Vol. 2, No. 4, December 2018

Editor-in-chief: Prof. Johannes Platje

Contents, Title: PDF download >>

Full issue: PDF download >>

Vol. 2, No. 4, 7-37, December 2018

Life cycle extension of mobile phones. An exploration with focus on the end-consumer

Authors: Odette PENNERS, Janjaap SEMEIJN
Maastricht University, The Netherlands
Allard C.R. van RIEL
Hasselt University, Belgium
Open University of The Netherlands

Article: PDF download >>

Aim: All mobile phones will eventually become obsolete and should be collected and recycled in order to recover their high content of both dangerous and valuable materials. End-consumers play a key role in these processes as the collection and recycle systems cannot work properly without their contribution. Therefore, this exploratory study investigates how Dutch end-consumers can be stimulated to return their used mobile phones.

Design / Research methods: the factors influencing consumers’ propensity to return and recycle obsolete mobile phones are examined. The results are based on a survey conducted among end-consumers of mobile phones in the Netherlands.

Conclusions / findings: There is significant recycling potential as the majority of used mobile phones are simply kept at home. Keeping a used phone as a spare phone and being afraid of privacy disclosures are indicated as main reasons for not taking used phones to a recycling point.

Originality / value of the article: The findings indicate that personal satisfaction from recycling and knowledge or awareness of the potential dangers from not properly returning play a crucial role in influencing the propensity.

Keywords: end of life, e-waste, mobile phones, recycling, WEEE

JEL: Q01, Q53, Q56


Vol. 2, No. 4, 39-54, December 2018

An outline economic strategy for Indonesia to sustainably meet its electricity and carbon emissions targets

Authors: Uswatun HASANAH
Universitas Indonesia, Indonesia
Coventry University, UK

Article: PDF download >>

Aim: In this paper we demonstrate an outline strategy for Indonesia to move its electrical generation from fossil fuels to renewable sources in order to reduce carbon dioxide emissions whilst avoiding excessive costs. The modelling here is based on assumed present fossil fuel generating plants.

Design / Research methods: We have modelled a representative electrical generation system based on burning coal, oil and gas, and by replacing retiring stations with photovoltaic cells and wind turbines we have considered the cost and carbon dioxide implications over a 30 year period. Additionally the modelling is extended to increasing the Indonesian installed electrical capacity.

Conclusions / findings: The results show that Indonesia could meet its carbon dioxide emission reduction targets in an economic way by a phased strategy of introducing renewable energy sources. These results are preliminary and will be refined in a future article where we will include the detail of actual existing power stations, with their capacity and anticipated end of life date.

Originality / values of the article: There has been, and continues to be, a general resistance to the adoption of renewable energy. This paper shows the economic benefit that accompanies carbon dioxide reduction, and thus brings a new aspect to the consideration of carbon reduction,

Implications of the research: Indonesia faces difficulties in providing electricity whilst meeting its climate change obligations. This research points to a viable economic strategy which may not only meet those obligations, but actually increase electrical provision across the country.

Key words: Sustainable development, climate change, carbon emissions, renewable energy

JEL: C51, L94, Q01, Q42

Doi: http://dx.doi.org/10.29015/cerem.696

Vol. 2, No. 4, 55-70, December 2018

The European Neighborhood Policy: a perspective of the partner countries

Author: Małgorzata ZAJACZKOWSKI
Warsaw School of Economics, Poland

Article: PDF download >>

Aim: The aim of the paper is an analysis and assessment of the partner-countries’ various positions and interests with regard to the European Neighborhood Policy (ENP). The focus was put on expectations and reservations related to ENP in the partner countries.

Design/ research method: The analysis is based on the subject literature related to the ENP. The paper comprises three parts. The first one depicts general geopolitical overview of the ENP. Second part concentrates on partner countries different approaches towards the initiative and the third section is an attempt to examine the neighboring countries’ conflicting visions towards the ENP.

Conclusions: The widespread criticism of the outcomes of the ENP is a result of grave geopolitical turbulences, i.e.: the Mediterranean partners have experienced the Arab Spring uprisings and the Eastern neighbors have again found themselves in the orbit of particular interests of Russia. The partner countries’ visions and expectations towards the ENP are very diverse. Some of them seek to achieve economic benefits without closer political relations with the EU, others strive to achieve membership in the EU which is perceived as an inherent element of the process of successful reforms and systemic transformation.

Value of the article: The paper addresses the problem of declining the ENP. The reason is twofold: contradictory interests of the partner countries and second, floppy engagement of the UE’s institutions in forging of the ENP policy.

Limitations of the research: The analysis is limited to general political tendencies and line of actions addressed by the ENP partner countries. It resulted both from changes in the ENP agenda as well as international relations and internal turbulences in the regions.

Keywords: European Union (EU), European Neighborhood Policy (ENP), Union for the Mediterranean (UfM), Eastern Partnership (EaP), Deep and Comprehensive Free Trade Area (DCFTA), European integration.

JEL: F02, F15, F59, N74

Doi: http://dx.doi.org/10.29015/cerem.510

Vol. 2, No. 4, 71-86, December 2018

Measuring energy efficiency – structural and index decomposition analysis

Author: Paulina STACHURA
University of Warsaw, Poland

Article: PDF download >>

Aim: The aim is to recognize the main determinants of the energy efficiency improvement in transport in Poland in the years 2000-2014 using structural and index decomposition analysis, and to identify areas where there is still potential for further reduction of energy consumption.

Design / Research methods: Techniques used to analyse changes in energy use are: structural decomposition analysis and index decomposition analysis. Each of these two methods is characterized by distinctive, unique techniques and approaches, as they have developed quite independently. Index decomposition analysis measures the impact of energy efficiency gains on the level of energy consumption, at the most detailed sector disaggregation level allowed by the available data. Whereas structural decomposition analysis allows to analyse the impact of the external factors, such as technological, demand, and demographic effects, on the fluctuations of the total energy consumption. The similarities and differences between the two approaches are summarized and illustrated with a numerical example of Polish transport.

Conclusions / findings: The article recognizes the main determinants of the energy efficiency improvement in transport sector in Poland in the years 2000-2014. In case of Poland ODEX shows an overall progress of energy efficiency in transport by 24.3%. Results obtained with decomposition analysis indicate large divergences in energy efficiency improvements between modes of transport and vehicle types and identify areas where there is still potential for further reduction of energy consumption. Results from decomposing structure of energy use, show activity effect to be main reason for energy use growth. The distribution of each mode in total traffic of passengers and goods changes toward less energy efficient modes. The only factor driving down the energy use is energy savings.

Originality / value of the article: Using two methods of decomposition analysis and comparing obtained outcomes allows to get a broader view on energy use trends. Results presented in this article are a good starting point for further detailed analysis of changes in energy use of transport.

Keywords: energy efficiency, index decomposition analysis, structural decomposition analysis, indicators, energy

JEL: O13, Q40, Q56

DOI: http://dx.doi.org/10.29015/cerem.510

Vol. 2, No. 4, 87-109, December 2018

Central counterparties – risk minimizers?

Author: Magdalena Maria KOZIŃSKA
Warsaw School of Economics, Poland

Article: PDF download >>

Aim: Recently, central counterparties (CCPs) have gained on popularity due to their positive impact on the financial markets during crisis (limiting contagion on cleared instruments). The post-crisis reforms favored CCPs as risk minimizers. The aim of the article is to critically assess the functioning of the CCPs and their role in the financial system.

Design / Research methods: In order to attain the article’s goal, the critical analysis of the CCPs’ activity was performed. For that purpose, the regulations and mechanisms for CCPs’ functioning were considered. The next step was the analysis of the scale of CCPs’ activity and dependencies between CCPs and various market participants based on the accessible data. Based on the desk research and content analysis, the risks of CCPs were derived.

Conclusions / findings: CCPs are not risk minimizers, but they are risk managers (redistributors). Moreover, due to the significant increase in the their importance for the stable functioning of the financial markets, they should be treated as too big to fail institutions. Another recommendation that could be derived from analysis of CCPs’ activity is to reframe their role in terms of running macroprudential policy. Last but not least, as the importance of proper functioning of CCPs for financial markets has increased, financial safety net mechanisms should also be properly reshaped in order to accommodate expanded role of CCPs.

Originality / value of the article: The literature, especially polish, regarding the assessment of the CCPs’ roles and functions is relatively scarce, especially concerning the potential dangers connected with them. The article contains the unbiased assessment of CCPs’ impact on the financial markets and proposes inventive treatment of CCPs as risk redistributors, which are too big to fail.

Keywords: central counterparties, central clearing obligation, systemic risk, risk management, crisis, too big to fail

JEL: G01, G18, G20, G28

Doi: http://dx.doi.org/10.29015/cerem.594

Vol. 2, No. 4, 111-126, December 2018

Adjusting the employee management process to key organisational values

Author: Agnieszka MAREK
The John Paul II Catholic University of Lublin, Poland

Article: PDF download >>

Aim: The paper is aimed at highlighting the growing importance of values in both management theory and practice with a focus on aligning employee management practices with the key values in organisations which practise Management by Values (MBV).

Design / Research methods: Critical literature review and analysis of results of accessible empirical research.

Conclusions / findings: Management by Values can only yield effects if it is applied in all sections of the firm with employees taking up actions in line with the shared organizational values. That is why it is crucial to reflect the core values in recruitment and selection of employees, as well as training, motivation or work productivity assessment. The analysis of the literature revealed the need for more in-depth research on the links between staff policy and management by values, especially in management practices.

Originality / value of the paper: The paper is aimed at managers who implement MBV in their organisations as well as scholars focusing on the subject of values in management. What is more, it synthesizes different outlooks on MBV and embeds this concept in realities of Polish companies.

Limitations of the research: The literature review and analysis of the results of empirical research conducted in Polish companies indicate the growing importance of values in management practice and the necessity of constructing specific tools that would enable leaders to operationalize key values and use some indicators to assess present and potential employees in the terms of their respect for the organization’s shared values.

Keywords: key organizational values, employee management, management by values

JEL: A13, M54

DOI: http://dx.doi.org/10.29015/cerem.421

Vol. 2, No. 4, 127-177, December 2018

Double Perspective DEA on appraising property’s fair market value by Brazilian Standards

Authors: Luiz Fernando DE LYRA NOVAES
Caixa Economica Federal, Brazil
André Felipe FRAGA
Avalsoft Engenharia e Tecnologia, Brazil
Manoela Maria Rapuano DE LYRA NOVAES
Marketing Manager – BR Malls, Brazil
Luiggi SENNA
Coppead / UFRJ, Brazil

Article: PDF download >>

Objective: This article innovates when we incorporate the statistical analysis to the method of Double-Perspective Data Envelopment Analysis (DP-DEA), with the objective of obtaining an estimate of greater accuracy and reliability according to the assumptions of the Best Unbiased Estimator (BUE).

Design / Research Method: Double Perspective Data Envelopment Analysis (DP-DEA) is an extension to Classical Data Envelopment Analysis (DEA) for estimating efficiency, asset values, indicators, and other attributes from two perspectives, achieving a common result is the main objective. This article innovates in DEA methodology, in two aspects: 1. To demonstrate the ability of the DP-DEA to perform at intervals the estimation of values from a random sample; 2. Through the statistical analysis, making estimates of central tendency according to the assumptions of the Best Unbiased Estimator (BUE – Best Unbiased Estimator).

Conclusions / findings: The practical procedures performed step by step through DP-DEA according to the assumptions of the BUE, presented in its main findings and conclusions are: 1. Incorporation of statistical analysis to the DP-DEA method, which assumes assumptions of properties of the Best Estimator Non-biased; 2. Within the scope of the DEA, it presents an innovative capacity to make estimates from random samples, and; 3. At the end of the article, by simulation, able to validate modeling through the variation of property characteristics, demonstrating that the estimation of the corresponding values is consistent according to the market’s expectations.

Originality / value of the method: This article opens new avenues to be explored by the DEA community. Firstly, as a tool for valuing assets, according to the Comparative Market Data Method. In Brazil, DP-DEA has been approved by the Brazilian Association of Technical Standards for this purpose. Another innovation is to evaluate performance which results from common gain according to two perspectives, which interact in the process or procedure under analysis.

Key words: Double Perspective Data Envelopment Analysis; Real Estate Appraisal; Best Unbiased Estimator

DOI: http://dx.doi.org/10.29015/cerem.553

Vol. 2, No. 4, 179-199, December 2018

Usefulness of the concept of social savings and consumer surplus in studies on the impact of innovation on economic growth

Author: Janusz MYSZCZYSZYN
West Pomeranian University of Technology Szczecin, Poland

Article: PDF download >>

Aim: The main objective of the paper was to calculate social savings (and consumer surplus) of innovation on the example of railroads in Germany for 1985. The railways were among the most important innovations in the nineteenth century. Being aware of the limits of the social savings technique, the author included the concept of consumer surplus in his calculation

Design / Research methods: For the purpose of the research, the author used the concept of social savings proposed by Robert Fogel and consumer surplus.

Conclusions / findings: For the year 1895, social savings amounted to 2.82% (first equation) of GDP and 5.04% of GDP (second equation), taking into account elasticity of demand (-1,38), social savings amounted to 1.27% of GDP and 2.18% of GDP for Germany. The result thus elicited the author referred to the social savings from railroads as made available in literature and the author’s previous research. The author demonstrated that the social savings from the innovation were relatively small.

Originality / value of the article: The results of research are useful for examining the impact of innovation, such as railroads, on the level of social savings. The paper fills the gap in the Polish economic thinking on the use of counterfactual methods.

Implications of the research: The concept of social savings which takes into account demand elasticity can be applied successfully in evaluating the impact of (various) innovations on economic growth.

Limitations of the research: The weakness of the method may be the lack of knowledge about the real level of elasticity of demand for innovation, as well as determining the level of prices of an alternative good, especially if the use of innovation at the initial stage of bringing it to the market involves a relatively high price.

Keywords: Social savings, consumer surplus, elasticity of demand, innovation, rail transport.

JEL: N73, O30, R11

DOI: http://dx.doi.org/10.29015/cerem.288