scholarly journals Mistakes in Future Consumption, High MPCs Now

2021 ◽  
Author(s):  
Chen Lian
Keyword(s):  
Future Consumption

ANTICIPATED FUTURE CONSUMPTION IN AN ENDOGENOUS GROWTH MODEL

2020 ◽  
pp. 1-37
Author(s):  
Manuel A. Gómez ◽  
Goncalo Monteiro
Keyword(s):  
Theoretical Analysis ◽  
Endogenous Growth ◽  
Growth Model ◽  
Reference Point ◽  
Time Varying ◽  
Standard Specification ◽  
Equilibrium Dynamics ◽  
Current Consumption ◽  
Endogenous Growth Model ◽  
Future Consumption

We devise an endogenous growth model in which agents’ utility depends not only on current consumption but also on the pleasure of anticipated future consumption. We consider the case in which agents derive satisfaction from their own anticipatory feelings—inward-looking or internal anticipation—and the case in which agents derive utility from anticipation of other people’s future consumption—outward-looking or external anticipation. We characterize the effects of introducing a forward-looking consumption reference on the dynamics of the economy. Whereas the inward-looking economy features transitional dynamics, the outward-looking economy does not. The distortions caused by the externality in the economy with external habits can be corrected by subsidizing income at a time-varying rate or by means of a tax on consumption at a decreasing rate. We contrast the equilibrium dynamics of our specification to the more standard specification of the habit formation consumption reference point. Numerical simulations supplement the theoretical analysis.

scholarly journals A Comparative Assessment for the Potential Energy Production from PV Installation on Residential Buildings

2020 ◽  
Vol 12 (24) ◽  
pp. 10344
Author(s):  
Sameh Monna ◽  
Adel Juaidi ◽  
Ramez Abdallah ◽  
Mohammed Itma
Keyword(s):  
Potential Energy ◽  
Energy Production ◽  
Residential Buildings ◽  
Electricity Consumption ◽  
Residential Building ◽  
Electricity Production ◽  
Energy Sustainability ◽  
Pv Systems ◽  
Residential Units ◽  
Future Consumption

This paper targets the future energy sustainability and aims to estimate the potential energy production from installing photovoltaic (PV) systems on the rooftop of apartment’s residential buildings, which represent the largest building sector. Analysis of the residential building typologies was carried out to select the most used residential building types in terms of building roof area, number of floors, and the number of apartments on each floor. A computer simulation tool has been used to calculate the electricity production for each building type, for three different tilt angles to estimate the electricity production. Tilt angle, spacing between the arrays, the building shape, shading from PV arrays, and other roof elements were analyzed for optimum and maximum electricity production. The electricity production for each household has been compared to typical household electricity consumption and its future consumption in 2030. The results show that installing PV systems on residential buildings can speed the transition to renewable energy and energy sustainability. The electricity production for building types with 2–4 residential units can surplus their estimated future consumption. Building types with 4–8 residential units can produce their electricity consumption in 2030. Building types of 12–24 residential units can produce more than half of their 2030 future consumption.

scholarly journals A Satisficing Framework for Environmental Policy Under Model Uncertainty

2021 ◽  
Author(s):  
Stergios Athanasoglou ◽  
Valentina Bosetti ◽  
Laurent Drouet
Keyword(s):  
Environmental Policy ◽  
Model Uncertainty ◽  
Probability Distributions ◽  
Success Probability ◽  
Economic Assessment ◽  
Decision Criterion ◽  
Probability Criterion ◽  
Change Context ◽  
Future Consumption ◽  
Point Of Departure

AbstractWe propose a novel framework for the economic assessment of environmental policy. Our main point of departure from existing work is the adoption of a satisficing, as opposed to optimizing, modeling approach. Along these lines, we place primary emphasis on the extent to which different policies meet a set of goals at a specific future date instead of their performance vis-a-vis some intertemporal objective function. Consistent to the nature of environmental policymaking, our model takes explicit account of model uncertainty. To this end, the decision criterion we propose is an analog of the well-known success-probability criterion adapted to settings characterized by model uncertainty. We apply our criterion to the climate-change context and the probability distributions constructed by Drouet et al. (2015) linking carbon budgets to future consumption. Insights from computational geometry facilitate computations considerably and allow for the efficient application of the model in high-dimensional settings.

scholarly journals Young People as Drivers or Inhibitors of the Sustainability Movement: The Case of Anti-Consumption

2021 ◽  
Author(s):  
F. Ziesemer ◽  
A. Hüttel ◽  
I. Balderjahn
Keyword(s):  
Young People ◽  
Well Being ◽  
Negative Effects ◽  
Voluntary Simplicity ◽  
Collaborative Consumption ◽  
Policy Makers ◽  
Behavioural Patterns ◽  
Future Consumption ◽  
Sustainability Movement ◽  
Laddering Interviews

AbstractAs overconsumption has negative effects on ecological balance, social equality, and individual well-being, reducing consumption levels among the materially affluent is an emerging strategy for sustainable development. Today’s youth form a crucial target group for intervening in unsustainable overconsumption habits and for setting the path and ideas on responsible living. This article explores young people’s motivations for engaging in three behavioural patterns linked to anti-consumption (voluntary simplicity, collaborative consumption, and living within one’s means) in relation to sustainability. Applying a qualitative approach, laddering interviews reveal the consequences and values behind the anti-consumption behaviours of young people of ages 14 to 24 according to a means-end chains analysis. The findings highlight potential for and the challenges involved in motivating young people to reduce material levels of consumption for the sake of sustainability. Related consumer policy tools from the fields of education and communication are identified. This article provides practical implications for policy makers, activists, and educators. Consumer policies may strengthen anti-consumption among young people by addressing individual benefits, enabling reflection on personal values, and referencing credible narratives. The presented insights can help give a voice to young consumers, who struggle to establish themselves as key players in shaping the future consumption regime.

Service recovery for moderate and high involvement services

2015 ◽  
Vol 29 (5) ◽  
pp. 331-343 ◽  
Author(s):  
Silke Bambauer-Sachse ◽  
Landisoa Eunorphie Rabeson
Keyword(s):  
Customer Satisfaction ◽  
Design Methodology ◽  
Service Failure ◽  
Service Recovery ◽  
Level Of Service ◽  
High Involvement ◽  
Content Type ◽  
Failure Severity ◽  
Future Consumption ◽  
Practical Implications

Purpose – The purpose of this study is to determine which level of tangible compensation for a service failure leads to high levels of customer satisfaction for moderate- versus high-involvement services as well as for different conditions of responsibility for the failure and failure severity. Design/methodology/approach – The study is based on a 4 (tangible compensation: gift, discount, credit for future consumption, refund) × 2 (responsibility for the failure: restaurant vs customer) × 2 (failure severity: low vs high) × 2 (involvement: moderate vs high) design using scenarios in a restaurant context. Findings – The results reveal that, for moderate-involvement services, all types of compensation are equally appropriate, except for when customers are responsible for a severe failure. In this condition, they expect tangible compensation of higher benefit. For high-involvement services, the more severe the failure, the higher the benefit of tangible compensation should be, independent of responsibility. Practical implications – The findings suggest that managers should consider the level of service involvement as well as responsibility for and severity of the failure when choosing the level of tangible compensation. Originality/value – The results of this study provide new insights into how to choose appropriate and efficient service recovery measures.

scholarly journals Understanding Traditional Meat Processing Knowledge among the Borana Pastoralist of Northern Kenya

2018 ◽  
Vol 7 (4) ◽  
pp. 30 ◽  
Author(s):  
Buke Dabasso ◽  
Hassan Roba ◽  
Anselimo Makokha ◽  
Arnold Onyango ◽  
Julius Maina
Keyword(s):  
Meat Products ◽  
Meat Production ◽  
Meat Processing ◽  
Northern Kenya ◽  
Future Consumption ◽  
Meat Preservation ◽  
Almost All ◽  
Shelf Stable ◽  
And Storage ◽  
Depth Interviews

Indigenous knowledge on food preparation is an activity practised in almost all agricultural production system. Amongst the Borana pastoralist of Northern Kenya, milk and meat production are the cornerstone of livelihood, and more often abundance occurs without possibility of immediate consumption, triggering the need to preserve surplus for future consumption. The objective of this paper is to document and understand traditional meat preparation knowledge amongst Borana pastoralist’s women of Northern Kenya.The method of collecting information included in-depth interviews and participant observations to document meat preparation skills and knowledge of Borana people as appertains to traditional food ways. It was observed that methods of traditional meat processing and preparation included different forms of drying, use of heat and storage in fat. Fourteen traditional meat products and seven preservation techniques were documented. Drying and deep frying were the major form of meat preservation. Women skillfully put a lot of effort in all stages of meat preparation to produce an end product that is not only shelf stable but traditional products that are appreciated and nutritious. It was observed that only four of the products are currently in use, an indication of steady decline in meat handling knowledge and preparation. 

scholarly journals Demand for food products in Finland: A demand system approach

1994 ◽  
Vol 3 (4) ◽  
pp. 315-420
Author(s):  
Ilkka P. Laurila
Keyword(s):  
European Union ◽  
Demand System ◽  
The European Union ◽  
Budget Share ◽  
Food Away From Home ◽  
Fresh Milk ◽  
Future Consumption ◽  
Alcoholic Drinks ◽  
Misspecification Tests ◽  
At Home

The study was concerned with the estimation of food-demand parameters in a system context. The patterns of food consumption in Finland were presented over the period 1950-1991, and a complete demand system of food expenditures was estimated. Price and expenditure elasticities of demand were derived, and the results were used to obtain projections on future consumption. While the real expenditure on food has increased, the budget share of food has decreased. In the early 19505, combined Food-at-Home and Food-away-from-Home corresponded to about 40% of consumers’ total expenditure. In 1991 the share was 28%. There was a shift to meals eaten outside the home. While the budget share of Food-away-from-Home increased from 3% to 7% over the observation period, Food-at-Home fell from 37% to 21%, and Food-at-Home excluding Alcoholic Drinks fell from 34% to 16%. Within Food-at-Home, the budget shares of the broad aggregate groups, Animalia (food from animal sources), Beverages, and Vegetablia (food from vegetable sources), remained about the same over the four decades, while structural change took place within the aggregates. Within Animalia, consumption shifted from Dairy Products (other than Fresh Milk) to Meat and Fish. Within Beverages, consumption shifted from Fresh Milk and Hot Drinks to Alcoholic Drinks and Soft Drinks. Within Vegetablia, consumption shifted from Flour to Fruits, while the shares of Bread and Cake and Vegetables remained about the same. As the complete demand system, the Almost Ideal Demand System (AIDS) was employed. The conventional AIDS was extended by developing a dynamic generalisation of the model and allowing for systematic shifts in structural relationships over time. A four-stage budgeting system was specified, consisting of seven sub-systems (groups), and covering 18 food categories. Tests on parameter restrictions and misspecification tests were used to choose the most preferred model specification for each group. Generally, the estimated models did not satisfy the Slutsky conditions. The goodness-of-fit measures were good, and, compared to static specifications, dynamics usually provided a better fit. The misspecification tests indicated that the dynamic specification was correct, but some form of misspecification was found. The structural change in parameters indicated that the modelling failed to track a stable preference structure - if there is one. The estimated demand system was employed in projecting the future consumption of food products in Finland to the year 2000. The approach was to choose a certain change in the real total consumption expenditure and alternative sets of relative prices for the forecast period. Four different options of price variables were defined. Three of the options relied on the historical price trends recorded in Finland, whereas one option measured the expected consequences of Finland's possible membership in the European Union. A predicted consequence of the membership in the European Union is that the share of food in consumers’ budget would decrease. The expected decrease is somewhat faster than the decrease that would take place if future price developments were based on the historical trends. If Finland joins the Union, the budget share of Food-at-Home would decrease from 21% in 1991 to 18% in 2000, whereas the budget share of Food-at-Home excluding Alcoholic Drinks would decrease from 16% in 1991 to 14% in 2000.

scholarly journals Dynamic sourcing strategies for supply disruptions under consumer stockpiling

2021 ◽  
Author(s):  
Shanshan Li ◽  
Yong He ◽  
Li Zhou
Keyword(s):  
Order System ◽  
Joint Decision ◽  
Sourcing Strategies ◽  
Make To Order ◽  
Sourcing Strategy ◽  
Holding Cost ◽  
Future Consumption ◽  
Inventory Holding ◽  
Relative Factors

AbstractThis paper considers a make-to-order system where production gets disrupted due to a random supply failure. To avoid potential stock-out risk and responding price increase during disruption, customers might decide to stockpile extra units for future consumption. We investigate the contingent sourcing strategy for the manufacturer to cope with the disruption. To this end, we first discuss the optimal post-disruption stockpiling decision for customers. In view of expected disruption duration, price rise, and inventory holding cost, three types of stockpiling behavior are analytically provided for the customers: non-stockpiling, gradual stockpiling, and instantaneous stockpiling. Next, a model is formulated to optimize the joint decision of contingent sourcing time and quantity, with the objective of maximizing profit expectation. Finally, by conducting numerical analysis, we generate further insights into the role of relative factors and provide specific managerial suggestions on how to adapt dynamic contingent sourcing strategies to alleviate different disruptions, under different market environments and customer behaviors.

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