Lower Tariffs Research Articles

Multi-Objective Operation-Leakage Optimization and Calibration of Water Distribution Systems

This study aims to develop and solve a multi-objective water distribution systems optimization problem incorporating pumps’ optimal scheduling and leakage minimization. An iterative optimization model was presented for calibrating and computing leakages in water distribution systems to recognize the critical impact of leakage control on system operation. The multi-dimensional and nonlinear optimization model, incorporating pump control, consumer demands, storage, and other water distribution systems’ components, was constructed and was minimized using a multi-objective genetic algorithm coupled with hydraulic simulations. The model was demonstrated on two example applications with increasing complexity through base runs and sensitivity analyses. Results showed that leakage minimization competes against pumping, mainly when significant differences occur between demands during low and high energy tariffs. Pumping during the periods with high electricity tariffs (when the demands are high) generated pressure distribution that decreased the overall leakage related to pump scheduling that replicated the natural inclination to pump as much as possible at low tariffs (when the demands are low). The optimal fronts were found to be very sensitive to the leakage exponent value, and changing its value indeed contradicted the balance between minimizing the leakage and the energy cost significantly. Altogether, the idea presented in this paper was found capable of facilitating the decision-makers to conveniently select between the energy-efficient pump scheduling and pump scheduling reflecting minimum leakage based on the system operator’s preferences. The research also paves the way to rebuild the optimization model by incorporating water distribution reliability and water quality that, in some cases, may also contradict the choice between energy cost and leakage minimization.

Free Trade and Forms of Democratization

How do democratic transitions affect trade policy? A well-known finding is that transitions in developing countries produce lower tariff rates. But prior work implicitly assumes that all forms of democratic transitions are alike. There is less reason to expect trade liberalization to follow transitions led by political elites, which constitute roughly half of all democratic transitions in recent decades. Analysis of industry-level tariff rates indicates that elite-led transitions are not consistently followed by trade liberalization, while transitions initiated by the general public are associated with tariff rate reductions.

Tariffs and the textile trade between Brazil and Britain (1808-1860)

Abstract The commercial treaty with Britain in 1810, along the authorization of foreign trade in ports in 1808, are among the most important institutional changes in nineteenth century Brazil. The 1810 treaty lowered tariffs for British manufactures while maintaining high tariffs in Britain for Brazilian sugar and coffee. These terms are generally viewed as disastrous for the Brazilian economy, although there is still limited quantitative information about how much the tariff affected the demand for British imports. This paper provides new qualitative and quantitative evidence on the operation and effect of Brazil’s imports tariffs in the period. I find that the effect of the tariffs is different from what traditional literature assumes. First, the monetary instability in the 1820s and conflicts over product price assessment often led the de facto tariff to be higher than the 15 percent established by the treaty. Second, even with higher rates, quantitative analysis shows they did not have decrease imports of British textiles.

Hybrid Hydrogen Home Storage for Decentralized Energy Autonomy

As the share of distributed renewable power generation increases, high electricity prices and low feed-in tariff rates encourage the generation of electricity for personal use. In the building sector, this has led to growing interest in energy self-sufficient buildings that feature battery and hydrogen storage capacities. In this study, we compare potential technology pathways for residential energy storage in terms of their economic performance by means of a temporal optimization model of the fully self-sufficient energy system of a single-family building, taking into account its residential occupancy patterns and thermal equipment. We show for the first time how heat integration with reversible solid oxide cells (rSOCs) and liquid organic hydrogen carriers (LOHCs) in high-efficiency, single-family buildings could, by 2030, enable the self-sufficient supply of electricity and heat at a yearly premium of 52% against electricity supplied by the grid. Compared to lithium-ion battery systems, the total annualized cost of a self-sufficient energy supply can be reduced by 80% through the thermal integration of LOHC reactors and rSOC systems.

Review of Competition Law on Tariffs Lower Limit Indonesian Airlines

The price policy is an inseparable part of business competition. The price policy is not solely related to efforts to maintain prices or even control prices at a certain level but is an effort to generate profits that are proportional to social welfare. Since the entry of business competition regulations in Indonesia, with the increase in airline business actors, the competition between them has become more profitable for consumers. With high competition and competitive prices, airlines, especially national airlines, show that the target of this airline is the middle market share. In this paper, we will discuss the determination of the lower tariffs for air transportation issued in the Regulation of the Minister of Transportation of the Republic of Indonesia and regarding its application and impact on consumers and business actors in the aspect of business competition. Research result The stipulation of the lower limit rate stipulated in the Regulation of the Minister of Transportation Number 14 of 2016 is basically against the provisions of the business competition law, particularly about the prohibition on price-fixing as regulated in Article 5 Paragraph (1) of Law No. 5/1999. The effect of Regulation of the Minister of Transportation Number 14 of 2016 on airline business actors and consumers, among others, is that the freedom of business actors to determine their fares is reduced, this results in not achieving price efficiency.

The effect of import competition on educational attainment at the postsecondary level: Evidence from NAFTA

The North American Free Trade Agreement (NAFTA) substantially lowered the trade barrier between Mexico and the United States. I study the effect of American industries’ increased competition against Mexican imports on educational attainment at the postsecondary level. Using the commuting-zone-by-state level variations in the protection against import competition, I find evidence for a substantial increase in both enrollment and degree acquisition in public two- year colleges as a result of lowered tariffs on manufactured goods from Mexico. Educational attainment at four-year colleges, in the contrary, does not respond to NAFTA in a statistically meaningful manner.

Prosumage of solar electricity: Tariff design, capacity investments, and power sector effects

We analyze how tariff design incentivizes households to invest in residential photovoltaic and battery storage systems, and explore selected electricity sector effects. To this end, we develop an open-source electricity sector model that explicitly features prosumage agents and apply it to German 2030 scenarios. Results show that lower feed-in tariffs substantially reduce investments in residential photovoltaics, yet optimal battery sizing and self-generation are relatively robust. With increasing fixed parts of retail tariffs and, accordingly, lower volumetric retail rates for grid consumption, households have lower incentives for self-consumption. As a consequence, optimal battery capacities and self-generation are smaller, and households contribute more to non-energy power sector costs. A cap on hourly feed-in by households may relieve distribution grid stress without compromising PV expansion or prosumage models for households. When choosing tariff designs, policy makers should not aim to (dis-)incentivize prosumage as such, but balance effects on renewable capacity expansion and system cost contribution.

Residual forest biomass and energy assessment: a case study analysis in the region of Alto Minho (North Portugal) for the creation of BLCs and 2GBLCs

ABSTRACT Recent synergies have increased the use of forest biomass for energy purposes. In addition to high investment costs, low feed-in tariffs, and low operational efficiency, the real potential of forest biomass does not always correspond to the potential that is often claimed in studies. Instead of total forest biomass assessments, it is recommended that sustainable afforestation criteria should be introduced to obtain more reliable and environmentally sustainable scenarios. In this article, the most representative forest species in the Alto Minho region (northern Portugal) are identified, as well as the total forest area available. Based on cartography, forest inventory data, and allometric equations, the annually available usable residual forest biomass (RFB) and corresponding potential energy are estimated. Finally, to promote local forest biomass markets and most efficient thermal use of forest biomass is suggested the creation biomass logistic centres (BLCs) and second-generation biomass logistic centres (2GBLCs) are introduced as well.

A Policy Approach towards Achieving Regional Economic Resilience in Developing Countries: Evidence from the SADC

External economic shocks such as the global financial crisis (GFC) affect regional economic growth in developing regions through impacting export demand and capital inflows. Resilience to these economic shocks—i.e., the ability to recover from the initial impact and prolonged effects of said shocks—is influenced by the inherent vulnerability of regional economies to their impact. The research objective is to investigate regional economic resilience policy in the context of the Southern African Development Community (SADC), and the wider perspective of trading blocs among developing countries. Central hereto is undertaking an equilibrium and econometric analysis to identify endogenous and exogenous factors of the regional economy that influence economic resilience. Analysis findings indicate that economic openness, export market dynamics and sectoral composition may influence economic resilience. SADC vulnerability may be attributed to the dependence on foreign direct investment (FDI) inflows and exports to higher-income markets, relatively low import tariffs and the comparative importance of tertiary activities to output. A balanced regional policy approach is required: one focused on industrialization, while incorporating elements to support economic resilience. The latter includes increased intra-regional trade anchored in the development of regional supply and value chains which support primary sector activities, and capacitated supranational institutions to oversee regional integration initiatives.

Can Lebanon's Economy Be Saved? A Plan for Revival

AbstractThe recent financial and economic meltdown in Lebanon is the result of 30 years of social, economic, financial, and fiscal mismanagement, amplified by the Covid‐19 pandemic and further exacerbated by the Beirut port explosion. Lebanese citizens’ trust, as well as the international community's trust in the government, have unfortunately been destroyed. Consequently, Lebanon's sole option is to rebuild confidence in the government and public institutions by implementing economic reforms and to seek an IMF program to pave the way for additional financing from other international sources. The most important confidence‐building step is a clear financial and economic plan that has the support of all key stakeholders. This article presents a road map for a reforms‐driven, export‐led growth strategy for Lebanon. Ultimately, the goal is to jump‐start the economy and put it on a path of sustainable, inclusive, and equitable economic growth. Such growth should be grounded in a small, open‐economy model and driven by low tariffs, a flexible exchange rate regime, and a dynamic export sector built on competitive and comparative advantages. This plan partially builds on proposals and recommendations provided by previous economic plans and policy notes.

Trends and Causes of Farmers Suicide in Maharashtra State, India

The present study accepted out with an investigative strategy of social research on farmer’s suicide trend in Maharashtra state, Over 15,000 farmers have committed suicide in Maharashtra between 2013 and 2018. In Vidarbha and Marathwada from January 2001 to July 2018, a total of 29602farmers from 18 districts of died by suicide. About 83.74% of the state's total farmer suicides were in the two regions of Vidarbha and Marathwada. The highest farmer suicide in Amravati division is 57.8%, than Nagpur division 15.6%, Aurangabad division 13.6%, Nasik division 8.3%, Pune division 4.5% and lowest farmer suicide 0.8% in Konkan division. A farming disaster has rainfall a spate of suicides in Maharashtra. The suicide mortality rate for farmers in the state has increased from 2001 to 2018. The rain dependent cotton growing farmers of Maharashtra are faced with declining profitability because of dumping in the global market by the US, low import tariffs, failure of the Monopoly Cotton Procurement Scheme and withdrawal of the state are resulting in declining public investment in agriculture, poor government agriculture extension services and the diminishing role of formal credit institutions. The farmer is faced with yield, price, credit, income and weather uncertainties. The way out is to merge bold public policy initiatives with civil society engagement.

Dynamic optimization of solar‐wind hybrid system connected to electrical battery or hydrogen as an energy storage system

Nowadays, due to the pollution arising from the consumption of fossil fuels, destructive effects of pollutants on humans and the environment, and the reduction of reserves of these energy resources, the tendency to utilize renewable energy to meet energy needs has increased. In this investigation, first, a grid-connected photovoltaic-wind-battery (PWB) hybrid system for an educational building is designed and optimized by implementing a genetic algorithm in MATLAB. The main goal is to minimize the annual total cost (ATC) and find the optimal sizes. The balance between the high costs of renewable electricity generation and the setting up a renewable system is achieved by applying the renewable energy fraction (fRE). In the second part, a photovoltaic-wind-fuel cell (PWF) hybrid system is designed and optimized in the same approach. A novel techno-economic-environmental comparison is performed to select the battery bank or hydrogen system as energy storage. Considering the environmental penalties, the effect of the environmental cost on the optimal sizes of components and annual total costs is investigated. Owing to the low tariff of the grid electricity as well as the high cost of the renewable systems, results confirms that the use of renewable systems is not cost-effective. Also, if the authorities and householders intend to implement a storage system to store electricity, battery bank is less expensive than fuel cell system. To apply scenarios to increase renewable energy penetration, a comprehensive sensitivity analysis on the ATCs and optimal sizes is conducted technically and economically. Highlights Designing, optimizing, and comparing of PWB and PWF systems are investigated GA in MATLAB is implemented to determine optimal sizes and minimum ATCs A comprehensive sensitivity analysis is performed on the ATCs and optimal sizes The installing of the hybrid systems with the current tariffs is not cost effective Superiority of the battery bank over the hydrogen system in residential storage

Environmental bias in trade policy

Economics “Dirty” industries that emit large amounts of carbon dioxide per output value enjoy hundreds of billions of dollars of implicit annual subsidies because trade policies in most countries impose higher tariffs and trade barriers on “clean” industries. Shapiro suggests that this is because firms lobby for low tariffs on their inputs but protections for their outputs, because “downstream” industries in the value chain (for example, selling pans), which generally have lower emissions, also typically have higher tariffs than “upstream” industries (for example, coal, which is used to create steel to make pans). Global emissions would decrease, with little change in real income, if trade policies treated clean and dirty goods similarly. Q. J. Econ. 10.1093/qje/qjaa042 (2020).

Comprehensive Analysis of Tariff Barriers Worldwide: A Composite Assessment Approach

International trade has fundamental importance for all the countries and the analysis concerning international trade particularly concerning tariff barriers is high on the agenda of researchers in the field of economics, business and politics. Aim of the study is to assess the world tariff barriers of 158 countries. Overall design of the study comprises of a crisp literature review, data extraction and analysis. It is a study of one hundred fifty-eight countries that uses secondary data taken from World Development Indicators (WDI) 2020. It uses Grey Relational Analysis (GRA) as research methodology. Results of GRA show that Macao SAR, China, Hong Kong, Singapore, Montenegro, Mauritius, Brunei Darussalam, Myanmar, Chile, Peru and Australia have relatively highest grey relational grades meaning thereby, low tariff trade barriers whereas Grenada, Antigua and Barbuda, Belize, Central African Republic, Nepal, Guinea-Bissau, Fiji, Gabon, Barbados, Djibouti, St. Kitts and Nevis have lowest grey relational grade meaning thereby, these countries have high level of tariff based barriers of international trade. Interestingly, all the member countries of European Union occupy the rank of 27 (i.e. all countries have the same rank) which can be explained in the perspective of their union of tariff. Since, they have uniformed tariff policy as against rest of the world, therefore, have same rank. It is a study based on reliable real time data set. The study has value for all stakeholders i.e. international community, local governments, society at large, policy makers, researchers and international institutions.

A two-stage regression-based benchmarking approach to evaluate school's energy efficiency in different tariff regions

In this paper, we study the recent energy use intensity (EUI) in kWh/m2/year of Hong Kong's secondary schools. We found a 22% increase of EUI from, 2003 (86 kWh/m2/year) to 2017 (105 kWh/m2/year) approximately. It may be due to the increase in the number of air-conditioned classrooms. We then use a novel two-stage regression-based approach to analyse the most important set of statistically significant energy performance factors. Then, the energy use intensity (EUI) is normalized with these energy performance factors to find the benchmarking scores used to assess whether the electricity tariff affects schools' energy efficiency. In the first stage of the approach, we first conduct three methods of fitting regression models, backward, forward, and stepwise (OLS), to find a set of normalized factors and construct the benchmarking model. The first stage provides the normalized EUI range, approximately between 50 and 163 kWh/m2/year. In the second stage, if better goodness of fit is desired in the second stage, convex nonparametric least squares (CNLS) regression analyses are employed with the same set of normalized factors. This two-stage regression-based approach is called the OLS-CNLS approach. Using simple EUI (kWh/m2/year) results, we find that high tariff schools' energy efficiency is better than low tariff schools. However, the benchmarking scores (normalized EUIs) of the OLS-CNLS approach show that the null hypothesis cannot be rejected. The energy efficiency of high tariff schools is not significantly better than that of low tariff schools. It implies that the tariff level is not a crucial factor associated with secondary schools' energy efficiency in Hong Kong. As the OLS-CNLS approach allows us to take all the significant energy performance factors into consideration to address the electricity tariff concern, the funding/budget policies probably motivate the school management to look for better EUI.

Potential for Transport in Asia Pacific Region

Currently, the movement of goods between islands is mostly carried out using containers. This is because containers are more efficient and effective, and provide a guarantee of safety for the goods being transported. This advantage needs to be fostered with a planned transportation system to facilitate further efficiencies. The positive effects of this would include shippers receiving lower tariffs, and shipping lines getting guaranteed availability of goods. Tarakan Port, currently under the management of PT Pelindo IV, continues to improve as a port for cargo consolidation, especially in dealing with the Asia Pacific region. This study evaluates the improvement already displayed by the port administrators, collecting data through observations, opinions, and documentation which is then analyzed using a quantitative approach using the IPA (Importance Performance Analysis) method. The results are juxtaposed with the development of port operational performance data to see the conditions expected for the port to be able to provide services efficiently and effectively. The results of the analysis and evaluation show that there are still gaps that need to be corrected, especially in the aspects of facilities, infrastructure and human resources. Addressing these issues will increase the regional competitivity of the port and reduce logistics costs.
 Keywords: Cargo Consolidation, Competition, Ports

Implications of multilateral tariff bindings on the extent of preferential trade agreement formation

Using an endogenous preferential trade agreement (PTA) formation model, we examine the effects of continual reduction in tariff bindings on the extent of PTA formation and its role in attaining global free trade. When countries are completely symmetric, no country has an incentive to free ride from global free trade while exclusion incentives arise when tariff bindings are sufficiently tight. Due to the relatively flexible nature of the free trade area (FTA) formation, such exclusion incentives go unexercised and free trade always obtains as the coalition-proof Nash equilibrium (CPNE) of the FTA game. However, since customs union (CU) expansion leads directly to global free trade and member countries are able to veto CU expansion, they exercise the exclusion incentive and thus free trade fails to be a CPNE. We then consider a scenario where countries are asymmetric with respect to their comparative advantage. The country with a weaker comparative advantage has an incentive to free ride on trade liberalization of the other two countries and lower tariff bindings discipline this incentive via constraining the ability to set optimal tariffs. As a result, continual reduction in tariff bindings facilitates FTA formation in attaining global free trade.

Acceptance Analysis of PDAM Sleman’s Water Tariff Based on Revenue and Wilingness to Pay Projection

The Regional Water Company (PDAM) of Sleman provides clean water to the community and charges a tariff for each cubic meter of water sold to customers. Minister of Home Affairs Regulation No. 71 of 2016 states that PDAM tariffs requiring a review every four years. Most recently tariffs set by PDAM Sleman was in 2016 therefore it requires a recalculation. Besides that, it is necessary to analyze the tariff acceptance from the service provider and service recipient’s point of view. Calculation tariff method utilized a formula based on the Minister of Home Affairs Regulation No. 71 of 2016. Acceptance analysis conducted by calculating the projection of water sales revenue, the profit to earning assets ratio, and the willingness to pay (WTP) projection of customers. Revenue projections were obtained by multiplying tariffs with the water sold volume. The WTP projection is carried out using the inflation method based on the WTP of PDAM Sleman customers from the 2007’s research. PDAM Sleman tariffs based on calculations resulted low tariffs of IDR3727.48, basic tariffs of IDR4659.36, and full rate of IDR9460.17. Based on the WTP analysis, the tariffs are feasible from the the service recipient’s point of view, which are the PDAM customers, because it is still affordable by customers for their average water consumption. Nevertheless, from the point of view of the service provider, which is PDAM Sleman, the tariffs are not feasible because the profit ratio of 0.31% is still much lower than the fairness profit ratio as 10% amount. Therefore, it is necessary to make tariff adjustments to increase profits. The adjustment strategies such as by determined tariffs only based on consumption blocks without breaking down based on customer group categories and adjusting the range of second and third consumption blocks.

Misallocation in Open Economy

This paper estimates the impact of reducing export and import tariffs on firm input choices. In presence of borrowing constraints, lower export tariffs facilitate the reallocation of capital and labor inputs across firms, while a decline in import tariffs either tightens import competition or increases the availability of imported inputs; all three mechanisms suggest that a higher degree of openness should be associated with lower misallocation. To analyze the empirical relationship between openness and input misallocation, we draw on the annual surveys conducted by the Chinese National Bureau of Statistics (NBS) between 1998 and 2007. From the surveys, we con- struct firm-level measures of input misallocation that control for firm heterogeneity; we identify shocks to openness using industry tariff levels and firm trade shares. We find that firm facing higher tariffs in either import or export markets make less optimal input choices. We further decompose our analysis between input and output tariffs: our results suggest that the labor reallocation mainly occurs because of lower input tariffs, while the selection effect induced by changes in output tariffs does not necessarily cause more distorted firms to exit and, therefore, tends to have an insignificant effect on input allocation. Finally, we calculate the contribution of tariff changes towards aggregate misallocation and productivity: our results indicate that the impact of firm-level tariff reductions on aggregate misallocation and productivity was marginal in our sample period, but the presence of sizeable interactions between trade shocks and mis- allocation at the sector level suggests that our result should be interpreted as a lower bound of the overall effect.

ОБСЛУГОВУВАННЯ КЛІЄНТІВ У ФІНАНСОВИХ ІНСТИТУЦІЯХ: АСПЕКТИ ПАРТНЕРСЬКОГО МАРКЕТИНГУ

The article describes the main aspects of improving customer service of the bank using elements of affiliate marketing. The formation of high attractiveness of the bank for the client by establishing strategically promising partnership relations presents the formation of high attractiveness of the bank for the client. The bank expects long-term economic benefits, and the client expects to receive an acceptable level of service. The main aspects of KREDOBANK JSC activity are analyzed, and it is noted that the bank is a leader in providing banking services in Western Ukraine. These services include retail and business lending, bank card and account servicing, valuables storage services, and more. To assess the current situation regarding the customer base and establish partnerships with customers, increase the attractiveness of JSC "KREDOBANK" conducted a survey of retail customers on the basis of questionnaires. Based on the analysis of the survey results, the strengths and weaknesses of the studied bank were identified. The positive side is that most of the bank's customers are economically active people with stable monthly incomes. At the same time, new opportunities were identified to attract new clients, namely student youth. This category of the population in the future, with a well-formed policy of the bank in terms of customer service, may become its customers in the segment of the economically active population. Therefore, a new package of services "Student" was developed and proposed, which on the basis of the existing tariff package of the bank, provides lower tariffs, reduced commission for transactions, lower interest on a loan for small amounts, extended grace period when using an overdraft. As a result of the study, along with the positive elements (staff competence, level of communication, bank reliability), such negative trends in customer service as low speed of customer service, lack of understanding of customer needs (in some cases). In order to eliminate these negative elements and increase the level of customer service, it is proposed to improve the existing Internet banking system. These improvements apply to the mobile application: it is proposed to update its design, expand functionality, eliminate malfunctions.