Environmental regulation in project‐based industries

We study the environmental regulation of industrial activities that are organized as projects. Applications arise in construction, ship and aircraft building, and film making, among other industries. Relative to manufacturing, environmental regulation is different in project‐based industries, due to the uniqueness and geographical diversity of projects, and a lack of product takeback programs. Because the amount of waste and pollution generated by project companies can be large, regulators need environmental policies to ensure reduction of waste and pollution. We consider a regulator who attempts to maximize social welfare. We model this problem as a bilevel nonlinear program. The upper level regulator specifies waste reduction targets, which the lower level project companies meet using waste stream reduction and remediation of pollution, while attempting to control their project costs. We find that high waste diversion targets lead to outcomes with little pollution, but excessive project costs and only modest waste stream reduction. Projects that have lower task precedence density, or that have pollutants with different environmental impacts, show larger increases in project cost and time resulting from regulation. We describe a subsidy for waste stream reduction that coordinates the system, and we estimate the value of coordination. We also describe a bonus that encourages truthful reporting by project companies, and evaluate the relative cost and effectiveness of the subsidy and the bonus. © 2015 Wiley Periodicals, Inc. Naval Research Logistics 62: 228–247, 2015     

The elephant in the room

When United States (US) President Barack Obama announced in 2013 that he would host the first United States-Africa leaders' summit the next year, he was greeted with considerable scepticism. Many critics thought he was just playing catch-up with other countries and organisations which had been holding Africa summits for years, especially China. But, whatever the motives, the event itself proved to be a substantial success, probably re-setting US relations with Africa for many years to come.     

The political economy of drones

This paper provides a political economy analysis of the evolution of unmanned aerial vehicles (UAV), or ‘drones’ in the USA. Focus is placed on the interplay between the polity and private economic influences, and their impact on the trajectory of political, economic, and military outcomes. We identify the initial formation of the drone industry, trace how the initial relationships between the military and the private sector expanded over time, and discuss present relationships. Understanding the historical evolution of UAV technology, as well as the major players in the industry today, is important for ongoing policy debates regarding the use of drones both domestically and internationally.     

RAIN,GROWTH, AND CIVIL WAR: THE IMPORTANCE OF LOCATION

We re‐examine the Miguel et al. (2004 Miguel, E., Satyanath, S. and Sergenti, E. 2004. Economic shocks and civil conflict: an instrumental variables approach. Journal of Political Economy, 112(4): 725–753. [Crossref], [Web of Science ®] , [Google Scholar]) study of the impact of growth on civil war, using growth in rainfall as an instrument. Miguel et al. (2004 Miguel, E., Satyanath, S. and Sergenti, E. 2004. Economic shocks and civil conflict: an instrumental variables approach. Journal of Political Economy, 112(4): 725–753. [Crossref], [Web of Science ®] , [Google Scholar]) – in our view, erroneously – include countries participating in civil wars in other states. Restricting the conflict data to states with conflict on their own territory reduces the estimated impact of economic growth on civil war. We show how spatial correlations in rainfall growth and participation in civil conflicts induce a stronger apparent relationship in the mis‐classified data.     

SUICIDE TERRORISM AND THE BACKLASH EFFECT

This paper presents a game‐theoretic model of suicide terrorism containing three agents: the terrorist leader; a targeted government; and potential terrorist supporters. Supporters join the terrorist group if they gain more from their participation than from their economic opportunities. Preemptive measures by the government can result in a backlash that encourages recruitment through new grievances. Suicide attacks can also lead to recruitment. Increases in preemption costs and/or economic opportunities can reduce the overall level of terrorism, while increasing the proportion of suicide to normal attacks. An increase in the effect of preemption on recruitment, or the propaganda effect of suicide bombings has the opposite effect of increasing normal and suicide attacks, but decreasing the proportion of suicide to normal attacks in the terrorist organization’s strategy profile.     

Strategic terrorism: The framework and its fallacies

This article seeks to lay out a comprehensive framework by which those who utilize a campaign of strategic terrorism seek to attain their ends. It identifies a distinctive modus operandi: 1) disorientation: to alienate the authorities from their citizens, reducing the government to impotence in the eyes of the population; 2) target response: to induce a target to respond in a manner that is favorable to the insurgent cause; 3) gaining legitimacy: to exploit the emotional impact of the violence to insert an alternative political message. By elucidating the strategy of terrorism, the analysis also reveals its inherent limitations. Resting on the premise that a militarily more powerful adversary will in some way feel restrained from bringing the full force of its military superiority to bear, the strategy relies exclusively on the exploitation of the psychological effects of armed action, thereby rendering it vulnerable to those who are willing to view the resolution of clashes of interest principally in terms of the tangibles of military power.