Organizational Political Economy and Environmental Pollution

Environmental scholars have made important progress explaining the social forces associated with pollution. Although important exceptions exist, insufficient attention has been given to organizations, which is where most environmental pollution is produced. Even less attentions has been given to parent companies, which have ultimate decision‐making authority over their polluting facilities. To file this gap in the literature, this paper develops an organizational political economy perspective to advance our understanding of how organizational and political‐legal arrangements affect parent companies' capacity to externalize their pollution costs to society. Organizational political economy maintains that corporations' organizational complexity, financial characteristics, management operating systems, political embeddedness in subnational states, and the degree of compliance with national and subnational environmental policies affect their capacity to externalize pollution costs. This perspective also shows how the exercise of organizational power to externalize pollution costs subsidizes the managerial and investor classes by the middle and working classes, whose taxes pay for a large share of environmental clean‐up costs, thereby contributing to economic inequality that goes beyond standard inequality measurements.     

SCARCITY AND RICARDIAN RENTS FOR CRUDE OIL*

This paper estimates scarcity rent/user cost and Ricardian rent for crude oil in Oklahoma. A model of firm behavior is proposed incorporating both development and production decisions considering crude oil as a nonrenewable natural resource. Profit maximization conditions derived from the model are applied to take into account cost differentials associated with oil found at varying depths. It is shown that oil with the highest cost is the marginal unit and it is the marginal output that determines Ricardian rent. Time series data is used to estimate equations derived from the necessary conditions. It is found that scarcity rent is a significant proportion of the price of crude oil and has increased in the past decade.     

GUNS AND OIL: AN ANALYSIS OF CONVENTIONAL WEAPONS TRADE IN THE POST‐COLD WAR ERA

This paper analyzes the global conventional weapons trade between 1989 and 1999. We postulate that a key reason for the huge transfer of weapons to the Persian Gulf region is the enormous value of the oil wealth there along with the dependence of Western economies on access to the relatively cheap and steady supply of crude oil. We find a strong, positive, and robust empirical association between arms trade and crude oil trade and explain it as the result of a target price band arrangement that was responsible for the remarkably stable crude oil prices during our study period. (JEL F10, F59, Q38)     

Working in verticalized platform vessel: an ergonomic approach in the oil industry

In this paper we point some aspects of workers activities in offshore units in the oil industry. These units became more verticalized and have a greater number of operating systems. Our goal is to present the main difficulties that workers face in these units.     

FORECASTING CRUDE OIL PRICE MOVEMENTS WITH OIL‐SENSITIVE STOCKS

This paper uses monthly data from 1984:M10 to 2012:M8 to show that oil‐sensitive stock price indices, particularly those in the energy sector, have strong power in predicting nominal and real crude oil prices at short horizons (1‐month‐ahead predictions), using both in‐ and out‐of‐sample tests. In particular, the forecasts based on oil‐sensitive stock price indices are able to outperform significantly the no‐change forecasts. For example, using the NYSE Arca (AMEX) oil index as a predictor, the 1‐month‐ahead forecasts for nominal crude oil prices reduce the mean squared prediction error by between 22% (for the West Texas Intermediate oil price) and 28% (for the Dubai oil price). Moreover, we find that the directional forecast based on the AMEX oil index is significantly better than a 50:50 coin toss. The novelty of this analysis is that it proposes a new and valuable predictor that both reflects timely market information and is readily available for forecasting the spot oil price.(JEL G17, Q43, Q47, C53)     

Ergonomics in projects of oil platforms in a change context

The context of oil platform design is changing in order to increase competitiveness and be prepared for difficult operations, mainly in fields more distant from the coast, like pre-salt. The currently preceding context is marked by projects guidelines designed to reduce projects and operation costs, including an important reducing in the number of people on board. The main objective of this research is to verify and discuss if the experience of use in platforms designed in a previous context, in which the people on board is practically twice, can contribute and/or can be transferred to new projects. From the ergonomic intervention in the design of two oil platform, with the work of team on board investigated on previous projects as reference, it was possible analyze if the previous use is still applicable to new projects. As a result, about 90% of the recommendations based on use are applicable to the current context. The restrictions on the transfer or operational experience are mainly related to the time of entry of ergonomics in the design process, the subsequent transformations costs and the advance of the execution phase started with the detailed design.     

Striking Differences: Hunger Strikes in Israel and the USA

Despite longstanding traditions of tolerance, inclusion, and democracy in the USA, dissident citizens and social movements have experienced significant and sustained – although often subtle and difficult-to-observe – repression. Using mechanism-based social movement theory, I explore a range of twentieth-century episodes of contention, involving such groups as mid-century communists, the Black Panther Party, the American Indian Movement, and the modern-day Global Justice Movement. Cracking open the black box of state repression, I demonstrate how four interactive social mechanisms – Resource Depletion, Stigmatization, Divisive Disruption, and Intimidation – animate state repression. A fifth mechanism – Emulation – diffuses the effects of these four Mechanisms of Repression. First I delineate a typology of state actions that suppress dissent. Then I shift analytically from these ten actions to the Mechanisms of Repression, explaining how these mechanisms work. Drawing on scholarship from an array of fields, and pulling data from a variety of sources, I explain how the state has engaged in activity that – operating through social mechanisms – inhibits collective action, either through raising the costs or minimizing the benefits of mobilization.     

AN EMPIRICAL ANALYSIS OF OIL PRICE SHOCKS IN THE INTERWAR PERIOD

This paper presents results that indicate that oil price shocks were economically important in explaining movements in industrial production, and, to a lesser degree, movements in wholesale prices in the period between World Wars I and II. The framework for analysis is a vector autoregressive model estimated using monthly data over 1924:2–38:6 that employs a financial intermediation variable, a measure of relative oil prices, and other variables typically found in small macroeconomic models. The impact of oil price shocks is evaluated through computation of variance decompositions and an historical decomposition over the 1929:9–38:6 period.     

Competing for tots: operating objectives and characteristics of for-profit and not-for-profit child care centres in the Pacific Northwest

Child care services are provided by profit-oriented businesses, not-forprofit agencies and governmental units. This paper compares goal priorities and operating characteristics of not-for-profit and for-profit child care centres in parts of Canada and the United States. Directors of 292 Pacific Northwest centres responded to a survey about their financial and non-financial operating objectives. The relative rankings of objectives were similar for not-for-profit and for-profit centres, and for centres in both countries. Non-financial objectives were rated higher than financial objectives. Satisfying the developmental and educational needs of children was the single most important operating objective. Providing access to eligible children was the next most important objective, particularly for not-for-profit centres and for those with government-subsidised children. The remaining objectives, in order of importance, were minimising costs, maximising utilisation, maximising revenues and maximising profits. Profit maximisation was ranked low by both not-for-profit and for-profit respondents. Not-for-profit and for-profit centres exhibited differences on a number of operating characteristics, services provided and employee benefits. Such characteristics were found to be associated with auspices (not-for-profit or for-profit) and location (US or Canada). Results suggest that centres operating under both auspices are capable of altruistic behaviour. Differences in motivation between organisational forms were very small. However, variations in operating characteristics and services suggest that the objectives are achieved in dissimilar ways.     

Creating a Favourable Deployment Mechanism of Oil and Gas Revenues with Regard to Volatile Oil Prices: The Case of Azerbaijan

This paper studies optimal mechanisms of intergenerational fair distribution of oil and gas revenues in terms of oil price shocks in the case of Azerbaijan. In order to determine optimal utilization mechanism of oil and gas revenues the following models: real constant expenditure (permanent income hypothesis), nominal constant expenditure, stable diminishing expenditure and stable rate diminishing expenditure, were tested on the basis of three alternative oil and gas export prices. Finally the research suggests the statistical method to calculate crude oil reference price for the midterm fiscal planning and the flexible mechanism which can be revised with regard to oil price uncertainty.     

The discursive structure of the social-technical divide: the example of information systems development1

The social and technical are commonly defined in opposition to each other. Yet technology practitioners are often quite comfortable with the idea that the technical is constitutively social. Drawing on an ethnographic study of a computerised information systems development project, this paper examines various usages of notions of ‘technical’. Attempts to situate the study at the ‘technical core’ of the project were met with a series of rebuffs. ‘Technical’ talk is to be understood as a categorising device which does boundary work. Technical talk invokes and performs a disjunction between networks of social relationships and stipulates a moral order with associated norms for acceptance and transition. The difficulty of penetrating the intelligibility of technical talk is understandable as a struggle in familiarising oneself with the routine social actions of a separate community. In addition, the private sphere of the technical is often distanced in time. The costs involved in journeying into the future are analogous to those of penetrating alien cultures. Ideas of progress and advance are often associated with the invocation of ‘the technical’. These connote a notion of timing which reinforces the distance and difference of—and hence depicts the costs involved in penetrating—removed sets of social relationships.     

FIRMS AND FLEXIBILITY

The United States and France have very similar labor productivity levels while there are considerable differences between the firm‐size distributions and firm dynamics in the two countries. To reconcile these observations we introduce a joint model of endogenous entrepreneurship and firm‐size dynamics with firing costs, unemployment benefits, entry costs, and a tax wedge between wages and labor costs. We use our model to analyze the role of these rigitidies in explaining firm dynamics and productivity patterns in the United States and France. We find that our model with all rigidities goes a long way in accounting for firm‐size differentials between the United States and France while generating similar labor productivity outcomes. (JEL C78, D21, E24, J6)     

Abortion Costs,Separation, and Non-marital Childbearing

How do abortion costs affect non-marital childbearing? While greater access to abortion has the first-order effect of reducing childbearing among pregnant women, it could nonetheless lead to unintended consequences through effects on marriage market norms. Single motherhood could rise if low-cost abortion makes it easier for men to avoid marriage. This study estimated the effect of abortion costs on separation, cohabitation and marriage following a birth by exploiting miscarriage and changes in state abortion laws. There is evidence that norms responded to abortion laws as women who gave birth under abortion restrictions experienced sizable decreases in single motherhood and increased cohabitation rates. The results underscore the importance of norms regulating relationship dynamics in explaining high levels of non-marital childbearing and single motherhood.     

HETEROGENEOUS FIRMS AND THE ORGANIZATION OF PRODUCTION

Firms in the same industry exhibit systematic differences in the organization of production and the structure of employment. Entrepreneurial ability is the specific scarce input that limits the size of a firm. This input must be allocated to two activities, coordinating production and monitoring workers. Able entrepreneurs can convert calendar time into larger supplies of coordinating effort that enable them to assemble large firms. Greater ability implies a higher shadow price of time which increases the implicit costs of monitoring. A dispersion of entrepreneurial abilities generates an equilibrium size distribution of firms. Differences in monitoring costs affect the choice of worker productivities, the design of products, and the organization of production. The monitoring cost hypothesis advanced in this paper goes a long way in explaining the equilibrium of an industry containing heterogeneous firms that differ in size and behavior.     

Effects of public transit policies on taxi drivers’ wages

We investigate the effects of two public transit policies, subsidization and privatization, on the wages of taxi drivers. In theory, transit operating subsidies benefit transit firms at the expense of the taxi industry and its employees. By contrast, the privatization policy of contractingout transit service to lower cost private providers is potentially beneficial to taxi firms and their drivers. Estimated wage equations confirm that transit operating subsidies have negatively affected taxi driver wages even as they have bolstered transit drivers’ wages. Transit privatization has had the predicted positive effect on taxi driver wages, all else held constant. These results suggest that a more accurate assessment of the effect of transit operating subsidies on labor costs must encompass their net effects on the labor costs of the entire urban transportation sector, not just the public transit industry.     

Electricity Cost as a Driver of Competitiveness in Northern Europe: The Case of Estonia

The Estonian electricity market will be fully opened in 2013. Given ever-stricter environmental standards limiting the use of domestically available oil shale as main fuel for electricity generation and expansion of regional power pools, it is widely believed that Estonia’s currently low electricity prices are set to increase. Authors argue that cost differentiation and regional competition will be based on transmission charges and add-on fees. Measuring exporting industry’s total electricity costs as a share of total production costs shows that for the majority of Estonian producers electricity costs make up only around 1–2 % of production costs, but noteworthy exceptions exist.     

欧洲的新型公共汽车

介绍欧洲新型公共汽车的主要设计特点,包括:提高了的价格—效果比、可接近性和环境友好性。     

“They will go like I did”: How parents think about college for their young children in the context of rising costs

Rising college costs and student loan burdens have triggered national debates about whether a college degree is “worth it.” Parents raising children in the midst of these debates may be evaluating the value of a college degree relative to its costs and adjusting their educational expectations for their children, shaping future generations' socialization toward college. In this context, it is unclear how theoretical models on college attendance decision-making perform in explaining parents' thoughts about college for their children. This qualitative study elicited early perspectives on college through in-depth interviews with 37 parents of kindergarten children from one school district in a mid-sized, Midwestern city. Almost unanimously, lower-income parents with some college education saw a college degree as a catalyst of their children's upward mobility, though very few thought they could help their children afford college. Higher-income parents more often expressed doubts about pursuing a college degree or the value of that degree acquired with debt.     

THE IMPACT OF DEREGULATION ON THE PRODUCTION STRUCTURE OF THE MOTOR CARRIER INDUSTRY

Empirical analysis of the motor carrier industry pre- and post-regulatory reform reveals that deregulation resulted in significant changes in firm production structure and lower real average costs. Translog cost functions for firms operating in 1977 and 1983 were estimated and compared for "other specialized commodity" carriers. Fitted average costs were computed from these functions. The results indicate significant differences in the cost functions and real costs that cannot be attributed to technological changes but rather suggest efficiency gains. The results also suggest that it is inappropriate to predict outcomes of deregulation using empirical analyses of firms in the regulated environment.     

TIME ALLOCATION IN AN EXCHANGE-PRODUCTION PARADIGM

The three uses of one's time — leisure, nonmarket work, and market work — are affected by the availability of others' time for sale in the market. The paper integrates the supply of time and the demand for others' time by means of geometric models of exchange and production. Possible patterns of market work behavior are enriched by the incorporation of proportional and lump-sum transaction costs. The diversity of the results argues against indiscriminate reliance on institutional restrictions in explaining work decisions.