Bank capital structure, regulatory capital, and securities innovations

Although financial instruments that, in effect, permit corporations to treat preferred stock dividends as tax-deductible interest have been used by nonfinancial corporations since late 1993, bank holding companies (BHCs) did not issue these trust-preferred securities (TPS) until 1996, when the Federal Reserve qualified them as Tier-1 capital. We delineate and test hypotheses with 1) analyses of the stock-market reaction to the Fed’s ruling and to TPS filings and 2) comparisons of BHCs that issued TPS with those that did not. We conclude that regulatory capital requirements, tax savings, and uninsured sources of funds can have significant positive effects on BHCs’ demand for capital; growth and investment opportunities have an inconclusive effect; and transaction costs have a negative effect. Our results are not consistent with the moral-hazard hypothesis.Bank capital ; Bank holding companies ; Bank supervision ; Securities

Bank capital structure, regulatory capital, and securities innovations

Although financial instruments that, in effect, permit corporations to treat preferred stock dividends as tax-deductible interest have been used by nonfinancial corporations since late 1993, bank holding companies (BHCs) did not issue these trust-preferred securities (TPS) until 1996, when the Federal Reserve qualified them as Tier-1 capital. We delineate and test hypotheses with 1) analyses of the stock-market reaction to the Fed’s ruling and to TPS filings and 2) comparisons of BHCs that issued TPS with those that did not. We conclude that regulatory capital requirements, tax savings, and uninsured sources of funds can have significant positive effects on BHCs’ demand for capital; growth and investment opportunities have an inconclusive effect; and transaction costs have a negative effect. Our results are not consistent with the moral-hazard hypothesis

Measuring glacier surface roughness using plot-scale, close-range digital photogrammetry

Glacier roughness at sub-metre scales is an important control on the ice surface energy balance and has implications for scattering energy measured by remote-sensing instruments. Ice surface roughness is dynamic as a consequence of spatial and temporal variation in ablation. To date, studies relying on singular and/or spatially discrete two-dimensional profiles to describe ice surface roughness have failed to resolve common patterns or causes of variation in glacier surface morphology. Here we demonstrate the potential of close-range digital photogrammetry as a rapid and cost-effective method to retrieve three-dimensional data detailing plot-scale supraglacial topography. The photogrammetric approach here employed a calibrated, consumer-grade 5 Mpix digital camera repeatedly imaging a plotscale (≤25m2) ice surface area on Midtre Lovénbreen, Svalbard. From stereo-pair images, digital surface models (DSMs) with sub-centimetre horizontal resolution and 3mm vertical precision were achieved at plot scales ≤4m2. Extraction of roughness metrics including estimates of aerodynamic roughness length (z0) was readily achievable, and temporal variations in the glacier surface topography were captured. Close-range photogrammetry, with appropriate camera calibration and image acquisition geometry, is shown to be a robust method to record sub-centimetre variations in ablating ice topography. While the DSM plot area may be limited through use of stereo-pair images and issues of obliquity, emerging photogrammetric packages are likely to overcome such limitations

A Smart, Flexible Energy System : The UK Energy Research Centre's (UKERC) Response to the Ofgem / BEIS Call for Evidence

We welcome the attention being paid by Ofgem and BEIS to the need for flexibility in Britain’s electricity system. In our view the main reason to support electricity system flexibility is that it can help minimise the costs of meeting the UK’s statutory climate targets whilst ensuring that system security is not compromised. The electricity system’s ability to adapt to changing demand in timescales of years down to minutes and varying availability of power from different resources will be extremely important to meeting these policy goals. Furthermore, action is needed so that those consumers that are best able to adapt their patterns of use of electricity have sufficient incentives and rewards for doing so. One manifestation of the main goal in accommodating future generation and demand is an objective to maximise the utilisation (across each year of operation) of electricity system assets, i.e. generators, network components and storage facilities. Whilst the title of the call for evidence focuses on ‘a smart, flexible energy system’, most of the raised relate to the electricity system. We have therefore focused most of our responses on electricity rather than the energy system as a whole. Our responses are selective. We have only answered those questions where we can offer relevant evidence, based on our research and expertise

Measuring glacier surface roughness using plot-scale, close-range digital photogrammetry

Glacier roughness at sub-metre scales is an important control on the ice surface energy balance and has implications for scattering energy measured by remote-sensing instruments. Ice surface roughness is dynamic as a consequence of spatial and temporal variation in ablation. To date, studies relying on singular and/or spatially discrete two-dimensional profiles to describe ice surface roughness have failed to resolve common patterns or causes of variation in glacier surface morphology. Here we demonstrate the potential of close-range digital photogrammetry as a rapid and cost-effective method to retrieve three-dimensional data detailing plot-scale supraglacial topography. The photogrammetric approach here employed a calibrated, consumer-grade 5 Mpix digital camera repeatedly imaging a plot-scale (≤25 m2) ice surface area on Midtre Lovénbreen, Svalbard. From stereo-pair images, digital surface models (DSMs) with sub-centimetre horizontal resolution and 3 mm vertical precision were achieved at plot scales ≤4 m2. Extraction of roughness metrics including estimates of aerodynamic roughness length (z 0) was readily achievable, and temporal variations in the glacier surface topography were captured. Close-range photogrammetry, with appropriate camera calibration and image acquisition geometry, is shown to be a robust method to record sub-centimetre variations in ablating ice topography. While the DSM plot area may be limited through use of stereo-pair images and issues of obliquity, emerging photogrammetric packages are likely to overcome such limitations

An Experimental Investigation of the Reinforcing and Extinguishing Effects of Implicit Rewards on Children's Handwriting

Two studies were conducted to investigate the effects of feedback of results, verbal praise, approval stamps and sweets as rewards for the correct letter-writing responses of typical elementary school children. The first study examined the effects of age and group-size upon the children's responses to variations in reward-administration procedures. Data were collected on the principal dependent variable of handwriting, comments and complaints were recorded, and a post-intervention questionnaire administered

Networks of attribution: the cultural origins of meaning.

Despite the fact that we commonly refer to artworks as 'meaningful' things, this is not to say that meaning is a property analogous to size or shape. If meaning is not a property, then it seems reasonable to suppose that it can only be a way of using things, of treating them as if they were imbued with features that they do not actually possess. Meaning is thus an attribution in which we agree through social consensus to use objects as tokens of power, prestige, celebration, explanation, instruction and so on. I argue that such symbolic procedures originate in practices of exchange and tool-use in which the use of raw materials instantiates their identity. The purpose of this paper is to show that the ability to interpret artworks and more generally to ascribe meanings, is a highly sophisticated cultural capacity and, more specifically, a verbal skill dependent upon a network of symbolic resources and techniques that only a socially evolved linguistic culture can provide and enable

Opinion: The scientific and community-building roles of the Geoengineering Model Intercomparison Project (GeoMIP) – past, present, and future

The Geoengineering Model Intercomparison Project (GeoMIP) is a coordinating framework, started in 2010, that includes a series of standardized climate model experiments aimed at understanding the physical processes and projected impacts of solar geoengineering. Numerous experiments have been conducted, and numerous more have been proposed as “test-bed” experiments, spanning a variety of geoengineering techniques aimed at modifying the planetary radiation budget: stratospheric aerosol injection, marine cloud brightening, surface albedo modification, cirrus cloud thinning, and sunshade mirrors. To date, more than 100 studies have been published that used results from GeoMIP simulations. Here we provide a critical assessment of GeoMIP and its experiments. We discuss its successes and missed opportunities, for instance in terms of which experiments elicited more interest from the scientific community and which did not, and the potential reasons why that happened. We also discuss the knowledge that GeoMIP has contributed to the field of geoengineering research and climate science as a whole: what have we learned in terms of intermodel differences, robustness of the projected outcomes for specific geoengineering methods, and future areas of model development that would be necessary in the future? We also offer multiple examples of cases where GeoMIP experiments were fundamental for international assessments of climate change. Finally, we provide a series of recommendations, regarding both future experiments and more general activities, with the goal of continuously deepening our understanding of the effects of potential geoengineering approaches and reducing uncertainties in climate outcomes, important for assessing wider impacts on societies and ecosystems. In doing so, we refine the purpose of GeoMIP and outline a series of criteria whereby GeoMIP can best serve its participants, stakeholders, and the broader science community

Glacier algae accelerate melt rates on the south-western Greenland Ice Sheet

Melting of the Greenland Ice Sheet (GrIS) is the largest single contributor to eustatic sea level and is amplified by the growth of pigmented algae on the ice surface, which increases solar radiation absorption. This biological albedo-reducing effect and its impact upon sea level rise has not previously been quantified. Here, we combine field spectroscopy with a radiative-transfer model, supervised classification of unmanned aerial vehicle (UAV) and satellite remote-sensing data, and runoff modelling to calculate biologically driven ice surface ablation. We demonstrate that algal growth led to an additional 4.4–6.0 Gt of runoff from bare ice in the south-western sector of the GrIS in summer 2017, representing 10 %–13 % of the total. In localized patches with high biomass accumulation, algae accelerated melting by up to 26.15±3.77 % (standard error, SE). The year 2017 was a high-albedo year, so we also extended our analysis to the particularly low-albedo 2016 melt season. The runoff from the south-western bare-ice zone attributed to algae was much higher in 2016 at 8.8–12.2 Gt, although the proportion of the total runoff contributed by algae was similar at 9 %–13 %. Across a 10 000 km2 area around our field site, algae covered similar proportions of the exposed bare ice zone in both years (57.99 % in 2016 and 58.89 % in 2017), but more of the algal ice was classed as “high biomass” in 2016 (8.35 %) than 2017 (2.54 %). This interannual comparison demonstrates a positive feedback where more widespread, higher-biomass algal blooms are expected to form in high-melt years where the winter snowpack retreats further and earlier, providing a larger area for bloom development and also enhancing the provision of nutrients and liquid water liberated from melting ice. Our analysis confirms the importance of this biological albedo feedback and that its omission from predictive models leads to the systematic underestimation of Greenland's future sea level contribution, especially because both the bare-ice zones available for algal colonization and the length of the biological growth season are set to expand in the future