Trade-based adoption of voluntary environmental programs in the developing world: Racing to the top or stuck in the mud?

Scholars have consistently found that firms in developing countries adopt voluntary environmental programs (VEPs) in high numbers when their major trade partners are home to many VEP-certified firms. This reflects the following dynamic: Importers based in countries with many VEP-certified facilities demand similarly sustainable production processes from trade partners, and so exporting firms in partner countries adopt VEPs to signal their sustainable practices. Studies have identified characteristics of developing countries that make local exporting firms more likely to adopt VEPs as a signal; however, there has been little analysis as to the country-level characteristics that make importers more (or less) likely to demand VEPs from suppliers abroad, beyond having many VEP-certified firms themselves. This study considers this matter, theorizing that VEP diffusion only accompanies exporting to countries with high levels of income and education, as well as a high number of VEP-certified firms. Panel data analysis provides support for the theory, showing that developing countries only experience trade-based diffusion of ISO 14001 (a widely adopted VEP) through their exports to countries with high income and/or education levels. In contrast, exporting to countries that lack these characteristics creates no such diffusion, even where importing countries’ VEP certification levels are high. Instead, such trade produces a “stuck in the mud” effect, as developing countries’ certification levels stagnate even as those of their import partners rise.     

Between morality and rationality: framing end-of-life care policy through narratives

This paper analyzes the nature of the debate generated prior to the implementation of the Act Respecting End-of-Life Care in 2015 in Québec (Canada). Including medical assistance in dying (MAID) along existing palliative care services, the act is an important policy change on a very sensitive issue. As such, MAID could be categorized as a morality policy issue, the latter being defined as a particular category of policy because of its specific features (issues of first principle, technical simplicity, high salience, public interest, and public participation). In line with Mucciaroni’s proposition, we rather analyze this issue by understanding morality policy as one of two framing strategies (moral and/or rational-instrumental frame). Our research reconstructs four public opinion framings as advanced and transmitted through the media between 2005 and 2015. It shows that although opponents to the bill unsurprisingly framed the debate in deontological terms, mostly referring to sanctity of life as one of the most important values in society, they also framed it on rational-instrumental grounds in a similar proportion, alleging the danger of a slippery slope and potential abuse. As well, if some of the proponents favored a moral framing centered on the argument that dignity and individual autonomy take precedence over all other values, others put forward a rational-instrumental one, where the slippery slope/abuse argument is used as a cautionary statement against the artificial prolongation of life. Our analysis reinforces Mucciaroni’s and Ferraiolo’s assertions that sensitive issues classified as morality policy cannot be apprehended solely through the unidimensional frame of morality.     

Networks and problem recognition: advancing the Multiple Streams Approach

This paper responds to recent calls for more theoretically driven advancements of the Multiple Streams Approach (MSA). It does so by bringing networks theorizing into dialogue with the MSA; highlighting the inclusionary and exclusionary power of networks for determining problem frames and issue recognition. Subsequently, the paper argues that the addition of networks provides a clearer articulation of the role of institutions in steering problem stream processes, which have often been neglected within the MSA at the expense of a focus on agency. The paper puts forward two propositions. The first is that an issue is more likely to be recognised as a problem if it is considered compatible with the ‘appreciative system’ of the network's dominant coalition. The second proposition is that the more organisations a network consists of and the more varied these organisations are, the more likely it is that the dominant coalition alters a condition’s category if there are changes in the problem stream. These propositions are explored through a comparative analysis of recognition of quality of life as a problem in two local level transport sector networks in the UK. Support for these propositions in the findings suggest that the introduction of networks into the MSA can reduce ambiguity and therefore fortuity in relation to problem recognition; second, that the power of the policy entrepreneur can be facilitated or constrained by the institutional context; and third, that comparing multiple issues and their interactions is important for further advancement of the MSA.     

Efficient bilateral taxation of externalities

We consider the quadratic voting mechanism (Lalley and Weyl in Quadratic voting. Working paper, University of Chicago, 2015; Weyl in The robustness of quadratic voting. Working paper, University of Chicago, 2015) and focus on the incentives it provides individuals deciding what proposals or candidates to put up for a vote. The incentive compatibility of quadratic voting rests upon the assumption that individuals value the money used to buy votes, while the budget balance/efficiency of the mechanism requires that the money spent by one voter by redistributed among the other voters. From these assumptions, we show that it follows that strategic proposers will have an incentive to offer proposals with greater uncertainty about individual values. Similarly, we show that, in an electoral setting, quadratic voting provides an incentive to propose candidates with polarized, non-convergent platforms.     

Newspapers and political accountability: evidence from Japan

This study examines the effects of local and national newspapers on local political accountability. Local newspapers are expected to monitor local governments’ behavior. However, national newspapers could also contribute to local governments’ accountability by attracting nationwide attention to a local policy issue. Using the method developed by Snyder and Strömberg (J Polit Econ 118:355–408, 2010), I construct a variable that measures the weighted market share of locally circulated newspapers in an administrative district in Japan. I find that an increase in the market share of local newspapers is associated with a reduction in local public works spending (seen as rents for local interest groups), which indicates an improvement in political accountability. In addition, the accountability effect of local newspapers becomes greater one year after national newspapers focus readers’ attentions on the issue of unnecessary public works. This result suggests that national newspapers serve as an agenda setter and complement local newspapers for strengthening local political accountability.     

Lobbying,political connections and emergency lending by the Federal Reserve

This paper tests whether the political connections of banks were important in explaining participation in the Federal Reserve’s emergency lending programs during the recent financial crisis. Our multivariate tests show that banks that were politically connected—either through lobbying efforts or employment of politically connected individuals—were substantially more likely to participate in the Federal Reserve’s emergency loan programs. In economic terms, participation in these programs was 28–36% more likely for banks that were politically connected than for banks that were not politically connected. In our final set of tests, we attempt to identify a proper explanation for this peculiar relationship. While a broad literature speaks of the moral hazard associated with receiving bailouts, we test whether another type of moral hazard exists in the period preceding the bailout. In particular, we argue that, to the extent that political connections act as synthetic insurance, banks may have engaged in more risky behavior that lead them to the Fed’s emergency lending facilities. Tests seem to confirm this explanation.     

The political economy of churches in Denmark, 1300–2015

This paper reports new time-series for the numbers and sizes of churches in Denmark over a 715-year period. Per capita, the new series are termed church densities. A pattern emerges in the series that corresponds to the main development in the economy: until 1750, the economy was in the traditional steady state, where church densities were high and did not decline substantially. Modern development set in after 1750. Since then, church densities have declined more than five times. Moreover, capacity utilization of church rooms has declined, which means that the reduction in the demand for churches must have been even larger. We argue that this large decline is caused by a fall in religiosity that is caused by economic development as measured by the rise in incomes. In parallel with similar transitions in other sectors, e.g., the Agricultural Transition, it is termed the Religious Transition.