{"title":"Cover-Up of Vehicle Defects: The Role of Regulator Investigation Announcements","authors":"Soo-Haeng Cho, V. DeMiguel, W. Hwang","doi":"10.2139/ssrn.3200337","DOIUrl":"https://doi.org/10.2139/ssrn.3200337","url":null,"abstract":"Automakers, including Toyota and General Motors, were recently caught by the U.S. regulator for deliberately hiding product defects in an attempt to avoid massive recalls. Interestingly, regulators in the United States and United Kingdom employ different policies in informing consumers about potential defects: the U.S. regulator publicly announces all ongoing investigations of potential defects to provide consumers with early information, whereas the UK regulator does not. To understand how these different announcement policies may affect cover-up decisions of automakers, we model the strategic interaction between a manufacturer and a regulator. We find that, under both countries’ policies, the manufacturer has an incentive to cover up a potential defect when there is a high chance that the defect indeed exists and it may inflict only moderate harm. However, if there is only a moderate chance that the defect exists, only under the U.S. policy does the manufacturer have an incentive to cover up a potential defect with significant harm. We show that the U.S. policy generates higher social welfare only for very serious issues for which both the expected harm and recall cost are very high and the defect is likely to exist. We make four policy recommendations that could help mitigate manufacturers’ cover-ups, including a hybrid policy in which the regulator conducts a confidential investigation of a potential defect only when it may inflict significant harm. This paper was accepted by Vishal Gaur, operations management.","PeriodicalId":261762,"journal":{"name":"SRPN: Other Social Responsibility in Production & Supply Chain Management (Topic)","volume":"215 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122825507","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
E. Igos, B. Rugani, S. Rege, E. Benetto, L. Drouet, D. Zachary, Tom Haas
{"title":"Integrated Environmental Assessment of Future Energy Scenarios Based on Economic Equilibrium Models","authors":"E. Igos, B. Rugani, S. Rege, E. Benetto, L. Drouet, D. Zachary, Tom Haas","doi":"10.2139/ssrn.2565685","DOIUrl":"https://doi.org/10.2139/ssrn.2565685","url":null,"abstract":"Life cycle assessment; energy scenarios; general equilibrium model; techno-economic model; environmentally-extended input- output; hybridization Abstract - The future evolution of energy supply technologies strongly depends on (and affects) the economic and environmental systems, due to the high dependency of this sec- tor on the availability and cost of fossil fuels, especially on the small regional scale. This paper aims at presenting the modeling system and preliminary results of a research project conducted on the scale of Luxembourg to assess the environmental impact of future energy scenarios for the country, integrating outputs from partial and computable general equilib- rium models within hybrid Life Cycle Assessment (LCA) frameworks. The general equilibrium model for Luxembourg, LUXGEM, is used to evaluate the economic impacts of policy deci- sions and other economic shocks over the time horizon 2006−2030. A techno-economic (par- tial equilibrium) model for Luxembourg, ETEM, is used instead to compute operation levels of various technologies to meet the demand for energy services at the least cost along the same timeline. The future energydemand andsupplyare made consistent bycoupling ETEM with LUXGEM so as to have the same macro-economic variables and energy shares driving both models. The coupling results are then implemented within a set of Environmentally- Extended Input-Output (EE-IO) models in historical time series to test the feasibility of the integrated framework and then to assess the environmental impacts of the country. Ac- cordingly, a disaggregated energy sector was built with the different ETEM technologies in the EE-IO to allow hybridization with Life Cycle Inventory (LCI) and enrich the process detail. The results show that the environmental impact slightly decreased overall from 2006 to 2009. Most of the impacts come from some imported commodities (natural gas, used to produce electricity, and metalliferous ores and metal scrap). The main energy production technology is the combined-cycle gas turbine plant \"Twinerg\", representing almost 80% of the domestic electricity production in Luxembourg. In the hybrid EE-IO model, this technol- ogy contributes to around 7% of the total impact of the country's net consumption. The causes of divergence between ETEM and LUXGEM are also thoroughly investigated to out- line possible strategies of modeling improvements for future assessment of environmental impacts using EE-IO. Further analyses focus first on the completion of the models' coupling and its application to the defined scenarios. Once the coupling is consistently accomplished, LUXGEM can compute the IO flows from 2010 to 2030, while the LCI processes in the hybrid system are harmonized with ETEM to represent the future domestic and imported energy technologies.","PeriodicalId":261762,"journal":{"name":"SRPN: Other Social Responsibility in Production & Supply Chain Management (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129536195","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Distortion Effects of Export Quota Policy: An Analysis of the China-Raw Materials Dispute","authors":"C. Charlier, Sarah Guillou","doi":"10.2139/ssrn.2506649","DOIUrl":"https://doi.org/10.2139/ssrn.2506649","url":null,"abstract":"The China-Raw Materials dispute recently arbitrated by the WTO opposed China as defendant to the US, the EU and Mexico as the claimants on the somewhat unusual issue of export restrictions on natural resources. For the claimants, Chinese export restrictions on various raw materials, of which the country is a major producer, create shortages in foreign markets increasing the prices of these goods. China defends export limitations by presenting them as a natural resource conserving policy. This paper offers a theoretical analysis of the dispute with the help of a model of a monopoly extracting a non-renewable resource and selling it on both the domestic and foreign markets. The theoretical results focus on the effects of imposing an export quota on quantities, prices and price distortion. Given the crucial importance of demand elasticities in this theoretical understanding of the conflict, the empirical part of the paper provides estimates of import demand elasticity of the parties for each product concerned in the case. The model and the empirical results challenge the ideas that an export quota always favors conservation of natural resource, that a higher foreign price necessarily follows this policy and that it inherently increases price distortion and therefore discrimination.","PeriodicalId":261762,"journal":{"name":"SRPN: Other Social Responsibility in Production & Supply Chain Management (Topic)","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124966234","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kristine M. Grimsrud, K. E. Rosendahl, Halvor B. Storrøsten, M. Tsygankova
{"title":"Short Run Effects of Bleaker Prospects for Oligopolistic Producers of a Non-Renewable Resource","authors":"Kristine M. Grimsrud, K. E. Rosendahl, Halvor B. Storrøsten, M. Tsygankova","doi":"10.5547/01956574.37.3.KGR","DOIUrl":"https://doi.org/10.5547/01956574.37.3.KGR","url":null,"abstract":"In a non-renewable resource market with imperfect competition, both the resource rent and current prices influence a large resource owner’s optimal supply. New information regarding future market conditions that affect the resource rent will consequently impact current supply. Bleaker demand prospects tend to accelerate resource extraction. A more pessimistic outlook for future demand may, however, slow down the early resource extraction of producers with sufficiently large resource stocks and thus more limited resource rent, because the supply from these producers is driven more by current market considerations than by changes in the resource rent. As producers with relatively smaller resource stocks accelerate their supply in response to bleaker demand prospects, producers with sufficiently large resource stocks will reduce their current supply. A numerical model of the European gas market illustrates that the effect of the shale gas revolution is an accelerated supply by most gas producers, but a reduced supply by Russia who loses market shares even before the additional gas enters the market.","PeriodicalId":261762,"journal":{"name":"SRPN: Other Social Responsibility in Production & Supply Chain Management (Topic)","volume":"167 12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125978797","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Impact of Pulling Down Regulatory State Barriers on Uranium in Australia: Is There a Need In Order to Maintain and Increase Australia's Global Market Share of Uranium?","authors":"Ikhlaas Gurrib","doi":"10.2139/ssrn.2345620","DOIUrl":"https://doi.org/10.2139/ssrn.2345620","url":null,"abstract":"This paper sets a prospective framework to study the impact of opening more mines to meet future growing demand on Australia’s economy. The structure is aimed at decomposing investments and exports variables into Uranium exports and Uranium Exploration expenditure and analyse their impacts on each State GSP (Goods State Product) and for Australia as a nation. The demand and supply factors affecting the uranium market are defragmented before providing the research methodology and data specifics. Later analysis is expected to have policy implications by serving as a guide to pull down State Regulatory barriers like those imposed currently in Queensland, which is rich with uranium deposits and allow only uranium exploration but no uranium mining. Empirical findings would suggest whether exporting the carbon free energy would add value to Australia’s different competing states and as a whole globalized economy.","PeriodicalId":261762,"journal":{"name":"SRPN: Other Social Responsibility in Production & Supply Chain Management (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125761947","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does Poor Mean Cheap? A Comparative Look at Africa's Industrial Labor Costs","authors":"A. Gelb, C. Meyer, V. Ramachandran","doi":"10.2139/ssrn.2267951","DOIUrl":"https://doi.org/10.2139/ssrn.2267951","url":null,"abstract":"Africa’s industrial progress has been disappointing. With the exception of South African auto components and garments, both of which have benefited from special incentives, Africa exports almost no manufactures that are not based on the processing of raw materials. Despite considerable rhetoric on the need to develop manufacturing as well as support by donors, what limited progress has been made has often been uneven and isolated. Much of Africa’s manufacturing sector is still characterized by a significant economic dualism between a large number of small-scale enterprises in the informal sector and a handful of more efficient large-scale operations in the formal sector. Following on from previous research on “external costs,” this paper compares labor costs and productivity in selected African countries relative to comparators using data for 25 countries from the World Bank’s Enterprise Surveys. We conclude that industrial labor costs are far higher in Africa than one might expect, given levels of Gross Domestic Product (GDP) per capita. Part of this is an “enclave effect”: both labor costs and labor productivity are far higher in Africa, relative to GDP per capita, than in comparator countries. Another part reflects a steeper labor cost curve; as firms are larger and more productive their labor costs increase more in Africa than elsewhere. But there is still a sizeable residual “Africa effect” after controlling for such factors. We cannot test rigorously for the reasons behind these results but consider some plausible explanations. We also consider how Africa’s distinctive pattern, in terms of purchasing power parity exchange rates could affect the results. We conclude with some implications for policy. Certainly there is an urgent need to reduce “external costs,” through focused investments (power) as well as a general improvement in the business climate. However, with the exception of a few countries like Ethiopia, it is not clear that Africa’s low-income level automatically translates into a comparative advantage in low-wage basic manufactures. We argue that it is more likely to reside in sectors closely linked with the rich and varied natural resource endowments of the countries, whether supplying or processing industries.","PeriodicalId":261762,"journal":{"name":"SRPN: Other Social Responsibility in Production & Supply Chain Management (Topic)","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115101698","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Limits of Supply Chain Responsibility: A Critical Analysis of Corporate Responsibility Instruments","authors":"Radu Mareş","doi":"10.1163/157181010X12668401898995","DOIUrl":"https://doi.org/10.1163/157181010X12668401898995","url":null,"abstract":"One challenge in the area of supply chain management has been achieving sustainable compliance with labour rights throughout the entire production chain, including lower tiers of production. This article inquires specifically around sub-contracting, especially what is a brand’s or a buyer’s responsibility regarding workers’ rights beyond its first tier of suppliers. In-depth literature on this issue remains scarce despite buyer’s responsibility being at the core of outsourcing, the very area that brought disrepute to Nike and thus moved corporate social responsibility (CSR) in the international limelight 15 years ago. This article reviews 12 prominent CSR instruments and asks: do they provide legitimacy to calls that buyers should be responsible for labour conditions down their supply chains? Where do these responsibilities end as abuses become more remote and take place at lower tiers of the value chain? What are the concepts, the principles that attribute responsibility to the buyer company and what concepts are used to limit these responsibilities? What strategies exist to improve conditions at sub-contractor level? Reading a dozen CSR instruments with a keen eye to sub-contracting reveals a staggering diversity of answers. The responsibility of the core company, particularly the limits of responsibility, move in and out of focus. Questions around buyers’ responsibilities remain open, but there is a wealth of concepts and experience to draw upon. Professor Ruggie, a United Nations Special Representative of the Secretary General, could bring clarity in this area of CSR and is invited to reconsider the justification, scope and content of a buyer company’s responsibility to protect workers’ rights in its value chains.","PeriodicalId":261762,"journal":{"name":"SRPN: Other Social Responsibility in Production & Supply Chain Management (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129000843","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}