Effects of regulatory uncertainty on corporate strategy—an analysis of firms’ responses to uncertainty about post-Kyoto policy

A better understanding of corporate strategy under regulatory uncertainty enables policy makers to improve policy making efficiency and enhance regulations’ effectiveness. Based on a review of the literature on policy formulation, we propose that regulatory uncertainty is characterized by a dependence on political negotiation, a discrete scenario structure, and a discontinuous resolution. Data from a worldwide survey show that firms pursue response strategies to regulatory uncertainty that address these characteristics by participating in policy making and increasing strategic flexibility. Surprisingly, the results also show that regulatory uncertainty only partly causes firms to postpone strategic decisions. We find that existing regulation and a need to act quickly despite regulatory uncertainty are opposed to the pursuit of a postponement strategy. We conclude that improving the mechanisms by which firms participate in early stages of the policy making process could enable them to operate in a more target-oriented manner, allow for more efficient policy implementation, and increase a regulation's effectiveness.     

Environmental cross-compliance mitigates nitrogen and phosphorus pollution from Swiss agriculture

In 1993 the Swiss agricultural policy was revised with – amongst other goals – the objective of improving the environmental performance of agriculture. A voluntary agri-environmental scheme to promote integrated production (IP) was introduced. In 1999 the IP standards were integrated in cross compliance requirements and termed Proof of Ecological Performance (PEP). We evaluated the effectiveness of this policy in terms of reducing diffuse nitrogen (N) and phosphorus (P) pollution of ground and surface water. We combined monitoring schemes covering the reference period from before the introduction of IP/PEP (1990–1992) with the evaluation of cause/effect relationships in selected case-study areas. The evaluation showed an overall reduction of diffuse N and P pollution from agriculture even though some goals were not reached. Nitrate leaching declined, but only a 3–4 mg L⁻¹ reduction was observed rather than the intended decrease of 5 mg L⁻¹. The P pollution of surface waters from agriculture decreased by only 10–30% instead of 50%. The intended reduction of the nitrogen surplus of Swiss agriculture by 33% was not attained, but the P surplus of Swiss agriculture was more than halved. IP/PEP practices that improved N and P management included reduced N and P fertiliser inputs and pig and poultry feedstuffs with reduced N and P contents, both of which are a consequence of the requirement of equilibrated farm nutrient balances, as well as increased use of cover cropping and of conservation tillage systems.     

Cloud chemistry in the eastern United States, as sampled from three high-elevation sites along the Appalachian Mountains

Atmospheric deposition of acidic cloud water is thought to be one of the causes for the recent forest decline in industrialized areas of the world. The present paper presents results from the Mountain Acid Deposition Program (MADPro), a part of EPA's Clean Air Status and Trends Network, (CASTnet). We used automated cloud water collectors at three selected mountain sites (Whiteface Mt., NY; Whitetop Mt., VA; and Clingman's Dome, TN) to take hourly samples from non-precipitating clouds during temperate (non- freezing) seasons of each year from 1994 to 1997. Samples were promptly analyzed for pH, conductivity, and concentration of dissolved ions. Cloud liquid water content (LWC) and meteorological parameters were measured at each site. Mean cloud frequencies and LWC of clouds were higher at Whiteface Mt., NY, than in the Southern Appalachians. The four most prevalent ions found in cloud water samples were usually, in order of decreasing concentration: sulfate (SO²⁻₄) hydrogen (H⁺), ammonium (NH₄⁺), and nitrate (NO₃⁻). Within cloud events the concentration of these major ions tended to co-vary. Typically there was an inverse relationship between LWC of the cloud and ionic concentration of the cloud water. During the sampling season, the highest ionic concentrations were seen during mid-summer. Ionic concentrations of samples from the southern sites were significantly higher than samples from Whiteface Mt., but further analysis indicates that this is at least partially due to the north–south difference in the LWC of clouds. MADPro results are shown to be comparable with previous studies of cloud chemistry in North America.