The Optimal Strategy of China’s Plastic Drinking Straws Ban Based on Consumer Heterogeneity and Retailer Competition

The Chinese government has issued a new “Plastic Restriction Ban” requiring that, by the end of 2020, the food and beverage industry across the country bans the use of single-use, nondegradable plastic drinking straws. The governance of plastic drinking straws is a multi-dimensional and complex process. Therefore, based on the heterogeneity of consumers, this paper constructs a tripartite game model (the government, retailers, and consumers) for the governance of plastic drinking straws in China. Under this model, this research derives an optimal strategy in both monopoly and competitive markets, assuming the government has access to two policy tools, fines and subsidies. The research results suggest the following. (1) In monopoly markets, when (a) the fine or subsidy fee is high or (b) the fine or subsidy fee is low and the number of environment-conscious consumers is high, retailers are more inclined to provide biodegradable drinking straws. (2) Consumer heterogeneity has a certain impact on policy results; when there are enough environment-conscious consumers, policy costs can be reduced. (3) For high-quality products, the policy costs in competitive markets is lower than in monopoly markets; for low-quality products, the policy costs in competitive markets is higher than in monopoly markets. Based on the conclusions, this work suggests the government should focus on cultivating consumers’ environmental awareness and tighter control of products quality, in addition to the two policy tools, i.e., fines and subsidies, because these can reduce policy costs. Consumers should be aware of their own importance to China’s Plastic Drinking Straws Ban and adopt a refusal to accept plastic drinking straws and reduce the consumption of disposable plastics to support the policy. Retailers should also realize that proactively catering to consumer and government expectations can bring higher benefits to themselves; this can be achieved by providing high-quality biodegradable straws to support China’s Plastic Drinking Straws Ban. The model of this work could be applied to other corporate activities related to sustainability, such as plastic bags, plastic bottles, etc., and their connection to government policies.

The Impact of Monetary Policy on Bank Profitability and the Moderating Role of Funding Patterns in Vietnam

The study investigates the effect of monetary policy on bank profitability while also taking into account the moderating role of bank funding patterns. Uniquely, the study focuses on disaggregate components of bank profits in an environment containing various monetary policy tools. Using a dataset of commercial banks in Vietnam, the results show that monetary policy drives bank profitability asymmetrically. Concretely, interest rates (i.e., lending rates and policy rates) exert positive effects on net interest income, but negative impacts on non-interest income. For quantitative-based policy tools, including the central bank’s security purchases and foreign exchange reserves, monetary policy is positively correlated with non-interest income but negatively associated with net interest income. The reaction of banks’ net interest income to monetary policy adjustments is translated into overall bank profits. Further analysis indicates that the monetary policy/bank profitability nexus across different proxies is less pronounced at banks with more diversified funding patterns. This finding sheds light on prior arguments attributing financially weaker banks’ greater sensitivity in facing monetary shocks to the limited alternative funding.

The Impacts of Extreme Weather Events on Inflation and the Implications for Monetary Policy in Africa

Economic debates around mitigating climate change and weather-related events have long centred on fiscal policy tools than those of monetary policy. However, recent discussions point out that monetary policy formulation could also be affected and hence the need to deploy monetary policy tools as well. Our article seeks to investigate the impacts of climate change, particularly extreme weather events, on headline inflation and food price inflation and their apparent implications for monetary policy in Africa over the period 1990–2017. Using a two-step dynamic system Generalized Method of Moments estimation strategy with robust standard errors, we find that weather-related events may need to be large and consequential to cause a significant price hike in Africa. We also find the incidence of droughts and floods to have a bearing on food price inflation. Furthermore, our empirical evidence using mediation analysis, reveals agricultural production to be the critical mechanism whereby extreme weather events affect headline inflation. As central banks are charged with the mandate of ensuring a stable monetary environment, we suggest that monetary policy authorities consider the short and long run impacts of supply shocks caused by extreme weather events on general price levels in their policy formulation.

Social Networks as Levers of Mobility

This chapter reviews the literature on pathways through which social networks may influence social mobility in developing countries. We find that social networks support members in tangible ways—via access to opportunities for migration, credit, trading relationships, information on jobs, and new technologies—as well as in intangible ways, such as shaping their beliefs, hopes, and aspirations, through role models and peers. Nevertheless, networks can disadvantage non-members, typically the poor and marginalized. Recent evidence suggests a range of policy tools that could help mitigate disadvantages faced by excluded groups: temporary incentives to encourage experimentation into new regions, occupations, or technologies, and role models—real and virtual—to mitigate psychosocial challenges faced by marginalized groups. Targeting large fractions of marginalized groups simultaneously could increase the effectiveness of such policies by leveraging the influence of existing social networks.

Freedom and Gender Equality in EU Family Policy Tools

The aim of this article is to look critically at the implications of gender equality concepts for individual freedom as conceptualised by the philosopher Isaiah Berlin. The scientific literature addressing the problem of freedom and gender equality with regard to public policy is considerably fragmented. Based on contextual literature, this article will offer four concepts of freedom that serve as analytical categories. I will analyse work/family reconciliation policy tools as introduced at the level of the European Union and reconnect them to three traditions of gender equality. The article reflects on historically embedded dichotomy between positive and negative freedom visible in gendered distinction between public and private. The main findings show that the relationship between freedom and equality is mediated by the selected policy tools suggesting that some policy tools expand freedom of all individuals while others indicate a possible limit for freedom.

Japan’s Balancing Act: Assessing Japan’s Foreign Policy towards Myanmar in the Emerging Indo-Pacific Era

Prime Minister Abe officially introduced the FOIP in 2016 at the TICAD VI in Kenya aiming to preserve the RBO against increasing challenges to the vital interests of Japan. Because of Myanmar's geostrategic location, democratization, and rich natural resources, Myanmar became an important country in fostering Japan's FOIP. In this context, this paper aims to examine Japan’s foreign policy towards Myanmar in the emerging Indo-Pacific era. This paper is mainly focused on Japan’s balancing strategy in Indo-Pacific, the significance of Myanmar in Japan’s FOIP, and the foreign policy tools of Japan in Myanmar. The paper finds that Japan rapproach Myanmar by using significant 3Ds (diplomatic engagement, defense cooperation, and development assistance) in the emerging Indo-Pacific era. Japan’s foreign policy readjustment towards Myanmar in the emerging Indo-Pacific era can be interpreted as one of Japan’s limited hard balancing strategies against China.

Foreign Policy Tools for Water Management in Central Asia

This article is devoted to the issue of ineffective and irrational water management in Central Asia. Water management has gained transboundary character, states are divided by their upstream and downstream status and water is perceived as unlimited natural resource which requires new approaches. Author proposes foreign policy tools for water management as constant political dialogue, establishment of permanent body on water management and initiation of projects within China’s Belt and Road imitative, US’s Greater Central Asia and Russia’s Greater Eurasia platform. The vital importance of water as natural resource for life and human development is unquestionable and needs special attention in the context of the climate change and growing population of the Central Asian region. Asian Development Bank has provided three recommendations to Central Asian governments in facing climate change as expanding the supply of water available in the future; increasing the productivity of water; and reducing future demand for water. With predictions of the UN Population Prospects by 2050 Central Asia will have about 100 million inhabitants which undoubtedly will also increase the need for water resources. Taking into acount such factors as climate change and growing population the need for water resources will become only vital in the neearest future and demand for effective and rational water management must be already on the regional agenda.