Subsidy Levels Research Articles

Water productivity and economic feasibility of drip irrigation system investment in tomato cultivation: Case of northeastern Tunisia

AbstractTunisia is characterized by water scarcity, growing water demand and considerable waste of this resource especially in the agricultural sector. To cope with this situation and enhance water productivity, appropriate utilization of advanced irrigation methods such as drip irrigation is highly needed. Hence, this research aims to evaluate the profitability of drip irrigation systems compared with surface irrigation systems at the perimeter of Echraf, which is located in the northeastern of Tunisia. Primary data were collected from 25 adopters of the Drip Irrigation System and 13 non‐adopters. The results of the partial budget analysis revealed that the average total cost for adopters was higher than that for non‐adopters. However, the net margin was higher for adopters than for non‐adopters. This is due to the greater increase in gross revenue for adopters than for non‐adopters. Additionally, drip irrigation resulted in more efficient water use and water values than did the surface irrigation system. Economic profitability analysis via the benefit cost ratio and net present value tools revealed that the drip irrigation system is profitable. The benefit cost ratio is equal to 1.65, and the net present value is approximately 2938 Tunisian National Dinar. Finally, the sensitivity analysis reveals the extent to which profitability is sensitive to the scenarios of subsidy levels.

Greening corporate practices: a review of tax and subsidy influence on pro-environmental behaviors across industries

PurposeThis study examines conditions under which taxes and subsidies designed to mitigate corporate environmental impact positively influence corporate pro-environmental behavior (CPEB) adoption, considering unique dynamics within different industries.Design/methodology/approachA systematic literature review was conducted on 171 articles. Articles were coded using an inductive grid for comprehensive examination.FindingsTaxes generally positively influence CPEB adoption, but reduced positive or even negative effects can arise. Subsidies, while often facilitating the achievement of environmental goals, variously impact CPEB. Explanations for variations include the level of taxation or subsidy, economic agent affected, subsidy source, nature of subsidy, factors external to tax or subsidy characteristics and conflicting environmental objectives. We suggest research avenues for each aspect, to enhance literature on the influence of tax policies on promoting CPEB.Practical implicationsBeyond general tax-policy considerations, we provide policymakers with recommendations for tax policies designed to promote CPEB.Originality/valueWe examine the distinctive effects of taxes and subsidies on CPEB adoption within diverse industries ((re)manufacturing, agriculture, shipping, automobile, freight transport and power generation). We compare specific effects across industries, and advocate detailed exploration of recurrent elements identified, emphasizing their potential significance in designing taxes and subsidies that promote CPEB.

The impact of environmental regulation on enterprise green innovation

This paper evaluates the real effects of the environmental regulation at the firm level. Using the implementation of Chinese Air Pollution Prevention and Control in 2013 as a quasi-natural experiment,difference-in-differences estimation shows that: (1) environmental regulation significantly improve the application of green innovation by firms, and this relationship is robust to different specifications and alternative measures; (2) three possible channels are the improved levels of the environmental protection subsidy, total factor productivity (TFP) and environmental protection investment of enterprises; (3) our findings are particularly pronounced in subsamples with the application of utility green innovation and state-owned enterprises (SOEs). Overall, this paper reveals the micro-mechanisms behind the real effects of environmental regulation on firm green innovation, thus providing timely implications for regulators concerned with environmental protection.

Intersecting social welfare with resilience to streamline urban flood management

Urban policymakers have long searched for stormwater management plans that incentivize stakeholders to adopt Green Infrastructure (GI) while effectively reducing the vulnerability of drainage systems. In this regard, our research introduces a novel framework to develop GI strategies that provide both hydrological resiliency and social acceptance. To achieve this, first, using a coupled Stormwater Management Model (SWMM) and Non-dominated Sorting Genetic Algorithm-II (NSGA-II), optimal alternatives for GI planning were generated. In the optimization process, we used a novel Simple Urban Flood Resilience Index (SUFRI) to consider the internal performance of the system in identifying resilient plans. Derived management strategies warrant runoff volume reduction and resilience improvement up to 31.3% and 55.1%, respectively. In the next step, Utilitarian-based Social Welfare (USW) was employed to clarify the socio-economic behavior of management strategies. Results indicate that while financial incentives significantly motivate developers to implement GI, they cannot guarantee high social welfare, and achieving a sustainable solution requires evaluating both SUFRI and USW layers under different subsidy levels. Visualizing the SUFRI layer revealed a critical failure in the resiliency trend of solutions that cannot be detected by evaluating simpler metrics, such as runoff volume reduction. This highlights the importance of the SUFRI method in conducting deeper evaluations and preventing financial waste. Finally, we navigated the intersection of USW and SUFRI measures to reach an ideal management plan with optimal supporting level. Our findings showed that the selected solution with the highest social acceptability can improve the resiliency of the system by 29 %. This study is a novel combination of the hydrological and social aspects of stormwater management, enabling decision-makers to take significant steps towards sustainable urban development.

Process integration technique for targeting carbon credit price subsidy

Mitigating climate change requires a portfolio of strategies and the use of carbon dioxide removal techniques or negative emissions technologies (NETs) will be necessary to achieve this goal. However, the high implementation costs of advanced NETs lead to expensive carbon credits, hindering their broad acceptance and use. One potential solution involves governmental support through subsidies, aiming to boost the availability of NET-derived carbon credits. This research uses a graphical technique based on an extension of pinch analysis to identify the ideal subsidy level for carbon dioxide removal, taking into account factors such as carbon pricing, supply, and demand. The proposed approach modifies the limiting composite curve (LCC) methodology to accurately determine the optimal subsidy and establish the baseline amount of subsidized carbon dioxide removal needed. The approach enables the convenient and efficient construction of the LCC using a composite table algorithm. To illustrate the proposed methodology, two case studies composed of different NETs and demand sectors are investigated. The results show the most advantageous subsidy levels for these technologies, providing valuable insights to guide policymakers and investors in their decarbonization efforts. This work contributes to the development of effective governance and investment strategies by optimizing NET subsidy allocation. Such optimization is crucial for facilitating the widespread implementation of these technologies, which are in-line with the global efforts to mitigate climate change.

Impacts of a sustainable aviation fuel mandate on airline competition — Full-service carrier vs. low-cost carrier

The aviation industry has proposed the collective goal of achieving net-zero carbon emissions by 2050. In addition to the existing market-based methods (MBMs), the use of renewable energies, in particular, sustainable aviation fuel (SAF), could be one of the most promising means for achieving this long-term target. This paper investigates how an SAF mandate from the government can lead to heterogeneous impacts on two types of airlines, namely, full-service carriers (FSCs) and low-cost carriers (LCCs), that compete in the same markets. A game-theoretic economic model is constructed that accounts for the different service quality levels and cost structures (i.e., fuel efficiency) between FSCs and LCCs. Our analytical results suggest that the SAF mandate favors LCCs over FSCs. The share of SAF blended into fuel raises the airfares of both types of airlines while reducing the traffic and profit of FSCs. The impacts on the LCC traffic and profit depend on its fuel efficiency relative to that of FSC. When LCCs are sufficiently fuel efficient, the SAF mandate can increase their traffic and profit. The government subsidy on airline's SAF use is also analyzed, deriving the optimal subsidy levels for FSC and LCC respectively to achieve pareto-improvement in social welfare and consumer surplus. We also examine how air passengers’ environmental awareness affects the outcomes of SAF mandate implementation. Our economic model also accounts for passengers’ heterogeneous preferences in terms of service quality and price sensitivity.

Evolutionary game analysis of government subsidies for reusable express packaging promotion

The increase in e-commerce and online shopping has resulted in a significant amount of packaging waste from express delivery, posing a considerable burden on the environment. To address this issue, reusable express packaging has emerged as one of potential solutions to reduce packaging waste in express delivery. This study analyzes the evolutionary stability strategy of local governments and express delivery enterprises by constructing an evolutionary game model. The model considers the limited rationality and group behavior of decision makers, as well as the economies of scale and diseconomies of scale in operating cost of reusable express packaging. Results indicate that the variability in the cost of reusable express packaging may lead to the simultaneous emergence of two evolutionary stability strategies, contrasting traditional evolutionary game studies. Due to the present low uptake of reusable express packaging among express companies, coupled with the lack of subsidies support from local governments, it is difficult to attain the optimal situation in which businesses actively utilize reusable express packaging. To accomplish this objective, it is crucial to establish subsidy amounts that are balanced and reasonable, rather than merely elevating them to the highest possible levels. The study proposes an optimal range for government subsidy levels and gives corresponding policy suggestions.

Decision making and benefit analysis of closed-loop remanufacturing supply chain considering government subsidies

Remanufacturing closed-loop supply chain can effectively deal with the deterioration of environmental resources and the limited supply of resources as a part of circular economy. Government subsidies are an important factor to promote its development. In this paper, we consider a two-stage remanufacturing closed-loop supply chain, where the retailer is responsible for recycling, and the manufacturer will innovate in remanufacturing technology based on the extended producer responsibility system. The study constructs a Stackelberg game model with the manufacturer as a leader, and compares the different impacts of the two subsidy strategies on supply chain decisions (i.e., subsidies for investment in remanufacturing technology innovation and subsidies for the cost of remanufactured products). Numerical analyses are conducted to visualize the effects of subsidies on the decision-making of closed-loop supply chain members, environmental benefits, and social welfare. The findings indicate that when the level of subsidy is low, government subsidies for investment in remanufacturing technology innovation can accelerate the upgrading of remanufacturing technology, leading to higher environmental benefits and social welfare compared to subsidising the cost of remanufactured products. The results show that when the level of subsidy is high, government subsidies for remanufactured product costs, while yielding greater environmental benefits and social welfare compared to subsidies for investment in remanufacturing technology innovation, have a lesser impact on the advancement of remanufacturing technology.

Stabilizing financial networks via mergers and acquisitions

A bi-level model is proposed to explore efficient policies for supporting negotiations on financial crisis resolution. In a principal–agent framework, this model minimizes the welfare loss function of a central authority (social planner, SP) through the simultaneous choice of subsidy levels and potential pairs of banks to merge. The SP’s choice of mergers needs to be incentive-compatible with the autonomous choices of banks, and the evaluation of the financial network must adhere to standard accounting principles. Incentive compatibility is enforced by two options for conditions, based on stable matching or competitive bidding. For the evaluation of the financial network, we employ an extended Eisenberg–Noe clearing payment equilibrium by considering bankruptcy costs and the seniority levels of liabilities. Additionally, liabilities are not cleared among solvent banks, and corporate bonds may be used for clearing payments. The bi-level model specifies conditions for the clearing equilibrium. For demonstration, we use major European banks, and a scenario linked to the adverse economic conditions used in the 2016 EU-wide stress testing.

How to design subsidy policies to better encourage travelers to use car-sharing instead of private cars? An evolutionary game study

Car-sharing is a travel mode that can serve as an alternative to private cars, helping to reduce urban pollution. However, currently, there is a low willingness among travelers to use car-sharing, which is reflected in both low market penetration and user frequency. Therefore, it is essential for the government to encourage the use of car-sharing by providing subsidies. To better encourage the usage of car-sharing, this paper applies a two-fold evolutionary game model involving travelers and the government to explore the impact of subsidies on travelers’ choices, and the factors that could affect the subsidies’ efficiency. A simulation, using data from Beijing, was conducted to determine the implications of subsidy policies. The results show that a mileage-based subsidy and a fixed subsidy are applicable to travel of high and low mileages respectively, and under both subsidy modes, subsidies for trips with short duration or short pick-up and return time are more effective. Furthermore, we find that the efficiency of subsidies increases as the scale of car-sharing users, demand elasticity, or total number of travelers increases. Additionally, the subsidy levels should be lower than the environmental benefits of car-sharing but higher than the difference in travel costs between private cars and car-sharing. Future work will involve other game players such as car-sharing operators in order to draw deeper conclusions, and will involve the collection of data from more countries and cities to develop the robustness of the conclusions.

Subsidizing as a tool to ensure economic sovereignty: a quantitative analysis

Objective: to assess the relationship between the basic monetary instrument of state support for industry – subsidies – and basic macro-indicators of its effectiveness in the context of economic sovereignty. Methods: content analysis of publications, statistical analysis of macroeconomic indicators, econometric analysis on a wide sample of countries. Results: 1) the analysis of mentioning the category “subsidies” in Russian, English and Chinese printed publications confirmed the high interest to subsidies in China; 2) the analysis of correlation between the level of subsidies and the basic macro-indicators by countries on IMF data showed statistically significant correlations of the level of subsidies with the level of current account balance (low correlation) and GDP per capita (moderate correlation); 3) the evaluation showed no significant relationship between the level of subsidies and GDP per capita. According to the study results, conclusions were drawn about the absence of dependence between the level of transfers provided and the decrease of dependence on import. Scientific novelty: the hypothesis was checked that the level of subsidies in the state has a statistically significant impact on the country’s current account balance. The model is based on earlier studies with the added analysis of the role of subsidies in reaching the economic development goals. The novelty of this study consists in the absence of a significant relationship between the level of subsidies and the current account balance. Practical significance: the study results can be useful to specialists in the field of industrial policy. They provide a basis for a fuller understanding of the tools to ensure technological sovereignty. Modifications of the regression model can be used in further studies of the factors of the current account balance.

Decision-making in closed-loop supply chains: Effects of government subsidies and risk aversion

Closed-loop supply chains (CLSCs) play a crucial role in promoting sustainable resource management, yet their implementation faces challenges in balancing economic viability with environmental goals. While existing research has explored various aspects of CLSC operations, the interplay between government subsidies and risk-averse behavior of supply chain members remains understudied, particularly in systems involving third-party recyclers. This gap hinders the development of effective policies and management strategies for sustainable CLSCs. Herein, we employ a Stackelberg game-theoretic model to investigate decision-making processes in CLSCs under four distinct subsidy scenarios, incorporating risk aversion through mean-variance utility functions. Our results reveal that subsidy effectiveness significantly depends on remanufacturing costs and risk attitudes of supply chain participants. When remanufacturing costs are high, subsidizing third-party recyclers yields superior environmental and economic outcomes, whereas manufacturer subsidies prove more effective when these costs are low. Moreover, we identify critical thresholds in subsidy levels and risk aversion that alter decision-making patterns. These findings provide a framework for designing targeted subsidy policies and risk management strategies in CLSCs, advancing the field of sustainable supply chain management by offering nuanced insights into the complex dynamics between government interventions, risk preferences, and CLSC performance.

AI-based green technology implementation simulation for achieving carbon neutrality: exploring the role of subsidies and knowledge management.

This study investigates the role of green technology implementation (GTI) based on artificial intelligence (AI) at the household level to achieve carbon neutrality by addressing gaps in the existing research. The research focuses on understanding how education on green consumption preferences, green invention and emission impacts can optimally influence AI-based GTI decisions. Through behavioural analysis at the household level, this study quantifies the effects of education and preferences on emissions and proposes subsidies as accelerators for carbon-neutral transitions. Furthermore, the study employs regression analysis and simulation-based optimisation, which are then validated against prior methodologies, with a focus on Punjab, Pakistan. Utilising a simple random sampling technique, approximately 1000 households were surveyed to represent the province's diverse demographics comprehensively. Findings reveal that higher education levels correlate with less enthusiasm for AI-based GTI. Simulations measured optimal subsidy levels by striking a balance between encouraging green behaviour and technological adoption. By integrating diverse factors and AI-based GTI optimisation, this study defines important thresholds for education and subsidies, thus highlighting their pivotal role in advancing AI-based green technologies and sustainable household practices. This research significantly enhances the understanding of the complex relationship between AI-based GTI decisions and educational influences, thereby contributing to the advancement of environmental sustainability.

Analysis of government subsidy strategies for blockchain-enabled green supply chains under competition

This study uses game-theory to construct a dual-channel green supply chain consisting of a manufacturer, a blockchain-enabled platform, and a non-blockchain-enabled offline retailer, with the aim of comparing two government subsidy strategies: greenness investment cost subsidy and production subsidy, and exploring the impact of blockchain adoption. First, firms without government subsidy should adopt blockchain only when privacy costs are low. Both subsidy strategies can always motivate the manufacturer to increase greenness investment levels and achieve a triple-win situation. Second, when the government controls the greenness investment level, the demand, profits, and subsidy amount under cost subsidy are always lower than those under production subsidy. Third, when the government controls the subsidy amount, the greenness investment level under cost subsidy is always higher than that under production subsidy. The offline demand and retailer’s profit are higher under production subsidy, while the online demand and platform’s profit are higher under cost subsidy. The manufacturer’s profit is higher under cost subsidy only when the subsidy level is low. Additionally, regardless of governmental goals, the platform’s profit is always higher than the retailer’s profit, indicating that downstream firms under government subsidy should always adopt blockchain.

Impact of Government Subsidies on Green Innovation in Polluting Enterprises: A Review

To address the increasingly severe environmental challenges and achieve the "dual carbon" goals, the Chinese government has implemented a series of subsidy policies to promote green innovation and transformation of heavily polluting enterprises. However, against the backdrop of fierce market competition and tightening resource constraints, many companies still lack sufficient inherent motivation for green innovation. This study employs a systematic literature review method, analyzing relevant research from databases such as Web of Science, Scopus, and CNKI, aiming to systematically elucidate the research trajectory of government subsidies' impact on the green innovation performance of heavily polluting enterprises, thereby providing a theoretical perspective for improving relevant policy designs. The paper first posits that the logical starting point for government subsidies in green innovation lies in correcting environmental externalities, laying the foundation for subsequent discussions. It then examines the "incentive effect" and "crowding-out effect" of government subsidies on enterprises' green innovation performance, analyzes the non-linear relationship between government subsidies and corporate green innovation performance, and discusses the limitations of existing research from three aspects: relationship complexity, classification mechanisms, and influencing factors. Building on this, the paper integrates institutional theory with principal-agent theory to construct a multi-level analytical framework. This framework emphasizes the regulatory role of external institutional pressures, such as environmental regulations, on the effectiveness of subsidy implementation, while also focusing on how internal agency problems within enterprises may lead to inefficient utilization of subsidies, and how environmental information disclosure can help mitigate this issue. The study finds that there exists a non-linear relationship between subsidy intensity and green innovation performance, exhibiting "incentive effects" and "crowding-out effects" at different subsidy levels. Concurrently, factors such as environmental regulations, enterprise characteristics, and information disclosure practices play a moderating role in the effectiveness of subsidies. These findings have significant implications for policy-making, including designing subsidy schemes that avoid potential crowding-out effects at high subsidy levels, strengthening environmental regulations to enhance the effectiveness of R&D subsidies, implementing robust environmental information disclosure mechanisms, and formulating differentiated subsidy policies based on enterprise characteristics.

More is less: The dual role of government subsidy in firms’ new product development

This study focuses on “the paradox of government support,” and examines the direct, moderating, and contingent effects of government subsidies on new product development (NPD). Drawing on the resource management perspective, we argue that subsidies lead to both learning effects and inefficiency problems. Different subsidy levels make these two conflicting effects more or less salient. Consequently, subsidies and firms’ NPD have an inverted U-shaped relationship. Moreover, subsidies negatively (positively) moderate the relationship between a firm’s internal (external) R&D investments and NPD, which is further strengthened (weakened) by state ownership. An empirical analysis of panel data on Chinese high-growth firms strongly supports our hypotheses. We discuss the implications for the resource management perspective and NPD research, high-tech industry practitioners, and policymakers in emerging economies.

A theory of coverage rate differences for hearing aids around the world based on correlational observation and analysis

Objective Our objective was to ascertain likely reasons for explaining variation in coverage rates for hearing aids (HAs) among various countries around the world. Design A retrospective analysis of past coverage rates and their association to demographic and economic variables of apriori logical consideration. Study sample Data was obtained on macroeconomic conditions from 37 countries in the OECD and estimated coverage rates for HAs using recent actual sales data. Results Two variables were identified with a very strong correlation (R = 0.97, R2 = 0.95) to coverage rates. The first variable was the level of subsidy provided for the citizens to obtain HAs. The second variable was the GNI/capita which reflects the income available to citizens to make the purchase of HAs. Conclusion In countries where subsidy for HAs are made available through either public or private health service/insurance, an increase in coverage rates is likely to occur. The effect of subsidy is likely to surpass any effect of OTC HAs that has been demonstrated to date. Where and when feasible, subsidy presence and encouraging income generation among able citizens of a country should be sought in tandem – a complex interplay of improving coverage rates for HAs with economics.

Impact assessment of the residual lifespan of coal-fired power plants on the investment risk of carbon capture and storage retrofit

This research constructs an assessment model for carbon capture and storage (CCS) retrofit of coal-fired power plants (CFPP) by adopting the real option theory. Due to the prohibitive costs associated with retrofitting and insufficient residual lifespan of CFPP, CCS projects may fail to recoup their investment before units are decommissioned. The key contribution of this paper is that it investigates the impact of the residual lifespan of the units on the failure rate of the retrofit investment in addition to the optimal timing of the unit's CCS retrofit. Considering different installed capacities, utilization hours, clean energy subsidy and carbon trading mechanism, this study sets up seven scenarios to assess the impact of different investment environments on the value of project investment. In terms of sensitivity analysis, the residual lifespan of the unit, its interaction with carbon price, carbon price volatility, technological advancement rate, and subsidy level are examined for their impacts on the project investment risk. The findings suggest that the critical period for determining the long-term success of most coal-fired unit retrofits may be present, and more supportive policies need to be examined to facilitate the green transformation and upgrading of coal-fired units.

Refractive errors and the uniform patient fee scheme at a public hospital in South Africa

Background: Uniform Patient Fee Scheme (UPFS) refers to the healthcare subsidy levels provided by public hospitals in South Africa. Such subsidies indirectly reflect socio-economic factors and thus potentially might impact upon distributions of refractive error.Aim: To investigate refractive errors based on the UPFS-classified records of patients consulted at an Optometry Clinic between January 2018 and December 2019. This will provide frequencies and other measures, possibly providing preliminary estimates of prevalences for the wider population for the region concerned.Setting: The study was conducted at Sekororo Hospital in Limpopo province.Methods: Data for UPFS and refractive errors (via subjective refraction) were collected retrospectively based on the archived clinical records. Statistics and Data Analysis (Stata) software was used to analyse data.Results: For H0 in the right eyes means (± s.d.) for myopia, hyperopia, and astigmatism were −2.04 ± 2.60, 1.38 ± 1.72, and −1.07 ± 0.64, respectively. For H0 (left eyes): Myopia (−2.04 ± 2.09), hyperopia (1.47 ± 1.73), and astigmatism (−1.04 ± 0.64). For H1 (right eyes): Myopia (−1.79 ± 1.50), hyperopia (1.06 ± 0.72), and astigmatism (−1.14 ± 0.81). For H1 (left eyes): myopia (−1.71 ± 1.46), hyperopia (1.24 ± 0.91), and astigmatism (−1.71 ± 0.74). (No records were found for H2, H3, or private patients.)Conclusion: Hyperopia and astigmatism were the most common in H0 records while myopia was the most common in H1.Contribution: Various authorities and others in South Africa might use this data and results for National Health Insurance planning policies and implementation purposes.

Understanding Allocation and Farmers’ Access to Varied Level of Agricultural Input Subsidies from Different Tiers of Government: A Case Study in Kavrepalanchowk District, Nepal

Government support for essential agricultural services, such as agricultural input subsidies, is vital for empowering smallholder farmers. This study explores distribution and the factors affecting farmers access to varied level of government agricultural input subsidies in Kavrepalanchowk district, Nepal. The study relied on survey data from 219 randomly selected households. Results showed that 72 percent, 8 percent, and 20 percent of sampled households received less than NRs 15,000, NRs 15,000 to 30,000, and more than NRs 30,000 in input subsidies per year, respectively. Among the recipients of the input subsidy, the mean subsidy for electricity, chemical fertilizers, agricultural machinery, interest subsidy, and cash subsidy for the GI tunnel were NRs 4,061, 7,143, 35,633, 67,500, and 4,72,000, respectively. Results from a multinomial regression show that households with higher income, farms near roads, and registered farms receive a higher level of input subsidies. It is recommended that farmers register their farms either as a firm or company or as farmer's groups or cooperatives. To effectively perform their roles, there is a need to review the subsidy delivery mechanism, ensuring its reach to the most constrained farmers.