Supply-side Policies Research Articles

Simulating the impact of demand-side policies on low-carbon technology diffusion: A demand-supply coevolutionary model

Alleviating the pressure of climate and energy calls for an improved understanding of how policy interventions influence the diffusion of low-carbon technologies (LCTs) among enterprises. With the rapid convergence of supply-side policy effects, implementing demand-side policies to drive LCT diffusion may be a promising area for carbon abatement action. This study proposes a demand-supply coevolutionary model embedded in two-layer network is to capture the LCT diffusion among supply-side enterprises and low-carbon consumption diffusion among demand-side consumers. Using this model, we simulate the effects of demand-side policies, including public procurement, financial incentives for consumers, public information dissemination, and policy mixes combined with these instruments on LCT diffusion. The results show that public procurement can effectively facilitate LCT diffusion and restrain the magnitudes of market fluctuations caused by demand-side dynamics in the diffusion process. The high consumer incentives facilitate the rapid diffusion of LCTs, but there are noticeable diminishing marginal effects; even if subsidies are only used on the demand side, the promotion effect on LCT can still be achieved through the demand-supply interaction. Furthermore, the public information dissemination improves LCT diffusion and stabilizes the adaptive behavior of enterprises, but its time-lag effect leads to the pattern of “hot policies and cold markets.” The introduction of policy mixes verifies these findings and reveals that although the public information dissemination is constrained by other policies, it may still be the premise of large-scale LCT diffusion. This study develops a valuable framework that enriches the modeling practice of LCT and provides insights for implementing well-designed policy packages.

Medicaid expansion and opioid supply policies to address the opioid overdose crisis

Background: The opioid overdose crisis remains of critical concern after historic increases in overdose mortality in the United States between 2020 and 2021. Improving access to buprenorphine —a partial opioid agonist and one of three FDA-approved medications for opioid use disorder (OUD) treatment— and reducing inappropriate opioid prescriptions may help curb mortality. Here, we examined the impact of Medicaid expansion and pain management clinic laws on opioid prescription rates and buprenorphine availability. Methods: We examined both retail opioid prescriptions per 100 persons in the state population using data from the Centers for Disease Control and Prevention and data on buprenorphine distributions in kilograms per 100,000 persons in the state population from the Automated Reports and Consolidated Ordering System database. We employed difference-in-difference frameworks to estimate the impact of Medicaid expansion on buprenorphine access and retail opioid prescription rates. Models considered three separate treatment variables: Medicaid expansion, pain management clinic (“pill mill”) laws, and the interaction of Medicaid expansion and pain management clinic laws. Results: Findings showed that Medicaid expansion was associated with increased access to buprenorphine in expansion states that also employed more stringent supply-side policies, including pain management clinic laws, relative to states that did not implement policies targeting the over-supply of prescription opioids over the same time period. Conclusions. Together, Medicaid expansion and policies limiting inappropriate opioid prescriptions show promise for improving the accessibility of buprenorphine treatment for OUD.

The unemployment–labor force participation linkage in Iran’s women labor market

PurposeDuring recent years, the long-run relationship between the unemployment rate (UR) and the labor force participation (LFP) rate has been examined in-depth in developed and developing economies. This paper aims to explore this relationship for Iranian women in 31 provinces from 2005Q2 to 2019Q1.Design/methodology/approachTo examine the existence of a long-run relationship between female LFP and UR, the time-series cointegration approach has been used. Furthermore, regarding the low power of the univariate cointegration approach, the authors consider a panel version of the cointegration tests developed by Westerlund.FindingsBoth time-series cointegration tests and panel cointegration test support the unemployment invariance hypothesis for most Iranian provinces, especially the most religious ones. As it implies an invariance to supply side policies, it seems that reducing legal and cultural barriers could be more relevant to decrease female UR and increase LFP than training programs or R&D policies. The present results also suggest that, for this group of regions, a more centralized policy design could be appropriate, instead of a regional one.Originality/valueThis study investigates whether the unemployment invariance hypothesis holds for Iran, which has not been analyzed before for the Iranian labor market. Moreover, the study adopts a regional approach, which takes into account the huge regional differences in Iran.

From EU Structural Funds to Levelling Up: Empty signifiers, ungrounded statism and English regional policy

This paper argues that EU structural policy administered through the European Regional Development Fund (ERDF) and the European Social Fund (ESF) had a relatively limited impact in addressing competitiveness and productivity weaknesses in the English regions due to the emphasis on supply-side policies and deficiencies within the institutional framework for governing economic development. By analysing projects supported by the ERDF and the ESF in England from 2007 to 2013, we demonstrate that funding was used to shape self-organising networks of private and public sector actors, notably local councils, to encourage the development of entrepreneurship, research and development, the creative industries, transport services, and universities and educational providers. In the absence of an overarching strategic vision, and given long-standing socio-economic and political weaknesses, the effect of EU structural funding on the English regions was nonetheless marginal at best. Our case-study highlights that England’s path-dependent and ungrounded statism combined with a neoliberal supply-side logic Structural Funds to create an empty signifier of regional development that failed to adequately respond to the structural needs of less affluent regions. Meanwhile, the post-Brexit approach to regional development, namely the levelling up agenda, represents a continuation of this empty signifier rather than a significant break with the past.

Effects of the ACA Medicaid expansions on access and health by nurse practitioner scope of practice laws

BackgroundThe Affordable Care Act (ACA) Medicaid expansions increased demand for care whereas the Scope of Practice (SOP) laws for nurse procatitioners affect the supply of primary care providers. It is important to udnerstand the interaction of the demand and supply side policies on measures of access to care and health status. PurposeTo examine whether effects of the Affordable Care Act (ACA) Medicaid expansions on access to care and health status are moderated by state scope of practice (SOP) laws for nurse practitioners. MethodsUsing data from the 2011 to 2019 Behavioral Risk Factor Surveillance System, the study used a difference-in-differences design that compared outcome changes between expansion and non-expansion states and evaluated whether these changes differed by state SOP laws. DiscussionFollowing Medicaid expansion, forgoing a needed doctor's visit due to cost declined more in expansion states with full SOP laws than states with reduced SOP laws by 3.0 percentage-points in years 1 to 3 after the expansion (p < .05). Furthermore, completing a routine checkup with a doctor increased more in expansion states with full SOP laws by 3.2 percentage-points in 4 to 6 years (p < .05). ConclusionThe ACA Medicaid expansions were associated with larger gains in certain access measures in states with full SOP laws.

Impact of Clean Energy Policies on Electricity Sector Carbon Emissions in the EU-28

The European Union (EU) has developed important efforts in enacting various clean energy policies in order to reduce greenhouse gas (GHG) emissions in the last decades. Both supply-side and demand-side changes are required in the energy systems in the period of 2020–2030 and going towards 2050. In this context, a better understanding of the effects of these specific clean energy actions on reducing GHG emissions may be especially of interest for allowing policymakers to know the strengths and weaknesses of various climate-related power sector policies. This paper adds to the literature by presenting the effects of both supply-side and demand-side policies and empirical evidence of the impact of these policies on the reduction in carbon emissions. This analysis was done by means of a panel data set and several regression models that contribute to explaining the link between clean energy policies applied in the EU and carbon emissions over the period of 2000–2019. The results show that while supply-side policies have shown a positive and effective impact on the reduction in GHG emissions, on the demand side, more aggressive policy efforts are needed.

Technological Innovations, Behavioural Interventions, and Household Energy Conservation

The threats associated with climate change and the worsening ecological crisis have led to a growing interest in energy-conservation policies. Policymakers across the globe have been scrambling to find cost-effective and sustainable methods to meet the world’s growing energy demands. Traditional policies have so far largely focused on supply-side interventions aimed at encouraging energy efficiency via green innovation and new technologies. However, as several studies have indicated, supply-side policies alone are unlikely to be adequate to achieve the ambitious changes required to make our future sustainable. This review article draws on recent studies in behavioural economics to emphasize the need to reorient public policy towards altering consumer end-uses through behavioural interventions. In an attempt to draw out important lessons for public policy, the article reviews this emerging strand of literature and underlines the complex factors that influence energy consumption in a household.

Economic Paradigm and Demand-Side Populist Policies in Thailand

AbstractIn the last decades, demand-side populist policies (DSPPs) have played a significant yet controversial role in Thai politics. Most Thai economists disagree with DSPPs. They have argued that such policies are inefficient and have suggested the Thai government drop short-sighted DSPPs and replace them with supply-side policies that are more effective in the long run. However, Thai politicians have viewed DSPPs as unavoidable for political reasons and turned a deaf ear on economists’ suggestions to stop issuing them. In this paper, we argue that the domination of the neoclassical economics paradigm prevents Thai economists and politicians from understanding the role of DSPPs in shaping the demand and supply sides of the macroeconomy in both the short run and long run. Based on the theory of transformational growth, DSPPs are endogenous phenomena emerging from Thailand's uneven economic development. Therefore, Thailand could implement the policies to facilitate long-run economic growth. We propose three principles for future DSPPs that can positively impact the economy in the long run: boosting productivity, promoting innovation, and addressing income inequality.

ANALISIS PERAN PEMERINTAH DAN MASYARAKAT DALAM SEKTOR EKONOMI MELALUI FINALISASI KEBIJAKAN

One of the processes carried out by the government and the community to manage existing resources through collaboration between the government and the private sector is one of the meanings of economic development. This is done in the context of creating job opportunities as well as efforts to encourage economic growth in a region. Thus, it is important for the government and the community to play a role in solving macroeconomic problems. The final objective of this research is to analyze in depth the concept of the three-sector economy, the rationality of the role of government and society, the scope of the government's role, government policy instruments and an overview of al-hisbah. This study uses a literature study where information is obtained through a collection of books, a collection of scientific works, several theses, encyclopedias, a little information from the internet and even other sources. Research shows that in the economy three sectors are played by 3 roles including households, companies and the government. The rationality of the government's role is based on the consequences of collective obligations, and the failure of the market to realize falah. The analysis of the government's role includes: the role of allocation, distribution, stabilization, the role of the state in overcoming externalities and the role of the state related to the implementation of Islamic morality. There are also three policies that cover, among others: fiscal policy, monetary policy, and supply-side policy. Some basic thinking about the role of society consists of the consequences of fardhu kifayah, the existence of public property rights and the failure of the market and government. While hisbah is an institution controlled by the government through individual efforts specifically assigned to solve problems related to the moral, religious and economic fields.

ANALISIS PERAN PEMERINTAH DAN MASYARAKAT DALAM SEKTOR EKONOMI MELALUI FINALISASI KEBIJAKAN

One of the processes carried out by the government and the community to manage existing resources through collaboration between the government and the private sector is one of the meanings of economic development. This is done in the context of creating job opportunities as well as efforts to encourage economic growth in a region. Thus, it is important for the government and the community to play a role in solving macroeconomic problems. The final objective of this research is to analyze in depth the concept of the three-sector economy, the rationality of the role of government and society, the scope of the government's role, government policy instruments and an overview of al-hisbah. This study uses a literature study where information is obtained through a collection of books, a collection of scientific works, several theses, encyclopedias, a little information from the internet and even other sources. Research shows that in the economy three sectors are played by 3 roles including households, companies and the government. The rationality of the government's role is based on the consequences of collective obligations, and the failure of the market to realize falah. The analysis of the government's role includes: the role of allocation, distribution, stabilization, the role of the state in overcoming externalities and the role of the state related to the implementation of Islamic morality. There are also three policies that cover, among others: fiscal policy, monetary policy, and supply-side policy. Some basic thinking about the role of society consists of the consequences of fardhu kifayah, the existence of public property rights and the failure of the market and government. While hisbah is an institution controlled by the government through individual efforts specifically assigned to solve problems related to the moral, religious and economic fields.

Agricultural credit constraints in smallholder farming in developing countries: Evidence from Nigeria

The agricultural sector in developing countries like Nigeria is characterized by low productivity, driven partly by low use of modern agricultural technologies. Poor access to credit is seen as a key barrier to adoption of these technologies. Policy discourses and literature often associate credit constraints by smallholders with supply-side factors such as inadequate access to sources of rural finance or high costs of borrowing. However, demand-side factors, such as smallholders’ risk-averse behavior, high transaction costs and information asymmetry predominate in rural areas of developing countries equally play important roles in the functioning of rural credit market. Using a nationally representative LSMS-ISA data from 5000 smallholders in Nigeria and seemingly unrelated econometric models, we examine the nature of rural credit, the factors affecting rural credit, and the effects of credit constraints on adoption of four agricultural technologies – inorganic fertilizer, improved seed, agrochemicals, and mechanization. Contrary to policy discourses focusing on supply-side factors of rural credit, we found that demand-side factors are equally important for improving access and utilization of rural credit. On the supply side, inadequate collateral is the key constraint; hence supply-side policies should focus on enhancing smallholders’ capacity to possess bankable collateral, such as land title or assets. On the demand-side, interventions such as crop insurance, information access and extension services are needed to increase credit access, technology adoption, and smallholder's agricultural productivity.

Assessing the poverty impact of the COVID-19-induced tourism crisis in Tanzania: a social accounting matrix microsimulation analysis

The COVID-19 pandemic has caused major disruptions to international tourism and has stimulated research interest. This study examines links between COVID-19-induced tourism disruption and poverty in Tanzania. Unlike previous studies linking COVID-19, tourism and poverty, this paper uses a social accounting matrix (SAM) microsimulation analysis that allows decomposition of poverty indices by population subgroup and assessment of the drivers of aggregate poverty. The results of the SAM multiplier analysis indicate that all households will experience reduced incomes, and that this effect will be more pronounced in urban than rural households. The microsimulation results suggest that the COVID-19-induced tourism crisis will exacerbate the poverty headcount, poverty gap and poverty severity, with urban and rural non-farm households being most affected. The results of the poverty decomposition show that the growth effect has a stronger impact than the inequality effect on increased poverty. Poverty increases and inequality decreases simultaneously. The paper suggests several demand- and supply-side policies that may help to build tourism resilience and recovery and alleviate poverty in Tanzania in the post-COVID world.

Соціальний капітал в системі активізації інноваційних стратегій розвитку територій

Innovation has been widely recognized as an important factor in economic growth. During recent years, a shift from a supply-side policy focused on infrastructure development to a policy that supports "soft" factors such as human and social capital has been noted. However, among the main problems focusing (choosing priorities) remains the main one in case of supporting innovation, as the regional aspect is a complex system that goes beyond the development of sectoral policies and focuses on developing integrated approaches based on the characteristics of different areas. The purpose of this article is to analyze the guidelines of strategic focus as one of the tools to support innovation at the regional level. In the context of the study, a model of community development in the coordinate systems of the level of focus and adequacy of choice was developed, the features of the formation of strategic changes in innovation development were identified.

Performance Prediction of the Ferrous Metal Smelting and Rolling Processing Industry in Supply-Side Structural Reform in China

Supply-side structural reforms and environmental protection policies have a great impact on the ferrous metal smelting and rolling processing industry. This paper uses a grey model that introduces a fractional-order cumulative generating operator to study the development of ferrous metal smelting and rolling processing enterprises under the influence of supply-side structural reform in order to derive the future development trend of the industry. The forecast results show that from 2018 to 2022, the number of enterprises and substitute enterprises, inventory, finished products, and assets and liabilities decreases; the scale of income of metal smelting and rolling processing industry increases. The results can serve as a reference for policy makers and industry investors.

Dynamic spillovers and dependencies between iron ore prices, industry bond yields, and steel prices

We examine the spillovers and dependencies between iron ore prices, bond yields of mechanical equipment, infrastructure construction and housing, and car industries, and steel prices by using the spillover index and copula model over the period 2011–2021. Our results show that compared with bond yields, iron ore prices are primary contributors of price spillovers and highly comparable with China's steel prices. Notably, the magnitudes of correlations and risk transmissions from bond yields of related industries to steel prices shifts over the period before the implementation of China's policy to cut overcapacity in steelmaking, after the policy implementation and before the outbreak of coronavirus, and after the outbreak of coronavirus. Because of high price spillovers from iron ore to steel prices and iron ore-steel relationship, policymakers in the steel industry should consider more supply-side policies to mitigate market risks. Meanwhile, risk-averse investors should increase the share of bonds of related industries.

Balancing equity, environmental and growth objectives: a case study of electricity subsidy reform in a large polluting developing country

ABSTRACT This article examines the impact of Indonesia’s electricity reform and meeting its 2030 carbon emissions and 2050 renewable energy targets on the country’s economic growth, carbon emissions and poverty and income distribution. Simulation results from a dynamic computable general equilibrium model show that energy reform and carbon tax in Indonesia have a regressive impact while the gasoline tax has a progressive impact. Of the two demand side policies, gasoline tax was found to be more harmful than the carbon tax, resulting in GDP loss, declining investment, higher energy prices, and rising urban and rural poverty. A hybrid policy comprising a renewable energy mix target (supply side policy) and a carbon tax (demand side policy) is a viable option for minimising GDP loss, income disparity and carbon emissions. However, the transition towards renewable energy use is fraught with challenges for Indonesia.

Evaluating Elements of Demand-Side Policy Imperatives for Biogas from Waste Scheme Diffusion in the UK

Over the last decade, demand-side policies are increasingly implemented to correct market failures and overcome the systemic problem in complex social-technical systems such as energy transition. This paradigm shift in policy approach results from realizing that relying solely on supply-side policy instruments to push innovative solutions into the market is insufficient. As part of the energy transition, many developed countries have considered Biogas from Waste (BfW) based on the Anaerobic Digestion (AD) process as a realistic renewable energy source and aim to create social, economic, and environmental benefits for their communities. Despite several policy instruments in the UK over the last ten years, the growth of BfW schemes remains subdued and faces market failures. This paper aims to evaluate elements of demand-side policies focused on addressing market failures to increase the diffusion of BfW schemes in the UK. We discussed effective demand-side policies related to the biogas sector in other European countries like Sweden, Denmark, and Italy. In the analysis, we observed UK&amp;rsquo;s policy instruments do not effectively address market externalities in the biogas sector. We also observed the biomethane market share in the UK is minimal; there is no market policy for green gas labeling towards demand articulation. The paper also made recommendations for policymakers in the UK to address market failures by proposing a push-pull policy model that combines demand-side policy interventions with supply-side policies.

Consumer Adoption of Plug-In Electric Vehicles in Selected Countries

The transition to plug-in electric vehicles is examined from the consumer’s perspective. Since risk-averse consumers perceive disadvantages as well as advantages, consumers are reluctant to choose electric propulsion without significant nudges from the government. Norway, California, Germany and China are analyzed to determine why and how electric vehicles are promoted by public policies. Each jurisdiction has accomplished rates of electric-vehicle penetration that are far above the global average. This success is largely attributed to various policies which range from vehicle mandates, producer and/or consumer subsidies, or taxation in respective regions—otherwise PEVs remain relatively unappealing to risk-averse consumers. Demand and supply side policies have been effective tools in spurring adoption of the new electric propulsion system. Norway is one notable jurisdiction that has PEV penetration exceeding 80% of new vehicle sales despite no supply side incentives. Germany has recently surpassed California and China in PEV penetration rate, though all three jurisdictions exceeded 10 percent by 2020 or early 2021. Research is recommended to identify ways to encourage consumer adoption of electric vehicles.

Hydrogen for all? Household energy vulnerability and the transition to hydrogen in Australia

Energy supply side policy in Australia currently advocates a role for hydrogen as a key part of decarbonising gas, including in the residential sector. However, there has been little focus to date on demand side issues and, in particular, the impact of a transition to hydrogen on vulnerable consumers. Vulnerability in the energy sector is the result of a complex interplay of structural and individual factors, and there is growing cross-sectoral concern that without careful consideration, existing vulnerabilities may be exacerbated in the low-carbon energy transition. While energy vulnerability in the decarbonisation of electricity has received attention, limited research exists on the potential impacts of a transition to hydrogen fuel in the domestic sector for consumers. At a national level there are plans, and pilot projects underway, to inject hydrogen into domestic natural gas supplies, beginning with low percentage blends of hydrogen and moving towards 100% hydrogen ultimately produced by renewable energy. This project investigated what is currently known, and what still needs to be known, about the potential impacts of decarbonising Australia’s residential gas with hydrogen on energy vulnerability, drawing on existing literature and key stakeholder views from the energy industry, government and social advocacy groups. The findings from this preliminary study reveal critical knowledge gaps in the field which must be addressed if an equitable transition to low-carbon gaseous fuels in Australia's residential sector is to be achieved. Five research options are made to help fill these knowledge gaps.

Shocks to Hospital Occupancy and Mortality: Evidence from the 2009 H1N1 Pandemic

Existing literature suggests that hospital occupancy matters for quality of care, as measured by various patient outcomes. However, estimating the causal effect of increased hospital busyness on in-hospital mortality remains an elusive task due to statistical power challenges and the difficulty in separating shocks to occupancy from changes in patient composition. Using data from a large public hospital system in Mexico, we estimate the impact of congestion on in-hospital mortality by exploiting the shock in hospitalizations induced by the 2009 H1N1 pandemic, instrumenting hospital admissions due to acute respiratory infections (ARIs) with measures of ARI cases at nearby healthcare facilities as a proxy for the size of the local outbreak. Our instrumental-variables estimates show that a 1% increase in ARI admissions in 2009 led to a 0.25% increase in non-ARI in-hospital mortality. We show that these effects are nonlinear in the size of the local outbreak, consistent with the existence of tipping points. We further show that effects are concentrated at hospitals with limited infrastructure, suggesting that supply-side policies that improve patient assignment across hospitals and strategically increase hospital capacity could mitigate some of the negative impacts. We discuss managerial implications, suggesting that up to 25%–30% of our estimated deaths at small and non-intensive-care-unit hospitals could have been averted by reallocating patients to reduce congestion. This paper was accepted by Carri Chan, healthcare management.