Policy Risk and Private Investment in Ontario’s Wind Power Sector

Even though governments may adopt favourable regulatory policies for renewable power generation, their ability to encourage private sector investment depends also on the presence of regulatory governance institutions that provide credible long-term commitments to potential investors. In the case of Ontario we contend that, despite large market potential and comparatively strong regulatory incentive policies, weak regulatory governance is one factor that has accounted for the challenges in attracting and implementing large scale private investment in power generation at a reasonable cost. We find empirical support for our arguments in a unique survey of 63 wind power firms that assessed private sector opinions about the investment environment for renewable energy in Ontario. Compared to a range of factors, firms rated the stability of regulatory policy among the weakest aspects of Ontario?s business environment. However, policy stability ranked among the most important factors in firms? assessments of the attractiveness of alternative jurisdictions in their location decisions. Subsequent interviews revealed that firms have responded to this risk in Ontario by explicitly pricing it into wind project financial models – implying higher wind power prices for ratepayers – and by directing investment funds to other jurisdictions. We argue that policy stability in Ontario may be improved by devolving greater decision-making authority to regulatory agencies in the energy sector and by strengthening their institutional independence.

Supermarkets, New-Generation Wholesalers, Tomato Farmers, and NGOs in Nicaragua

Based on a survey of 145 tomato farmers and interviews with supermarket chains, NGOs, wholesalers, and farmer organizations in 2004, this paper examines the determinants and effects of farmers' participation in supermarket channels, with and without assistance from NGOs in "business linkage" programs. It finds that absent that assistance, the farmers that work with supermarket chains tend to be the "upper tier" of small farmers, better capitalized with various assets. The smaller and less-capitalized farmers that work with supermarkets tend to do so in association with NGO assistance. Despite higher input expenditures and entry requirements, farmers in the supermarket chain earn more. The paper discusses the issue of whether this development program approach is sustainable and can be upscaled, and wrestles with the tradeoff of helping poor farmers gain access to dynamic markets, of making it affordable at a larger scale by national governments with tight budgets, and at the same time field programs that are market-sustainable and market-responsive.Marketing,

Supply chain finance : a conceptual framework to advance research

Supply Chain Finance (SCF) arrangements aim to add value by taking a cooperative approach to financing in the supply chain. SCF has recently enjoyed considerable attention from industry, and providers of capital and technology are investing in platforms to facilitate new applications. A limited number of theoretical and empirical studies on the topic have been published. Current trends suggest, however, that the landscape of SCF is becoming increasingly complex and diverse. We describe some key developments and their implications for firms that (may) implement an SCF arrangement. In particular, we show that strategic and tactical considerations may impact the value of these arrangements. Failure to recognize alternatives and associated trade-offs may entail missed opportunities for firms. We present a framework that positions SCF concepts and shows the need for further research. We conclude with observations on managerial relevance

Agricultural input supply

A research paper on agricultural input supply for small-holder farmers in the rural areas of Zimbabwe.The preconditions for the development and growth of agricultural input supply systems for smallholders were established in the 1940s and 1950s, mainly as spin-offs from public and private investments targeted at large-scale commercial farmers. These included government agricultural research stations that released new cultivars, nutrients, pesticides and farm equipment technologies that private sector firms could sell to farmers at a profit. They also included public extension services that cooperated with private firms, farm credit, market channels and favourable government policies. Agribusiness firms entered the input markets by initially focusing on large-scale commercial farmers and later expanding to smallholders in favourable areas. This chapter discusses the historical development of the fertilizer and chemical industries from the pre-independence and post-independence eras to the introduction of structural adjustment reforms in 1991, changes during the economic reforms in the 1990s, and finally changes and challenges emanating with the land and agrarian reforms since 2000. After 70 years of servicing mainly large-scale commercial farmers, the fertilizer and chemical industry is now being challenged to re-invent itself and supply relevant farm management information, knowledge, technology, capital and services to an increased number of black commercial and smallholder fanners, scattered in all parts of the country. The smallholder fertilizer problem is complex and has been debated for decades

Governance of Bulgarian Farming

This paper employs New Institutional and Transaction Costs Economics to ana-lyze Bulgarian agriculture. It evaluates the efficiency of dominant governing forms on the eve of EU accession, and assesses the likely impact of CAP im-plementation on farming structures. Firstly, assessment is made on the compara-tive efficiency, complementarily, and sustainability of major farm structures such as agro-firms, cooperatives, unregistered and subsistence farms. Next, prin-cipal modes of land, labor, service, inputs and financial supplies, in addition to marketing in different types of commercial farms, are identified and evaluated. Finally, a feasible pace for CAP implementation in the Bulgarian condition is projected, and the likely impact on farm structures is estimated.farm structures, efficiency, sustainability, impact of CAP, Bulgaria

Maximising the value of supply chain finance

Supply Chain Finance (SCF) arrangements aim to add value by taking a cooperative approach to financing the supply chain. Interest in SCF has been increasing, and decision makers need a comprehensive view of possible applications and their potential. By means of theoretical and empirical exploration, we develop a conceptual framework that allows for positioning of SCF concepts and practices. The framework is based on a delineation of four archetypal SCF policies and the criteria that are relevant for adoption of each policy. The two main contributions of our framework are: (1) it explicitly considers operational motives as well as the financial motives that could prompt a firm to engage financial cooperation; and (2) it uses a discounted cash flow approach to illustrate the trade-offs that arise from different risks in SCF implementations. We use the framework to review policies that have been used in reverse factoring, an SCF practice that has recently become popular. Our study reveals implications for all the parties involved in an SCF implementation

Essays on Private Equity Finance and Supply Chain Management.

Competition and uncertainty are omnipresent in today’s economic environment. This dissertation examines competition and uncertainty in private equity (PE) and supply chains through three papers. Each paper employs Cournot and/or Bertrand models of competition together in conjunction with multiple forms of uncertainty to examine the optimal behavior for decision makers as well as consequences for other involved parties. To the author’s knowledge, this dissertation presents the first exposition and analysis of competition, multiple forms uncertainty, and barriers to entry in a single model, and also the first to apply such a theory-based model to the PE arena. It is also one of the first papers to examine the impact of subsidies in manufacturing and service environments. Overall, the results included in this dissertation suggest that while numerous industry practices, and even regulations, endeavor to maximize benefits to recipients and participants, some counterintuitive practices, such as the granting of subsidies, or seemingly-detrimental market conditions where uncertainty is present, may in fact help recipients and/or participants achieve optimum levels of consumer surplus or profitability.Ph.D.Industrial & Operations EngineeringUniversity of Michigan, Horace H. Rackham School of Graduate Studieshttp://deepblue.lib.umich.edu/bitstream/2027.42/91505/1/awadecki_1.pd

A transitory regime : water supply in Conakry, Guinea

Both consumers and the government benefited from reform of the water system in Conakry, Guinea, whose deterioration since independence had become critical by the mid-1980s. Less than 40 percent of Conakry's population had access to piped water - low even by regional standards - and service was intermittent, at best, for the few who had connections. The public agency in charge of the sector was inefficient, overstaffed, and virtually insolvent. In several ways, the reform introduced to the sector in 1989 under a World Bank-led project was remarkable. It showed that even in a weak institutional environment, where contracts are hard to enforce and political interference is common, private sector participation can improve sector performance. The authors discuss the mechanismsthat made progress possible and identify factors that inhibit the positive effects of reform. Water has become very expensive, the number of connections has increased very slowly, and conflicts have developed between SEEG (the private operator) and SONEG (the state agency). Among the underlying problems: a) The lack of strong, stable institutions. b) The lack of an independent agency capable of restraining arbitrary government action, regulating the private operator, and enforcing contractual arrangements. c) The lack of adequate conflict resolution mechanisms for contract disputes. d) Weak administrative capacity.Environmental Economics&Policies,Water and Industry,Water Conservation,Decentralization,Water Supply and Systems,Town Water Supply and Sanitation,Water and Industry,Water Supply and Sanitation Governance and Institutions,Environmental Economics&Policies,Water Conservation

EU renewable energy policy: successes, challenges, and market reforms

Low carbon sources – primarily renewables and perhaps nuclear power - are almost invariably acknowledged to give more expensive power than power from fossil fuel sources – coal and gas. In a competitive electricity market, as is being attempted in the European Union, low carbon sources will not be chosen by power plant developers unless they are either insulated from the market or provided with some form of subsidy to make them competitive. Policy effort in the EU (e.g. the renewable energy Directive (2009/28/EC)) is aimed at supporting technologies and new capacity installations and production of renewable energy in three areas: (1) electricity or RES-E i.e. photovoltaics, wind, etc., (2) transport or RES-T i.e. biofuels, and (3) heating and cooling or RES-H&C i.e. biomass, solar-/geo-thermal, etc. (Winkel et al 2011). Amongst the three, EU renewable electricity sector has seen most state support and effective growth in terms of production and installed capacity in 1997-2012. It will thus be the main focus of this report. European Union competition law makes ‘state aids’ that distort markets illegal so for low-carbon sources to be promoted, there needs to be market mechanisms that do not distort markets or exemptions from this legislation. In this report, we look at mechanisms that have been used in the European Union to promote low-carbon sources, review the guidelines for state aid in the energy sector, and the challenges they pose to the EU renewable energy 2020 targets