Impact of externalities on sustainable development: evidence from public-private partnerships in Kazakhstan and Russia

Purpose – This paper aims to investigate the influence of public-private partnerships (PPPs) on social and economic conditions in Kazakhstan and Russia from a public economics perspective, namely, through the lens of a market failure and PPPs’ negative externalities. Design/methodology/approach – Drawing on the concept of a market failure and using the externalities perspective, the paper investigates whether partnerships are instrumental in solving market problems, which is illustrated by the evidence from ongoing PPP projects in Kazakhstan and Russia. Findings – Results show that citizens face expansion of monopolistic trends in the service provision and decreased availability of public services. Additionally, the government support to partnerships recreates a negative externality in the form of a higher risk premium on loan interest rates that banks use to finance PPPs. The partnerships’ impact on sustainable development often appears detrimental, as they significantly intensify the struggle between sub-national governments for increased transfers from the national budget. Practical implications – The government agencies must incorporate the appraisal of the PPP externalities and their effects on the society in the decision-making regarding the PPP formation. Originality/value – The authors suggest that, although government is interested in PPPs’ positive externalities, in reality many negative externalities may offset the positive spillover effects. As a result, the partnerships’ contributions to economic and social sustainability remain controversial. Extending the value-for-money concept to incorporate the assessment of PPP externalities might significantly enhance the partnership conceptualisation by more comprehensive and accurate assessment of PPPs’ economic and social value.

The pitfalls of ecological forecasting

Ecological forecasting is difficult but essential, because reactive management results in corrective actions that are often too late to avert significant environmental damage. Here, we appraise different forecasting methods with a particular focus on the modelling of species populations. We show how simple extrapolation of current trends in state is often inadequate because environmental drivers change in intensity over time and new drivers emerge. However, statistical models, incorporating relationships with drivers, simply offset the prediction problem, requiring us to forecast how the drivers will themselves change over time. Some authors approach this problem by focusing in detail on a single driver, whilst others use ‘storyline’ scenarios, which consider projected changes in a wide range of different drivers. We explain why both approaches are problematic and identify a compromise to model key drivers and interactions along with possible response options to help inform environmental management. We also highlight the crucial role of validation of forecasts using independent data. Although these issues are relevant for all types of ecological forecasting, we provide examples based on forecasts for populations of UK butterflies. We show how a high goodness-of-fit for models used to calibrate data is not sufficient for good forecasting. Long-term biological recording schemes rather than experiments will often provide data for ecological forecasting and validation because these schemes allow capture of landscape-scale land-use effects and their interactions with other drivers.

A sodar for profiling in a spatially inhomogeneous urban environment

The urban boundary layer, above the canopy, is still poorly understood. One of the challenges is obtaining data by sampling more than a few meters above the rooftops, given the spatial and temporal inhomogeneities in both horizontal and vertical. Sodars are generally useful tools for ground-based remote sensing of winds and turbulence, but rely on horizontal homogeneity (as do lidars) in building up 3-component wind vectors from sampling three or more spatially separated volumes. The time taken for sound to travel to a typical range of 200 m and back is also a limitation. A sodar of radically different design is investigated, aimed at addressing these problems. It has a single vertical transmitted sound pulse. Doppler shifted signals are received from a number of volumes around the periphery of the transmitted beam with microphones which each having tight angular sensitivity at zenith angles slightly off-vertical. The spatial spread of sampled volumes is therefore smaller. By having more receiver microphones than a conventional sodar, the effect of smaller zenith angle is offset. More rapid profiling is also possible with a single vertical transmitted beam, instead of the usual multiple beams.A prototype design is described, together with initial field measurements. It is found that the beam forming using a single dish antenna and the drift of the sound pulse downwind both give rise to reduced performance compared with expectations. It is concluded that, while the new sodar works in principle, the compromises arising in the design mean that the expected advantages have not been realized

Declining resilience of ecosystem functions under biodiversity loss

The composition of species communities is changing rapidly through drivers such as habitat loss and climate change, with potentially serious consequences for the resilience of ecosystem functions on which humans depend. To assess such changes in resilience, we analyse trends in the frequency of species in Great Britain that provide key ecosystem functions-specifically decomposition, carbon sequestration, pollination, pest control and cultural values. For 4,424 species over four decades, there have been significant net declines among animal species that provide pollination, pest control and cultural values. Groups providing decomposition and carbon sequestration remain relatively stable, as fewer species are in decline and these are offset by large numbers of new arrivals into Great Britain. While there is general concern about degradation of a wide range of ecosystem functions, our results suggest actions should focus on particular functions for which there is evidence of substantial erosion of their resilience.

The impact of charge transfer and structural disorder on the thermoelectric properties of cobalt intercalated TiS2

A family of phases, CoxTiS2 (0 ≤ x ≤ 0.75) has been prepared and characterised by powder X-ray and neutron diffraction, electrical and thermal transport property measurements, thermal analysis and SQUID magnetometry. With increasing cobalt content, the structure evolves from a disordered arrangement of cobalt ions in octahedral sites located in the van der Waals’ gap (x ≤ 0.2), through three different ordered vacancy phases, to a second disordered phase at x ≥ 0.67. Powder neutron diffraction reveals that both octahedral and tetrahedral inter-layer sites are occupied in Co0.67TiS2. Charge transfer from the cobalt guest to the TiS2 host affords a systematic tuning of the electrical and thermal transport properties. At low levels of cobalt intercalation (x < 0.1), the charge transfer increases the electrical conductivity sufficiently to offset the concomitant reduction in |S|. This, together with a reduction in the overall thermal conductivity leads to thermoelectric figures of merit that are 25 % higher than that of TiS2, ZT reaching 0.30 at 573 K for CoxTiS2 with 0.04 ≤ x ≤ 0.08. Whilst the electrical conductivity is further increased at higher cobalt contents, the reduction in |S| is more marked due to the higher charge carrier concentration. Furthermore both the charge carrier and lattice contributions to the thermal conductivity are increased in the electrically conductive ordered-vacancy phases, with the result that the thermoelectric performance is significantly degraded. These results illustrate the competition between the effects of charge transfer from guest to host and the disorder generated when cobalt cations are incorporated in the inter-layer space.

Taxes, corruption, and entry

Tax policies and corruption are important institutional considerations which can shape entrepreneurship. We investigate how tax rates, and the interaction between corruption and tax rates, influence variations in entry across a panel of 72 countries in the period 2005–2011. We use a series of panel estimations as well as several robustness checks to test these effects, using relevant controls for economic development, the size of the state, and other regulatory and tax policy measures. We find that higher tax rates consistently discourage entry. Further, we find that although the direct influence of corruption on entry is also consistently negative, the interaction influence of corruption and tax rate is positive. This indicates that corruption can offset the negative influence of high taxes on entry. We discuss the implications of our findings for policymakers and future research.