The Credibility of Certifiers

It is often argued that certifiers have an incentive to offer inflated certificates, although they deny it. In this paper, we study a model in which a certifier is paid by sellers, and may offer them inflated certificates, but incurs costs if doing so. We find that the certifier may face a commitment problem: The certifier offers inflated certificates if the costs of offering the first inflated certificate are lower than the sellers' willingness-to-pay for it. However, in equilibrium, the buyers cannot be fooled. The certifier would hence make a higher profit if the certifier did not offer inflated certificates and the buyers believed it. The number of inflated certificates, which the certifier offers in equilibrium, depends on the costs of offering inflated certificates. Yet, the certifier may oppose an increase in the costs of offering inflated certificates. We show that whether a certifier welcomes tighter regulation or lobbies against it, may depend on whether the new regulation only imposes higher costs, or also reduces the certifier's commitment problem significantly

Liability in the medical sector : the ‘breast-taking’ consequences of the poly implant prothese case

The article deals with the liability of third-party certifiers in the medical sector and especially focuses on the role of TuV Rheinland in the recent Poly Implant Prothese (PIP) breast implant case. The aim of the contribution is twofold. Firstly, it provides an overview of the different challenges that courts face when having to decide on the liability of certifiers of medical devices towards third parties. These, for instance, relate to the strict conditions under which certifiers can incur third-party liability under national law. Whether product certifiers can be held liable depends on the jurisdiction where the claims have been filed. Therefore, the PIP breast implant case is also interesting from a private international law perspective. Third-party certifiers can be sued before the courts of their domicile. Whether they can be brought before courts in other Member States depends inter alia on the interpretation of the place of the damaging event and the place of the damage. The difficulty to pinpoint these locations not only emerges in the field of jurisdiction but also manifests itself within the search for the applicable law as identical connecting factors are employed in that area of private international law. Secondly, the article examines the decisions that have been issued by national courts in the PIP breast implant case. Rulings in France and Germany denied compensation for patients who purchased the defective breast implants. The PIP case is currently pending before the European Court of Justice (ECJ). It thus remains to be seen what stance the ECJ will take and especially what the consequences might be for certifiers in the medical sector. Based on the analysis of these decisions, the contribution puts forth a number of reasons why the threat of liability seems the most effective way to guarantee that third-party certifiers issue accurate and reliable certificates. This in turn ensures that only safe medical devices are placed on the European market and safeguards the health of consumers. Future scandals with medical devices might in this way be prevented

The impact of energy performance certificates on the rental and capital values of commercial property assets: some preliminary evidence from the UK

This paper focuses on the effect of energy performance ratings on the capital values, rental values and equivalent yields of UK commercial property assets. Of which a small number are also BREEAM rated, the study is based upon 708 commercial property assets held in the IPD UK Universe drawn from across all PAS segments. Incorporating a range of controls such as unexpired lease term, vacancy rate and tenant credit risk, hedonic regression procedures are used to estimate the effect of EPC rating. The study finds no evidence of a strong relationship between environmental and/or energy performance and rental and capital value. Bearing in mind the small number of BREEAM rated assets, there was a small but statistically significant effect on equivalent yield only. Similarly, there was no evidence that the EPC rating had any effect on Market Rent or Market Value with only minor effects of EPC ratings on equivalent yields. The preliminary conclusion is that energy labelling is not yet having the effects on Market Values and Market Rents that provide incentives for market participants to improve the energy efficiency of their commercial real estate assets

Dynamics, robustness and fragility of trust

Trust is often conveyed through delegation, or through recommendation. This makes the trust authorities, who process and publish trust recommendations, into an attractive target for attacks and spoofing. In some recent empiric studies, this was shown to lead to a remarkable phenomenon of *adverse selection*: a greater percentage of unreliable or malicious web merchants were found among those with certain types of trust certificates, then among those without. While such findings can be attributed to a lack of diligence in trust authorities, or even to conflicts of interest, our analysis of trust dynamics suggests that public trust networks would probably remain vulnerable even if trust authorities were perfectly diligent. The reason is that the process of trust building, if trust is not breached too often, naturally leads to power-law distributions: the rich get richer, the trusted attract more trust. The evolutionary processes with such distributions, ubiquitous in nature, are known to be robust with respect to random failures, but vulnerable to adaptive attacks. We recommend some ways to decrease the vulnerability of trust building, and suggest some ideas for exploration.Comment: 17 pages; simplified the statement and the proof of the main theorem; FAST 200

The Impact of Energy Performance Certificates on the Rental and Capital Values of Commercial Property Assets: Some Preliminary Evidence from the UK

This paper focuses on the effect of energy performance ratings on the capital values, rental values and equivalent yields of UK commercial property assets.  Of which a small number are also BREEAM rated, the study is based upon 708 commercial property assets held in the IPD UK Universe drawn from across all PAS segments. Incorporating a range of controls such as unexpired lease term, vacancy rate and tenant credit risk, hedonic regression procedures are used to estimate the effect of EPC rating. The study finds no evidence of a strong relationship between environmental and/or energy performance and rental and capital value. Bearing in mind the small number of BREEAM rated assets, there was a small but statistically significant effect on equivalent yield only. Similarly, there was no evidence that the EPC rating had any effect on Market Rent or Market Value with only minor effects of EPC ratings on equivalent yields.  The preliminary conclusion is that energy labelling is not yet having the effects on Market Values and Market Rents that provide incentives for market participants to improve the energy efficiency of their commercial real estate assets.Energy Performance Certificates, commercial property, values

Assessment of the energy performance of the building in terms of legislative changes

V první polovině roku 2013 došlo ke změně hodnocení energetické náročnosti budov změnou legislativy. V platnost vstoupila nová vyhláška [7] dle níž se v současnosti hodnotí budovy, dříve platná vyhláška [6] byla zrušena. Ovšem platnost samotných průkazů energetické náročnosti je 10 let, tudíž se v současnosti a v budoucích cca 10 letech můžeme setkávat se dvěma různými průkazy energetické náročnosti budovy. Na konkrétním příkladu bytového domu jsou tyto průkazy energetické náročnosti hodnoceny společně s vyhodnocením skutečných spotřeb energetické náročnosti.In the first half of 2013 there was a change in the rating of the energy performance of buildings by changing legislation. The new regulation [7] according to which buildings are rated at present came into force, previously valid regulation [6] has been cancelled. But the validity of the sole energy performance certificates is 10 years, so at present and in the future app. 10 years, we shall meet with two different certificates of energy performance of the building. On the example of a residential building these energy certificates are evaluated together with an assessment of the actual consumption of energy performance

Erie County Comptroller

The Erie County Comptroller derives his or her authority from New York State County Law, Article 14. New York State has established a method for choosing a comptroller and a set of rules governing the comptroller’s duties. Erie County has chosen to elect a comptroller and defines the office’s authority in Article 19 of the Erie County Charter. Erie County’s comptroller will serve terms of four years, and should be elected from the county at large

The uneven price impact of energy efficiency ratings on housing segments and implications for public policy and private markets

In the literature, there is extensive, although in some cases inconclusive, evidence on the impact of Energy Performance Certificates (EPC) on housing prices. Nonetheless, the question of whether such an impact is homogenous across residential segments remains highly unexplored. This paper addresses this latter issue utilizing multifamily listing data in metropolitan Barcelona. In doing so, first the entire sample is analyzed using a hedonic model. Second, the sample is split on the basis of a multivariate segmentation. Finally, separated hedonic models are specified again. The results suggest that in general, there is a modest impact of EPC ratings on listing prices, nonetheless it is not homogeneous across housing segments: (1) for the most modern apartments, with state-of-the-art features and active environmental comfort, energy ratings seem to play a null role in the formation of prices; (2) conversely, for the cheapest apartments, apartments boasting the most basic features, and apartments located in low-income areas, the “brown discount” is enormously significant, potentially depreciating the equity of those who have the least resources to carry out an energy retrofit. These results have implications for the assessment of the EPBD and its Spanish transposition, since a very well-intentioned environmental policy could have potentially harmful social repercussions in the absence of corrective measures.Peer ReviewedPostprint (published version