Gagari Chakrabarti and Chitrakalpa Sen
The purpose of this study is to explore the inherent instability, if any, in the context of investment in stocks of environment friendly companies (or the “green” stocks) across…
Abstract
Purpose
The purpose of this study is to explore the inherent instability, if any, in the context of investment in stocks of environment friendly companies (or the “green” stocks) across the globe using the time series momentum (TSM) trading strategies.
Design/methodology/approach
Using the monthly data for the Green Indexes from the USA, the Europe and the Asia-Pacific region over 2003-2019, the authors construct TSM trading strategies to examine the efficacy of regional Green Indexes as well as two diversified global green portfolios to offer abnormal return to attract investors, particularly speculators. The authors’ explore further whether such strategies could operate as hedging instrument. A comparison of results across different regions helps the authors establish a universal nature, if any, of investment in green stocks.
Findings
The study finds that regional Green Indexes are unable to outperform the market. The global green portfolios perform significantly better. The inefficacy of the relevant time series momentum trading strategies rules out the possibility of speculations. However, the number of profitable momentum strategies is significantly higher for the diversified portfolios in longer run. The portfolios perform significantly better in outperforming the buy-only strategies as well. The stable market, escalated demand and the resulting increment in valuation of green stocks make adoption of greener technologies a choice rather than a forced obligation. This offers a solution to the problem of Tragedy of Common.
Originality/value
Sustained increase in investment in green stocks is crucial from an environment perspective, as better valuation of their stocks would indubitably convince firms to reduce their carbon footprints. A continued enthusiasm however would require investors’ faith in it. Presence of momentum profit would invite speculators leading to irrational exuberance, dwindling confidence and consequent fragility. Literature on green investment is relatively sparse with the threat of its vulnerability issues left largely unnoticed. The authors’ study fills these gaps.
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Barrie O. Pettman and Richard Dobbins
This issue is a selected bibliography covering the subject of leadership.
Abstract
This issue is a selected bibliography covering the subject of leadership.
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Wenjun Jiang, Shuli Liu and Susan Li
Green economy and economic development with high quality have set higher requirements for the development of the urban logistics industry. It can grasp the recent development…
Abstract
Purpose
Green economy and economic development with high quality have set higher requirements for the development of the urban logistics industry. It can grasp the recent development level of the urban logistics industry by measuring its environmental efficiency to guide its future development direction. The purpose of this study is to improve the environmental efficiency and development level of the urban logistics industry by using a reasonable evaluation method.
Design/methodology/approach
This paper uses information entropy to directly aggregate index weights from different models to acquire comprehensive index weights (CIWs) for calculating peer-evaluation efficiency. Then, we weight self and peer-efficiencies to obtain final efficiency. The environmental efficiencies of the urban logistics industry in Anhui Province in 2019 are obtained according to the above method.
Findings
Several findings are summarized below. The logistics industry in Anhui is in urgent need of improving environmental efficiency. The environmental efficiency of the logistics industry in North Anhui is the highest one, showing that the logistics industry in North Anhui has achieved a relative balance between economic development and environmental protection. Their final cross-efficiency values based on the CIWs are smaller than those based on the comprehensive efficiency. And the environmental efficiency of almost all urban logistics industries is lower than its economic efficiency. The findings show that the proposed method is feasible and more reasonable. More economic implications and suggestions are proposed.
Originality/value
This paper proposes an extended cross-efficiency evaluation method based on information entropy to measure the environmental efficiency of the urban logistics industry, effectively avoiding the overestimation of efficiency results.
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Şule Taşlı Pektaş, N. Şule Aybar, N. Yaprak Savut and Hunt McKinnon
The success of the efforts for green building depends largely on integrating such approaches with building design education. However, most of the existing studies on green…
Abstract
The success of the efforts for green building depends largely on integrating such approaches with building design education. However, most of the existing studies on green building have focused on the technical issues, while its socio-cultural and educational aspects have been less examined. In order to alleviate the problem, this paper presents an international workshop that explores how green building design can be taught in a global teamwork project using a green building assessment system, Leadership in Energy and Environmental Design (LEED) checklist as a framework and examples of vernacular architecture as precedents. The results of an empirical survey reveals a gap between students' general learning about green building in a developing and a developed country and suggests that a collaborative project experience may facilitate bridging the gap and exchanging technical and cultural information related to sustainability.
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This paper focuses on how the producer inspires his cooperative research partner to reduce carbon emission, by developing a menu of incentive contracts both in research and…
Abstract
Purpose
This paper focuses on how the producer inspires his cooperative research partner to reduce carbon emission, by developing a menu of incentive contracts both in research and development (R&D) stage and recycling stage.
Design/methodology/approach
The proposed mechanism combines the researcher with the producer in a two-staged closed-loop system. Based on the concept that the producer takes the environmental responsibility, this paper designs a dynamically updating contract for the producer to encourage low-carbon efforts. Meanwhile, the producer offers a menu of contracts against the asymmetric information, that is, the R&D partner owns private information on his low-carbon R&D capability. According to incentive mechanism, the researcher decides whether to tell the truth and how much effort she would exert in R&D and recycling stages.
Findings
Discriminating between different types of researchers hurts the producer’s profit. But the updated screening contract can inspire researchers to tell the truth and is beneficial in reducing carbon emissions in the two stages. The results give the optimal solutions of the incentive mechanism. The low-type researcher only obtains reservation profit, whereas the high-type is given more to induce the information.
Originality/value
This paper proposes a strategy of updating the contract factors for avoiding adverse selection and moral hazard. Considering the environmental responsibility of waste products, the producer would like to encourage low-carbon designs among the R&D partners in a closed-loop supply chain.
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Federico Echenique and Ivana Komunjer
In this article we design an econometric test for monotone comparative statics (MCS) often found in models with multiple equilibria. Our test exploits the observable implications…
Abstract
In this article we design an econometric test for monotone comparative statics (MCS) often found in models with multiple equilibria. Our test exploits the observable implications of the MCS prediction: that the extreme (high and low) conditiona l quantiles of the dependent variable increase monotonically with the explanatory variable. The main contribution of the article is to derive a likelihood-ratio test, which to the best of our knowledge is the first econometric test of MCS proposed in the literature. The test is an asymptotic “chi-bar squared” test for order restrictions on intermediate conditional quantiles. The key features of our approach are: (1) we do not need to estimate the underlying nonparametric model relating the dependent and explanatory variables to the latent disturbances; (2) we make few assumptions on the cardinality, location, or probabilities over equilibria. In particular, one can implement our test without assuming an equilibrium selection rule.