Sector Capability Research Articles

Voluntary Disclosure and Adverse Selection: Bayesian Game-Theoretical Inferences for Green Bond Labelling Regimes

The impact finance market has sought to 'internalise externalities and adjust risk perceptions' (G20 Green Finance Study Group, 2016), demonstrating the private sector's capability in resolving the climate free-rider problem through the 'greening' of economic activities, partially bypassing corrective government intervention. As the market continues to develop, however, the voluntary disclosure regime that the market operates under threatens to enforce an adverse selection problem and contribute to a fundamental erosion of confidence in the market segment, constraining the potential of impact finance instruments to affect positive social and environmental change. I relate the work of Crawford and Sobel (1982); Milgrom (1981); Verrecchia (1983); Jung and Kwon (1988); Myers and Majluf (1984); Frantz (1997); Frantz and Instefjord (2006) to the green bond market and draw inferences to inform recommendations for policy-led solutions.

Challenges facing poultry production in Kuwait

In Kuwait, poultry meat is popular and a major source of dietary protein. Despite the increase in local production, importation to Kuwait has increased, to cover the high local demand for poultry meat. Self-sufficiency has, however, reached 20% of the local demand for poultry meat. This is mainly due to the continuous rise in human population and an increased demand for poultry meat with an average of 75.3 kg/capita/yr from year 2000 to 2011. Conversely, local egg production reached 42000 tons in 2011 with self-sufficiency of 101%. The poultry industry in Kuwait depends on the import of major feed ingredients such as corn and soybean from Unite States of America (USA) and India. In addition, the industry imports one day old chicks for layer and broiler hatching from Europe. Therefore, any changes in the quality or price in Europe and USA will affect the local poultry industry in Kuwait. As a result, the major challenges facing the poultry industry in Kuwait include high production costs, improvements in production efficiency, health monitoring programmes, environmental impact, and changes in policies and trade practices in the country. Solutions to these challenges are discussed in this paper. It can be concluded that more development and improvement in poultry meat production is needed through technology transfer as well as research and development relative to local production. This can be done by working closely with the local scientific institutions and government organisations to enhance and develop the poultry sector's capability to reduce production cost and improve profit.