Pricing Mechanism Research Articles

Econometrics of Climate Change Research

The econometrics of climate change explores the intricate interplay between economic activity and climate dynamics, offering empirical insights into the causes, impacts, and mitigation of global climate change. This research applies advanced econometric techniques to quantify the economic consequences of environmental changes and evaluate the effectiveness of climate policies. By leveraging panel data models, time-series analysis, and causal inference methods, this study investigates critical topics such as the economic costs of extreme weather events, the efficacy of carbon pricing mechanisms, and the role of renewable energy adoption in mitigating climate risks. Additionally, this research incorporates machine learning techniques to enhance predictive accuracy in modeling future climate-economic interactions. Through rigorous empirical analysis, the study provides actionable recommendations for policymakers to design sustainable strategies that balance economic growth with climate resilience. The findings contribute to a deeper understanding of the socioeconomic dimensions of climate change, emphasizing the importance of evidence-based decision-making in addressing one of humanity’s most pressing challenges.

Drug pricing models, no 'one-size-fits-all' approach: a systematic review and critical evaluation of pricing models in an evolving pharmaceutical landscape.

Access to new medicines is crucial for patients but increasingly sparks discussion due to high prices. Simultaneously, the growing emphasis on specialized products and uncertainty surrounding the long-term effectiveness of new drug classes brought to the market underscore the need for innovative pricing approaches. A systematic literature review of pharmaceutical pricing models, accompanied by a critical appraisal, was conducted to offer insights contributing to novel approaches balancing sustainable pharmaceutical innovation with affordability and accessibility for patients. Six different pricing models are identified: value based pricing, basic cost-based pricing, and four more comprehensive pricing models incorporating numerous elements: the cancer-drug-pricing model, AIM model, (Nuijtens) discounted cash flow, and the real-option rate of return method. Although there are many similarities among the models, each has unique assumptions for implementation. For instance, all models except for the standard incremental cost-effectiveness ratio and basic cost-based pricing consider the number of eligible patients and the remaining patent period. Only the AIM model and the Nuijtens discounted cash flow model use lump sums. Both the latter and the real-option rate of return method explicitly include the cost of capital as a major cost-based component. Recognizing the diverse applications of each model highlights the need for more differential and dynamic pricing tailored to the characteristics and therapeutic areas of each drug. Additionally, the study underscores the importance of cost transparency in achieving this goal. Consequently, these findings can help stakeholders develop sustainable and affordable drug pricing mechanisms that address the complexities of the ever-changing pharmaceutical landscape.

Pengaruh Konsep Penjualan Syariah Terhadap Minat Beli Konsumen di Toko Emas Sejati Baru Plaza Kebun Sayur Balikpapan Menurut Perspektif Ekonomi Syariah

The application of the sharia sales concept also influences consumer buying interest through the mechanism of fair pricing. The purpose of this study is to determine the effect of the sharia sales concept on consumer buying interest at Sejati Baru Jewelry Store in Plaza Kebun Sayur Balikpapan from an Islamic economic perspective. The method used in this study is descriptive quantitative. The results of this study indicate that the sharia sales variable significantly contributes to variations in consumer buying interest, with an R square value of 0.285, indicating that 28.5% of the variation in buying interest can be explained by this variable. Additionally, the F test and t test also show strong significance, with p-values well below 0.05.

Cost-Effective Dynamic Alliance Pricing Mechanism Based on Distributed Edge Intelligence

Cost-Effective Dynamic Alliance Pricing Mechanism Based on Distributed Edge Intelligence

Agricultural carbon credits: A pathway to environmental sustainability

Climate change and ensuring food security for a rapidly growing global population are two of the biggest challenges in agriculture. To meet the commitments made in the Paris Climate Agreement, it is important to use effective methods for managing soil that can help sequester and stabilise carbon. Conservation agriculture has a huge potential to sequester carbon in plants and soil, making it a viable option for carbon trading despite its significant contribution to global greenhouse gas emissions. Carbon sequestration can be achieved through sustainable practices such as adopting conservation agriculture, crop rotation, cover crop cultivation, crop residue incorporation or mulching, effective management of nutrient supply to crops, and transforming towards organic agriculture and agroforestry. These practices promote food security and environmental improvement and help mitigate global warming. Carbon pricing mechanisms are policies that impose a cost on carbon pollution, encouraging people and organisations to choose low-carbon options and reduce their emissions. Agricultural producers can benefit from carbon trading by earning extra revenue by selling their excess carbon credits to those who emit higher amounts of greenhouse gases. Carbon credit systems in agriculture are still in the early stages, so farmers may have more opportunities to participate in future carbon trading.

Carbon Trading and Environmental Justice: A Juridical Examination of Fairness in Indonesia's Emissions Reduction Initiative

This paper provides a normative juridical analysis of Indonesia's carbon trading regulations, with a focus on environmental justice and fairness. It examines the legal framework established by Presidential Regulation No. 98 of 2021, which governs carbon pricing mechanisms, including carbon taxes and carbon credit trading. The analysis highlights key gaps in the regulation, particularly in terms of equitable benefit distribution and inclusion of vulnerable communities in decision-making processes. While Indonesia's carbon trading system aligns with global trends and its international obligations, significant improvements are needed to ensure that marginalized groups are not further disadvantaged. Recommendations include the redistribution of carbon trading revenues, enhanced public participation, stronger enforcement mechanisms, and alignment with international best practices.

Fair Energy Trading in Blockchain-Inspired Smart Grid: Technological Barriers and Future Trends in the Age of Electric Vehicles

The global electricity demand from electric vehicles (EVs) increased by 3631% over the last decade, from 2600 gigawatt hours (GWh) in 2013 to 97,000 GWh in 2023. The global electricity demand from EVs will rise to 710,000 GWh by 2030. These EVs will depend on smart grids (SGs) for their charging requirements. Like EVs, SGs are a booming market. In 2021, SG technologies were valued at USD 43.1 billion and are projected to reach USD 103.4 billion by 2026. As EVs become more prevalent, they introduce additional complexity to the SG landscape, with EVs not only consuming energy, but also potentially supplying it back to the grid through vehicle-to-grid (V2G) technologies. The entry of numerous independent sellers and buyers, including EV owners, into the market will lead to intense competition, resulting in rapid fluctuations in electricity prices and constant energy transactions to maximize profit for both buyers and sellers. Blockchain technology will play a crucial role in securing data publishing and transactions in this evolving scenario, ensuring transparent and efficient interactions between EVs and the grid. This survey paper explores key research challenges from an engineering design perspective of SG operation, such as the potential for voltage instability due to the integration of numerous EVs and distributed microgrids with fluctuating generation capacities and load demands. This paper also delves into the need for a synergistic balance to optimize the energy supply and demand equation. Additionally, it discusses policies and incentives that may be enforced by national electricity carriers to maintain grid reliability and manage the influx of EVs. Furthermore, this paper addresses emerging issues of SG technology providing primary charging infrastructure for EVs, such as incentivizing green energy, the technical difficulties in integrating diverse hetero-microgrids based on HVAC and HVDC technologies, challenges related to the speed of energy transaction processing during fluctuating prices, and vulnerabilities concerning cyber-attacks on blockchain-based SG architectures. Finally, future trends are discussed, including the impact of increased EV penetration on SGs, advancements in V2G technologies, load-shaping techniques, dynamic pricing mechanisms, and AI-based stability enhancement measures in the context of widespread SG adoption.

A low-carbon supply chain pricing mechanism considering CSR under carbon cap-and-trade policy.

In the context of environmental deterioration and people's growing environmental protection awareness, governments or regions have put forward corresponding carbon emission reduction policies. Among them, the carbon trading mechanism, as an effective means to promote enterprises to implement emission reduction measures, plays a crucial role in regulating enterprise behavior and promoting social sustainable development. Since various industries and sectors support each other in social and economic development, it is more reasonable to study the carbon emission reduction optimization decisions of society and enterprises from the perspective of the supply chain. To achieve the carbon reduction target of the supply chain system, manufacturing enterprises usually need to incur additional costs to invest in emission reduction technologies, and retail enterprises also need to conduct low-carbon publicity to increase product market share. On one hand, considering the impact of the government's emission reduction constraints and consumers' low-carbon preferences, manufacturers will take corporate social responsibility (CSR) into consideration to enhance product competitiveness. On the other hand, smaller retailers are more concerned about being treated fairly than about their own profits due to the extra cost of low-carbon advertising. In this paper, considering the background of carbon trading, the manufacturer's CSR and retailer's fairness concern behavior are introduced into the decision-making process of the low-carbon supply chain (LCSC), and the relevant emission reduction decision-making model is constructed by using Stackelberg game theory and backward derivation method. Through comparative analysis of relevant parameters, members' profits and utilities, this paper focuses on the influence of CSR and fairness concerns on system decision-making. The results show that the optimal way for LCSC decision-making is to cooperate with fair-concerned retailers and manufacturers with CSR. When manufacturers consider social responsibility within a certain range and retailers bear part of the cost of social responsibility as followers, it can not only effectively improve the emission reduction level of the supply chain and the profits of each entity, but also help to increase the enthusiasm of each entity for carbon emission reduction and the overall social welfare.

Electricity arbitrage for mobile energy storage in marginal pricing mechanism via bi-level programming

The rapid growth of renewable energy is integrated into the distribution system. The creation of both new market mechanisms and investment models has critical effects on the economics and security of the distribution market. Mobile energy storage has been used to increase the resilience of distribution grids due to their advantages in mobility and flexibility, which offer electricity arbitrage options for merchant investments. This paper presents a bi-level optimization framework based on location marginal pricing settlement of mobile energy storage financial rights revenue in active distribution systems. In the developed framework, the upper-level problem determines the optimal capacity, routing, and dispatching of mobile energy storage to maximize revenue in the liberalized electricity market. The lower-level problem performs the joint optimization of energy and reserve market clearing as well as renewable energy capacity optimization based on the alternating current optimal power flow model. The non-convexity of the line flow and location marginal pricing is linearized via second-order cone relaxation and Karush-Kuhn-Tucker. The bi-level programming is reformatted as mathematical programming with equilibrium constraints. Further, the revenue risk due to renewable energy uncertainty is measured via conditional value-at-risk. Finally, the effectiveness of the optimization framework and solution method is verified using the modified IEEE-33 test system. The results show that mobile energy storage promotes renewable energy and reduces distribution network costs by 2.3%.

Navigating linguistic ideologies and market dynamics within China’s English language teaching landscape

Abstract This study explores the intricate interplay of linguistic ideologies, market dynamics, and linguistic habitus within the context of English language education in China. Analysis of Chinese English language teachers’ (CELTs) discourse on linguistic insecurity reveals a strong association between accentedness and incompetence, as well as between nativeness and teacher expertise. Despite dissatisfaction with nativeness-oriented criteria prevalent in the field, most CELTs reported experiencing anxiety due to the social stigma surrounding Mandarin-accented English. While certain Inner Circle English varieties are viewed as the most valuable capital, local and other non-Inner Circle varieties are considered the least valuable. Notably, Mandarin-accented English gains higher symbolic value than other perceived nonstandard English varieties beyond the teaching domain. This pricing mechanism within China’s English language teaching (ELT) landscape deviates from the price formation model of world Englishes proposed in previous work, which assigns a greater value to Outer Circle varieties than Expanding Circle varieties. By contextualizing CELTs’ experiences within broader language policies, this study illustrates how national interests, beyond the influence of Inner Circle publishers, intensify native-speakerism in China’s ELT market, thus emphasizing the intricate nature of explaining nuanced pricing patterns in the autonomous market within Expanding Circle contexts.

Small-Sample Data Pricing Based on Data Augmentation and Meta-Learning

Data trading platforms play a crucial role in facilitating data circulation and promoting the sustainable allocation of data resources. Establishing a transparent, fair, and efficient pricing mechanism is key to ensuring the long-term stability and development of such platforms. However, these platforms face challenges in pricing due to the small sample problem, as traditional machine learning methods typically rely on large amounts of data. To address this issue, this paper proposes a data resource pricing model that combines WGAN-GP data augmentation and the Reptile algorithm. Data augmentation generates related datasets to increase sample size, enhancing the renewability of data resources, while meta-learning transfers knowledge across tasks, improving the model’s ability to quickly adapt to new tasks and efficiently utilize resources. Validation using actual trading data from the data trading platform shows that the proposed model accurately predicts data resource prices under small-sample conditions, outperforming other models. This study addresses the limitations of existing pricing methods in small-sample scenarios, providing a sustainable pricing solution for small-sample data resources and improving the accuracy and long-term stability of data pricing in the market.

The Rise of Green Trade Policy and Its Impact on the International Market

With the increasing severity of global environmental issues, governments and international organizations are gradually recognizing the key role of green trade policies in promoting environmental sustainability. Green trade policies aim to facilitate a green transition in global trade through the formulation and implementation of environmental protection measures. These policies include carbon pricing mechanisms, green tariffs, environmental subsidies, and international coordination of environmental standards. This paper systematically analyzes the definition and development of green trade policies and explores their impact on the international market. The main content covers the reshaping of international trade flows and patterns, changes in global competitive dynamics, and the optimization and adjustment of global supply chains. The study reveals that green trade policies not only drive increased demand for eco-friendly products and technologies in the international market but also reshape global competitive dynamics and promote the greening and smart transformation of global supply chains. In the future, with the further refinement of green trade policies and strengthened international cooperation, the global economy is expected to achieve more sustainable development.

Behavior-based pricing and wholesale contracting in competing supply chains with informative advertising

The development of e-commerce has enhanced the ability of firms to identify existing and potential customers and set targeted prices accordingly, which is known as behavior-based pricing (BBP). This study investigates the effect of manufacturers’ informative advertising on the strategic interaction between wholesale price contracts (long-term or short-term) and downstream pricing mechanisms (BBP or not). We consider two horizontal differentiated supply chains in which firms not only compete in prices but also in informative advertising which is used to generate awareness of products. We find that the impact of BBP on channel members’ advertising, pricing and profits is the tradeoff of multiple effects. With BBP, manufacturers will advertise less and both retailers and manufacturers prefer short-term wholesale contracts. Moreover, BBP eases the price competition in the first period but intensifies it in the second period, especially for short-term wholesale contracts. In equilibrium, BBP is adopted by retailers only when the advertising cost is low, and manufacturers choose short-term wholesale contracts. Furthermore, BBP always hurts the consumer surplus and social welfare which means that targeted measures are needed to regulate firms’ price discrimination.

An optimized decentralized peer-to-peer energy trading system for smart grids incorporating uncertain renewable energy sources through fuzzy optimization

The significant issue in today's world is that the power system is undergoing on account of unafforded power generation and distribution. Consequently, improper utilization of renewable energy, as well as its pricing mechanism of electrical energy, is also a vital issue in transmission and distribution systems (TDS). In addition, in the context of upcoming power systems, ensuring energy stability and effective energy management have become paramount. This paper introduces a novel approach to address these challenges by proposing an optimal demand response grid-connected decentralized peer-to-peer (P2P) energy trading system. This system efficiently manages energy transactions among prosumers, the grid, and renewable energy sources (RES) under uncertain conditions. Fuzzy optimization (FO) is employed to facilitate interconnections between these entities. A fuzzy logic controller with intelligent rules governs the overall strategy and pricing mechanism based on prosumer power deviation (PPD). Inspired by human thinking, these rules prioritize P2P transactions, with surplus energy exported to the main grid (MG) and energy imported from the MG when necessary. Pricing adjusts dynamically with load demand. Simulation results demonstrate the effectiveness of the fuzzy rules across various conditions, ensuring proper system operation. The proposed model also proves that the P2P energy trading system has reduced power consumption by balancing the generated power and the load demand. The proposed system is environmentally friendly, emitting no harmful gases.

Catalysing Action and Transdisciplinary Pathways towards Sustainable Transitions

Prelude – Special Issue Motivation The year 2023 marked the 300th anniversary of the birth of Adam Smith, the Scottish economist whose work has impacted how we think about economic principles and the dynamics implied in politics, business, and society. Known for his seminal work “The Wealth of Nations” published in 1776, Smith argued for an economic system with little unnecessary government interference. A model built on the division of labor, guided by an ‘invisible hand’, is part of the argument for free markets directed through price mechanisms and the moral conscience of self-interested people to achieve outcomes that benefit society (Stevens, 2023). Smith’s intention to articulate a liberal economic model that prioritized contributing positively to society's welfare1 however, stands in contrast to 20th-century business doctrine, which asserted that ‘their sole social responsibility was to generate as much profit as possible for their stockholders’ (Friedman, 1962, p. 133). (Continues, please read PDF)

A critical analysis of the marketing mix elements of small businesses in the retail sector in Durban Central Business District

In an incisive analysis of the marketing mix's impact on small retail businesses in Durban's Central Business District (CBD), this study scrutinizes the extended 7Ps framework: product, price, place, promotion, process, people and physical evidence. Utilizing a quantitative methodology, data from 217 owner-managers, captured via a 5-point Likert scale, were analysed through ANOVA and Tukey's HSD tests, unearthing deep insights. The findings disrupt conventional marketing paradigms, revealing that an intense focus on product attributes does not correlate with enhanced performance. Small businesses that maintained competitive, yet balanced pricing mechanisms outstripped are those that engages in fierce price wars, underscoring the dangers of excessive price reductions. Strategic promotional activities and well-considered choice locations were pivotal, whereas overemphasis on physical evidence and internal processes proved detrimental. The study results advocate for a balanced, strategic approach to the marketing mix, urging small businesses to rethink traditional priorities. This study offers crucial guidance for business owners seeking to optimize performance and calls for targeted policy measures to support the retail sector’s growth and sustainability.

Carbon border adjustments or climate clubs: Impacts on African agricultural sectors under different cooperative scenarios

AbstractDespite the rapid acceleration of climate change, international climate negotiations have yet to implement effective mitigation action. This failure can be attributed to the phenomenon of free‐riding behaviours and the adverse effects of unilateral abatement policies, such as carbon leakage. The introduction of a Carbon Border Adjustment Mechanism (CBAM), as planned by the EU and the creation of climate clubs represent two potential solutions. However, both present uncertainties regarding their trade impacts, effectiveness and equity implications, particularly for developing countries. The outcome of these alternative unilateral or cooperative solutions is analysed using a dynamic CGE model, with a particular focus on the EU‐Africa relations and the agricultural sector. The results indicate that the effectiveness of CBAM in preventing carbon leakage and supporting EU climate goals depends on foreign partners implementing domestic carbon pricing mechanisms. Conversely, for African regions, domestic mitigation efforts and exemption from CBAM can enhance export competitiveness on EU markets while reducing global carbon leakage. Overall, the establishment of climate clubs, coupled with the transfer of technology and the diffusion of best practices in agriculture, can support developing countries and facilitate an inclusive and environmentally beneficial development transition.

A Company Analysis and Financial Valuation of Sinopec

In this article, a comprehensive analysis of Sinopec is presented, delving beyond surface evaluations to deeply assess its strengths, weaknesses, and potential opportunities. Recognizing the limitations of superficial evaluations, the analysis incorporates financial insights to quantify the risks faced by Sinopec. Additionally, two comparable companies are scrutinized to provide a broader context for evaluation. Through meticulous data comparison, coupled with an examination of policies and pricing mechanisms, a nuanced understanding of Sinopec's position in the market emerges. While acknowledging areas where Sinopec may lag behind its competitors, the analysis underscores its promising developmental trajectory and investment potential. Despite identified weaknesses, Sinopec exhibits resilience and strategic positioning that warrant investor attention. Consequently, the article advocates for Sinopec as an attractive investment option, emphasizing its favorable prospects and priority for investment. By offering a multifaceted examination that integrates financial analysis, industry context, and strategic outlook, this article equips investors with a comprehensive understanding of Sinopec's standing in the market, ultimately advocating for its consideration as a compelling investment opportunity.

Electricity Price and Inflation: Macroeconomic Implications of Real-Time Pricing

Electricity prices can be an important driver of inflation. However, the transmission from wholesale electricity price to inflation depends on the type of pricing mechanism in the retail market. Using the introduction of Real-Time Pricing (RTP) in the Spanish retail electricity market, we analyze the transmission of wholesale electricity price shocks to inflation dynamics and how this transmission is affected by the introduction of RTP. The main findings are that—after RTP was rolled out—electricity price shocks display a swifter transmission to inflation while the maximum impact is around three times higher than in the previous period. This higher transmission is not only generated by a more pronounced reaction of the retail electricity price but is also caused by a greater transmission of these shocks to core inflation. These results imply that introducing RTP impacts inflation dynamics and, therefore, affects how central banks should react to this type of shock. JEL Classification: E31, Q43, Q48

Institutional investors’ role in implementing book building: Views of market participants

The aim of this paper is to assess the views of market participants concerning the institutional investors’ role in implementing book-building pricing of IPOs as Nepal seeks to implement it. A total of 125 market participants were approached for data collection using a structured questionnaire that took a six-month period from January to June 2020. Descriptive and inferential statistics were employed to analyze the collected data. The study found that the role of institutional investors in the prevailing stock market is brutally meager because of the restrained regulatory provisions. Market participants opined that institutional investors play a vital role in developing the stock market and executing book building. Implementation of book building demands a rigorous amendment in the existing regulations that allow institutional investors to enter and play in the market. A precise classification and definition of the potential roles of institutional investors are essential so that the application of the building pricing mechanism could be expected to be more effective. Market participants believed that the active participation of institutional investors will help lure manufacturing and real sector companies, trading houses and hotels into the capital market for public offerings. Issue managers, portfolio managers, share registrars, and stockbrokers agree that the role of institutional investors is inevitable in implementing book-building pricing.