Impact of product-related environmental regulations in Asia : descriptive statistics from a survey of firms in Penang, Malaysia

This paper summarizes the main results of a unique firm survey conducted in Penang, Malaysia in 2012 on product-related environmental regulations. The results show that firms receiving foreign-direct investment have adapted well to regulations but faced more rejections. Several research questions are addressed and examined by using the survey data. Major findings are as follows. First, adaptation involves changes in input procurement and market diversification, which potentially changes the structure of supply chains. Second, belonging to global supply chains is a key factor in compliance, but this requires firms to meet tougher customer requirements. Third, there is much room for government policy to play a role in assisting firms.

Impact of product-related environmental regulations in Asia : descriptive statistics from a survey of firms in Vietnam

This paper summarizes the main results of a unique firm survey conducted in Vietnam in 2011 on product-related environmental regulations (PRERs). The results of this survey are compared with the results of a corresponding survey of firms in Penang, Malaysia (Michida, et al. 2014b). The major findings are as follows. First, adaptation to PRERs involves changes in input procurement and results in market diversification, which potentially alters the structure of supply chains. This finding is consistent with the Malaysian survey result. Second, connections to global supply chains are key to compliance, but this requires firms to meet more stringent customer requirements. Third, government policy can play an important role in assisting firms to comply with PRERs.

The policy impact of product-related environmental regulations in Asia

This paper focuses on EU chemical regulations, RoHS and REACH, and shows these EU regulations have driven Asian countries to introduce regulations that are similar yet modified versions to the EU regulations. Asia as the world manufacturing center has extensive production networks where parts and components of a final good are traded across borders. We discuss how product-related environmental regulations could impact on firms' activities then show that if Asian countries with complex supply chains introduce different product related chemical regulations without coordinating with neighboring countries, it could work as trade barrier for manufacturing activities in the region.

Production fragmentation, upstreamness, and value-added : evidence from factory Asia 1990-2005

We exploit the recent release of the 2005 Asian Input-Output Matrix to dress a picture of the geographic fragmentation of value added in Factory Asia from 1990 to 2005. We document 3 stylized facts. The first is that the average share of foreign value added embedded in production rose by about 7 percentage points between 1990 and 2005, from 9% to 16%. The second is that, contrary to popular belief, China's production embeds a smaller share of foreign value added than other Factory Asia countries'. Between 1990 and 2005 among Factory Asia countries China grew most after Japan as a source of value added to other countries' production. Third, country-industries at the upstream and downstream extremities of the supply chain embed a smaller share of foreign value added than those with intermediate levels of upstreamness.

Spatial spillover effects in determining China's regional CO2 emission growth : 2007-2010

This paper proposes an alternative input-output based spatial-structural decomposition analysis to elucidate the role of domestic-regional heterogeneity and interregional spillover effects in determining China's regional CO2 emission growth. Our empirical results based on the 2007 and 2010 Chinese interregional input-output tables show that the changes in most regions' final demand scale, final expenditure structure and export scale give positive spatial spillover effects on other regions' CO2 emission growth, the changes in most regions' consumption and export preference help the reduction of other regions' CO2 emissions, the changes in production technology, and investment preference may give positive or negative impacts on other region's CO2 emission growth through domestic supply chains. For some regions, the aggregate spillover effect from other regions may be larger than the intra-regional effect in determining regional emission growth. All these facts can significantly help better and deeper understanding on the driving forces of China's regional CO2 emission growth, thus can enrich the policy implication concerning a narrow definition of "carbon leakage" through domestic-interregional trade, and relevant political consensus about the responsibility sharing between developed and developing regions inside China.

How does firm heterogeneity information impact the estimation of embodied carbon emissions in Chinese exports?

Using an augmented Chinese input–output table in which information about firm ownership and type of traded goods are explicitly reported, we show that ignoring firm heterogeneity causes embodied CO2 emissions in Chinese exports to be overestimated by 20% at the national level, with huge differences at the sector level, for 2007. This is because different types of firm that are allocated to the same sector of the conventional Chinese input–output table vary greatly in terms of market share, production technology and carbon intensity. This overestimation of export-related carbon emissions would be even higher if it were not for the fact that 80% of CO2 emissions embodied in exports of foreign-owned firms are, in fact, emitted by Chinese-owned firms upstream of the supply chain. The main reason is that the largest CO2 emitter, the electricity sector located upstream in Chinese domestic supply chains, is strongly dominated by Chinese-owned firms with very high carbon intensity.

Evolution not revolution of farming systemswill best feed and green the world

The challenge to properly feed a world population of 9.2 billion by 2050, that must be achieved on essentially currently cropped area, requires that food production be increased by 70%. This large increase can only be achieved by combinations of greater crop yields and more intensive cropping adapted to local conditions and availability of inputs. Farming systems are dynamic and continuously adapt to changing ecological, environmental and social conditions, while achieving greater production and resource-use efficiency by application of science and technology. This article argues that the solution to feed and green the world in 2050 is to support this evolution more strongly by providing farmers with necessary information, inputs, and recognition. There is no revolutionary alternative. Proposals to transform agriculture to low-input and organic systems would, because of low productiv- ity, exacerbate the challenge if applied in small part, and ensure failure if applied more widely. The challenge is, however, great. Irrigation, necessary to increase cropping intensity in many areas cannot be extended much more widely than at present, and it is uncertain if the current rate of crop yield increase can be maintained. Society needs greater recognition of the food-supply problem and must increase funding and support for agricultural research while it attends to issues of food waste and over consumption that can make valuable reductions to food demand from agriculture

Climate Change Impacts on Maize and Dry Bean Yields of smallholder farmers in Honduras

The rotation maize and dry bean provides the main food supply of smallholder farmers in Honduras. Crop model assessment of climate change impacts (2070?2099 compared to a 1961?1990 baseline) on a maize?dry bean rotation for several sites across a range of climatic zones and elevations in Honduras. Low productivity systems, together with an uncertain future climate, pose a high level of risk for food security. The cropping systems simulation dynamic model CropSyst was calibrated and validated upon field trail site at Zamorano, then run with baseline and future climate scenarios based upon general circulation models (GCM) and the ClimGen synthetic daily weather generator. Results indicate large uncertainty in crop production from various GCM simulations and future emissions scenarios, but generally reduced yields at low elevations by 0 % to 22 % in suitable areas for crop production and increased yield at the cooler, on the hillsides, where farming needs to reduce soil erosion with conservation techniques. Further studies are needed to investigate strategies to reduce impacts and to explore adaptation tactics.