Will markets direct investments under the Kyoto Protocol ?

Under the Kyoto Protocol, countries can meet treaty obligations by investing in projects that reduce or sequester greenhouse gases elsewhere. Prior to ratification, treaty participants agreed to launch country-based pilot projects, referred to collectively as Activities Implemented Jointly (AIJ), to test novel aspects of the project-related provisions. Relying on a 10-year history of projects, the authors investigate the determinants of AIJ investment. Their findings suggest that national political objectives and possibly deeper cultural ties influenced project selection. This characterization differs from the market-based assumptions that underlie well-known estimates of cost-savings related to the Protocol's flexibility mechanisms. The authors conclude that if approaches developed under the AIJ programs to approve projects are retained, benefits from Kyoto's flexibility provisions will be less than those widely anticipated.Environmental Economics&Policies,Investment and Investment Climate,Non Bank Financial Institutions,Energy Production and Transportation,Economic Theory&Research

Factors Determining Farmers’ Decision for Buying Irrigation Water: Study of Groundwater Markets in Rajasthan

The emergence of groundwater markets has helped in mitigating inequality in physical access to the groundwater resources, on the one hand, but on the other hand, it may lead to exploitation of the buyers of water, i.e. resource-poor, small farmers. For the sellers of water, it is becoming a remunerative business economically, leading to serious environmental as well as social concerns. The present study conducted in the arid and semiarid zones of Rajasthan has addressed these issues. The study has shown that prevailing terms of water transactions, particularly ‘in-kind’ terms, lead to the over-exploitation of groundwater resources. The credit policies and the power pricing policies of the government also help in the unsustainable and inequitable use of this resource. Water policy ensuring mandatory recharging of the abandoned wells mainly for the sellers of water is the need of hour for the efficient and sustainable use of this scarce natural resource. The analysis of farmers’ decision to participate in water markets employing logit regression has suggested that the farmers having higher fragmented landholdings have higher probability of buying groundwater. Joint ownership of wells is negatively associated with the farmers’ probability of buying groundwater. This implies that the consolidation of holdings or installing cooperative wells may economize the irrigation investment and lead to efficient management of resources of the farmers and sustainable utilization of water. In the national and state water policies as well as in the Model Bill to regulate and control the groundwater resources, this aspect has not been given any emphasis.Agricultural and Food Policy,

Acquisition versus greenfield foreign entry : diversification mode choice in Central and Eastern Europe

Departing from the traditional transaction cost approach in diversification mode literature, this study investigates the influence of experimental organizational learning on the choice between acquisition and a greenfield investment. We provide empirical support that prior experience with acquisitions and/or greenfield investments, firm?s predominant international strategy (global or multidomestic) and the technological intensity of the parent play a crucial role in subsequent diversifications. Furthermore, contrary to extant arguments that foreign ownership decision is independent of a diversification mode choice we demonstrate that the type of ownership (joint venture vs. wholly owned subsidiary) is a significant predictor of firms? preference for acquisition or a greenfield. Unlike Caves and Mehra (1986) and Larimo (2002) who found a positive relationship between acquisitions and full ownership, we show that acquisitions in Central and Eastern European (CEE) transition economies are unlikely to be wholly owned subsidiaries. In addition, we contribute to extant diversification literature by introducing another neglected predictor of firms? diversification strategy: We demonstrate the incremental power of hostcountries? institutional structure on investors? diversification choice.

Technology Transfer in the Global Automotive Value Chain. Lessons from the Turkish Automotive Industry

The automotive industry is one of the main contributors to value added, employment and exports of the Turkish economy and it has undergone major changes since the mid-nineties. Most of the automotive manufacturers in Turkey are either joint ventures or wholly-owned affiliates of multinational companies. Literature on global value chains point to the possibility of technology transfer occurring through backward linkages from automotive manufacturers to their suppliers. We test for the existence and the importance of different types of knowledge and technology transfer mechanisms in the Turkish automotive industry. In addition, characteristics of local suppliers impacting on these transfers and their impact on firm performance are analyzed.Asurvey based on a detailed questionnaire was administered to production/R&D managers of the 158 automotive suppliersoperating in Turkey in 2010. Logistic and ordinal regressionsare used to examine the aforementioned issues. Findings confirm the existence of transfers from customers to their local suppliers on co-design and co-development activities, designing of production tools, development/improvement of quality control methods, cost reduction and design of materials. In addition, econometric analysis points to the fact that these transfers exert a positive effect on the performance of supplier firms.Automotive Industry, Knowledge and Technology Transfer, Multinational Companies (MNCs), Foreign Direct Investment (FDI), Innovation, Research and Development (R&D)

How do Croatian Companies make Corporate Risk Management Decisions: Evidence from the Field

According to the Capital Asset Pricing Model and the Modigliani-Miller theorem, corporate risk management is irrelevant to the value of the firm. However, it is apparent that managers are constantly engaged in hedging activities that are directed at the reduction of corporate risks. As an explanation for this clash between theory and practice, imperfections in the capital market are used to argue for the relevance of corporate risk management function. This paper analyses corporate risk management practices and decision to hedge in large Croatian non-financial companies. It explores if decision to hedge corporate risks in the analysed companies is a function of several firm’s characteristics that have been proven as relevant in making risk management decisions.corporate risk management decision, hedging rationales, shareholder value maximisation, managers’ private utility maximisation, large Croatian non-financial companies

Gender and Education as Determinants of Household Poverty in Nigeria

Gender, Education, Poverty, Nigeria, Households