Search Results (20)

This study addresses the financial sustainability challenge of integrated watershed management (IWM) in regions with inadequate water service tariffs. A novel water service tariff model is proposed, incorporating supply costs, water loss reduction investments, and IWM expenses informed by user perceptions. The model is applied to an intermediate Andean city in southern Ecuador, where the current tariff impedes the financial viability of the water utility, reflecting a regional trend. The results indicate a necessary tariff increase exceeding 100% to cover the costs and support IWM. The economic value of watershed environmental services (WES) were estimated at USD 1,505,530.64 per year. This value translates to an average water consumption of 20 m³/user/month, equivalent to a WES of USD 2.60 per month. Despite the users’ willingness to pay falling below the estimated economic value of WES, there is a clear need for implementing incentive programs to promote water conservation and policy adjustments that favor the financial sustainability of water supply companies in developing countries. Full article

With the increasing public attention being paid to corporate social responsibility and global advocacy of sustainable development, corporate governance issues centered on corporate social responsibility, especially the relationship between corporate social responsibility and financial sustainability, are important topics of concern for managers. By taking companies listed in Shanghai and Shenzhen A-share indices between 2010 and 2020 in China as samples, this study investigated the effect and mechanism of corporate social responsibility implementation on financial sustainability, examined the intermediate roles of agency cost and green innovation on this effect, and explored the heterogeneity in different contexts. The results indicated that: (1) implementing corporate social responsibility has significantly promoted financial sustainability, and fulfilling responsibilities to shareholders showed the most significant effect; (2) active pursuit of corporate social responsibility objectives can alleviate corporate agency conflicts, increase green innovation, and thus promote corporate financial sustainability; and (3) the positive impact of implementing corporate social responsibility on financial sustainability is more significant in non-state-owned enterprises and non-heavily polluting enterprises. This study revealed the specific effect of fulfilling corporate responsibility objectives for different stakeholders on financial sustainability, confirmed the mediating role of agency cost and green innovation on this effect, and discussed the intensity of the impact of fulfilling corporate social responsibility objectives on financial sustainability in different contexts. This study enhances the understanding of the effect and mechanism of fulfilling corporate social responsibility obligations on financial sustainability, which can guide the advancement of future theory-building in corporate governance. Full article

This paper aims to examine the importance of financial intermediation in economic activity. We also explore the effects of monetary factors and financial frictions on the relationship between financial intermediation and economic growth, the drivers of business cycles, and how shocks spread through the intermediation process. Financial intermediaries improve fund allocation, minimize monitoring costs, minimize liquidity risk, simplify risk management, and facilitate portfolio diversification and resource allocation to more productive activities. In addition, financial intermediaries collect and analyze information about investment projects, allocating resources and managing information more efficiently than individual investors. We conclude that financial intermediation is significant for economic growth. In addition, we show that financial market frictions can amplify exogenous shocks, affecting investment, economic growth rates, and macroeconomic stability. Reducing financial frictions through intermediation is crucial. Full article

The aviation industry has set an ambitious goal of reducing its climate impacts. Accordingly, airlines must balance their plans according to this goal with financial considerations. We developed a multi-objective framework to facilitate climate-aware network design by incorporating the objective to minimise the flight average temperature response (ATR) when optimising the airline network. We also assessed the operational improvements (OIs) which are introduced to improve sustainability in airline operations. In particular, we considered intermediate stop-overs (ISOs) and lower flight altitudes as OIs in our case studies. We analysed the impact of considering the climate impact in the planning of operations of three different airline types: one main-hub-and-spoke (KLM), one smaller multi-hub airline (TAP), and one low-cost carrier (EasyJet). The results show that airlines could also lower their environmental impact by 10–36% when considering the ATR as an objective. However, this would require an 8–20% reduction in profits. Adopting lower-altitude flying with ISO could mitigate their climate impact by 27–49% while reducing profits by approximately 6%. Our study highlights the importance of considering the airline network as a whole and demonstrates the potential benefits of operational improvements from a network perspective. Full article

Utility model patent quality is vital for emerging countries to cultivate a strong domestic market and increase openness. Given China’s high-quality development, this study incorporates enterprise utility model patent quality and export domestic value-added rate (DVAR) into a unified analysis framework to explore their relationship using authorized patent data and financial and customs data of Chinese industrial enterprises from 2002 to 2014. The utility model patent data used to support this study’s findings were provided by the Incopat Patent Database, while the enterprise financial data and customs data were supplied by the RESSET Database. The empirical results show that: (i) utility model patent quality significantly contributes to enterprises’ export DVAR; (ii) factor-intensive heterogeneous analysis indicates that the utility model patent quality of capital-intensive enterprises has a more significant promotion effect on DVAR; (iii) the price–cost markup and the relative price of intermediate goods are crucial domestic channels for utility model patent quality to promote DVAR; and (iv) market segmentation moderates the mediating role of the domestic intermediate relative price. Therefore, the government should further improve the utility model system, focus on increasing domestic market advantages, and develop industry-specific patent guidance policies. This study contributes to the literature by exploring the influence of utility model patent quality on enterprises’ DVAR using an optimized utility model quality index, providing policy references for optimizing China’s utility model patent system and upgrading the import gains of enterprises. However, this study has some limitations, and future research should strengthen the subdivision of utility model patents in different industries and explore the economic performance of the combination of inventions and utility models. Full article

The cost to train a basic qualified U.S. Navy fighter aircraft pilot is nearly USD 10 M. The training includes primary, intermediate, and advanced stages, with the advanced stage involving extensive flight training, and, thus, is very expensive as a result. Despite the screening tests in place and early-stage attrition, 4.5% of aviators undergo attrition in this most expensive stage. Key reasons for aviator attrition include poor flight performance, voluntary withdrawals, and medical reasons. The reduction in late-stage attrition offers several financial and operational benefits to the U.S. Navy. To that end, this research leverages feature extraction and machine learning techniques on the very sparse flight test grades of student aviators to identify those with a high risk of attrition early in training. Using about 10 years of historical U.S. Navy pilot training data, trained models accurately predicted 50% of attrition with a 4% false positive rate. Such models could help the U.S. Navy save nearly USD 20 M a year in attrition costs. In addition, machine learning models were trained to recommend a suitable training aircraft type for each student aviator. These capabilities could help better answer the need for pilots and reduce the time and cost to train them. Full article

This study aims to identify the methods and associated indicators that are commonly used in value chain analyses (VCA) and to determine the areas of interest that have been excluded. Value chain analysis generally includes four different dimensions, which are institutional/functional, economic/financial, social, and environmental. This study has two main sources of literature. The first is the guidelines and the other is case studies on value chain analysis. The case study review is limited by the time between 2000 and 2022. The results showed that the researchers mainly focused on the institutional/functional analysis of the value chain, which is the first step of the analysis. Studies were mostly concentrated on the mapping of value chains, which includes the mapping of agents, core activities, and the marketing channels and flows of products. The second important area of interest is economic/financial analysis. Value added analysis is a top research area on the economical side of the value chain (VC). Consumer behavior and financial analysis are also included in the case studies. The research on consumer behavior of the value chain analysis has focused on the preferences, attitudes, and behaviors of the consumers. Financial analysis is another area of interest which generally concentrates on the cost of intermediate inputs, total output value, net present value, internal rate of return, cash flows and cost of fixed assets, and break-even point. The social and environmental sides of the value chain have been studied with less attention. This is much more important for a sustainable food VC. Full article

This paper reviews the literature on perishable food cold-chain management (FCCM) in order to assess its current state, pinpoint its knowledge gaps, and suggest a framework for addressing the issues faced by this industry. This work examines 103 academic articles on the topic of the perishable food supply chain published in various journals between 2001 and 2022. Research publications were selected from two reputed databases—Scopus and Web of Science. The study finds that the current trend in FCCM is toward sustainable FCCM, which offers financial, ecological, and social benefits. However, sustainable FCC practices are more common in wealthy nations but are still lacking in developing countries. High lead times, costs, waste, order returns, complaints, and dissatisfied consumers are the results of a fragmented market and the associated proliferation of chain intermediates. The authors have also developed a conceptual framework based on the findings that illustrates the interconnected nature of the food cold-chain facilities, collaboration among food cold-chain (FCC) stakeholders, concern among FCC stakeholders, economic enhancement, fulfilment of FCC stakeholders’ responsibilities, and overall functioning of the FCC. This study may be helpful to FCC professionals, food regulators, government authorities, and researchers because it gives a concise picture of the state of research in the field. Full article

This paper represents a detailed techno-economic analysis of a typical commercial-scale catalytic decarboxylation process of naphthenic acids over HZSM-5 zeolite. Simulation of the process has been performed in ASPEN Plus^®. The performance of the modeled unit was compared to experimental results data from a similar plant. Two models were developed for the proposed industrial plant based on continuous flow reactors; the first is based on a fluidized bed reactor, and it was modeled as a continuous stirred tank reactor (CSTR) unit, and the second is a semi-regenerative process that consists of three fixed-bed reactors with intermediate preheaters and are modeled as three plug flow reactors (PFR). The outcome of the economic analysis of the two proposed commercial scale reactors of a decarboxylation process of a capacity of 11,000 bbl/day showed that the CAPEX, including the total equipment cost for the fluidized bed reactor plant and semi-regenerative process plant, was $44,319,362 and $4,447,919, respectively. The annual operating cost for the fluidized bed plant and semi-regenerative process plant is 45,269,180 $/year and 1,771,839 $/year, respectively. Our results demonstrated that catalytic decarboxylation over HZSM-5 zeolite is economically feasible using a semi-regenerative process, and is a promising method for removing naphthenic acid. The insight obtained from this work can be used as a basis for more comprehensive future financial and risk modeling of the process. The cost estimated in this work was compared to the Khartoum refinery cost for the naphthenic acid corrosion mitigation system, with a saving of $29,459,528. Full article

This study examines the determinants of financial intermediation costs of banks in ten Emerging Economies (EEs) in the period 2000–2018 using panel data of 1335 banks. Empirically, this study applies the single-stage dealership model and its extensions by introducing new bank and country-level variables. We find robust evidence that investment in government securities and market openness positively affect bank intermediation costs while the trilemma index negatively affects them. During the world financial crisis, bank intermediation costs increased. Moreover, we observe that cost inefficiency, credit risk, and regulatory regime are the crucial drivers of bank intermediation costs. We draw important implications for scholars and policymakers. Full article

The COVID-19 epidemic and its psychological, economic and social consequences could have an impact on the evolution of tobacco-smoking prevalence and attitudes towards quitting. The aim of this study is to analyse the specific characteristics of the motivations for and barriers against smoking cessation in this period. The study is based on qualitative data collected from late 2020 to early 2021 in France from 89 smokers with a low or intermediate socio-economic level. Among the motivations for quitting smoking, health concerns and the financial cost of cigarettes carried increased importance among the smokers in this period. Inversely, perceived stress, isolation, and a lack of social or healthcare support prevented some smokers from attempting to quit. These results are useful for explaining the evolution of smoking prevalence and preparing future interventions in the context of the health crisis and its aftermath. They highlight the relevance of educational messages, of the promotion of validated smoking-cessation aids and, in particular, remote support, as well as the implementation of community-based actions. Full article

Liquefied natural gas (LNG) is regarded as the cleanest among fossil fuels due to its lower environmental impact. In power plants, it emits 50–60% less carbon dioxide into the atmosphere compared to regular oil or coal-fired plants. As the demand for a lower environmental footprint is increasing, fuel cells powered by LNG are starting to appear as a promising technology, especially suitable for off-grid applications, since they can supply both electricity and heating. This article presents a techno-economic assessment for an integrated system consisting of a solid oxide fuel cell (SOFC) stack and a micro gas turbine (MGT) fueled by LNG, that feeds the waste heat to a multi-effect desalination system (MED) on the Greek island of Patmos. The partial or total replacement of the diesel engines on the non-interconnected island of Patmos with SOFC systems is investigated. The optimal system implementation is analyzed through a multi-stage approach that includes dynamic computational analysis, techno-economic evaluation of different scenarios using financial analysis and literature data, and analysis of the environmental and social impact on the island. Specific economic indicators such as payback, net present value, and internal rate of return were used to verify the economic feasibility of this system. Early results indicate that the most sensitive and important design parameter in the system is fuel cell capital cost, which has a significant effect on the balance between investment cost and repayment years. The results of this study also indicate that energy production with an LNG-fueled SOFC system is a promising solution for non-interconnected Greek islands, as an intermediate carrier prior to the long-term target of a CO₂-free economy. Full article

Since the beginning of the application of the Data Envelopment Analysis (DEA) model in various areas of the economy, it has found its wide application in the field of finance, more specifically banks, in the last few years. The focus of this research was to determine the sustainability of the intermediate function of banks, especially in recent years when interest rates on deposits have been at a minimum level. The research was divided into two parts, wherein the first part determined the efficiency of the intermediate function of banks in the countries of the Western Balkans in the period from 2015 to 2019. The second part approached the regression analysis in which we determined the influence of the bank size, type of bank, and mergers and acquisitions (M&A) activity on the defined efficiency. In the first stage we applied the output-oriented DEA model using deposits, labor costs, and capital as input variables; on the other side, we used loans and investments as output variables. We used data from the revised financial statements of the banks operating in Serbia, Bosnia and Herzegovina, Montenegro, North Macedonia, and Albania. The results of our study showed that there is a difference in efficiency levels between countries and within countries in the considered time period. Furthermore, Tobit regression analysis showed a significant and negative influence of the bank type and M&A on relative technical efficiency of banks, and a positive and significant relationship between bank size and relative efficiency. These findings suggest that large commercial banks can sustain on the West Balkan market. It is to be expected that less efficient small banks will be taken over by large and more efficient banks. Full article

This study aimed to test, through empirical investigation, how the rapid advancement of digital transformation (DT) has impacted the price of financial services. To this end, we compiled a set of macro-level indicators on the aggregate outcomes of the financial services sector in Korea over the last three decades and conducted an analysis to gauge the effects of DT on the country using those indicators. Using the ARDL-ECM (autoregressive distributed lag error-correction model), we show that, over time, the unit cost of financial intermediation in Korea has tended to move in tandem with the growth in economic output, although the profit portion of the unit cost has not exhibited a long-term relationship with the GDP trend. The long-term effect of the DT trend is negative (i.e., cost-saving) for labor input, capital expenditure, and the total unit cost of financial intermediation, which are all shown to be statistically significant. Consequently, we conclude that DT contributed to enhancing consumer benefit, mainly by achieving the operational efficiency of labor and capital, from 1990 to 2019 in Korea. From a policy perspective, our finding implies that DT-driven innovation in the sector can benefit financial customers if excessive levels of profit are restrained through market competition. Full article

As a result of increasing urbanization, the need for sustainable housing, e.g., tall (over eight-story) timber apartments, is increasing in Finland. Leveraging the experience of key Finnish professionals plays a significant role in the transition and expansion of sustainable timber housing as an essential part of the forest-based bioeconomy. This interview-based study will serve to fill a gap by examining the views of key professionals with experience in tall timber residential construction, using Finland as a case study. The 21 interviews primarily highlighted that: (1) the construction cost was the most important parameter affecting the architectural and structural design; (2) the most critical consideration influencing the overall design was reported to be the structural system selection and structural design, followed by city planning and client control; (3) key professionals assessed the building’s form and the main dimensions of the building’s mass as the most significant parameters affected by timber construction; (4) the main structural considerations that needed to be developed for tall timber housing were the bracing solutions and fittings, the structures of the intermediate floors, and load-bearing vertical/partition structures; (5) construction preconceptions, the lack of cost-competitiveness, and the lack of construction expertise/actors were considered to be major obstacles; (6) the most important parameters for the future of tall timber apartment buildings were reported to be education, timber construction marketing and public awareness, land delivery conditions, the unification of public administration, and financial support; (7) tall timber building design was reported to be a complex subject that requires close collaboration, especially between the architect, the structural designer and the wood supplier. This paper will help us to understand the boundary conditions affecting the design, the development needs in solutions, the importance of design parameters, the design parameters affected by timber construction, and the prospects, measures and obstacles to tall timber apartments from the perspectives of key Finnish professionals, thereby aiding the sound planning and development of tall timber housing projects. Full article