Market Incentives Research Articles

The Development and Challenges of Sustainable Aviation Fuel: Addressing Carbon Emission Reduction in the Civil Aviation Industry

Aircraft aviation fuel combustion is a major contributor to carbon emissions in the civil aviation industry, the most efficient approach to abate carbon in this industry is to use sustainable aviation fuel (SAF). However, the suppressive market atmosphere for the new SAF industry and the issues from production are severely limiting its scale usage. This paper starts from the current situation of SAF, with the qualitative study of its current data and provides methods for its large-scale use. This passage discovers a widespread neglect of civil aviation carbon emissions, people have just gotten started in replacement fuel exploration, which is located at the detrimental position of the investment curve. So the article interprets the existing hindering factors of SAF through price analysis, investment curve analysis and market incentive policy, then proposes the path of SAF from the selection of raw material extraction, adaptation to market incentive environment and potential development of synthesis technology according to the existing issues. Consequently, the proper exploitation of SAF needs multiple stimuli from both markets and policies, which can lead to a long-term prospective elimination of carbon emissions in the civic aviation industry.

The Role of Soil Health in Enhancing Agricultural Profitability: An Economic Perspective

This paper also demonstrates that the health of the soil is central to improving the profitability of agricultural enterprises in economic terms. Hence, sustainable agriculture practices like conservation tillage and other compatible practices, organic farming and more techniques like vermicomposting and biochar application etc. have become inevitable in the Indian Scenario for maintaining resilience of the soil and for enhancing productivity. Out of the Government of India’s Soil Health Card launched in 2015, one can see how the use of soil test-based fertilizers is greatly encouraged, improving further the profitability of agriculture. Such as in Andhra Pradesh, evaluating various aspects of the enhanced method of monitoring of soil health and its parameters reveals promising results which have a positive impact on the state’s agriculture and farmers. A study identifies reduction in minimum soil tillage, retention of crop residue, and differential nitrogen replacement on the yield and profitability of crops. Moreover, initiatives like Agrivoltaics have started to surface in the effective management of Climate Smart Agriculture in diverse climates and uncertain monsoons. Signing legislation and applying the concepts of the market incentive affect the improvement of the soil quality for the enhancement of sustainable agricultural production and income. When such practices are adopted, the Indian farmers and the country in general will be in a better position to improve fertility of the soils, increasing crop yields and equally resulting to better positioned economic stability to the backbone of the economy the agricultural industry.

The 30-year evolution of oral cholera vaccines: A case study of a collaborative network alternative innovation model.

Cholera outbreaks have been rapidly increasing around the world. While long-term cholera prevention and control measures rely on improvements in water, sanitation, and hygiene, oral cholera vaccines (OCVs) are used for prevention and control in the short-to-medium term. OCVs lack the market incentives available in other more profitable disease areas. The development of OCVs was made possible through an alternative innovation model, which sustained innovation across multiple generations of the product for more than three decades. To examine how this alternative innovation model worked, we conducted 18 semi-structured interviews with key stakeholders related to the development of several OCVs, including "Dukoral", "Shanchol", and "Euvichol-Plus", as well as additional cholera vaccines currently under development. Interview data was analyzed thematically according to the resources used by organizations (including funding, knowledge, relationships, and manufacturing), and the practices they implemented during each stage of the R&D process (including knowledge management and intellectual property strategies, approaches to transparency, and global access strategies). Next, we created participatory network maps to illustrate the structure of the relationships between stakeholders and how these evolved over time. We found that a core group of stakeholders were able to influence policies to promote the use of OCVs, and successfully develop, finance, and obtain WHO Prequalification for safe, effective, and affordable OCVs for global procurement and distribution. The evolution of OCVs demonstrates how a collaborative network innovation model can successfully develop new pharmaceutical products that are affordable and well-suited for use in context. This model could be applied to other areas of pharmaceutical innovation, such as pandemic preparedness, for more equitable outcomes for global public health.

REGIONAL DEVELOPMENT AND LOCATIONAL ADVANTAGES FOR WHOLESALERS AND DISTRIBUTORS IN ESPÍRITO SANTO

Logistics centers are emerging as an important tool for solving transportation problems, especially in states such as Espírito Santo, where the wholesale and distribution market is growing. Given this trend, this case study sought to understand the reasons why these companies choose to set up in Espírito Santo. It was possible to conclude that the main locational advantages of the state are infrastructure, labor force, consumer market and tax incentives. We propose increasing investments in Espírito Santo's infrastructure and in the qualification of the workforce to reduce dependence on tax incentives to attract new companies and promote its development.

Business models and strategies for the internalization of externalities in agri-food value chains

Current food systems have significant negative environmental, social, and economic impacts. Externalized costs and benefits create false market incentives favoring less healthy and unsustainable options. Transitioning to sustainable agri-food systems requires that businesses internalize these externalities. Internalization of externalities (IOE) is often addressed through policy measures and regulatory initiatives. However, IOE can also be carried out through business models (BMs) and strategies which involve creating positive externalities, mitigating/preventing negative ones, as well as ensuring fair distribution of risks, costs, and benefits. Accordingly, sustainable and innovative BMs and strategies offer pathways to achieving IOE. This paper identifies existing sustainable and innovative BMs and strategies and explains how they can achieve IOE. Using an integrative literature review methodology, we reconcile both economics and business literature approaches. We subsequently carry out two levels of analysis including abductive coding and interrelationship evaluation. The paper explores the characteristics of BMs and strategies that address IOE, using the well-known concept of value and introduces a conceptual framework for categorizing business models and strategies for the internalization of externalities (BM4IOE). The article initiates a discourse on the role of BMs in the IOE within agri-food value chains and provides insights into how businesses can develop and implement models that effectively internalize externalities, thereby enhancing sustainability and driving innovation in the transition of agri-food systems.

Rethinking the impact of water-saving technologies and market incentives: lessons from Mercy Corps’ water innovation technologies program

Abstract In the face of unrelenting water crises, water-saving technologies are increasingly relied upon as a paradigm for managing scarce water resources in the agricultural sector. This approach is gaining momentum in international forums and among development practitioners focused on improving the sustainability and efficiency of their water security interventions. Following this trend, the integration of market incentives to foster the uptake of water-saving technologies (WSTs) is not surprising. However, recent literature on water-saving technologies and related incentives paints an ambiguous picture of the impact these technologies can have. On one hand, there is evidence that supports the efficacy of market incentives in promoting water-saving practices and the adoption of WSTs. On the other hand, there are also concerns about the potential adverse consequences of introducing WSTs, including promoting unsustainable water consumption and exacerbating inequalities. This study focuses on Mercy Corps’ Water Innovation Technologies program in Jordan, a country grappling with severe water scarcity. It specifically examines how market mechanisms played a crucial role in saving approximately 24 million cubic meters of water, equivalent to around 9,500 Olympic-sized swimming pools. Driven by this significant achievement, the study delves deeper into the efficacy of market-based approaches, while also considering their potential limitations. The conclusion offers a critical perspective on how the promotion of WST through market-based approaches can ensure that water savings contribute to both environmental sustainability and human well-being. In particular, Mercy Corps' practitioner perspective advocates for governance reforms that limit and prevent unsustainable consumption, facilitate and ensure equitable access to WSTs, and promote the fair redistribution of water savings across different users.

Promoting Sustainable Investment Through Designing and Pricing Green Financial Derivatives

As climate change and environmental degradation escalate, the financial sector faces growing pressure to adopt sustainable practices. This paper examines designing and pricing of green financial derivatives and their role in promoting sustainable investment. Through references review and case studies, the study assesses the influence of regulatory frameworks like the EU's EIA Directive on the environmental integrity of green derivatives. The findings emphasize the crucial role of EIAs in ensuring that green financial products meet sustainability goals and highlight the increasing importance of ESG derivatives. However, the effectiveness of these derivatives is hindered by challenges such as their synthetic nature, lack of direct ownership of underlying assets, and complexities in ESG reporting. The study also identifies the need for traditional pricing models to evolve by incorporating sustainability factors, with advanced data analytics and technologies. In conclusion, robust regulatory frameworks, effective market incentives, and improved investor education are essential for promoting sustainable investment. Additionally, it is significant for public-private collaboration to scale sustainable finance initiatives and the integration of ESG criteria into financial decision-making to achieve both financial and sustainability objectives.

Forage Seed Systems to Close the Ruminant Feed Deficit in Eastern Africa

This study examines key challenges and opportunities for improving ruminant productivity in East Africa, with a focus on enhancing access to forage seeds critical for livestock systems in Ethiopia, Tanzania, Kenya, Uganda, Rwanda, and Burundi. Despite high potential for increased livestock production, the region faces a significant feed deficit—nearly 40% of annual feed demand remains unmet—due to the limited availability and affordability of forage seeds. The research identifies a critical gap in quality seed access, with many farmers relying on outdated materials. We propose the promotion of recently improved forage varieties and local seed production as a solution to reduce dependence on costly imports and enhance adoption. Our analysis suggests that bridging the forage deficit would require the cultivation of 2 million hectares and the involvement of 1.5 million farmers, highlighting the scale of intervention needed. Additionally, the regional forage seed market presents an economic opportunity, potentially valued at USD 877 million over the next decade, underlining the importance of government policies, the development of seed systems, and market incentives. The study concludes with recommendations for fostering seed production, improving seed distribution, and addressing socio-economic barriers to ensure widespread adoption and enhance livestock productivity in the region.

What affects farmers' intention and behavior to mitigate the impact of climate change? Evidence from Hebei Province, China

Greenhouse-gas induced global climate change impedes the sustainable development of humanity. Considerable research has focused on the intention of farmers to adapt to climate change, but few articles have explored farmers' intention and behavior to mitigate the impact of climate change. This paper extends protection motivation theory to develop an innovative theoretical framework that describes both farmers' intention and behavior to ameliorate the impact of climate change. Research data from 846 farmers of a major Chinese grain-producing province are empirically analyzed using partial least squares structural equation modeling. The findings indicate that farmers' intention to mitigate the impact of climate change is positively impacted by perceived severity, perceived vulnerability, self-efficacy, policy incentives, market incentives, and information publicity, while response cost negatively affects their intention. Farmers' mitigation behavior is positively and significantly influenced by market incentives, information publicity, and intention to mitigate the impact of climate change. Additionally, the information publicity lowers the influence of perceived severity, perceived vulnerability, and policy incentives on farmers' mitigation intention, while it reinforces the impact of response costs on farmers' intention. This research helps policymakers to better understand farmers' intention and behavior to mitigate the impact of climate change. Such knowledge, in turn, can help global policymakers, especially those in developing nations, to effectively encourage farmers to adopt practices relevant for mitigating the impact of climate change.

The pole of the EU in ensuring the energy security of Ukraine

The role of the European Union (EU) in ensuring Ukraine’s energy security in the conditions of modern geopolitical challenges is studied. Since the onset of Russia’s full-scale aggression against Ukraine, the country’s energy infrastructure has suffered significant damage, leading to an energy supply crisis. In such conditions, cooperation with the EU is critically important for the restoration and stabilization of Ukraine’s energy sector. The key directions and mechanisms of cooperation between Ukraine and the EU in the field of energy security, including the provision of financial assistance, technical support, as well as the implementation of joint projects in the field of renewable energy and energy efficiency, were considered. Special attention is given to the National Energy and Climate Plan (NECP) until 2030, developed with EU support and serving as a crucial component of Ukraine’s energy security strategy. The article also analyzes the impact of the implementation of the EU Clean Energy Package on Ukraine’s regulatory environment, promoting predictable conditions for investors and facilitating Ukraine’s integration into the European energy market. The role of market incentives in attracting investments in renewable energy sources and their impact on Ukraine’s energy security is examined. he impact of the implementation of the EU Clean Energy Package on the regulatory and legal environment of Ukraine is analyzed, which contributes to the creation of predictable conditions for investors and ensures the integration of Ukraine into the European energy market. The significant role of international cooperation and the role of international financial institutions in providing the necessary funding for the implementation of the NECP is also discussed. Particular attention is given to the potential of Ukraine’s renewable energy sector, including opportunities for expanding wind, solar, biomass, and hydropower capacities. The implementation of distributed generation, energy storage systems, and microgrids, which contribute to enhancing energy independence and resilience at the community level, is also considered. Conclusions were made about the need for further close cooperation between Ukraine and the EU to ensure Ukraine’s energy security, as well as Ukraine’s prospects for becoming a leader in the field of renewable energy in the region. The article provides recommendations on priority areas for the development of the energy sector and measures that will strengthen Ukraine’s energy security in the context of European integration.

Financial market structure and capital controls in Sub-Saharan Africa

PurposeThis study investigates the influence of capital controls on financial market structure in Sub-Saharan Africa (SSA). This is especially relevant as the former restrictions are relatively common on the sub-continent. At the same time, the sub-region’s financial markets are highly bank-based and focused on the short term, with stock markets being illiquid and stunted.Design/methodology/approachTo achieve its research objectives, the study posits an original model and uses comparative statics to analyze the relation between the aforestated phenomena in a representative SSA economy. Key hypothesized conclusions derived therefrom are tested using panel econometrics.FindingsThe comparative static analysis illustrates that capital controls favor banks, making them monopolistic and inefficient. This is confirmed by the empirical investigation, as the said market restriction skews financial market structure towards a bank-dominated system.Research limitations/implicationsThe study limits itself to capital controls and their effects on financial market structure. It does not particularly investigate the influence of different types of these restrictions. Specifically, it dichotomizes the influence of the examined controls on bank and stock markets.Practical implicationsThe dissimilar influence of capital controls on banks relative to stock markets is critical for decision and policymakers. This paper highlights that capital controls may have unintended adverse effects on domestic financial markets. Also, they may not be the most appropriate policy to deepen markets and enhance domestic resource retention. There is, consequently, a need to determine fitting policies that attract rather than repel financial flows. Furthermore, capital controls may engender rather than address macroeconomic misalignment.Social implicationsAs a social imperative, it is necessary to analyze SSA’s framework of capital restrictions to better understand how they distort market incentives and mechanisms. This would help identify adverse effects that retard social development.Originality/valueThis study extends existing literature by developing a novel analytical framework incorporating key characteristics of SSA economies. This helps to better understand the nature of the capital controls–financial market structure relation in imperfect market conditions.

What would environmental impact assessment look like if we started from scratch today? Designing better EIA for developed neoliberal nations

ABSTRACT After more than five decades of practice, environmental impact assessment (EIA) has failed to convince sceptics that it represents value for money. It increasingly overlaps with constantly emerging sustainability requirements. The completed assessments are extremely long, exceed the cognitive capacities of decision makers to assimilate information, cannot address motivated reasoning, and therefore inevitably lead to trade-offs that threaten the very environmental components EIA was designed to protect. In this paper, for the minority of nations with highly developed existing environmental legislation and management only, we propose three radical approaches that include: (1) the adoption of ‘satisficing’, to deliver a streamlined assessment that is good enough; underpinned by (2) better application of ‘acceptable harmrules’ embedded in existing environmental legislation in many jurisdictions to prevent significant harm to environmental media; and (3) an ‘externalities charge’ on developers (irrespective of whether EIA is required) to force more aggressive scoping through market incentives and to fund a shift towards adaptive environmental assessment and management that manages environmental outcomes. Better environmental protections could be delivered using a far more streamlined EIA process, associated with the creation and maintenance of more accurate and comprehensive datasets that can provide better evidence for emerging artificial intelligence tools.

Designing natural capital accounting for agriculture: perceptions of farm accountants

PurposeThis paper aims to accelerate the development of natural capital accounting via an early report of farm accountants responses to prototype natural capital accounts. The authors test an approach to co-development with this important group who are both preparers and users of natural capital accounts but are not presently included in the research or development of natural capital accounting.Design/methodology/approachSeven practicing farm accountants and three accountants with an interest in this area were interviewed to gather responses to prototype farm natural capital accounts and make changes to improve the clarity, relevance and usefulness of the accounts. The paper calls for more work in participatory co-development to speed up the development and implementation of natural capital accounting.FindingsThe authors found that all participants were supportive of the concept of natural capital accounting and the consideration of agricultural ecosystems as assets of a farm business. Most participants could interpret the accounts and saw them as useful and important to improve sustainability outcomes. Participants highlighted the need for 1) the development of reliable, consistent valuation methods that resist manipulation; 2) natural capital accounting to be affordable and provide value to users; and 3) farmers to be supported to apply and report the methods for different objectives and contexts.Research limitations/implicationsSince agriculture is a significant source of greenhouse gas emissions and changes to natural capital in the economy, information included in natural capital accounts of farm businesses is important to inform policy as well as farm management decisions. This research reveals strategies for policy makers to accelerate the supply of this information to enable market and other incentives to address urgent issues related to sustainability. Results of this study are from a limited sample of well-informed individuals and are thus preliminary. However, they highlight the need (and opportunity) to further co-design natural capital accounts in agriculture with farm accountants.Practical implicationsFarm accountants are important stakeholders in the development and implementation of natural capital accounting processes and systems, yet they are currently excluded from the science and standard-setting processes underpinning natural capital accounting. Co-development represents a fundamental shift in how the science around natural capital accounting is done and is an important step towards creating a more transdisciplinary approach to working with users. The authors show how users can be involved in developing natural capital accounting methods, standards and reports.Social implicationsNatural capital accounting is a promising method to help reverse sustainability problems, if it is co-developed with stakeholders to be useful and useable.Originality/valueTo the best of the authors’ knowledge, this research is the first to report on farm accountants’ perceptions of natural capital accounts in agriculture and to present a case study of co-developing natural capital accounts with farm accountants.

Overcoming barriers to proactive plastic recycling toward a sustainable future

The plastics sector, accounting for a significant portion of global emissions, presents a challenge and an opportunity in achieving carbon neutrality. Despite Japan's commendable polyethylene terephthalate (PET) bottle recycling rates, most plastics are thermally recycled, creating environmental issues. This study proposes an evaluation framework to enhance recycling, aligned with end-user preferences and fostering a circular plastics economy. Employing a mixed-methods approach, this study conducts fieldwork including interviews with plastic recyclers and analysis of industry data. A weighted sum multicriteria analysis integrating end-user preferences, recycling effectiveness, and market dynamics is utilized. Systemic, process, and policy challenges were shown to hinder sustainable recycling practices, while varying willingness to pay, emission and cost reduction potentials, among acceptability and sectoral diversity informed priority plastic types for recycling. Multicriteria analysis showed that although PET is favored by end users, Polyoxymethylene (POM) emerges as a potential priority target for manufacturers and recyclers. Sensitivity analysis underscores the potential impact of establishing or enhancing willingness to pay (WTP) toward certain plastic types. Moreover, manufacturer and recycler evaluations suggest a broader willingness to recycle plastics than previously assumed. The proposed evaluation framework offers insights toward plastic recycling strategies. Policy interventions such as sustained subsidies for recyclers, market incentives leveraging WTP preferences, and technological advances, including chemical recycling and the broadening of plastic type recycling in line with user and manufacturer preferences, could all contribute to promoting sustainable plastic recycling practices.

Alternative Pharmaceutical Innovation Models in Competitive Markets: A Collaborative Approach to Develop a Novel Drug for Hepatitis C.

Alternative innovation models have emerged to address failures of the traditional pharmaceutical system, particularly for diseases where market incentives do not attract sufficient research and development efforts. However, the feasibility of such models for diseases with significant markets is not well-established. This article analyses the development of a novel drug (ravidasvir) for the treatment of hepatitis C, a highly profitable market. Data from qualitative research methods, including literature reviews and semi-structured interviews, was analyzed using a novel conceptual framework focusing on actors, resources, organizational practices, and outcomes. Dissimilar to other projects, ravidasvir did not involve any major pharmaceutical companies. Rather, it leveraged the capacities of actors less traditionally involved in the development of novel medicines by constructing a collaborative network of private and public partners from low- and middle-income countries with a shared goal. The collaboration was successful in developing a highly effective, easy-to-use, and affordable medicine and contributed significantly to capacity-strengthening. However, the case also highlighted that strategic behavior by competing for-profit firms could pose significant challenges and that changing external conditions reduced the potential public health impact of the drug. Lessons from ravidasvir can inform future efforts to develop alternative innovation models for therapeutic areas with significant commercial interest.

Use of Omalizumab for Pediatric Asthma After US Food and Drug Administration Expanded Indications.

Research and regulatory approval for pediatric uses of prescription drugs often lag years after adult approvals, during which time substantial off-label use of medications in children can occur. We evaluated whether US Food and Drug Administration (FDA) regulatory actions affected the pediatric use of omalizumab, a biologic drug used to treat asthma. In this serial cross-sectional study, we identified quarterly cohorts of children (0-18 years) with moderate-to-severe asthma within two large national claims databases of those with commercial insurance and Medicaid from 2003 to 2019. Using an interrupted time-series analysis, we fit segmented linear regression models to identify changes in the incidence of omalizumab use in 6-11-year-old children compared with 12-18-year-olds after two time points: (1) 2009Q3 when an FDA advisory committee voted against use for 6-11-year-old children and (2) 2016Q2 when FDA expanded omalizumab's labeling to include 6-11-year-old children. We identified 9298 new pediatric omalizumab users (84% Medicaid). Among 6-11-year-old children, the incidence of omalizumab use did not change following the FDA's initial review of evidence in 2009 and increased after 2016 Q2 FDA approval for this age group in both Medicaid (58 per 100 000 children with asthma, 95% confidence interval [CI] 27-89, p < 0.001) and commercial insurance (57 per 100 000, 95% CI 21-94, p = 0.003) compared with 12-18-year-old children. The use of omalizumab among asthmatic children aged 6-11 years remained steady after FDA advisory committee concerns in 2009 and increased after FDA expanded the indication to include this population in 2016. Additional market incentives may help to ensure the timely generation of evidence and regulatory approval of medications for children.

Towards a national life cycle database: an LCA case study from the Czech Republic

Abstract The building sector in the Czech Republic faces several challenges, including limited availability of Life Cycle Assessment (LCA) data for building materials and products, insufficient market incentives, little institutional capacity, and some resistance from governmental entities. Therefore, this study also outlines the creation of an internal environmental dataset database designed to conduct Whole Life Carbon (WLC) assessments for 50 case studies. The database primarily sources Environmental Product Declarations (EPDs) and generic data from the Ecoinvent database, which are stored within the OneClick LCA software (OCLCA). The Global Warming Potential (GWP) is calculated for the whole life cycle of each building, using the EU Level(s) methodology. As a baseline, the datasets for materials and products with the highest GWP values were used. A sensitivity analysis was performed on the main resulting hotspots to produce results for both the so-called realistic (average GWP values) and optimistic (lowest GWP values) scenarios. The application of this methodology is demonstrated through a detailed example of one of the case studies, within the framework of the INDICATE international project. This work represents a significant step toward defining a Czech national methodology for establishing benchmarks that can be readily used by Czech practitioners and practitioners.

Determinants of adoption of climate resilient agricultural solutions

CONTEXTClimate change poses significant challenges to agricultural productivity, crop yield and overall resilience of farming system, particularly in mountainous regions. In a mountainous coutry like Nepal, where agriculture is a crucial livelihood for a substantial population, the Climate Resilient Agricultural (CRA) solutions are imperative. These solutions aim to enhance the sustainability of water, reduce reliance on pesticides and chemical fertilizers, and increase farm productivity and income. However, understanding the factors influencing farmers' decisions to adopt or reject such solutions remains a critical knowledge gap. OBJECTIVESThis study investigates the socio-psychological and socio-demographic determinants affecting the adoption of climate-resilient agricultural solutions. METHODSThis study uses the theory of planned behavior and a mixed-method approach to conduct household surveys with farmers, Key Informant Interviews with experts and implementing partners, and Focus Group Discussions with farmers' groups. Responses to behavior-related questions were analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM), and the factors influencing the farmers' adoption behavior were identified using binary logistic regression. RESULTS AND CONCLUSIONSThe result based on a limited sample size indicates that farm characteristics and farmers' perceived behavior control significantly influence the adoption and continuation behavior of CRA solutions. In conclusion, fostering awareness, capacity building, and skill development and establishing both market and non-market incentives are essential for improving the adoption of new solutions for climate resilience in agriculture, however, the in-depth research is recommended to better understand the adoption behavior within specific farming systems. SIGNIFICANCEThe findings of this research offer valuable insights for policymakers and development practitioners striving to promote the widespread adoption of CRA solutions in farming communities. It will help to develop targeted strategies and policies that effectively support the integration of these solutions into agricultural practices, ultimately enhancing the resilience of the farming system in the face of climate change.

Veiled costs, concealed incentives: Rethinking market approaches to address institutional marginalization and reduce vulnerability of artisanal fishers to power abuses in the Peruvian dolphinfish fishery

Market-based approaches play a crucial role in promoting seafood sustainability by leveraging market incentives. Typically, these incentives are commonly perceived as closely associated with premium prices or improved market access. As such, arguments around product competitiveness are used by various stakeholders to engage the lower levels of the seafood supply chain in sustainability initiatives. This study presents findings from an analysis of secondary and primary data obtained through a two-tier survey, focusing on the operational costs of Peruvian artisanal dolphinfish fleets and estimating the concealed costs that result from institutional malpractice and coercive transactions from criminal groups. Our analysis reveals that the artisanal fishing sector, due to institutional marginalization facilitated by bureaucratic overburdening, experiences various forms of power abuse. Specifically, we show how the higher the levels of informality of the fleet’s operation, the higher the probability of being subject to unethical behavior. This results in heightened hidden operational costs, which in turn affect the income of vessel owners and fishers. To address these issues, we argue that market-based approaches should build upon the new incentives offered by import-control schemes and anti-Illegal, Unreported, and Unregulated regulations, prioritizing actions to alleviate institutional marginalization of fishers. By doing so, responsible companies in the supply chain can effectively reduce legal, economic, and reputational risks while actively tackling the critical factors contributing to power imbalances and the resulting unequal distribution of benefits.

Evaluating ESG frameworks: A comparative analysis of global standards and their application in Kazakhstan

This article investigates the key drivers and barriers to the adoption of Environmental, Social, and Governance (ESG) principles in Kazakhstan. By conducting a thematic analysis of relevant documents, frameworks, and case studies, the study evaluates the current state of ESG practices in Kazakhstan and compares them with international standards set by S&amp;P Global, the Asian Development Bank (ADB), and the London Stock Exchange Group (LSEG). The findings highlight significant progress in regulatory support and investor demand but also identify critical challenges such as the lack of comprehensive ESG reporting standards, limited expertise, and infrastructure constraints. To address these issues, the article proposes a strategic framework that includes the development of a Unified ESG Reporting Standard, enhancement of corporate governance structures, investment in ESG infrastructure, and leveraging of market incentives. The proposed framework aims to align Kazakhstan's ESG practices with global standards, thereby enhancing its attractiveness to sustainable investment and improving its global standing in responsible business practices. Additionally, the article identifies gaps between Kazakhstan's ESG practices and international standards and offers targeted solutions to bridge these gaps, contributing to the country's sustainable development goals and attracting increased international investment.