Sustainable Investing: Navigating the Inefficiencies of an Inefficient Market

Over the past decade, sustainable investing, also known as socially responsible investing, ethical investing, or responsible investing, has experienced heightened popularity worldwide. This popularity reflects the increasing awareness of investors of social, environmental, ethical, and corporate governance issues. However, while retail investors\u27 interest has increased, their actual participation has been nominal. This paper explores the question: How do individual investors incorporate sustainability-related experiences, information, learning, or a combination of these in deciding to invest in sustainable investments? This study aims to identify the barriers and enablers that may inhibit or facilitate participation in sustainable investments. The study follows a grounded theory approach to construct theory from data, a method appropriate for this situation given the paucity of research involving investors\u27 intentions but lack of execution in sustainable investing. Furthermore, the study uses Behavioral Decision Theory and Nudge Theory as conceptual frameworks to structure the collection and analysis of data. The study entailed an extensive review of extant literature and promoted data collection through an intensive interview process involving knowledgeable investing and sustainability professionals. The findings identified several uncertainty drivers involving investors’ attitudes towards rating and reporting agencies, the financial merits of sustainable investing, and concerns about greenwashing. Each of these contributes to inefficiencies surrounding sustainable investing. These inefficiencies include asymmetric information, market power, market friction, and externalities. These uncertainty drivers and market inefficiencies promote investor responses through options unavailable to traditional investors. Contributions to theory include confirmation and extension of extant literature, enhanced function of behavioral decision theory and nudge theory, and extended application of market inefficiencies. Contribution to practice involves a conceptual model around strategic option theory for sustainable investing and the application of BDT and nudge. From these, individual investors, investment advisors, and investment companies can make more insightful decisions in their investment strategy to increase participation in sustainable investments

The Structure and Nature of Vertical Co-ordination and Regulation Systems in the Kenyan Fresh Fruits and Vegetables Export Value Chain: Transaction Cost Approach

This thesis was inspired and guided by the question; how have Kenyan smallholder farmers managed to enter and stay in the Kenyan fresh fruits and vegetables export value chain that has high entry and stay barriers? From this question, the study aimed to analyse the structure and nature of vertical coordination and the corresponding regulatory systems in the value chain. Three research questions were then raised in line with the research aim. To explore these questions, Oliver Williamson transaction costs economics and John Braithwaite and Valerie Braithwaite motivational postures theory were applied to respectively analyse the structure and nature of vertical coordination and the regulatory and compliance systems in the value chain. A mixed methods approach was adopted for the study with fieldwork carried out in six counties in Kenya. The study participants included smallholder farmers, non-governmental organisations and public and private organisations. The study found that the structure of vertical coordination of the value chain was nodal whereby two nodes of contracted coordination were identified. The two nodes comprised of European retailers-Kenyan exporters’ node and the exporters-smallholder farmer's nodes. The retailers-exporters node was found to have stable long-term contracts which allowed for transactional relationship to age and mature. Conversely, the exporters-farmers node was found to have unstable and volatile short-termed transactions which inhibited maturity of exchange relationships. Importantly, the study found that the absence of property rights, forced the parties’ to rely on relational contracting anchored on supply reliability. It was for supply reliability reason that the exporters were willing to bear high transaction costs of contracting smallholders, hence enabling smallholders’ entry and stay in the value chain. Regulation was found to be through three pathways including; exporters-farmers, state regulatory and network regulation pathways. Importantly, the study found that responsive regulation was central to exporters and farmers compliance with regulation

Valuing Farm Animal Welfare in a Market Economy: A Philosophical Study of Market Failure

Do people in the UK care about farm animal welfare? How well are their concerns represented in society? How can we use economic policy to build a society that reflects public attitudes towards farm animals and their welfare? In this thesis, I contend that markets in animal products – which facilitate many people’s quotidian interactions with farm animal welfare – are susceptible to four forms of market failure: externalities, public good problems, information asymmetries and uncompetitive consumer behaviour. I analyse how these market failures can subvert the expression of altruistic preferences and prevent markets from reflecting the public’s concern for farm animal welfare, before considering how policymakers can address these market failures. I conclude that preference satisfaction theories of utility and welfare do not provide a suitable grounding for economic farm animal welfare policy, which should instead seek to ensure that public values are appropriately represented in society. I develop a policy framework that draws upon public values and facts about farm animal welfare in society to assist policymakers in this work. Where the public is almost universally opposed to certain husbandry practices, government intervention to directly protect farm animal welfare is likely to be in almost everyone’s interests, and animal welfare should be viewed as a public good. Where significant groups of people are opposed to the use of certain practices, market intervention through externality policies may be justified as a means of affording greater representation to the public’s altruistic concern for farm animal welfare: farm animal welfare should be viewed as a merit good in these cases. Where public values are largely represented in society, farm animal welfare should be treated as a private good: policymakers should empower consumers to express any further dissatisfaction towards animal agriculture through market mechanisms

Miscommunicating ideas: some key lessons for risk management.

This PhD submission consists of twelve articles and six reviews published over the period 1999 to 2007, together with a context statement that seeks to draw out the dominant themes, methodologies and results of my research. Essentially, I have examined the impact on the risk management of certain areas in science and security, of two significant trends that emerged and merged within contemporary society over the last 25 years. These are; processes of 'individuation' and of lde-politicisation'. Together, they have helped shape a new culture for policy-making and communication in most fields which, I suggest, has adverse consequences. 'Individuation' refers to the gradual breakdown of social bonds of solidarity and community which, while hardly new in capitalist society, accelerated in their reach and consequence over this period. Individuals isolated from strong social networks are ultimately weak. 'De-politicisation' refers to the loss of interest and participation in mainstream politics, which has also been widely noted and commented upon. This reached new heights (or lows) in the current period, and is distinct from the 'politicisation’ of both science and security. These themes are explored further elsewhere, but it is my contention that their convergence has led to the creation of a new culture of risk management and communication which I have sought to critique. My research, presented in the accompanying papers, has utilised a diverse set of methodological approaches, focusing primarily on the reinterpretation of existing data and analysis through a series of case-studies. Intelligence, in both the general sense and in the world of security, consists of a combination of information and interpretation. My purpose here has been to present an alternative framework for contemporary debates. My work has revealed the impact of these key processes and the new culture and identities - vulnerable victims and assertive advocates - that have been created by them. I have examined numerous manifestations and limitations of these. My articles confirm the rise of a culture more worried over possibilities than probabilities. The precautionary principle in science and pre-emptive action in relation to perceived security threats are examples of this. I conclude by noting that this has led to society being reorganised around risk. By miscommunicating risk - to connect with isolated individuals - politicians and officials will further exacerbate the trends identified above. By implication, I point to the possibility of an alternative - a debate about risks that maintains a sense of perspective and proportion, thereby rekindling the social bonds that generate confident individuals and purposeful politics