Potential Negative Externalities Research Articles

E-commerce and air pollution: Evidence from China

E-commerce serves as an important link between the digital economy and the real economy, and contributes positively to income growth. In the face of resource constraints and serious environmental pollution, it is equally relevant to examine the environmental effects of e-commerce. Based on county panel data for China from 2011 to 2018, this study uses a difference in differences (DID) model to investigate the impact of Rural E-Commerce Demonstration County (REDC) policy on air pollution. This study reveals that the demonstration policy exacerbates air pollution in counties and the pollution effect is regionally heterogeneous. Additionally, the increase in temperature and precipitation weakens the pollution effects of the demonstration policy. Mechanism analysis indicates that the demonstration policy can promote the development of the secondary industry and digital financial inclusion at the county level, which subsequently leads to the deterioration of local air quality. Further analysis of costs and benefits reveals that the significant positive economic effects resulting from the demonstration policy far outweigh the indirect economic losses caused by air pollution. Therefore, when local governments actively promote the development of e-commerce in rural areas, they should also attach great importance to its potential negative environmental externalities.

A behavioral micro simulation case study: Distribution center location

The potential negative externalities that can be produced by urban freight transportation make it critical to investigate the impact of urban freight and land use-related decisions on energy efficiency, congestion, and emissions. To advance such investigation, the authors developed a Behavioral Microsimulation Software (BMS) that simulates freight vehicle tours generated in a study area. At the most general level, the BMS provides aggregate performance metrics. At the detailed level, it outputs the freight vehicle tours and their corresponding characteristics. This study sheds light on the impact of the location of logistic facilities on the delivery operation to businesses in metropolitan areas. Thus, the goal of this research is to quantify the impacts of three scenarios in a metropolitan area: (i) location of a new distribution center in the outskirts, (ii) location of a new distribution center in the core, (iii) relocation of an existing distribution center from the outskirts to the core. The impacts discussed are vehicle miles traveled, deliveries per tour, and the number of tours. The authors developed a case study on the New York State Capital Region (USA). The results indicate a reduction in total vehicle miles traveled when locating distribution centers closer to the area's urban core, where demand is concentrated, compared to when located in the outskirts.

Is “M&M® therapy” a misnomer or a concerning truth? A descriptive analysis of the use of edible reinforcers in applied behavior analytic research

AbstractReinforcement is considered an essential component of many behavioral interventions. However, caregivers may criticize the use of edible reinforcers, particularly those viewed as unhealthy. Still, as evidenced by current attitudes toward the profession, addressing the concerns and criticisms of behavior analytic consumers is paramount. Thus, the purpose of this study was to determine the extent to which edible reinforcers are used within published behavior analytic research. To this end, we analyzed research published in six major behavior analytic journals across 3 years. Results indicate that edible reinforcement was utilized in less than one third of the studies using reinforcement often in combination with other nonedible reinforcers. However, it is important to consider potential negative externalities with the use of edible reinforcement and the need for future research on the use of edible reinforcers in clinical practice and research contexts.

Appropriateness ratings of everyday behaviors in the United States now and 50 years ago.

A crucial aspect of social norms pertains to determining which behaviors are considered appropriate. Here we consider everyday behaviors. Some everyday behaviors are rated as more appropriate than others, and ratings of the appropriateness of a given behavior may vary over time. The objective of this study is to elucidate the reasons behind variation in appropriateness ratings of everyday behaviors in the United States. Our theory focuses on how the evaluation of the appropriateness of a behavior is influenced by its potential for externalities and internalities, and how this influence may cause a change in norms over time. Employing a preregistered design, we asked American participants to rate 37 different everyday behaviors based on their appropriateness in a range of common situations, as well as their potential negative externalities (e.g., being loud, being aggressive, taking up space) and positive internalities (e.g., pleasurability). Changes over time were calculated as the difference between mean ratings obtained in this study and ratings of the same behavior in a similar study conducted 50 years ago. As expected, overall appropriateness ratings of everyday behaviors are associated both with their externalities and their internalities, so that the least appropriate behaviors tend to have considerable potential for negative externalities and little potential for positive internalities. Moreover, behaviors that have considerable potential for negative externalities are perceived as less appropriate now than 50 years ago. By describing how social norms for everyday behaviors depend on the externalities and internalities of behaviors, this study contributes to theories about the emergence and change of social norms.

Tourism as a catalyst for regional development: Uzbekistan’s experience and economic prospects

The transformative potential of tourism as an economic driver has been the subject of extensive academic research. In the context of transitional economies, this relationship assumes a more nuanced role, with tourism acting as both a catalyst and a product of regional development. Among transitional economies, Uzbekistan presents a unique case study characterized by its burgeoning tourism industry and robust policy frameworks aimed at regional development. This paper aims to analyze the multifaceted role of tourism in catalyzing regional development in Uzbekistan. Employing a mixed-methods approach, the study triangulates findings from econometric modeling, surveys, and qualitative interviews. The purpose of our interdisciplinary research is to evaluate the direct and indirect impacts of tourism on regional economic parameters, including but not limited to GDP growth, employment rate, and infrastructure development. Our econometric model analyzes time-series data from 2000 to 2021 and employs several control variables to isolate the economic impact attributable to tourism. This quantitative inquiry is further enriched by qualitative data sourced through semi-structured interviews with stakeholders in the tourism industry, policy makers, and local communities. Our findings indicate that tourism in Uzbekistan acts as a catalytic agent for regional development in multiple dimensions. Not only does it contribute directly to GDP growth and employment but also plays a significant role in cultural preservation, infrastructural improvements, and enhancing social capital. Furthermore, our analyses unveil the essentiality of sustainable tourism policies in amplifying these positive impacts while mitigating potential negative externalities. Therefore, the study’s outcomes bear substantial implications for policymakers, suggesting that a nuanced approach in tourism management could serve as a key strategy in holistic regional development.

Investment screening put to the test of the Covid-19 Pandemic: typology, legality and externality

ABSTRACT The Covid-19 Pandemic has introduced or revived a concern in the foreign direct investment (FDI) context that was less emphasized pre-Pandemic, namely public health. This article discusses the typology of Covid-19 related FDI screening, expounds on the legality of these measures in the context of both national investment law and international investment law, and identifies the potential negative externalities to foreign investors and to the host state. Newly promulgated FDI screening measures intensify governmental intervention and scrutiny in cross-border takeovers in the health sector and beyond to protect domestic companies from being taken over by predatory foreign buyers. FDI screening during Covid-19 has become more comprehensive and inclusive in its scope than what was already considered a system capable of excessive and arbitrary use pre-Pandemic. FDI screening on grounds of public health may be justified for its legality under both national and international investment law, nonetheless certain conditions need to be satisfied. The negative externality of FDI screening during Covid-19 pertains to a concern that, if applied aggressively in practice, FDI screening might potentially result in a deterrence effect on the cross-border capital flow that is much needed for market revival after a global economic shutdown.

Expert opinions and negative externalities do not decrease support for anti-price gouging policies

During disasters, citizens call for “anti-price gouging” policies. However, majorities of economists oppose such policies. For democracy to function, citizens should be responsive to policy-relevant information—especially from experts. What impact does exposure to the potential negative externalities have on public support for anti-price gouging policies? We hypothesize that if the public were exposed to such information, they would be less supportive of anti-gouging policies. We employ two survey experiments: one administered in Florida ( n = 2085), a state prone to hurricane activity, and the second in the United States ( n = 2023) at the onset of the COVID-19 pandemic. Both show that the public overwhelmingly supports anti-price gouging policies, regardless of exposure to information about negative externalities, even when it comes from experts.

Greening China’s urban growth machine: The micro-politics of growth and environment protection in Wuxi, China

ABSTRACT This article examines the micro-politics of the Chinese state’s environmental turn and its effects on the urban growth machine. It details how several state-led attempts to fix ecological crises in Wuxi reconfigured power relations between state units and pushed local authorities to re-assess the costs of economic growth. The heightened stakes of environment protection interventions intensified tensions among subnational officials in the fragmented bureaucratic field and made it difficult to approve growth-oriented projects with potential negative environmental externalities. This article calls for a micro-level approach that goes beyond the political economy of land-centered urban growth and instead considers the complex rationalities, entangled logics, and structures of interest shaping the development and governance of Chinese cities.

Potential Negative Externalities of Private Military Entrepreneurs from an Economic Perspective

ABSTRACT Private military companies (PMC) can have considerable advantages for the customer on the one hand, but on the other hand can come with great dangers. Based on the theory of externalities, an attempt is made to illuminate this situation and to analyze the negative externalities associated with it. By using an instrumental case study method we can identify two potential negative technological externalities of hiring PMCs which should be internalized. These two are the violation of national law and international humanitarian law in the theater of operation, and the lack of control of the executive by the legislative branch in the exporting state. Based on this, we present and discuss options to eliminate these negative technological externalities. It can be shown that the preferable set of measures includes instruments to create transparency, and command-and-control regulations on the individual state’s level. While the second effect can easily be solved with domestic instruments, a supranational organization is needed to solve the first effect.

Intensification of rice-pasture rotations with annual crops reduces the stability of sustainability across productivity, economic, and environmental indicators

CONTEXTIntegrated crop-livestock systems are facing the pressure to intensify worldwide, yet decoupling crops and livestock can lead to specialized systems relying on greater external inputs and potential negative externalities. OBJECTIVEOur goal was to compare rice-pasture, as the business-as-usual rotation, with two intensified systems, rice-soybean and rice-cover crop, to address the following objectives: 1) quantify partial carbon footprint (CF) including both crop and livestock, 2) develop a multi-criteria performance index based on productivity, economic, and environmental indicators at the systems-level, and 3) evaluate the stability of this index over the study period. METHODSTo understand how increasing the frequency of annual grain crops influences whole-system sustainability, we evaluated 10 productivity, economic and environmental indicators as well as a multi-criteria performance index and its stability in three rice-based rotation systems over 7 years in Uruguay. Treatments were: (a) rice–pasture [a 5 yr rotation of rice–ryegrass (Lolium multiflorum Lam.)–rice, then 3.5 yr of a perennial mixture of tall fescue (Festuca arundinacea Schreb.), white clover (Trifolium repens L.), and birdsfoot trefoil (Lotus corniculatus L.)], (b) rice–soybean [a 2-yr rotation of rice–ryegrass–soybean (Glycine max [L.] Merr.)– Egyptian clover (Trifolium alexandrinum L.)], and (c) rice–cover crop (an annual rotation of rice–Egyptian clover). RESULTS AND CONCLUSIONSRice-soybean had medium productivity and energy use, resulting in the highest nitrogen and energy use efficiency and among the lowest yield-scaled C footprint. Field greenhouse gas emissions and embodied energy in fuel and agrochemicals were similar in rice-pasture and rice-soybean, but the increase in soil organic carbon in pasture rotating with rice was able to offset this by almost 50%. Rice-cover crop had the highest economic incomes but also the highest input costs, translating into the lowest gross margin. Although the rice-soybean and rice-pasture had a similar gross margin, the variability in rice-pasture was lower and with lower input costs. Rice-soybean and rice-pasture had a multi-criteria performance index 65% higher than rice-cover crop (0.35). Rice-pasture had the highest overall stability across four different stability parameters calculated. We conclude that the intensification of rice-pasture with annual crops could reduce the stability of sustainability without increasing economic performance, even for rice-soybean that showed the best the multi-criteria performance but with less stability across indicators. SIGNIFICANCEThe findings of this study demonstrate how the integration of rice and pastures with livestock achieves the best combination of stability across profitability and environmental performance, thus mitigating vulnerability to external stressors.

Aquaculture: Externalities and Policy Options

Global seafood supply is increasing and seafood prices are stable, despite the plateauing of global wild-caught fishery harvests and reports of collapsing fish stocks. This trend is largely due to rapid growth in aquaculture (farmed seafood), which now accounts for roughly half of the global seafood supply. Although aquaculture is a key contributor to food security, fish farming interacts closely with the surrounding ecosystem, and its rapid global growth raises many environmental concerns. Potential negative externalities include decreases in water quality, disease spillovers, genetic interactions between wild and domesticated fish, overuse of antibiotics, and pressures on fish stocks from reliance on wild-caught fish for feed. We show that the environmental externalities of aquaculture can be positive or negative, that some externalities are not true externalities because firms have incentives to internalize them, that some perceived externalities do not exist, and that the remaining externalities can be addressed primarily through spatial management. Because outcomes are strongly influenced by the management of spatial issues such as the siting of production facilities, management challenges include both commons and anticommons problems. We conclude that management should focus on spatial approaches, adaptation to climate change, and facilitating technological innovation to address externalities and encourage sustainable development of the aquaculture sector.

Tragedy of the Anticommons (ToA) in Agricultural Land Partition involving Fragmented Co-proprietorships: An Analysis of Malaysian Case Laws

There is a lack of understanding of the theory of the Tragedy of the Anticommons (ToA), a type of coordination breakdown or a hold-out problem involving multiple fragmented co-proprietorships with undivided shares, in the land partition context. This paper, hence, discusses how ToA occurs particularly in the agricultural land partition that is primarily governed under the National Land Code 1965 and proposes potential legal and non-legal approaches and mechanisms to address the land tragedy. An abductive content analysis of (9) case laws extracted from the LexisNexis database was performed through which themes and codes were developed to explain how ToA hindering land partition takes place. Subsequently, judicial decisions in solving disputes arising from land partition and existing best practices in dealing with the tragedy were reviewed. The case laws review indicated that unsuccessful agricultural land partition associated with high transaction costs in securing co-proprietors consensus is a form of simultaneous ToA, that most of the unpartitioned land (anticommons) may be subject to underinvestment (land mismanagement) and disuse. Key factors leading to disagreement among co-proprietors and consequently ToA are as follows: (i) unequal (unfair) proportion or shares of land; (ii) uneven geographical partition and spatial distribution of government reserves; and (iii) potential damages and negative effects (e.g., loss of income and property). To address ToA, these are legal mechanisms proposed: statutory enforcement of the National Land Code (NLC) 1965 (via land forfeiture and reversion), the Land Acquisition Act (LAA) 1960 on compulsory land acquisition, and judicial decisions (e.g., land partitions may take place if it is fairly distributed and made by the majority shareholders), while non-legal approaches cover negotiation and arbitration; en-bloc sales (partition); collective action through enhanced social capital; and imposition of a tax on underutilised land. By showcasing various agricultural anticommons tragedies and their potential negative externalities in the land partition context, this paper offers policy and management insights that help land officers and local authorities ensure the maximum efficiency and productivity (i.e., highest and best use) of the land

Technological innovations promoting sustainable salmon (Salmo salar) aquaculture in Norway

While highly successful in terms of profitable seafood production, salmon (Salmo salar) aquaculture may also be a source of potential negative environmental externalities. In an attempt to address these challenges through supporting the development of new technology, the Norwegian government has introduced a new class of aquaculture licenses labeled as development licenses. As a result, new technological solutions were proposed to reduce negative externalities through (1) expansion to open ocean areas not yet used for aquaculture and (2) reduced emissions from inshore production systems. This paper presents an analysis of the technological concepts proposed in applications for development licenses. The applications for development licenses provide a unique perspective on what technological directions existing marine aquaculture companies envisage that marine aquaculture may take in the future. The analysis indicates that units will become larger and stronger, as well as being specially designed to suit a variety of environments, creating a more heterogeneous industry. Large offshore structures such as semi-submersible platforms and other strong, rigid structures with permeable enclosures (nets) have been particularly successful in this application process, receiving relatively many development licenses. In sheltered fjord areas, many concepts involving closed enclosures (bags and tanks) have been suggested and awarded licenses.

The impact of tourism on the national economy and methods of its assessment: literature review

In the last decade, there has been a rapid growth of scientific research devoted to assessing the impact of tourism on the national economy. At the same time, existing studies of the relationship between tourism and the growth of the national economy, its potential benefits and negative externalities, are characterized by the vastness and heterogeneity of content, and often a distorted and incomplete understanding of the economic consequences of tourism. Various methods and models are used to assess the economic impact of tourism, so empirical studies vary significantly in quality and accuracy. The variety of approaches and methods causes significant discrepancies in conclusions regarding the contribution of tourism to the economy. The methods of assessing the contribution of tourism to economic growth are not without a number of drawbacks that reduce the effectiveness of their application for development management purposes. In order to highlight the basis of the research tradition in this field of knowledge, we applied the method of systematic review of the literature to analyze and generalize methodological approaches to assessing the economic impact of tourism. The article analyzed such concepts as economic contribution, economic impact, economic effect of tourism. Spatial aspects and factors influencing the economic effect of tourism are investigated. The main hypotheses and the area of existence of parameters for assessing the impact of tourism on the national economy are determined. The authors analyzed the possibilities and disadvantages of economic models used to assess the indirect and induced economic effects of tourism in modern research. The conclusions and recommendations of the authors can be used in the process of developing programs and projects for the development of tourism and the hospitality industry, improving models for assessing the impact of tourism on economic growth.

How do contract types and incentives influence driver behavior?\u2212An analysis of the Kigali bus network

The rapidly growing city of Kigali has a bus network that is undergoing increased development as underlined in its Transport Master Plan. Two schemes of bus driver remuneration coexist in the city: One constitutes a hybrid salary and commission system, while the other pays a fixed monthly salary. This paper examines the effect of these differing compensation schemes on driver behavior in Kigali using survey data from 2019. The analysis applies linear models incorporating various aspects of driver behavior in a principal-agent framework. The results indicate that the performance-based compensation scheme is associated with higher per-trip passenger fluctuation and faster driving (possibly due to drivers aiming to accrue a higher income) compared to the fixed-wage system. Policy implications comprise the inclusion of further criteria in incentive contracts to internalize potential negative externalities on society, e.g., to hinder the endangerment of passenger safety by appropriately incentivizing drivers. In conclusion, bus drivers who are compensated by performance are more likely to alter their behavior, responding to the incentive scheme through several channels.

The Impact of Energy Production on Farmland Markets: Evidence from New York’s 2008 Hydraulic Fracturing Moratorium

Future conventional and renewable energy production will predominantly occur on farmland, resulting in economic gains as well as potential negative externalities for farmland owners and rural communities. However there is limited research on the economic impact of energy production that takes place on farmland. This study uses the discrete change in expectations caused by the 2008 New York State moratorium on hydraulic fracturing to investigate the net impact of shale gas development on farmland values. We use a difference-in-differences empirical design with a hedonic pricing model. We find that the moratorium led to net economic losses for rural landowners in New York’s Southern tier, as reflected in farmland values declining approximately $1,400/acre.

Basic principles for development and implementation of plastic clean-up technologies: What can we learn from fisheries management?

Plastic pollution compromises ocean health, with large amounts of plastics continuing to enter marine and coastal environments. Various mitigative engineering solutions are being developed and implemented in response to this threat. While recognising the positive impacts of clean-ups, we highlight two perspectives given little attention to date, which are vital to evaluating the cost-benefit ratio of clean-ups: firstly, clean-up efficiency where density and accessibility of litter are key, and secondly, potential negative externalities that implementation of clean-up technologies may have. These principles, catch per unit effort and the impact on non-target species, are well known from fisheries management. We argue they should also be applied in evaluating marine litter removal schemes.

Profiting From Our Pain: Privileged Access to Social Impact Investing

Social impacting investing has become the latest trend to permeate the financial markets. With massive anticipated funding gaps for sustainable development goals, and a millennial-driven thirst for doing good while doing well, this trend is likely to continue in the coming decades. This burgeoning industry is poised to experience yet an additional boost, since it provides an alternative mechanism for private actors to “profit from our pain,” particularly in the wake of the COVID-19 pandemic and the Black Lives Matter movement. As to be expected, the law has not sufficiently adapted to this new wave of innovation. Scholars have thus focused on how social impact investing should be measured and disclosed. However, they have paid limited attention to whether federal securities laws’ antiquated distinctions between public and private indicators—or rather its public-private divide—contributes to the harms that poorly overseen social impact investments can cause. This Article seeks to fill this scholarly gap by exploring how this public-private divide gives rise to the possibility that social impact investing will lead to exploitation. This divide permits regulatory loopholes where social impact investors can obscure information about potential negative externalities flowing from their investments. It further allows elite investors to exclusively profit from community pain.These loopholes are troubling because social impact investing has the highest potential for impact along the continuum of socially conscious strategies. However, due to the need for regulatory flexibilities, such as the power to invest in illiquid assets, most social impact investors operate as exempt entities. Retail investors, who encompass all members of the general public, are restricted from accessing these privately held investment vehicles due to investor protection concerns. Restricting investors in this manner is a primary indicator of privateness under federal securities laws. Affected community members, who are the targeted beneficiaries of these schemes, are thus excluded as investors. This exclusion also limits transparency, yet an additional indicator of privateness, which would enable the general public as well as policy makers to make assessments about the extent to which these schemes are maximizing net social welfare. This is particularly problematic given the potential for social impact investments to generate unaccounted for negative externalities, such as when seemingly clean energy technologies inadvertently destroy surrounding environments or habitats. Solely relying on privately ordered solutions can leave costly loopholes given that they are completely voluntary and lack standardization. Innovative regulatory solutions that reconceptualize this public private divide may best address potential harms of social impact investments. This Article proposes to combine existing indicators of “publicness” and “privateness” while perhaps creating new measures. Codified in an entirely new series of exemptions entitled the “Social Impact Exemptions” that would appear under the Securities Act of 1933 and the Investment Company Act of 1940, these exemptions would effectively recalibrate existing rules related to retail investor access and disclosure, while possibly creating new frameworks for accountability and management structure.

Estimating adoption and impacts of agricultural management practices in developing countries using satellite data. A scoping review

Development and dissemination of sustainable practices are key to enhance agricultural productivity in developing countries and to curtail potential negative externalities. Rigorous adoption/impact evaluations provide valuable lessons to enhance the capacity of agricultural research-for-development (R4D) systems in this context. Conventional evaluation studies rely solely on farm-household surveys for data. Generation of survey data however requires considerable financial and human capital, and the process often misses several important explanatory variables, ignores the longer-term impacts, and suffers from measurement errors. Complementary data sources are explored to make the evaluations more robust and rigorous. Here we review 54 studies that used satellite data to estimate adoption and impact of agricultural practices in developing countries. Some evidence on successful application of satellite data in high-income countries is also provided. The main findings of the paper are threefold: (1) satellite data have been successfully used to detect agricultural practices, such as cropping intensity, tillage, crop residue cover, irrigation, and soil and water conservation; (2) only a few studies have estimated the yield impacts of agricultural practices, although the estimation of crop yields with satellite data is fairly developed; and (3) only a small number of studies have explored impact estimation beyond the biophysical sphere. Estimation of certain environmental impacts of agricultural practices is possible through satellite data, although only a few studies have carried it out. Not many have assessed the economic impacts of interventions. We conclude that satellite data analysis allows information access with little delay and over longer periods, provide a unique set of variables over wide geographies, and reduce measurement error in certain variables. However, more interdisciplinary research is necessary to speed up the uptake of this alternative data source in R4D evaluations.

Craft Breweries and Neighborhood Crime: Are They Related?

In their search for inexpensive real estate, many craft breweries have located in economically distressed neighborhoods. In many cases, breweries have contributed to the revitalization of neighborhoods. However, as a business that serves alcohol, some jurisdictions are concerned with potential negative externalities associated with craft breweries. One concern is a possible increase in crime. Using Portland as a case study, our purpose in this paper is to quantitatively assess changes in crime levels after the opening of a craft brewery. Using detailed data on calls for service to the Portland Police Bureau and brewery locations with their opening dates, we estimate the relationship between brewery openings and crime between 2012 and 2018. We control for brewery specific attributes, city-wide trends, and changes in neighborhood characteristics that may also affect crime levels. Our findings suggest that there is no significant change in crime around craft brewery locations post opening. However, the findings do provide guidance as to under which conditions brewery locations may be associated with relatively less or more crime. While breweries located in residential, industrial, or employment zones tend to be associated with less crime, breweries located in clusters in commercial zones tend to experience more crime.