Regulatory Uncertainty Research Articles

Determinants of the price premium for eco vessels

Shipping companies face the trilemma of investing in cheaper but more polluting conventional vessels, in more expensive but eco-friendly ones or postponing their investment. We quantify the price premium paid for eco-friendly vessels and investigate its determinants. The results indicate that eco vessels trade at an average premium of 25% compared to their conventional counterparts, while the corresponding income premia are between 9% and 15%. Our findings further suggest that the price premium depends on the market conditions, with income premia, past price premia, and fleet supply being strong drivers, while fuel costs and market liquidity have a less important effect. The magnitude and significance of these drivers vary based on the market state and segment. Overall, the paper documents the adverse effect that the current technological and regulatory uncertainty has on vessel investment and highlights the need for further policy intervention to reduce market uncertainty and encourage green investment.

Maturity assessment of grid-scale flexibility and energy storage services towards a decarbonized Europe

Background The study evaluates the maturity of grid-scale flexibility services, essential for Europe's transition to a decarbonized economy. Conducted under the Horizon-Europe SINNOGENES project, it focuses on energy storage technologies, regulatory frameworks, and stakeholder perspectives. Methods The methodology comprises three phases. First, significant grid-scale energy storage and flexibility technologies, including Battery Energy Storage Systems (BESS) and Vehicle-to-Grid (V2G) systems, were reviewed. Second, the regulatory framework for flexibility services at the EU transmission systems level was assessed, analyzing key EU directives and national regulations from Spain, Portugal, Germany, Cyprus, and Switzerland. Third, stakeholder perspectives were gathered through a survey of forty-four stakeholders in the European energy sector and bilateral interviews with companies and organizations in the energy sector. Results Technological advancements in grid-scale flexibility services have been identified, along with persistent regulatory challenges. The survey and interviews revealed a varied perception among stakeholders regarding the maturity and implementation of these services. A high demand for flexibility was noted, with 77% of stakeholders expressing a need for or active use of flexibility services. Electrochemical energy storage and demand response were highlighted as the most relevant technologies. However, high implementation costs, perceived insufficient benefits, and regulatory uncertainties were major barriers to widespread adoption. Conclusions The study concludes that despite notable technological progress and some regulatory advancements, several barriers still impede the full maturity and integration of grid-scale flexibility services in Europe. Addressing these regulatory and market challenges is crucial for achieving a fully functional and integrated flexibility service framework across the European grid. Harmonized regulations, financial incentives, and clear long-term pricing signals are essential to support the market.

Implementing Blockchain Technology for Optimized Supply Chain and Enhanced Sustainability

Supply chain efficiency, transparency, and sustainability can be enhanced using blockchain technology. Blockchain enables a company to accurately track raw material origin to finished products, which ensures standard quality and sustainability. Furthermore, blockchain improves partnerships between supply chain stakeholders by providing a confident, common platform for sharing data. The influence of implementing blockchain technology on supply chain sustainability includes reduced wastage, increased resource transparency, monitoring of social standards, and reduced operational costs. The challenges of blockchain implementation include scalability, incorporation with present systems, lack of expertise, safety and confidentiality, and regulatory uncertainty. Companies can tackle these challenges through collaborative approaches and technical improvements. In general, blockchain technology significantly enhances supply chain sustainability and efficiency, which provides opportunities for creative business solutions.

From tradition to technological advancement: embracing blockchain technology in family businesses

PurposeDespite the rapid advancement of blockchain technology across various sectors, scholarly research on its application within family businesses remains significantly underdeveloped. This study aims to address this gap by examining the application of blockchain technology within family businesses to identify key application domains, benefits and implementation challenges.Design/methodology/approachThe study employs a conceptual approach, drawing on existing literature on family businesses and blockchain technology. This review aimed to identify the unique characteristics of family businesses, their challenges and the distinctive features of blockchain technology that can potentially be mapped to each other. Based on the literature review, we develop a conceptual framework exploring blockchain technology applications in family businesses. Real-world case studies of family businesses that have implemented blockchain technology were identified to provide practical insights and implementation challenges.FindingsBlockchain technology possesses transformative potential for family businesses across several critical domains. It includes enhancing trust and transparency in operations, improving governance and decision-making and facilitating succession planning and intergenerational wealth management. Case study evidence illustrates the tangible benefits of blockchain, including enhanced supply chain transparency, optimized business processes, increased customer trust and resultant business sustainability. Blockchain technology implementation challenges include data privacy concerns, integration with legacy systems, regulatory uncertainty and change management issues.Research limitations/implicationsThis study is limited by its reliance on existing literature and case studies. It may not capture the full spectrum of challenges and opportunities associated with blockchain applications in family businesses. Future research should focus on longitudinal and empirical research to provide a deeper understanding of the impact of blockchain technology application in family businesses.Originality/valueThis study contributes to the literature by exploring the intersection of family businesses and blockchain technology, an area that has received limited academic attention. It identifies potential application domains of blockchain technology in family businesses and develops a conceptual framework based on existing literature. Through case studies, the research provides practical insights and valuable lessons for family businesses considering blockchain implementation. It also addresses key considerations and challenges, providing a clear roadmap for blockchain technology integration in family businesses. The study lays the groundwork for further research and exploration in blockchain technology and family businesses.

Autopsy of a futures market failure: Japan’s Dojima rice futures in the early 21st century

Futures markets promise improved price transparency and risk mitigation for staple commodities important to many developing countries, but they can fail even in developed economies with modern financial institutions. We investigate rice futures trading in Japan at the Osaka Dojima Exchange to identify the reasons underlying its failure in 2021. Our analysis reviews the multiple necessary conditions for a successful commodity futures market. We find the Japanese rice market did not meet many of these conditions. The spot market was fragmented with heterogeneous goods and a single dominant firm. Futures trading was unable to facilitate price discovery or effective hedging activity. To the extent it was traded, the Dojima rice futures contract was instead used as a forward contract for making and taking physical delivery. In addition, there was political opposition and regulatory uncertainty around futures trading. Using detailed data on trader positions in the futures market, we show how these factors contributed to diminished interest in futures trading from firms who handle physical commodities. The lessons from the Japanese case are useful for traders, exchanges, and policy makers, especially those in countries where futures markets may face similarly unfavorable economic and political conditions.

Impact of Cryptocurrency Adoption on Financial Inclusion in Myanmar

Purpose: Aim of the study was to analyze the impact of cryptocurrency adoption on financial inclusion in Myanmar. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Cryptocurrency adoption in Myanmar holds promise for enhancing financial inclusion by offering faster and cheaper remittance options, especially in underserved rural areas. However, challenges such as regulatory uncertainties and concerns over consumer protection must be addressed through clear and supportive regulatory frameworks. To maximize benefits, Myanmar should focus on improving financial literacy, developing user-friendly cryptocurrency platforms integrated with mobile money services, and establishing coherent regulatory guidelines in collaboration with international bodies. Unique Contribution to Theory, Practice and Policy: Diffusion of innovation theory, technology acceptance model (TAM) & institutional theory may be used to anchor future studies on impact of cryptocurrency adoption on financial inclusion in Myanmar. Practical initiatives should prioritize enhancing financial literacy and digital education programs tailored to Myanmar's population. Initiatives that promote understanding of blockchain technology and cryptocurrencies among consumers, businesses, and policymakers are crucial. Policymakers in Myanmar need to develop clear and supportive regulatory frameworks that balance innovation with consumer protection.

Digital Economy and Business Transformation in Indonesia: An Exploration of Opportunities and Challenges

This research explores the impact of the digital economy on key sectors such as e-commerce and fintech and identifies the challenges companies face in the adoption of digital technologies. In the context of e-commerce, this research assesses how digitalization has changed the way businesses operate, including changes in business models, payment methods, and customer experience, as well as how technology has enabled market expansion and improved operational efficiency. Using a qualitative approach and literature review, the research leveraged data from annual reports of government agencies, international organizations, industry reports of market research firms, and academic journal articles on digital transformation. The results reveal that, while digitalization offers significant opportunities for market expansion, innovation, and increased financial inclusion, there are serious challenges that include infrastructure limitations, digital skills gaps, and regulatory uncertainty. The implications of these findings point to the need for inclusive infrastructure development strategies, comprehensive skills training programs, and adaptive regulatory policies. Such measures are expected to address existing gaps and maximize the benefits of the digital economy for business growth as well as the national economy.

Analysis of Causal Factors and Impact of Legal Uncertainty on Building Rights from Management Rights

Legal uncertainty faced by holders of Building Rights (HGB) derived from Land Management Rights (HPL) in Indonesia is a pressing issue that creates difficulties in maintaining and changing the status of their rights, negatively impacting their welfare and the overall land system, which this study aims to examine and address. This study uses normative legal research methods with legislative, conceptual, comparative, and case approaches. Data were collected through literature studies and analyzed qualitatively and descriptively by considering interdisciplinary aspects. Factors that cause legal uncertainty include lack of legal protection, regulatory uncertainty, ineffective legal implementation, and reliance on third parties. This impacts the difficulty of maintaining HGB, the limitation of changing rights status, and implications for people's welfare. The findings indicate the need for legal reform, increased transparency, and strengthening institutional capacity. The implications of the findings encourage the improvement of a more fair, efficient, and legal system for HGB holders. This research is important to identify the root cause of the problem and formulate recommendations for improving the soil system. Further research suggestions include comparative empirical, interdisciplinary, and action research to implement solutions.

Unraveling the Potential of Decentralized Finance: A Comprehensive Analysis of Opportunities, Risks, and Future Trends

The financial sector is going through a major transformation and evolution with the emergence of Decentralized Finance (DeFi). It is a modern concept that is reshaping the traditional financial landscape and thus changing traditional financial structures. This research delves into the term “Decentralized Finance” by exploring its various advantages, associated challenges, and future patterns and trends. Leveraging blockchain technology, DeFi offers new financial services without intermediaries that in turn enhance financial inclusion, autonomy, and economic empowerment of individuals, though this also entails enormous risks and challenges, including vulnerability to smart contract vulnerabilities, regulatory uncertainty, and market volatility. This research also attempts, through a systematic literature review, to identify the most significant opportunities for DeFi, such as democratized access to financial services, lower transaction fees, and increased liquidity. Additionally, this research highlights the key challenges facing the development of DeFi, such as limitations on its ability to handle large transactions, concerns about user data protection, and the need to adhere to regulatory standards. The paper concludes with a view and insights into the future of DeFi, emphasizing the importance of regulatory clarity, technological innovation, and community governance in shaping the trajectory of DeFi. This analysis contributes to gaining a deeper understanding of the potential and capabilities of DeFi, and provides stakeholders with indispensable insights to navigate the dynamics of DeFi.

ADRESSING NON-COMPLIANCE WITH HALAL PRODUCT REGULATIONS IN INDONESIA: SAFEGUARDING MUSLIM CONSUMER RIGHTS

This article examines the persistent non-compliance of producers with halal product regulations in Indonesia and its implications for safeguarding the rights of Muslim consumers. Despite the enactment of the Halal Product Assurance Law in 2014, a significant discrepancy exists between regulatory mandates and actual adherence. Through a normative-juridical approach involving legal interpretation and analysis of government reports and academic literature, this study delves into the various factors contributing to this issue. The research findings indicate that non-compliance arises from a combination of regulatory uncertainties, institutional inefficiencies, and socio-economic challenges. Notably, inadequate enforcement mechanisms, overlapping institutional jurisdictions, and the financial burden of certification processes are identified as key factors. This non-compliance undermines the halal integrity of products, thereby violating the rights of Muslim consumers as stipulated by Islamic law. Resolving this issue necessitates a comprehensive overhaul of the halal certification system, encompassing streamlined procedures, improved inter-agency collaboration, and strengthened enforcement measures. These efforts contribute to the broader dialogue on religious consumer rights and regulatory adherence in diverse societies, offering valuable insights for policymakers and stakeholders in the halal sector.

Barriers to the adoption of routine surgical video recording: a mixed-methods qualitative study of a real-world implementation of a video recording platform

BackgroundRoutine surgical video recording has multiple benefits. Video acts as an objective record of the operative record, allows video-based coaching and is integral to the development of digital technologies. Despite these benefits, adoption is not widespread. To date, only questionnaire studies have explored this failure in adoption. This study aims to determine the barriers and provide recommendations for the implementation of routine surgical video recording.Materials and methodsA pre- and post-pilot questionnaire surrounding a real-world implementation of a C-SATS©, an educational recording and surgical analytics platform, was conducted in a university teaching hospital trust. Usage metrics from the pilot study and descriptive analyses of questionnaire responses were used with the non-adoption, abandonment, scale-up, spread, sustainability (NASSS) framework to create topic guides for semi-structured interviews. Transcripts of interviews were evaluated in an inductive thematic analysis.ResultsEngagement with the C-SATS© platform failed to reach consistent levels with only 57 videos uploaded. Three attending surgeons, four surgical residents, one scrub nurse, three patients, one lawyer, and one industry representative were interviewed, all of which perceived value in recording. Barriers of ‘change,’ ‘resource,’ and ‘governance,’ were identified as the main themes. Resistance was centred on patient misinterpretation of videos. Participants believed availability of infrastructure would facilitate adoption but integration into surgical workflow is required. Regulatory uncertainty was centred around anonymity and data ownership.ConclusionBarriers to the adoption of routine surgical video recording exist beyond technological barriers alone. Priorities for implementation include integration recording into the patient record, engaging all stakeholders to ensure buy-in, and formalising consent processes to establish patient trust.

Transforming Agriculture with Drones: Applications, Challenges and Implementation Strategies

The integration of drone technology, or Unmanned Aerial Vehicles (UAVs), has revolutionized the agricultural sector, offering a new era of precision and efficiency. This paper examines the diverse applications of drones in agriculture, including crop health assessment, precision crop spraying, soil analysis, irrigation management, and livestock monitoring. Equipped with advanced sensors and cameras, drones provide real-time data collection and analysis, enabling farmers to make informed decisions, optimize resource use, and swiftly respond to environmental changes. This technological advancement enhances productivity, conserves resources, and promotes sustainable farming practices. However, the adoption of drones in agriculture faces challenges such as high costs, regulatory uncertainties, and the need for specialized skills, along with concerns over privacy and weather dependency. Despite these obstacles, the potential benefits like improved resource utilization and reduced environmental impact underscore the importance of drones in meeting the growing global food demand. This paper aims to provide an extensive overview of the role and potential of drone technology in reshaping the future of agriculture, empowering farmers to optimize yields, conserve resources and embrace a more sustainable approach in the face of global challenges

Navigating the Integration of Blockchain Technology in Banking: Opportunities and Challenges

Integrating blockchain technology within the banking sector represents a pivotal transformation, promising enhanced security, transparency, and efficiency in financial operations. This qualitative research employs a systematic review approach to investigate the current state, challenges, and prospects of blockchain adoption in banking, drawing insights from a comprehensive analysis of scholarly literature. Through a systematic search and review of relevant academic journals, conference papers, books, and reports, this study explores critical variables such as security, transparency, efficiency, challenges, opportunities, and impact associated with blockchain adoption in banking. Thematic analysis is the primary methodological approach to identify recurring themes, patterns, and relationships across literature, facilitating a nuanced understanding of blockchain's implications for banking operations. The findings reveal a dual nature of blockchain adoption in banking, highlighting significant opportunities alongside critical challenges. While blockchain technology offers enhanced security, transparency, and efficiency, challenges like scalability issues, regulatory uncertainties, and interoperability concerns persist. Nonetheless, the study underscores the transformative potential of blockchain in revolutionizing banking operations, urging policymakers and banking practitioners to address these challenges through continued research, technological innovation, and collaborative efforts. By leveraging blockchain effectively, the banking industry can navigate the digital landscape, enhance operational efficiency, and deliver superior customer experiences, thereby gaining a competitive edge in the financial sector

Climate risks and corporate tax shields

ABSTRACT This study investigates the influence of climate risks on the tax shields of US-based firms. The findings show a significant negative correlation between climate risks and debt-related tax shields (DTS), indicating reduced reliance on debt financing due to potential financial risks and regulatory uncertainties. Conversely, non-debt tax shields (NDTS) demonstrate a positive relationship with climate risks, highlighting firms’ proactive efforts to seek tax benefits from alternative sources. Additionally, the study uncovers distinct dynamics for high and low-leveraged firms in utilizing tax advantages. The research contributes valuable insights into the intricate interplay of climate risks, tax benefits, and corporate financing decisions.

Impact of Regulatory and Policy Uncertainty on the FDI Strategies of MNEs in a Connected World

Impact of Regulatory and Policy Uncertainty on the FDI Strategies of MNEs in a Connected World

Blockchain technology in financial services: enhancing security, transparency, and efficiency in transactions and services

Blockchain technology revolutionizes financial services by enhancing security, transparency, and efficiency in transactions and services. This paper examines the fundamental aspects of blockchain, including its core concepts and components, and explores its application in financial services. Blockchain's cryptographic hashing, decentralization, and immutability significantly improve security by preventing tampering and reducing fraud risks. Increased transparency through immutable audit trails, real-time updates, and open ledgers fosters trust among customers, regulators, and institutions. Furthermore, blockchain streamlines operations by automating processes, reducing intermediaries, and expediting transactions, resulting in substantial cost reductions and improved efficiency. Despite these advantages, challenges such as scalability, interoperability, regulatory uncertainty, and environmental impact must be addressed for widespread adoption. The prospects of blockchain in financial services are promising, with potential applications in decentralized finance, digital identity verification, and central bank digital currencies. This paper underscores the transformative potential of blockchain technology in creating a more secure, transparent, and efficient financial ecosystem.

Perlindungan Hukum dan Kebijakan Tarif Pajak terhadap Trader Crypto di Indonesia

Cryptocurrency investment in Indonesia has become an increasingly popular topic as people's interest in digital assets increases. Although there is potential for huge profits, there are also risks that need to be considered. The Indonesian government takes a cautious stance in regulating cryptocurrencies. Clear regulations still do not exist, although in 2019, the Commodity Futures Trading Supervisory Agency (BAPPEBTI) issued regulations recognizing cryptocurrencies as commodity futures that can be traded on futures exchanges. Bank Indonesia has issued a statement reminding the public of the risks associated with the use of digital currencies, but there has been no outright ban on their use. There are also concerns regarding the misuse of cryptocurrencies for illegal purposes, such as money laundering and terrorism financing, which are continuously monitored by governments and financial regulatory agencies. Despite regulatory uncertainty, interest in cryptocurrencies continues to grow in Indonesia, and more and more companies and individuals are interested in understanding and using this technology.

The evolution of green fintech: Leveraging AI and IoT for sustainable financial services and smart contract implementation

The convergence of financial technology and sustainability has given rise to green fintech, an innovative field leveraging cutting-edge technologies to address environmental challenges through financial solutions. This review explores the evolution of green fintech, focusing on the transformative roles of Artificial Intelligence (AI), Internet of Things (IoT), and smart contracts in developing sustainable financial services. Through a comprehensive analysis of recent literature and case studies, we examine how AI enhances ESG assessments, enables data-driven sustainable investment strategies, and facilitates green lending practices. We investigate IoT applications in environmental monitoring, supply chain transparency, and smart grid integration, highlighting their contributions to sustainable finance. The implementation of smart contracts for sustainability is explored, discussing their potential in green bonds, carbon credit trading, and renewable energy markets. The paper addresses key challenges facing green fintech, including data quality issues, privacy concerns, and regulatory uncertainties, proposing future directions for research and development. Our findings suggest that the integration of AI, IoT, and smart contracts in green fintech has significant potential to accelerate the transition to a sustainable global economy by embedding environmental considerations into financial decision-making at all levels. This article contributes to the growing body of literature on sustainable finance, providing insights for practitioners, policymakers, and researchers. It underscores the need for a multidisciplinary approach to overcome technological, regulatory, and socio-economic barriers, paving the way for a more sustainable and technologically advanced financial ecosystem.

Perlindungan Hukum dan Kebijakan Tarif Pajak Terhadap Trader Crypto di Indonesia

Cryptocurrency investment in Indonesia has become an increasingly popular topic as people's interest in digital assets increases. Although there is potential for huge profits, there are also risks that need to be considered. The Indonesian government takes a cautious stance in regulating cryptocurrencies. Clear regulations still do not exist, although in 2019, the Commodity Futures Trading Supervisory Agency (BAPPEBTI) issued regulations recognizing cryptocurrencies as commodity futures that can be traded on futures exchanges. Bank Indonesia has issued a statement reminding the public of the risks associated with the use of digital currencies, but there has been no outright ban on their use. There are also concerns regarding the misuse of cryptocurrencies for illegal purposes, such as money laundering and terrorism financing, which are continuously monitored by governments and financial regulatory agencies. Despite regulatory uncertainty, interest in cryptocurrencies continues to grow in Indonesia, and more and more companies and individuals are interested in understanding and using this technology.

Using blockchain technology to maximize supply chain and logistics management in north America

This study explores the application of blockchain technology in optimizing supply chain and logistics management within North America. Through qualitative thematic analysis, three key objectives were addressed: identifying benefits, examining implementation challenges, and assessing barriers to adoption. The analysis highlights significant benefits of blockchain adoption, including enhanced trust, transparency, automation, traceability, and data security, supported by findings from various studies. However, implementation challenges such as system design complexity, resistance to change, and inadequate IT staff pose obstacles to adoption. Furthermore, barriers to widespread adoption, such as the absence of a proper legal framework and the capital-intensive nature of blockchain adoption, were identified. These barriers underscore the need for collaborative efforts to address regulatory uncertainties and financial constraints. It was suggested that further studies could explore the long-term impacts of blockchain technology on supply chain resilience and sustainability, as well as investigate strategies to overcome implementation challenges and maximize the technology's potential across diverse industries and regions.