emerge when incentives for low-carbon technology senders, receivers, and intermediaries, and penalties for serious defaults by senders and receivers exceed a threshold, fostering high participation willingness and leading to government implementation of compensatory regulations; (3) differentiated penalties are necessary to avoid a sender-receiver prisoner's dilemma but only ensure one side's willingness to participate, while government incentive-based regulation can overcome negative constraints and promote active participation from both sender and receiver. Compensatory regulations encourage sustained technology transfer costs and reduce incentive costs, with optimization focusing on lowering government publicity costs and increasing economic benefits for intermediaries.

Achieving carbon neutrality in an emerging oil-producing country: Renewable energy transition and international trade flows in Ghana

Over the past decade, climate variabilities have emerged as shaping the dynamics of international trade. The adverse externalities posed by climate change require a corresponding improvement in the production of food, trade and the adoption of abundant renewable energy resources. Our study focused on evaluating the impact of renewable energy transition on international trade flows in Ghana. We employed the dynamics ARDL simulation model to analyse our results using data from various institutions. We found that energy transition using both low carbon energy and renewable energy in electricity generation by 1% and 5% significantly increases the balance of trade to the 4th year after which energy transition decreases the balance of trade to the 9th year. After the 9th year, energy transition by both percentages increases the trade balance of Ghana. We observe that the energy transition by 5% has a higher impact than the energy transition by 1%. Additionally, it is observed that using the share of renewable energy in electricity generation has a decreasing rate relative to the first four years. Drafting renewable energy plans such as allocation of funds, supportive policy frameworks and incentives such as green financing, subsidies, and tax incentives can enhance and develop renewable energy infrastructure to increase renewable energy efficiency and reliability for international trade.

Relevance of farm-scale indicators and tools for farmers to assess sustainability of their mixed crop-ruminant livestock systems

Ensuring the sustainability and circularity of mixed crop-ruminant livestock systems is essential if they are to deliver on the enhancement of long-term productivity and profitability with a smaller footprint. The objectives of this study were to select indicators in the environmental, economic and social dimensions of sustainability of crop-livestock systems, to assess if these indicators are relevant in the operational schedule of farmers, and to score the indicators in these farm systems. The scoring system was based on relevance to farmers, data availability, frequency of use, and policy. The study was successful in the assemblage of a suite of indicators comprising three dimensions of sustainability and the development of criteria to assess the usefulness of these indicators in crop-ruminant livestock systems in distinct agro-climatic regions across the globe. Except for ammonia emissions, indicators within the Emissions to air theme obtained high scores, as expected from mixed crop-ruminant systems in countries transitioning towards low emission production systems. Despite the inherent association between nutrient losses and water quality, the sum of scores was numerically greater for the former, attributed to a mix of economic and policy incentives. The sum of indicator scores within the Profitability theme (farm net income, expenditure and revenue) received the highest scores in the economic dimension. The Workforce theme (diversity, education, succession) stood out within the social dimension, reflecting the need for an engaged labor force that requires knowledge and skills in both crop and livestock husbandry. The development of surveys with farmers/stakeholders to assess the relevance of farm-scale indicators and tools is important to support direct actions and policies in support of sustainable mixed crop-ruminant livestock farm systems.

Changes in Use of Prenatal Dental Care After Brazil’s Incentive Policy

In 2020, the Brazilian federal government launched the “Prevent Brazil” program to incentivize cities to improve their performance across 7 health care indicators, including prenatal dental care. Our study examines the impact of this policy on the use of oral health care among pregnant women in Brazil. We used a series of cross-sectional data from the Brazilian Public Health System from 2018 to 2023. We linked publicly available data from the Brazilian Ministry of Health and the Brazilian Institute of Geography and Statistics. Our outcome was the proportion of pregnant women receiving prenatal care who had at least 1 dental visit during the past year. Covariates included city-level socioeconomic (income and literacy), demographic (gender, race, and urban areas), and workforce variables (number of dentists working in the public health system per city/year). We estimated the impact of the policy on prenatal dental visits nationwide and stratified by geographic region using interrupted time-series analysis. Our analyses included 99.9% of all Brazilian cities (n = 5,562). The use of oral health care among pregnant women increased from 15% in 2018 to 69% in 2023. Adjusted estimates show that, after initiation of the Prevent Brazil, dental care use among pregnant women increased nationally at a rate of 4.6 percentage points per 4-mo period (95% confidence interval [CI] 4.5; 4.7). The policy’s largest impact was in the North and Northeast regions, which have the lowest socioeconomic profiles (adjusted time-series rate 5.7 [95% CI 5.3; 6.1] and 5.2 [5.0; 5.4] percent points, respectively). Our findings support the positive impact of the Prevent Brazil policy on prenatal dental care in Brazil. The policy was associated with a countrywide improvement in prenatal dental care use, with a greater impact in socioeconomically disadvantaged regions.

Do fairness concerns matter for ESG decision-making? Strategic interactions in digital twin-enabled sustainable semiconductor supply chain

Spatial-temporal visibility and traceability in the digital twin enable semiconductor supply chain great transparency and efficacy, but also poses challenges to information disclosure. There is growing evidence that investment in digital twin technology is becoming crucial for improving environmental, social, and governance (ESG) ratings and mitigating risks within a sustainable semiconductor supply chain. Nonetheless, how fairness concerns impact the decision-making processes among different stakeholders remains inadequately understood. This paper presents an analytical analysis of the dynamic strategic interplay among semiconductor manufacturers, consumers, and government regulatory agencies (GRAs) utilizing the evolutionary game model. The aim is to investigate how long-term ESG strategies and fairness-oriented behaviors respond to government incentives. The findings imply that substantial investment demands can dissuade semiconductor manufacturers from delivering ESG services, while low tax rates may lead to their complacency and a subsequent lack of investment in ESG initiatives. Meanwhile, semiconductor manufacturers are more inclined to provide ESG services when the order loss ratio is low, and the tax rate is high, with strict regulations further amplifying this probability. Furthermore, consumers valuing fairness and equity tend to give positive feedback for basic services but is critical of ESG services due to issues with transparency in digital twin technologies. Addressing these issues extends beyond the scope of market incentives alone, requiring interventions from third parties such as government regulations, policy incentives, and enhanced data security measures.

Dynamic simulation of policy-driven green technology innovation networks: Digital empowerment and collaborative efficiency

To delve into the intricate dynamics of green innovation, it is imperative to establish a policy-driven green innovation network and optimize its multi-entity collaborative mechanism. Given the dynamic complexity of a technological innovation network composed of multiple entities, this paper examines the interactions among four subsystems based on system dynamics (SD) simulation: resource input, innovation performance, policy-driven, and digital empowerment subsystem. Furthermore, we analyze the combined effects of policy-driven initiatives and the role of digital platforms in facilitating innovation efficiency based on empirical evidence. The results indicate that: (1) Government can effectively promote green development by enforcing stronger environmental regulations, such as increasing carbon trading price, while enhancing the emission reduction efficiency of innovative products. (2) Increased per capita R&D investment, along with financial, tax, fiscal incentives for innovation investment, will increase the rate of innovation achievements. (3) Government should strengthen talent policy during anticipated increases in talent numbers and reduce the intensity of introductions during expected declines. (4) By implementing incentive policies to develop S&T platforms, government can broaden innovation network cooperation, promotes resource aggregation, and leverages multi-entity cohort effects.

Factors influencing contractors' low-carbon construction behaviors in China: a LDA-DEMATEL-ISM approach.

Contractors' low-carbon construction behaviors (CLCB) are pivotal in advancing decarbonization during the construction phase. However, there exists a notable gap in the comprehensive exploration of the multifaceted factors and mechanisms influencing CLCB. Therefore, this study aims to systematically identify the factors influencing CLCB in China, examine the interrelationships among these factors, and pinpoint the key determinants. Based on topic modeling of Latent Dirichlet Allocation (LDA), influencing factors are identified firstly from the pertinent literature. Subsequently, the causality degree and centrality degree between these factors are assessed by the Decision-Making Trial and Evaluation Laboratory (DEMATEL), followed by the establishment of a hierarchical structure using the Interpretive Structural Modeling (ISM) method, culminating in the identification of pivotal factors. Findings reveal that (1) 21 influential factors influencing CLCB are identified. (2) "Incentive policies for relevant stakeholders" and "Low-carbon regulation and supervision" emerge as key influences. (3) CLCB should be guided by policy and subjective awareness, fortified by market and management support, underpinned by technology, and directly driven by economic considerations. This research furnishes valuable insights for promoting low-carbon development during the construction phase, thereby assisting the construction sector in achieving carbon peak and carbon neutrality.