ISO 14001 Certification and Environmental Performance in Quebec's Pulp and Paper Industry

This paper tests whether adopting the international norm ISO 14001 significantly impacts environmental performance in Quebec's pulp and paper industry. Using monthly data collected from 37 plants between 1997 and 2003, we show that: i) ISO certification does not lead to a reduction in total suspended solid emissions or the total quantity of rejected process water; ii) discharge of biological oxygen demand appears to be significantly lower in the first year following certification; iii) this latter impact does not appear to last beyond the one-year window. We further show that, contrary to the group of plants that did not adopt the ISO norm, the adopting plants did not experience a significant negative trend in emissions over our sample period.Environmental Management Systems, ISO 14001, Environmental Performance

Rivalry in the U.S. Airline Industry

In this paper, we use Market Share Instability (MSI) as a measure of the intensity of competition among airlines on a specific route. This measure is used to capture not only price competition but also non-price competition notably capacity competition. We test the effect of different variables (used in pricing studies) on MSI on a sample of 400 routes over the period 1987 to 1993. Most of the results found in pricing studies are confirmed using this measure of rivalry. For example the presence of a bankrupt carrier increases rivalry but extensive multimarket contact between rivals decreases competition. We also find that MSI was significantly lower in the early nineties when demand conditions were weak. A decline in the intensity of capacity competition could explain that result.

Demand Uncertainty and Airline Network Morphology with Strategic Interactions

In this paper, we examine how strategic interactions affect airline network. We develop a three stage duopoly game: at stage 1 airlines determines their network structure (linear versus hub-and-spoke). At stage 2 they decide on their capacities, and at stage 3 firms compete in quantities. The main feature of the model is that firms have to decide on network structure and capacities while facing demand uncertainty. We show that while hubbing is efficient, airlines may choose a linear network for strategic reasons. Furthermore, we show that this structure softens competition by preventing contagion of competition across markets.Airlines, Competition, Capacity constraints, Network, Uncertainty

The Role of Demand Uncertainty in Airline Network Structure

In this paper, we provide another reason that may explain the adoption of the hub-and-spoke network structure in the airline industry. We show that when an airline has to decide on its capacity before the demand conditions are perfectly known, a hub-and-spoke network structure by pooling passengers from several markets into the same plane helps the firm to lower its cost of excess capacities in the case of low demand and to reduce its opportunity cost of rationing in the case of high demand.Airlines, Network, Demand uncertainty, Hub

MODELIRANJE KONTINUITETA I DISKONTINUITETA U TUNELSKOM INŽENJERSTVU

The paper discusses continuum and discontinuum modelling in tunnel engineering. A brief review of fundamentals is presented in connection with the use of closeg - form solutions and computer based numerical methods. a few remarks are derivedon the choice of either continuum or discontinuum modelling of rock mass behaviour at the design analysis stage. Consideration is given to the validation of discontinuum modelling in connection with rock mass classification methods and expected tunnel response to excavation. A case study of a TBM tunnel (4.75 m) in quartzitic micaschists is discussed in detail by paying attention to a comparison of modelling methods - including continuum and discontinuum modelling - applied at a fault zone.U članku je raspravljeno modeliranje kontinuiteta i diskontinuiteta u tuelskom inženjerstvu. Sažeto su opisane osnove zajedno s uporabom matematičkih rješenja i računalnih numeričkih metoda. Raspravljen je izbor modela kontinuuma i diskontinuuma stjenske mase u odnosu na analizu konstrukcije podgrađivanja. U obzir je uzeto potvrđivanje modela diskontinuiteta povezanog s metodama klasifikacije stjenskih masa i očekivane reakcije tunela pri iskopu. U detaljima je raspravljen prmjer studije TBM tunela (promjera 4,75 m) u kvarcitičnim mikašistima s posebnom pozornosti na uspoređivanje metoda modeliranja - uključujući modeliranje kontinuuma i diskontinuuma - uporabljenih u rasjednoj zoni

The Optimal Number of Charities

In this paper charity brings some joy of giving; it yields more contributions to public goods than standard "subscription", but its creation is costly. We compare the laissez-faire number of charities with both the second and the first-best level. In general, laissez-faire implies an underprovision of both charities and public goods.Charities, Public Good

On the Choice between Strategic Alliance and Merger in the Airline Sector: the Role of Strategic Effects

We consider a market with three competitors, two of which decide to cooperate. Firms first choose capacity under demand uncertainty then compete in quantities after the uncertainty has been resolved. We specify strategic alliance (SA) as an agreement where two airlines jointly choose capacity and divide it among themselves. Contrary to the full merger case, after demand is revealed the alliance members market their capacity shares independently. Our main result is that the profit of the cooperating firms is greater under SA than under full merger.Strategic alliance, capacity, airline industry

Can Environmental Regulations be Good for Business? an Assessment of the Porter Hypothesis

The Porter hypothesis asserts polluting firms can benefit from environmental policies, arguing that well-designed environmental regulations stimulate innovation, which by increasing either productivity or product value, leads to private benefits. As a consequence, environmental regulations would benefit both society and regulated firms. This point of view has found a receptive audience among policy makers and the popular press but has been severely criticized by economists. In this paper, we present some of the arguments in this debate and review the empirical evidence available so far in the economic literature.Porter Hypothesis, Environmental Regulations, Competitiveness

Automobile fuel efficiency policies with international innovation spillovers.

In this paper, we explore automobile fuel efficiency policies in the presence of two externalities i) a global environmental problem and ii) international innovation spillovers. Using a simple model with two regions, we show that both a fuel tax and a tax on vehicles based on their fuel economy rating are needed to decentralize the first best. We also show that if policies are not coordinated between regions, the resulting gas taxes will be set too low and each region will use the tax on fuel rating, to reduce the damage caused by foreign drivers. If standards are used instead of taxes, we find that spillovers may alleviate free-riding. Under some conditions, a strict standard in one region may favour the adoption of a strict standard in the other one.Environmental policy; Automobile; Fuel efficiency standard; Gasoline tax; Innovation spillovers;

On the Choice between Strategic Alliance and Merger in the Airline Sector: the Role of Strategic Effects

We consider a market with three competitors, two of which decide to cooperate. Firms first choose capacity under demand uncertainty then compete in quantities after the uncertainty has been resolved. We specify strategic alliance (SA) as an agreement where two airlines jointly choose capacity and divide it among themselves. Contrary to the full merger case, after demand is revealed the alliance members market their capacity shares independently. Our main result is that the profit of the cooperating firms is greater under SA than under full merger.Strategic alliance, capacity, airline industry