Precautionary Regulation in Europe and the United States: A Quantitative Comparison

Much attention has been addressed to the question of whether Europe or the United States adopts a more precautionary stance to the regulation of potential environmental, health, and safety risks. Some commentators suggest that Europe is more risk-averse and precautionary, whereas the United States is seen as more risk-taking and optimistic about the prospects for new technology. Others suggest that the United States is more precautionary because its regulatory process is more legalistic and adversarial, while Europe is more lax and corporatist in its regulations. The flip-flop hypothesis claims that the United States was more precautionary than Europe in the 1970s and early 1980s, and that Europe has become more precautionary since then. We examine the levels and trends in regulation of environmental, health, and safety risks since 1970. Unlike previous research, which has studied only a small set of prominent cases selected nonrandomly, we develop a comprehensive list of almost 3,000 risks and code the relative stringency of regulation in Europe and the United States for each of 100 risks randomly selected from that list for each year from 1970 through 2004. Our results suggest that: (a) averaging over risks, there is no significant difference in relative precaution over the period, (b) weakly consistent with the flip-flop hypothesis, there is some evidence of a modest shift toward greater relative precaution of European regulation since about 1990, although (c) there is a diversity of trends across risks, of which the most common is no change in relative precaution (including cases where Europe and the United States are equally precautionary and where Europe or the United States has been consistently more precautionary). The overall finding is of a mixed and diverse pattern of relative transatlantic precaution over the period.     

Values and Risk Perceptions: A Cross‐Cultural Examination

This article examines the relationship between values and risk perceptions regarding terror attacks. The participants in the study are university students from Turkey (n = 536) and Israel (n = 298). Schwartz value theory (1992, 1994) is applied to conceptualize and measure values. Cognitive (perceived likelihood and perceived severity) and emotional (fear, helplessness, anger, distress, insecurity, hopelessness, sadness, and anxiety) responses about the potential of (i) being personally exposed to a terror attack, and (ii) a terror attack that may occur in one's country are assessed to measure risk perceptions. Comparison of the two groups suggests that the Turkish participants are significantly more emotional about terror risks than the Israeli respondents. Both groups perceive the risk of a terror attack that may occur in their country more likely than the risk of being personally exposed to a terror attack. No significant differences are found in emotional representations and perceived severity ratings regarding these risks. Results provide support for the existence of a link between values and risk perceptions of terror attacks. In both countries, self‐direction values are negatively related to emotional representations, whereas security values are positively correlated with emotions; hedonism and stimulation values are negatively related to perceived likelihood. Current findings are discussed in relation to previous results, theoretical approaches (the social amplification of risk framework and cultural theory of risk), and practical implications (increasing community support for a course of action, training programs for risk communicators).     

透明度与市场效率——基于信息不对称的适应性学习研究

通过拓展Pouget模型,考察了当所有投资者采用适应性学习(有限理性)规则更新信念时,订单信息的透明度增加如何影响市场的价格发现效率和福利配置效率.结果表明,透明度增加后,市场效率大幅降低,价格发现和福利配置都难以收敛到理性预期均衡.进一步剖析投资者的策略选择可以发现,透明度增加后,拥有信息优势的知情者倾向于提交对自己更加有利的订单,而放弃均衡的交易策略;非知情者为了规避由此带来的逆向选择风险,也会放弃均衡策略而倾向于提交更加保守的订单,最终导致市场效率大幅下降.     

Trust and Risk Perception in Western Europe: A Cross-National Study

The relationship between trust and risk perception was investigated, within and across four European countries (Sweden, Spain, United Kingdom, and France). Survey data were collected in 1996; total number of respondents was approximately 1,000 (United Kingdom and Spain), 1,350 (France), and 2,050 (Sweden). Trust was a significant predictor of perceived risk within countries, but the strength of the relationship varied from weak (Spain and France) to moderate (United Kingdom and Sweden). General trust was also a significant source of variation in perceived risk among countries, but much of the variation in perceived risk remained unexplained. Correlations between trust and risk perception also varied depending on the type of risk (i.e., nuclear risks were more influenced by trust) and trust measure (i.e., general trust explained perceived risk better than specific trust). It is concluded that trust may be an element in models explaining risk perception, but it is not as powerful as often argued in the risk perception literature.     

Public Meetings and Risk Amplification: A Longitudinal Study

This article offers longitudinal data tracking people who did and did not attend a series of public meetings in an upstate New York rural community grappling with the expansion of an existing solid waste landfill and remediation of an adjacent inactive hazardous waste site. Before and after the public meetings, mailed questionnaires measured risk perceptions and perceived credibility of risk managers (here, the state government agencies and the responsible industry) conducting the meetings. Respondents at each measurement point included meeting attendees and nonattendees, with some fluctuation over time when attendees at one measurement point were nonattendees at the next and vice versa. The results from the first survey indicate that following the first two public meetings, attendees perceived greater risks from the waste sites than did nonattendees; attendees also perceived the risk managers as less credible. After the third public meeting, the results showed that attendees' risk perceptions remained steady; however, perceptions of government agency credibility significantly decreased. After the fourth public meeting, the survey found that attendees' risk perceptions were again not significantly different, whereas perceptions of government agency credibility increased significantly. The industry's credibility also increased, though only among attendees who had attended the most recent public meeting, not among attendees who had attended both the third and fourth public meetings. For nonattendees, risk perceptions and credibility ratings did not change. The discussion examines how distinctive characteristics of communication at each public meeting may have resulted in different effects and proposes hypotheses for future research.     

Importance of Transparency and Traceability in Building a Safety Case for High-Level Nuclear Waste Repositories

The complexity of the safety case for a high-level nuclear waste repository makes it imperative that deliberate and significant effort be made to incorporate in it a high level of transparency and traceability. Diverse audiences, from interested members of the public to highly trained subject matter experts, make this task difficult. A systematic study of the meaning of transparency and traceability and the implementation of the associated principles in preparing the safety case is, therefore, required. In this article, we review the existing knowledge and propose topics for further investigation.     

Closer than ever: Growing business-level connections between Australia and Europe

Despite the growing presence of European firms in Australia and vice versa, studies of these business-level connections have been few and far between. Building on points made in our earlier macro-level analysis of Australian-European relations, this study examines business-to-business and business-to-consumer activity at the micro-level between the two continents.We focus on three themes illustrative of these growing business-level relations. First, we examine the different pathways taken by Australian businesses in their quest to develop a European market presence. Second, we discuss instances of business and technological innovation in the Australian context, including stories of success in digital innovation and university-corporate collaboration as well as cautionary tales for European institutions arising from the Australian experience. Third, we compare and contrast how Australian and European businesses have responded to the challenge of climate change, focussing on the issues of green lending and retail insurer performance.In foregrounding these three themes, we offer reflections on the implications and lessons for the growing number of businesses operating across both continents.     

Decision Making for Risk Management: A Comparison of Graphical Methods for Presenting Quantitative Uncertainty

Previous research has shown that people err when making decisions aided by probability information. Surprisingly, there has been little exploration into the accuracy of decisions made based on many commonly used probabilistic display methods. Two experiments examined the ability of a comprehensive set of such methods to effectively communicate critical information to a decision maker and influence confidence in decision making. The second experiment investigated the performance of these methods under time pressure, a situational factor known to exacerbate judgmental errors. Ten commonly used graphical display methods were randomly assigned to participants. Across eight scenarios in which a probabilistic outcome was described, participants were asked questions regarding graph interpretation (e.g., mean) and made behavioral choices (i.e., act; do not act) based on the provided information indicated that decision‐maker accuracy differed by graphical method; error bars and boxplots led to greatest mean estimation and behavioral choice accuracy whereas complementary cumulative probability distribution functions were associated with the highest probability estimation accuracy. Under time pressure, participant performance decreased when making behavioral choices.     

The Seveso Directive: An Italian Pilot Study in Enabling Communication

In 1982 the Council of the European Communities issued a Directive on the Major Accident Hazards of Certain Industrial Activities, commonly known as the Seveso Directive. Besides other requirements, the Directive specifies that members of the public liable to be affected by a major accident from certain industrial activities must be informed of safety measures and how they should behave in the event of an accident. The Directive was subsequently amended in an extensive way. Upon the transposition of the Seveso Directive and its amendments into national legislations, the 12 European Member States are faced with the task of "appropriately and effectively" informing the public about major accident hazards. Delays are observed throughout the community, both in transposing the Directives and implementing public information. A pilot study on "Risk Information Needs" was commissioned and carried out at two Seveso sites in Italy in order to begin to resolve some of the problems involved in the provision of public information and to suggest appropriate guidelines. One hundred subjects answered an experimental protocol designed to assess their "information needs." This article presents the theoretical background, the pragmatic aims, and the design of the study. It also summarizes its most relevant findings and suggests some recommendations for the provision of information to the public.     

Compressed Natural Gas Bus Safety: A Quantitative Risk Assessment

This study assesses the fire safety risks associated with compressed natural gas (CNG) vehicle systems, comprising primarily a typical school bus and supporting fuel infrastructure. The study determines the sensitivity of the results to variations in component failure rates and consequences of fire events. The components and subsystems that contribute most to fire safety risk are determined. Finally, the results are compared to fire risks of the present generation of diesel-fueled school buses. Direct computation of the safety risks associated with diesel-powered vehicles is possible because these are mature technologies for which historical performance data are available. Because of limited experience, fatal accident data for CNG bus fleets are minimal. Therefore, this study uses the probabilistic risk assessment (PRA) approach to model and predict fire safety risk of CNG buses. Generic failure data, engineering judgments, and assumptions are used in this study. This study predicts the mean fire fatality risk for typical CNG buses as approximately 0.23 fatalities per 100-million miles for all people involved, including bus passengers. The study estimates mean values of 0.16 fatalities per 100-million miles for bus passengers only. Based on historical data, diesel school bus mean fire fatality risk is 0.091 and 0.0007 per 100-million miles for all people and bus passengers, respectively. One can therefore conclude that CNG buses are more prone to fire fatality risk by 2.5 times that of diesel buses, with the bus passengers being more at risk by over two orders of magnitude. The study estimates a mean fire risk frequency of 2.2 x 10(-5) fatalities/bus per year. The 5% and 95% uncertainty bounds are 9.1 x 10(-6) and 4.0 x 10(-5), respectively. The risk result was found to be affected most by failure rates of pressure relief valves, CNG cylinders, and fuel piping.     

Quantitative Risk Assessment of Vibrio parahaemolyticus in Finfish: A Model of Raw Horse Mackerel Consumption in Japan

The aim of this study was to evaluate the effects of implemented control measures to reduce illness induced by Vibrio parahaemolyticus (V. parahaemolyticus) in horse mackerel (Trachurus japonicus), seafood that is commonly consumed raw in Japan. On the basis of currently available experimental and survey data, we constructed a quantitative risk model of V. parahaemolyticus in horse mackerel from harvest to consumption. In particular, the following factors were evaluated: bacterial growth at all stages, effects of washing the fish body and storage water, and bacterial transfer from the fish surface, gills, and intestine to fillets during preparation. New parameters of the beta‐Poisson dose‐response model were determined from all human feeding trials, some of which have been used for risk assessment by the U.S. Food and Drug Administration (USFDA). The probability of illness caused by V. parahaemolyticus was estimated using both the USFDA dose‐response parameters and our parameters for each selected pathway of scenario alternatives: washing whole fish at landing, storage in contaminated water, high temperature during transportation, and washing fish during preparation. The last scenario (washing fish during preparation) was the most effective for reducing the risk of illness by about a factor of 10 compared to no washing at this stage. Risk of illness increased by 50% by exposure to increased temperature during transportation, according to our assumptions of duration and temperature. The other two scenarios did not significantly affect risk. The choice of dose‐response parameters was not critical for evaluation of control measures.     

收盘集合竞价透明度增加的效应分析——基于深圳中小企业板的实证研究

本文基于中小企业板收盘制度改革的背景,分析了开放式集合竞价对市场流动性、波动性的影响。结果显示,采用开放式集合竞价收盘之后,收盘前连续竞价阶段的市场流动性明显减小、波动性降低,从连续到收盘价格的变化幅度减小,收盘阶段的市场流动性降低。根据市场微观结构理论,并结合中国市场的实际情况,我们得到以下结论:集合竞价透明度增加有效地缓解了收盘前集中交易的现象,减少了庄家在尾盘拉抬和打压价格等做盘的可能性,提高了收盘价格的信息效率。     

Trust in Risk Management: A Model‐Based Review of Empirical Research

This review of studies of trust in risk management was designed, in part, to examine the relations between the reviewed research and the consensus model of trust that has recently emerged in other fields of study. The review begins by briefly elaborating the consensus views on the dimensionality and function of trust. It then describes the various models of trust that have been developed in the field of risk management, comparing them with the consensus approach. The findings of previous reviews are outlined, followed by a delineation of the open questions addressed by the present review, the method used, and the results. Finally, the findings of the review are discussed in relation to the important issue of trust asymmetry, the role of trust in risk management, and directions for future research. The consensus model specifies two conceptualizations of trust, each linked to particular types of antecedents. Relational trust, which is called trust in this review, is based on the relations between the trusting person and the other. Calculative trust, which is called confidence, is based on past behavior of the other and/or on constraints on future behavior. Results of this review showed that most studies of trust in risk management, while exploring matters of particular concern to the risk management community, were at least in part consistent with the consensus model. The review concludes by urging greater integration between the concerns of the former and the insights of the latter.     

Financial reporting in Europe: Prospects for research

This paper is a commentary on the future of financial reporting in Europe and on how research into accounting issues can be relevant to policy makers. Combining scholarship in accounting with scholarship in management can offer insight into national and global issues where accounting communicates information that affects managerial decisions at the microeconomic level and political decisions at the macroeconomic level. The paper cites examples of recent research in financial reporting and points to the current work plans of leading policy makers to illustrate the potential for researchers to influence policy directions. The context of financial reporting, nationally and globally, and the data available in the public domain, provide continued opportunities for researchers investigating accounting issues in the private sector and the public sector.     

Setting Risk Priorities: A Formal Model

This article presents a model designed to capture the major aspects of setting priorities among risks, a common task in government and industry. The model has both design features, under the control of the rankers (e.g., how success is evaluated), and context features, properties of the situations that they are trying to understand (e.g., how quickly uncertainty can be reduced). The model is demonstrated in terms of two extreme ranking strategies. The first, sequential risk ranking , devotes all its resources, in a given period, to learning more about a single risk, and its place in the overall ranking. This strategy characterizes the process for a society (or organization or individual) that throws itself completely into dealing with one risk after another. The other extreme strategy, simultaneous risk ranking , spreads available resources equally across all risks. It characterizes the most methodical of ranking exercises. Given ample ranking resources, simultaneous risk ranking will eventually provide an accurate set of priorities, whereas sequential ranking might never get to some risks. Resource constraints, however, may prevent simultaneous rankers from examining any risk very thoroughly. The model is intended to clarify the nature of ranking tasks, predict the efficacy of alternative strategies, and improve their design.     

Protective Responses to Household Risk: A Case Study of Radon Mitigation

This study analyzes the effectiveness of a mass-media radon information and testing campaign conducted in the Washington, D.C. area in the winter of 1988. Although an impressive number of test kits (approximately 100,000) were sold, the ultimate mitigation rates resulting from the campaign were extremely low. Analyses show that low mitigation rates cannot be explained by postulating that people's responses to radon are insensitive to the level of objective risk. They may instead be due to characteristics of the protective response required to reduce radon risk. Radon may be thought of as one of a family of household risks which have risk response profiles that make them particularly difficult for people to manage and remediate. Traditional information campaigns for such risks are likely to be ineffective; instead, they may require regulatory strategies or programs which provide active guidance and assistance.     

Perception and Communication of Flood Risks: A Systematic Review of Empirical Research

Flood hazards are the most common and destructive of all natural disasters. For decades, experts have been examining how flood losses can be mitigated. Just as in other risk domains, the study of risk perception and risk communication has gained increasing interest in flood risk management. Because of this research growth, a review of the state of the art in this domain is believed necessary. The review comprises 57 empirically based peer‐reviewed articles on flood risk perception and communication from the Web of Science and Scopus databases. The characteristics of these articles are listed in a comprehensive table, presenting research design, research variables, and key findings. From this review, it follows that the majority of studies are of exploratory nature and have not applied any of the theoretical frameworks that are available in social science research. Consequently, a methodological standardization in measuring and analyzing people's flood risk perceptions and their adaptive behaviors is hardly present. This heterogeneity leads to difficulties in comparing results among studies. It is also shown that theoretical and empirical studies on flood risk communication are nearly nonexistent. The article concludes with a summary on methodological issues in the fields of flood‐risk perception and flood‐risk communication and proposes an agenda for future research.     

Quantitative Risk Assessments as Evidence in Civil Litigation

Those who prepare quantitative risk assessments do not always appreciate that those assessments might be used as evidence in civil litigation. This paper suggests that litigation attorneys, judges, and juries be regarded as audiences to whom the information in the risk assessment must be communicated. The way that a risk assessment is prepared can affect significantly whether litigation is brought at all, the resolution of evidentiary motions involving the risk assessment, as well as the ultimate outcome of the litigation. This paper discusses certain procedural and evidentiary aspects of the civil litigation process in the hope that a better understanding of that process might lead to the preparation of risk assessments that are more adequately understood by juries, judges, and litigants.     

Communicating Geographical Risks in Crisis Management: The Need for Research

In any crisis, there is a great deal of uncertainty, often geographical uncertainty or, more precisely, spatiotemporal uncertainty. Examples include the spread of contamination from an industrial accident, drifting volcanic ash, and the path of a hurricane. Estimating spatiotemporal probabilities is usually a difficult task, but that is not our primary concern. Rather, we ask how analysts can communicate spatiotemporal uncertainty to those handling the crisis. We comment on the somewhat limited literature on the representation of spatial uncertainty on maps. We note that many cognitive issues arise and that the potential for confusion is high. We note that in the early stages of handling a crisis, the uncertainties involved may be deep, i.e., difficult or impossible to quantify in the time available. In such circumstance, we suggest the idea of presenting multiple scenarios.