The Role of Behavioural Economics in Energy and Climate Policy

This article explores how behavioural economics can be applied to energy and climate policy. We present an overview of main concepts of behavioural economics and discuss how they differ from the assumptions of neoclassical economics. Next, we discuss how behavioural economics applies to three areas of energy policy: (1) consumption and habits, (2) investment in energy efficiency, and (3) provision of public goods and support for pro-environmental behaviour. We conclude that behavioural economics seems unlikely to provide the magic bullet to reduce energy consumption by the magnitude required by the International Energy Agency's “450” climate policy scenario. However it offers new suggestions as to where to start looking for potentially sustainable changes in energy consumption. We believe that the most useful role within climate policy is in addressing issues of public perception of the affordability of climate policy and in facilitating the creation of a more responsive energy demand, better capable of responding to weather-induced changes in renewable electricity supply

Returns to Facilitating Farmers’ Organisations for Distributary Maintenance: Empirical Results from a Pilot Project in Southern Punjab

Institutional reforms currently underway in Pakistan’s irrigation and drainage sector require that farmers take over the operation and maintenance responsibilities of their secondary canals. However, the farmers need to be organised first, for which investments are a prerequisite. A great deal of skepticism about the farmers’ collective ability and willingness to undertake the needed tasks exists, even now when they are actually organised. This skepticism originates from past experiences when direct subsidies were offered to induce collective action. Theoretically, collective action can be more sustainable if investments are made in capacity building for the tasks that the farmers have to perform to improve the service delivery. Farmers are being organised for distributary operation and maintenance. So far, the delay in formulation of an appropriate legal framework has prevented the irrigation departments from formally transferring the operation and maintenance responsibilities to farmers. Self-help-based maintenance has been the only avenue for farmers to participate in the management of the irrigation system. The paper uses data pertaining to the cost of facilitation and estimates the amount of resources mobilised for two successive years from a pilot project. The analysis shows that investments made for facilitation do pay off. Investment in facilitation returns 69 percent higher than the actual investment per year during the initial years. In the short-run, the returns to facilitation indicate an increasing trend. The paper argues that when compared to previous approaches adopted in Pakistan, investments for facilitation and capacity building have a greater chance of prompting sustainable collective action for irrigation and drainage management.

Study Of The Challenges That Hinder MSME Development In Montenegro : Country Report for the British Council and Swedish Institute

In addition to this Study, a further six studies were produced. One for each of the countries, under investigation (Albania, Bosnia Herzegovina, FYR Macedonia, Kosovo & Serbia) and a Main Report, which was published in May 2018.The European Commission’s Enlargement Package Report (2015), concluded that Montenegro continued to make progress as regards the political and economic criteria, and improved its ability to take on the obligations of EU membership. Good progress was made in improving the legislative framework for the independence of the judiciary and the fight against corruption (rule of law chapters, 23 and 24). However, Montenegro was tasked to make further progress in strengthening the institutional framework and in establishing a solid track record in the fight against corruption and organised crime. In December 2015, Montenegro received an invitation to join NATO, which was a major achievement; it became a member in 2017.  With a gross domestic product (GDP) of US 4.1 billion (constant 2010 value), Montenegro is the smallest economy in the Western Balkans and growth has been variable in recent years. However, Montenegro continues to play a constructive role in regional cooperation, ratifying its border agreements with both, Bosnia & Herzegovina and Kosovo. It terms of economic criteria, Montenegro has made progress in developing a functioning market economy (e.g. investments in infrastructure and tourism support economic activity). It has also strengthened the administration of its financial and labour markets, as well as on improving the business environment.. However, rapidly rising public debt and high fiscal deficits, together with high external imbalances and high unemployment are of concern. The combined effects of large-scale public infrastructure investments and several new expensive social expenditure programmes challenge fiscal sustainability. Montenegro is moderately prepared in its capacity to cope with competitive pressure and market forces within the Union. Some progress was achieved in improving the quality of infrastructure, the energy market and the digitalisation of the economy. SMEs support is modest but developing gradually. Unemployment in Montenegro is high, approaching 18% of the working population. However, this is average for the region, and only Serbia and Albania have lower rates. Montenegro is, however, a major importer of short-term labour to service the needs of the tourism, construction and agricultural sectors, which are the main pillars of its economy. However, substantial efforts are still required to develop human capital and a competitive export-oriented industry. In common with many of its Western Balkan neighbours, Montenegro has a skills shortage, although not to the extent of other countries. This shortage mainly translates into a need to import seasonal workers for the tourist, construction and agricultural sectors. Montenegro has a well-developed and competitive ICT sector compared with other countries in the region, but development remains in its infancy and there is a lot of potential for improvement. Despite this, business faces internal constraints and barriers, linked to skills, competences, finance and human resources. They also had problems with lack of information about foreign markets and how to access them. To contribute to the process of internationalisation, businesses need a better introduction to foreign markets, including information and facilitating access through contacts, legal and technical assistance or promotion. Total inward investment in Montenegro from other countries was US 3.3 billion in 2016. This level is low in absolute terms, particularly compared to other countries in the region (behind Serbia, Bosnia, Macedonia and Albania), but relatively high on a per capita basis. We undertook a survey of aspiring entrepreneurs across Montenegro. The sample was largely self-selected based on previous telephone surveys where respondents had expressed an interest in entrepreneurship, plus a review of the commercial register and referrals from respondents. The age distribution of aspiring entrepreneurs was under represented in younger age groups but higher in the 25–34 year old group compared with the population. Entrepreneurship aspirations are positive. There are very few problems with structural issues such as ease of forming a company. For example, establishing a business in Montenegro can be a time-consuming process. According to the World Bank’s Doing Business Report (2018), Montenegro was ranked 42nd globally for ease of doing business, a clear improvement on its previous ranking of 51st. Results from our survey, indicate five key issues stand out: 1. Access to finance is very challenging and acts as a significant barrier to both innovation and entrepreneurship. There is a particular need for access to affordable seed capital. This is a similar to the challenge being addressed by some of the rural micro-finance programs in Asia. 2. Connection to markets outside Montenegro and the Western Balkans region is challenging for new entrepreneurs. 3. There is a considerable amount of energy and effort already being injected, but significant scope for improving the skills of entrepreneurial teams. 4. The trading channels and payment methods accepted suggest our entrepreneurs are using basic business models, almost entirely face-to-face and strongly cash-based. 5. Three quarters of all businesses in the survey supplied larger organisations, which may be accounted by the very large public-sector base

Operator-based approaches to harm minimisation in gambling: summary, review and future directions

In this report we give critical consideration to the nature and effectiveness of harm minimisation in gambling. We identify gambling-related harm as both personal (e.g., health, wellbeing, relationships) and economic (e.g., financial) harm that occurs from exceeding one’s disposable income or disposable leisure time. We have elected to use the term ‘harm minimisation’ as the most appropriate term for reducing the impact of problem gambling, given its breadth in regard to the range of goals it seeks to achieve, and the range of means by which they may be achieved. The extent to which an employee can proactively identify a problem gambler in a gambling venue is uncertain. Research suggests that indicators do exist, such as sessional information (e.g., duration or frequency of play) and negative emotional responses to gambling losses. However, the practical implications of requiring employees to identify and interact with customers suspected of experiencing harm are questionable, particularly as the employees may not possess the clinical intervention skills which may be necessary. Based on emerging evidence, behavioural indicators identifiable in industryheld data, could be used to identify customers experiencing harm. A programme of research is underway in Great Britain and in other jurisdiction

Marine Managed Areas: What, Why, and Where

This paper, which focuses on ocean and coastal areas, explores the challenge of public participation by discussing the role of communities in IM. It draws on a decade of collaboration between academics and community partners to outline the community perspective on both the limiting factors and the opportunities, and a state-of-the-art survey of community involvement in IM, parti-cularly in the Canadian Maritimes. The paper highlights the importance of linking communities and governments, and the need to overcome the growing disconnect between the two. It also illustrates the varied experiences of local coastal communities with IM through three concrete examples. These practical examples lead to two specific out-puts: a set of fundamental IM values and attributes from a community perspective, and a four-step process for facilitating and enabling community-focused IM.The conclusion summarizes key outcomes in terms of inclusivity and active involvement of communities

Even non-extremists get the blues: the rhetoric of copyright

The participants in this dialogue are Wendy Gordon and Lois Wasoff. Each is an intellectual property expert who has immersed herself in copyright law and policy for over twenty years. Neither sits at an extreme end of the policy spectrum, yet the two disagree over a wide range of issues. The editors of this volume thought their discussions could prove useful to others struggling with copyright dilemmas. Accordingly, Gordon and Wasoff sat down with a tape recorder for us. In edited form, their dialogue follows here

Motivations and Barriers Associated with the Adoption of Battery Electric Vehicles in Beijing: A Multinomial Logit Model Approach

The recent surge of the Chinese Plug-in Hybrid Electric Vehicle (PEV) market makes China the world’s largest PEV stock. A series of supportive policies in China contributed greatly to the rapid PEV adoption by limiting regular vehicles and reducing the price of PEVs. However, the role these policies play in changing references and encouraging consumers to purchase PEVs rather than conventional vehicles is not fully known. Other factors, rather than incentives, that could help maintain the current adoption trend are still unclear. The latter is especially critical in understanding how the market reacts to a gradually decreasing level of incentives to achieve the next goal of 5 million PEVs on the road by 2020 in China. Therefore, in this study the authors explored these research questions through a cross-sectional study of the current PEV market on consumers in Beijing by employing a multinomial logit model. Beijing has high levels of PEV adoptions in addition to a specific policy stimulus. The model results show significant influences of stimuli, individual socio-demographics, attitudes, charging infrastructure, and charging experiences on the adoption of PEVs over conventional vehicles. The results may help find out key interventions for policy makers to promote more PEV adoptions in China as well as other countries

Collective Moral Hazard, Maturity Mismatch and Systemic Bailouts

The paper elicits a mechanism by which private leverage choices exhibit strategic complementarities through the reaction of monetary policy. When everyone engages in maturity transformation, authorities have little choice but facilitating refinancing. In turn, refusing to adopt a risky balance sheet lowers the return on equity. The key ingredient is that monetary policy is non-targeted. The ex post benefits from a monetary bailout accrue in proportion to the number amount of leverage, while the distortion costs are to a large extent fixed. This insight has important consequences. First, banks choose to correlate their risk exposures. Second, private borrowers may deliberately choose to increase their interest-rate sensitivity following bad news about future needs for liquidity. Third, optimal monetary policy is time inconsistent. Fourth, macro-prudential supervision is called for. We characterize the optimal regulation, which takes the form of a minimum liquidity requirement coupled with monitoring of the quality of liquid assets. We establish the robustness of our insights when the set of bailout instruments is endogenous and characterize the structure of optimal bailouts.Monetary Policy, Funding Liquidity Risk, Strategic Complementarities, Macro-Prudential Supervision