Land-use change from market responses to oil palm intensification in Indonesia.

Oil palm is a major driver of tropical deforestation. A key intervention proposed to reduce the footprint of oil palm is intensifying production to free up spare land for nature, yet the indirect land-use implications of intensification through market forces are poorly understood. We used a spatially explicit land-rent modeling framework to characterize the supply and demand of oil palm in Indonesia under multiple yield improvement and demand elasticity scenarios and explored how shifts in market equilibria alter projections of crop expansion. Oil palm supply was sensitive to crop prices and yield improvements. Across all our scenarios, intensification raised agricultural rents and lowered the effectiveness of reductions in crop expansion. Increased yields lowered oil palm prices, but these price-drops were not sufficient to prevent further cropland expansion from increased agricultural rents under a range of price elasticities of demand. Crucially, we found that agricultural intensification might only result in land being spared when the demand relationship was highly inelastic and crop prices were very low (i.e., a 70% price reduction). Under this scenario, the extent of land spared (∼0.32 million ha) was countered by the continued establishment of new plantations (∼1.04 million ha). Oil palm intensification in Indonesia could exacerbate current pressures on its imperiled biodiversity and should be deployed with stronger spatial planning and enforcement to prevent further cropland expansion.

Cambios en el uso de suelo causados por la reacción del mercado a la intensificación de la palma aceitera en Indonesia Resumen La palma aceitera es una de las principales causas de la deforestación. Una intervención importante propuesta para reducir la huella de esta palma es la intensificación de la producción para que el suelo sobrante sea usado por la naturaleza, pero se sabe muy poco sobre las implicaciones del uso indirecto de suelo de la intensificación a través de las fuerzas del mercado. Usamos un marco de modelos de renta de suelo espacialmente explícito para caracterizar la oferta y demanda de la palma aceitera en Indonesia bajo varios escenarios de mejoras en la producción y elasticidad de demandas y exploramos cómo los cambios en el equilibrio del mercado alteran las proyecciones de la expansión agrícola. La oferta de palma aceitera fue susceptible a los precios de los cultivos y a las mejoras en la producción. La intensificación elevó la renta agrícola y redujo la efectividad de la reducción de la expansión agrícola en todos nuestros escenarios. El aumento en la producción bajó los precios de la palma, pero estas caídas no fueron suficientes para evitar la expansión agrícola a partir de las rentas agrícolas elevadas bajo un rango de elasticidad de precios de demanda. Más importante, descubrimos que la intensificación agrícola puede sólo resultar en que sobre el suelo cuando la relación de demanda casi no sea elástica y los precios de las cosechas sean muy bajos (una reducción del 70% en los precios). Bajo este escenario, la extensión de suelo sobrante (∼0.32 millones de ha) fue contrarrestado por el establecimiento continuo de nuevos sembradíos (∼1.04 millones de ha). La intensificación de la palma aceitera en Indonesia podría agravar las presiones existentes sobre su biodiversidad en peligro y debería implementarse con una mayor planeación espacial y aplicación para prevenir una expansión agrícola superior.

Own price elasticities of the demand for sugar-sweetened beverages in Bangladesh.

BACKGROUND: Consumption of sugar-sweetened beverages (SSB) is a major global public health problem. Increasing the price of SSBs through taxation is an effective tool to reduce SSB consumption. Price-elasticity estimates are useful in measuring the effect of taxation on consumption. We estimated the own price elasticities of demand for SSBs in Bangladesh, which will inform how SSB taxes could affect behaviour. METHODS: We used Household Income and Expenditure Survey (HIES) 2016 data, which is a nationally representative dataset at the household level across the country and is conducted using stratified random sampling method. Deaton's method was used to estimate the price elasticities for SSBs in Bangladesh. RESULTS: We found that the own price elasticity for SSBs varied between - 0.53% to -1.17% by types of SSBs in Bangladesh. The price elasticity for soft drinks was - 1.17, indicating that if the price of soft drinks increases by 10% via taxes, the quantity consumed of these beverages would reduce by 11.7%. CONCLUSION: This is the first study that estimates the own price elasticities of demand for SSBs in Bangladesh. Our results suggest to raise SSB prices through increased taxation in order to reduce SSB consumption and ensure public health gains in Bangladesh.

Generation Time in Stage-Structured Populations under Fluctuating Environments.

AbstractA common measure of generation time is the average distance between two recruitment events along a genetic lineage. In populations with stage structure that live in a constant environment, this generation time can be computed from the elasticities of stable population growth to fecundities, and it is equivalent to another common measure of generation time: the average parental age of reproductive-value-weighted offspring. Here, we show three things. First, when the environment fluctuates, the average distance between two recruitment events along a genetic lineage is computed from the elasticities of the stochastic growth rate to fecundities. Second, under environmental stochasticity, this measure of generation time remains equivalent to the average parental age of reproductive-value-weighted offspring. Third, the generation time of a population in a fluctuating environment may deviate from the generation time the population would have in the average environment.

Allocating China's CO2 Emissions Based on Economic Welfare Gains from Environmental Externalities.

To achieve carbon neutrality (i.e., net zero carbon emissions) by 2060, China must make significant changes in its socioeconomic systems, including appropriately allocating emissions responsibility. Traditional methods of delineating responsibilities (such as production-based and consumption-based accounting) can lead to double counting when applied simultaneously and therefore difficulty in determining responsibilities of different agents. An alternative approach based on economic welfare gains from environmental externalities has been refined, ensuring that the responsibilities of consumers and producers add up to the total emissions. The application of this approach to 48 countries and 31 Chinese provinces reveals that regions with less elastic supply and demand, such as Hebei in China and Russia, have higher responsibilities. Furthermore, larger externalities associated with unitary product value shift the burden of obligations from producers to consumers. Regions with high levels of wealth and carbon-intensive imports, such as Zhejiang and Guangdong in China, as well as the United States, typically have higher consumer-based accounting (CBA) emissions than production-based accounting (PBA) emissions and, as a result, redistributed responsibilities between PBA and CBA emissions. The new distribution results vary significantly from PBA or CBA emissions, indicating opportunities for more comprehensive and accessible policy goals.

The impact of COVID-19 and working from home on the workspace retained at the main location office space and the future use of satellite offices.

There exists a substantial amount of research on the impact that the COVID-19 pandemic has had on significant changes in the location at which work takes place, especially working from home (WFH). There has been, however, very little systematic consideration given to the relationship between the substantial increase in WFH and the responses taken by organisations in reviewing their office (workspace) capacity needs in the future, including a switch of the mix of utilising workspace in the main office(s) and satellite office locations. The main aim of this paper is to explore the extent to which levels of working from home and increased use of rented satellite office space will be linked to changes in the amount of workspace required at the main office that was used pre-COVID-19. Using data from 459 businesses for three periods for pre-COVID-19, April 2022 (25 months after the outbreak of the pandemic) and stated intentions for 2023, we develop a random effects regression model for the Greater Sydney Metropolitan Area in which we identify some of the influences on the downsizing or not of the main office(s) work space, and comment on what we see as the most likely scenario for WFH and work space in the main office and rented satellite office space under the 'next normal'. The findings can be used to inform future commuting travel as well as changes in land use activity at specific locations, including possible reallocation of existing office space to other activity uses.

Estimating health system opportunity costs: the role of non-linearities and inefficiency.

BACKGROUND: Empirical estimates of health system opportunity costs have been suggested as a basis for the cost-effectiveness threshold to use in Health Technology Assessment. Econometric methods have been used to estimate these in several countries based on data on spending and mortality. This study examines empirical evidence on four issues: non-linearity of the relationship between spending and mortality; the inclusion of outcomes other than mortality; variation in the efficiency with which expenditures generate health outcomes; and the relationship among efficiency, mortality rates and outcome elasticities. METHODS: Quantile Regression is used to examine non-linearities in the relationship between mortality and health expenditures along the mortality distribution. Data Envelopment Analysis extends the approach, using multiple measures of health outcomes to measure efficiency. These are applied to health expenditure data from 151 geographical units (Primary Care Trusts) of the National Health Service in England, across eight different clinical areas (Programme Budget Categories), for 3 fiscal years from 2010/11 to 2012/13. RESULTS: The results suggest differences in efficiency levels across geographical units and clinical areas as to how health resources generate outcomes, which indicates the capacity to adjust to a decrease in health expenditure without affecting health outcomes. Moreover, efficient units have lower absolute levels of mortality elasticity to health expenditure than inefficient ones. CONCLUSIONS: The policy of adopting thresholds based on estimates of a single system-wide cost-effectiveness threshold assumes a relationship between expenditure and health outcomes that generates an opportunity cost estimate which applies to the whole system. Our evidence of variations in that relationship and therefore in opportunity costs suggests that adopting a single threshold may exacerbate the efficiency and equity concerns that such thresholds are designed to counter. In most health care systems, many decisions about provision are not made centrally. Our analytical approach to understanding variability in opportunity cost can help policy makers target efficiency improvements and set realistic targets for local and clinical area health improvements from increased expenditure.

The impact of working from home on modal commuting choice response during COVID-19: Implications for two metropolitan areas in Australia.

The need to recognise and account for the influence of working from home on commuting activity has never been so real as a result of the COVID-19 pandemic. Not only does this change the performance of the transport network, it also means that the way in which transport modellers and planners use models estimated on a typical weekday of travel and expand it up to the week and the year must be questioned and appropriately revised to adjust for the quantum of working from home. Although teleworking is not a new phenomenon, what is new is the ferocity by which it has been imposed on individuals throughout the world, and the expectation that working from home is no longer a temporary phenomenon but one that is likely to continue to some non-marginal extent given its acceptance and revealed preferences from both many employees and employ where working from home makes good sense. This paper formalises the relationship between working from home and commuting by day of the week and time of day for two large metropolitan areas in Australia, Brisbane and Sydney, using a mixed logit choice model, identifying the influences on such choices together with a mapping model between the probability of working from home and socioeconomic and other contextual influences that are commonly used in strategic transport models to predict demand for various modes by location. The findings, based on Wave 3 (approximately 6 months from the initial outbreak of the pandemic) of an ongoing data collection exercise, provide the first formal evidence for Australia in enabling transport planners to adjust their predicted modal shares and overall modal travel activity for the presence of working from home.

Income and wealth as determinants of voluntary private health insurance: empirical evidence in Spain, 2008-2014.

BACKGROUND: Few studies have quantitatively estimated the income elasticity of demand of voluntary private health insurance (VPHI) in countries with a universal National Health Service. Most studies to date have uses cross-sectional data. METHODS: In this paper we used a longitudinal database from the Bank of Spain to analyse the financial behaviour of approximately six thousand families per wave. We used three waves (2008, 2011 and 2014). We estimated income and wealth semi-elasticities of VPHI in Spain considering personal and family characteristics (age, sex, level of health, education, composition of the household), i.e. changes in the probability of buying VPHI as result of 1% change in income or wealth. We estimated cross-sectional models for each wave and longitudinal models for families remaining for at least two waves, taking account of possible selection bias due to attrition. RESULTS: Cross-sectional models suggest that the income effect on the probability of buying a VPHI increased from 2008 to 2014. The positive impact was observed for, wealth. In 2008 a 1% increase in income is associated with an increase in the probability of having VPHI of 0.064 [95%-CI: 0.023; 0.104] - on the probability scale (0.1) - whereas in 2014, this effect is of 0.116 [95%-CI, 0.094; 0.139]. In 2011 and 2014 the wealth effect is not significant at 5%. The estimation of the longitudinal model leads to different results where both, income and wealth are associated with non- significant results. CONCLUSION: Our three main conclusions are: 1) Cross-sectional estimates of semi-elasticities of VPHI might be biased upwards; 2) Wealth is alongside income are economic determinants, of the decision to buy VPHI in high-income countries; 3) The effects of income and wealth on the probability of buying VHPI are neither linear nor log-linear. There are no significant differences among 60% of the most disadvantaged families, while the families of the two upper wealth quintiles show clearly differentiated behaviour with a higher probability of insurance.

Energy, Entropy, Constraints, and Creativity in Economic Growth and Crises.

The neoclassical mainstream theory of economic growth does not care about the First and the Second Law of Thermodynamics. It usually considers only capital and labor as the factors that produce the wealth of modern industrial economies. If energy is taken into account as a factor of production, its economic weight, that is its output elasticity, is assigned a meager magnitude of roughly 5 percent, according to the neoclassical cost-share theorem. Because of that, neoclassical economics has the problems of the "Solow Residual", which is the big difference between observed and computed economic growth, and of the failure to explain the economic recessions since World War 2 by the variations of the production factors. Having recalled these problems, we point out that technological constraints on factor combinations have been overlooked in the derivation of the cost-share theorem. Biophysical analyses of economic growth that disregard this theorem and mend the neoclassical deficiencies are sketched. They show that energy's output elasticity is much larger than its cost share and elucidate the existence of bidirectional causality between energy conversion and economic growth. This helps to understand how economic crises have been triggered and overcome by supply-side and demand-side actions. Human creativity changes the state of economic systems. We discuss the challenges to it by the risks from politics and markets in conjunction with energy sources and technologies, and by the constraints that the emissions of particles and heat from entropy production impose on industrial growth in the biosphere.

How Japanese firms can weather endaka periods: Evidence from the transportation equipment industry.

Japan has experienced several appreciation episodes. These appreciations may squeeze profit margins and lower export volumes. This paper investigates whether firms can weather appreciation periods by producing differentiated rather than commoditized products. To do this it investigates different sectors within the Japanese transportation equipment industry. Results from estimating pricing-to-market (PTM) coefficients indicate that firms producing differentiated products can pass-through more of exchange rate appreciations into higher foreign currency prices and thus better preserve their profit margins. Results from estimating trade elasticities are consistent with the PTM results and indicate that the automobile industry has exported much less than predicted after the yen depreciated in 2012. Finally, estimates of the stock market exposure across sectors indicates that the profitability of firms producing differentiated products is less exposed to appreciations. Producing differentiated, knowledge-intensive goods can thus help firms to survive endaka periods.