Found 673 article(s) in category 'Regulation'

Do financial constraints curb firms’ efforts to control pollution? Evidence from Chinese manufacturing firms

Do financial constraints curb firms’ efforts to control pollution? Evidence from Chinese manufacturing firms. Richard Freeman, January 12, 2019, Paper, “Financial constraints have long existed in China’s manufacturing sectors. The growth of the manufacturing sector has been slowing in recent years due to increasingly strict environmental regulations that force factories to cut production. In this study, we discussed whether financial constraints were essential in firms’ decision to control pollution, and matched the Annual Surveys of Industrial Firms dataset with the Ministry of Environmental Protection survey data on firms’ expenditures in industrial waste gas emission control. The relationship between calculated investment-cash flow sensitivity (ICFS) and the environmental investment ratio (ratio of firms’ expenditures on pollution control to total assets) was analyzed. We found that, overall, financial constraints had a significantly negative effect on firms’ efforts to reduce waste gas emission.Link

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Stock Market Short-Termism’s Impact

Stock Market Short-Termism’s Impact. Mark Roe, December 2018, Paper, “Stock-market–driven short-termism is crippling the American economy, according to legal, judicial, and media analyses. Firms forgo the R&D they need, cut capital spending, and buy back their own stock so feverishly that they starve themselves of cash. The stock market is the primary cause: directors and executives cannot manage for the long term when their shareholders furiously trade their company’s stock, they cannot make long-term investments when stockholders demand to see profits on this quarter’s financial statements, they cannot even strategize about the long term when shareholder activists demand immediate results, and they cannot keep the cash to invest in their future when stock market pressure drains away that cash in stock buybacks. This doomsday version of the stock-market–driven short-termism argument entails economy-wide predictions that have not been well-examined for their severity and accuracy.Link

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Trusting Nudges: Toward A Bill of Rights for Nudging

Trusting Nudges: Toward A Bill of Rights for Nudging. Cass Sunstein, 2018, Book, “Many “nudges” aim to make life simpler, safer, or easier for people to navigate, but what do members of the public really think about these policies? Drawing on surveys from numerous nations around the world, Sunstein and Reisch explore whether citizens approve of nudge policies. Their most important finding is simple and striking. In diverse countries, both democratic and nondemocratic, strong majorities approve of nudges designed to promote health, safety, and environmental protection—and their approval cuts across political divisions.Link

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The Price of Biodiesel RINs and Economic Fundamentals

The Price of Biodiesel RINs and Economic Fundamentals. James Stock, December 2018, Paper, “The D4 RIN is the tradable compliance certificate for the biomass-based diesel mandate in the Renewable Fuel Standard (RFS). Understanding the price dynamics of the D4 RIN is important for understanding the RFS because its price sets a ceiling on the ethanol RIN (D6) and because some observers have suggested that RIN price fluctuations are too large to be explained by economic theory. We use option pricing theory to develop a model of the D4 RIN in terms of its economic fundamentals: the spread between the prices of biodiesel and petroleum diesel and the status of the biodiesel blenders’ tax credit. The resulting D4 fundamental price closely tracks actual D4 prices. We conclude that RIN price volatility arises because of the design of the RFS and intrinsic features of the US fuel supply system.Link

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Stock Market Distress Signal: How Low-Cost Index Funds Are Taking Over

Stock Market Distress Signal: How Low-Cost Index Funds Are Taking Over. John Coates, December 12, 2018, “Sounding the alarm on index funds. How their runaway success has reshaped power and accountability in boardrooms and on Wall Street. Guests – John Coates, professor of law and economics at Harvard Law School where he teaches corporate governance, mergers and acquisitions and finance. Member of the Investor Advisory Committee of the Securities and Exchanges Commission. (@jciv) Link

 

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Health as a Way of Doing Business

Health as a Way of Doing Business. Amy Edmondson, December 6, 2018, Paper, “For too long, the worlds of business and health have been mired in a checkered, sometimes contentious, history. Millions of deaths worldwide can be attributed to risk factors including tobacco use, alcohol and drug misuse, and suboptimal dietary intake linked to commercial products. Media (including social media) coverage about the safety and cost of many consumer goods, both medical (drugs, devices) and nonmedical, reflect profound public concerns. Longstanding societal scrutiny about the role of business in environmental pollution has only increased in the era of global warming.Link

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Evaluating the performance of regulations and regulatory institutions

Evaluating the performance of regulations and regulatory institutions. Joseph Aldy, 2018, Book Chapter, “If markets function well in allocating resources, then government regulation is unnecessary. Indeed, government intervention in well-functioning markets will likely  make society worse off by imposing costs that exceed their benefits. If markets do not…Link

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Introduction to: the euro at twenty

Introduction to: the euro at twenty. Laura Alfaro, November 27, 2018, Book Chapter, “January 1, 2019 marks 20 years since the introduction of the euro. This anniversary presents an opportunity to reflect on lessons learned from the first 20 years of EMU in Europe, and consider prospects for the future. The last few years have demonstrated the strains possible when multiple countries engage together in the bold venture of monetary union. The editors of Review of World Economics decided to invite several prominent thinkers to offer their insights, regarding what they believe was the biggest surprise from the euro’s first 20 years, and what is the biggest challenge for next 20 years.Link

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Policy Evolution under the Clean Air Act

Policy Evolution under the Clean Air Act. Robert Stavins, November 20, 2018, Paper, “Nearly half a century has elapsed since 1970, when the first Earth Day was celebrated, the U.S. Environmental Protection Agency (EPA) was established, and the U.S. Clean Air Act (CAA) was passed with essentially unanimous bipartisan support.2 It was not the first Federal law to deal with air pollution – that was the Air Pollution Control Act of 1955 – and it was technically only an amendment to the original Clean Air Act of 1963 (Stern 1982). But it was the first environmental law to give the Federal government a serious regulatory role. The 1970 Act established the basic architecture of the U.S. air pollution control system and became a model for many subsequent environmental laws in the United States and abroad.Link

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Uber Prepares to Go Public, and China’s Social Credit System

Uber Prepares to Go Public, and China’s Social Credit System. Youngme Moon, Mihir Desai, Felix Oberholzer-Gee, November 14, 2018, Audio, “Youngme Moon, Mihir Desai, and Felix Oberholzer-Gee discuss how much Uber is worth as it prepares to go public, before debating China’s controversial Social Credit system. They also share their After Hours picks for the week.Link

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