Electric cars represent the most energy efficient technical option available for passenger cars, compared to conventional combustion engine cars and vehicles based on fuel cells…
Abstract
Electric cars represent the most energy efficient technical option available for passenger cars, compared to conventional combustion engine cars and vehicles based on fuel cells. However, this requires an efficient charging infrastructure and low carbon electricity production as well. Combustion engine cars which were converted to electric cars decreased lifecycle CO2-equivalent emissions per passenger-km travelled down to one third of before, when powered by green electricity. However, through an analysis of 78 scientific reports published since 2010 for life cycle impacts from 18 aggregated impact categories, this chapter finds that the results are mixed. Taken together, however, the reduced environmental impacts of electric cars appear advantageous over combustion engine cars, with further room for improvement as impacts generated during the production phase are addressed. When it comes to battery components, Cobalt (Co) stands out as critical. Assessing the impact of electric cars on the local air quality, they are not ‘zero emission vehicles’. They emit fine dust due to tyre and brake abrasion and to dust resuspension from the street. These remaining emissions could be easily removed by adding an active filtration system to the undercarriage of electric vehicles. If electric cars are operated with electricity from fossil power plants nearby, the emissions of these plants need to be modelled with respect to possibly worsening the local air quality.
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Yu-Fen Chen, Thomas C. Chiang, Fu-Lai Lin and Sheng-Yung Yang
This chapter examines herd behavior across national borders. A dynamic latent factor model with Gibbs sampling is used to decompose the national herd behavior into the world…
Abstract
This chapter examines herd behavior across national borders. A dynamic latent factor model with Gibbs sampling is used to decompose the national herd behavior into the world, regional, and country-specific components. Testing the daily data from 2000 through 2014 for 47 countries, we find that the impact of world factor on national herd behavior is short-lived. This study indicates that world and regional factors play a significant role in explaining the variations of national herd behavior, constituting 33% of the herding variability. The significance of world and regional components is likely to produce a biased herding estimator.
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Yu‐Fen Chen, Sheng‐Yung Yang and Fu‐Lai Lin
The purpose of this paper is to: investigate whether the foreign institutional investors in Taiwan herd towards the stocks in the same industry; identify the causes of industrial…
Abstract
Purpose
The purpose of this paper is to: investigate whether the foreign institutional investors in Taiwan herd towards the stocks in the same industry; identify the causes of industrial herding; analyze whether herding behavior impacts future industrial returns; and trace the changing pattern of industrial herding, especially during the 2007‐2008 financial crisis.
Design/methodology/approach
This paper applies Sias' herding measure to identify foreign institutional industrial herding behavior. Moreover, to identify the causes and impacts of herding, the authors use regression models to analyze the relationship between foreign institutional demand for stocks in some particular industries and industrial returns, controlling industrial market capitalization, the number of firms in the industry and industrial speculative intensity. The above methods are applied to the full sample period, as well as two sub‐periods, respectively, to trace the time‐varying trading behavior.
Findings
First, on average, foreign institutional investors herd in the Taiwan securities market. They follow each other into and out of the same industries. Second, they were momentum traders in the tranquil period from 2002 to 2006 and contrarian traders in the period of 2007‐2008 financial crisis. Third, such herding behavior has positive impacts on future industrial returns both in the tranquil period as well as in turbulent time. The authors thus conclude that foreign institutional investors demonstrated contrarian trading strategies to stabilize future industrial returns in the financial crisis period; they buy past losers to support the prices and sell past winners to suppress the price volatility.
Originality/value
This paper investigates foreign institutional herding behavior in an emerging market, Taiwan on the micro setting of industrial base. It identifies the causes and impacts of foreign institutional industrial herding from the outlook of information‐base versus non‐information‐base trading. It also traces time‐varying herding behavior, especially during the 2007‐2008 financial crisis. This paper provides useful information to investors participating in emerging markets like Taiwan.
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Fu Lai Tony Yu and Diana S. Kwan
The purpose of this paper is to explain the miraculous rise of the mobile phone industry in China in particular and China’s impressive industrial growth in recent decades in…
Abstract
Purpose
The purpose of this paper is to explain the miraculous rise of the mobile phone industry in China in particular and China’s impressive industrial growth in recent decades in general.
Design/methodology/approach
This paper uses qualitative or story-telling approach for empirical analysis. Specifically, it uses case studies to illustrate the authors’ arguments.
Findings
Utilizing the theory of imitative strategies of latecomer firms and I.M. Kirzner’s concept of entrepreneurial alertness, this paper argues that adaptive entrepreneurs in China’s phone industry survive by being alert to profit opportunities, flexible and adaptable to the changing environments. With limited resources and low technological capabilities at the beginning, Chinese phone makers conduct replication via reverse engineering. Through entrepreneurial learning and imitation, they are able to make indigenous or incremental innovation. The modified models with functions compatible to different groups of consumers and sold at low prices are able to penetrate the low-end markets in the Third World nations.
Practical implications
The authors’ explanation on the success of China’s mobile phone industry sheds light on broader China’s industrial growth as a result of economic reform.
Originality/value
Most studies on China’s mobile phone industry focus on technological analysis, without acknowledging the role of entrepreneurship. This study fills the gap.
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Utilises recent advances in the evolutionary theories of the firm to analyse the competitive strategies of small Chinese family firms in Asian latecomer economies such as Hong…
Abstract
Utilises recent advances in the evolutionary theories of the firm to analyse the competitive strategies of small Chinese family firms in Asian latecomer economies such as Hong Kong, Taiwan and Nangyang. Begins with an examination of the distinctive features of a Chinese family firm. Argues that the unique features of these establishments form firms’ resource bases and contribute to their competitive advantages. The two notable competitive advantages are: the capability to maintain a high degree of flexibility; and reducing transaction costs. These arguments are analysed from two aspects: first, the organisational structure and internal communication methods (internal capabilities), and second, the subcontracting networks (external capabilities). Furthermore, given the organisational structure and the resource bases, most Chinese family firms choose not to upgrade their technological bases within global competition. Rather, they tend to pursue guerrilla entrepreneurship, imitative follower‐my‐leader and specialise in international co‐ordination. These strategies enable them to compete and survive in the world market.
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Applies Kirzner’s concept of entrepreneurship to explain the economic success of Hong Kong. The city economy possesses neither natural resources, nor sophisticated technologies…
Abstract
Applies Kirzner’s concept of entrepreneurship to explain the economic success of Hong Kong. The city economy possesses neither natural resources, nor sophisticated technologies, and yet it has successfully developed into one of the most prosperous economies in East Asia. This study argues that Hong Kong’s industrial dynamism relies mainly on a large number of adaptive entrepreneurs who are constantly alert to opportunities, maintain a high degree of flexibility in their production and respond rapidly to change. In the textile and garment industry, firms survived by pursuing a product imitation strategy, operating at a small‐scale, extensively utilizing subcontracting networks, producing customer label garments as well as performing spatial arbitrageurship. Employing these adaptive entrepreneurial strategies, Hong Kong manufacturers have learnt from foreign firms and imitated their products. By selling improved commodities at lower prices, they have competed against the original suppliers from the western advanced countries. Furthermore, to exploit new profit opportunities, Hong Kong’s entrepreneurs have shifted their production activities from one product to another, from one industry to another, from higher cost to lower cost regions, from traditional fishing and agriculture into manufacturing, and then to finance and other services. Their efforts have brought about structural transformation in the economy and enabled Hong Kong to catch up with early industrialized nations.