Capital structure and asset utilization: the case of resource intensive industries

This research studies the relationship between the capital structure of a firm and its asset utilization rate in resource intensive industries. We study this issue from both private and public policy perspectives. From a private perspective, it's conceivable that a positive relationship may exist because a company is trying to increase its use of debt to effect a more efficient utilization of its assets. However, from a public policy perspective, finding a positive relationship between asset utilization and debt levels in natural resource sensitive industries may signal a sub-optimal exploitation of natural resources when debt levels rise. This research examines measures of leverage and asset utilization in firms from the mining, oil, and timber industries to determine whether the behavior alleged in the PALCO/MAXXAM case (an increased cutting rate to pay off junk bond financing) has been observed more systematically. We observe a positive relationship between leverage and asset utilization in all three industries when leverage is calculated using book value measures. When market value measures are used, this positive relationship no longer holds in the mining industry. Possible explanations for these results are offered.     

A Review of the External Positions of the Oil-Importing Developing Countries and their Relationship to the World Oil Market

Many oil-importing developing countries faced greater difficulties coping with the second oil shock (1979–80) than with the first (1973–74). The recent decline in oil prices has offset only a small part of the adverse effect of the earlier increases, and a number of these countries continue to face severe problems in servicing their external debt. This paper explores the reasons for these difficulties, which are associated in part with the higher levels of real interest rates in recent years and with the slowdown in economic activity in industrial countries. Estimates are provided of the effects of changing oil prices on the net real cost of oil imports in developing countries. The paper concludes with an assessment of the medium-term prospects for the financing of external deficits.     

Australian gold exploration 1976–2003

The Australian gold industry has grown enormously over the past 25 years. Australian mine production of gold in 2003 was 284 t, similar to that of the USA, and behind South Africa, the world's largest gold-producing nation. Gold is Australia's third largest commodity export, worth an estimated A$5.3 billion in 2003–2004.Underpinning the industry is a solid resource base that has grown by successful exploration over the past three decades. Australia ranks third in the world after South Africa and the USA in terms of its economic gold resources. The growth in Australia's gold resources has been underpinned by high levels of exploration and innovations in gold processing technologies, specifically the development of carbon-based gold extraction methods that allowed commercial treatment of low grade ores. It has been supported by advances in gold exploration methods, especially exploration geochemistry.New resources were added at existing deposits and new deposits were found, including several of world class (>100 t contained gold), in each decade over the 25-year-period but resource growth since the 1990s has been dominated by brownfields additions rather than new discoveries. Average costs of discovery have now plateauxed at around A$20–25/oz, after falling sharply during the early to mid-1990s when a number of new discoveries were made, notably in the Yandal belt in Western Australia and the Lachlan Fold Belt in New South Wales. Current gold reserve/production and gold EDR/production ratios are 12 and 19 years, respectively, and indicate that the long-term future of the Australian gold industry depends on continued high levels of exploration and the discovery of new deposits to replace mines that are currently being depleted.     

基于PPP模式的城市污水处理工程投融资研究

针对我国城市污水处理资金短缺与城市污水处理设施及管网建设严重不足的现状,探讨了近几年在公共基础设施建设领域中兴起的PPP融资模式在城市污水处理工程项目中的应用,通过分析我国的具体情况,并结合国内外成功实例,阐述了PPP模式在城市污水处理工程中的可行性,找到了民间资本在城市污水处理工程中发挥作用的途径。     

企业环境信息自愿披露法律问题研究

企业环境信息自愿公开是企业环境信息公开的重要组成部分,是促进环境保护和可持续发展的重要举措。企业环境信息自愿披露与强制披露有着明显的区别;通过法律责任的设置,保证企业自愿披露的环境信息的质量;运用各种激励措施鼓励企业自愿披露环境信息,建立企业环境信息自愿披露的健康机制。     

External Debt and Prospects for Minerals-exporting Developing Countries

This article examines the extent to which selected non-fuel minerals-exporting developing countries can rely on their traditional source of hard-currency earnings to promote future economic growth and to facilitate payments for interest and amortization of accumulated debt. The countries (and minerals) under consideration are: Chile (copper), Bolivia (tin) and Jamaica (bauxite). Incorporated into the study are sets of alternative assumptions regarding global demand for these minerals to the end of the century, market shares, mineral prices, external debt levels and interest rates. More specifically, the study examines the likely ranges of future export revenues of these countries from these minerals in the years 1990 and 2000, and the role that these future export revenues may play in servicing external debt.     

生态环境导向的开发(EOD)投融资模式创新需求

生态环境导向的开发模式是解决传统生态治理项目公益性强而经济效益较差的重要手段。本研究总结了“EOD+PPP”模式、投资人+EPC模式、ABO模式、政府专项债券和创新型贷款模式等五项模式的特点与应用案例,并从地方政府支出角度剖析了各种模式的适用条件。本文认为,当前 EOD模式的运行难点包括:产业培育周期较长,投资回报不确定性较大;开发存在诸多风险因素,缺少标准化制度体系;金融机构缺乏积极性,配套投融资考评体系建设不足。最后提出 EOD模式创新的政策建议,通过关联产业一体化实施、协同生态价值实现机制、强化风险管控评估、规范应用投融资模式为完善EOD投融资模式创新提供思路。     

Innovative Approach to Financing Energy Conservation Investments in Developing Countries

A common barrier to undertaking conservation measures in developing countries is the limited ability or the reluctance of energy users to acquire and deploy the capital needed to develop these opportunities. Industrial firms, for example, have had frequent opportunities in recent years to benefit from the use of new, more energy-efficient production technologies, but insufficient internal cash, combined with an ability to raise debt or equity capital under favourable terms, have often prevented firms from funding these investments.
Confronted with such impediments to mobilizing capital for conservation investments, some financiers and entrepreneurs in industrialized countries have recently implemented five innovative arrangements for financing conservation and other energy-related investments. These five financing arrangements are discussed. For each arrangement, the structure and operation, the distribution of risk between the energy user and the creditors/external investors, and the financial benefits that accrue to the energy user are described.     

地方政府投融资平台信息披露问题研究

地方政府投融资平台在促进地方经济发展，推动城市化进程，应对国际金融危机等方面发挥了重要作用。但由于缺乏统一的管理，各地方政府投融资平台财务状况披露不公开、不透明，债务风险急剧扩大，引起了有关部门和专家学者的高度关注。各地方政府应将融资平台的各种信息，特别是债务情况，定期向主管部门报告，建立地方投融资平台信用评价方法，使得投融资平台朝着健康、良性的方向发展。     

Greenhouse gas mitigation options in the Forest sector of Russia: National and project level assessments

Greenhouse gas (GHG) mitigation options in the Russian forest sector include: afforestation and reforestation of unforested/degraded land area; enhanced forest productivity; incorporation of nondestructive methods of wood harvesting in the forest industry; establishment of land protective forest stands; increase in stand age of final harvest in the European part of Russia; increased fire control; increased disease and pest control; and preservation of old growth forests in the Russian Far-East, which are presently threatened. Considering the implementation of all of the options presented, the GHG mitigation potential within the forest and agroforestry sectors of Russia is approximately 0.6–0.7 Pg C/yr or one half of the industrial carbon emissions of the United States. The difference between the GHG mitigation potential and the actual level of GHGs mitigated in the Russian forest sector will depend to a great degree on external financing that may be available. One possibility for external financing is through joint implementation (JI). However, under the JI process, each project will be evaluated by considering a number of criteria including also the difference between the carbon emissions or sequestration for the baseline (or reference) and the project case, the permanence of the project, and leakage. Consequently, a project level assessment must appreciate the near-term constraints that will face practitioners who attempt to realize the GHG mitigation potential in the forest and agroforestry sectors of their countries.     

A review of the PGM industry,deposit models and exploration practices: Implications for Australia's PGM potential

Australia is prospective for platinum group metal (PGM) mineralisation (in particular primary magmatic reef, primary magmatic by-product, late magmatic and hydrothermal, and alluvial placer type) but its known PGM endowment is negligible compared to that of South Africa, Russia, the USA and Canada. Most Australian PGM projects are operated by mid-cap or junior companies and form part of larger, more diverse project portfolios held by these explorers. Most projects were ‘hot’ while market conditions were favourable. However, as other metals became ‘fashionable’ and market conditions for PGM changed, so did the focus of these companies. Pure PGM companies are rare in Australia. The search for and development of PGM-only deposits in Australia are high risk business activities. No new primary PGM deposits have been discovered since the mid to late 1980s and none of the significant deposits that were discovered or evaluated in the 1980s have been mined. This review suggests that at least several A$10 million but more likely several A$100 million were sunk into PGM exploration and development projects but none advanced to the mining stage. The viability of Australian PGM projects is very sensitive to (1) metal prices, (2) the US$/A$ exchange rate, and (3) large capital expenditure requirements relative to the small size of Australian PGM-only deposits. Most PGM-only projects were initiated at times of high PGM prices. However, advanced exploration, feasibility studies and project development always lagged behind the price booms. South Africa, Russia and Canada contain approximately 98% of the known global PGM reserves. This situation has a very negative effect on the Australian PGM industry as the well-endowed nations continue to receive the lion's share of exploration spend and new projects.     

Towards emergency management of natural disasters and critical accidents: the Greek experience

This paper presents the findings of a prototype study which sought to identify factors that contribute to effective emergency management in Greece and other European states regarding both natural disasters and critical accidents. The parameters for proper action and successful intervention in operational and logistical are identified based on the document analysis and interviews with emergency responders. The interviews are conducted between state-owned and voluntary organizations. They were asked to rate in terms of their importance for effective emergency response efforts. This paper offers useful information of the organization and management of emergency response in Greece, as well as provides interesting responders' opinions data concerning important priorities in the emergency management area. Despite the fact that the data come from the Greek experience, the conclusions may be applied for a broader use in the emergency planning of disasters. The whole study has been undertaken within the European Pre-Emergencies (PreEm) project.     

Ecological Feasibility Studies in Restoration Decision Making

The restoration of degraded systems is essential for maintaining the provision of valuable ecosystem services, including the maintenance of aesthetic values. However, restoration projects often fail to reach desired goals for a variety of ecologic, financial, and social reasons. Feasibility studies that evaluate whether a restoration effort should even be attempted can enhance restoration success by highlighting potential pitfalls and gaps in knowledge before the design phase of a restoration. Feasibility studies also can bring stakeholders together before a restoration project is designed to discuss potential disagreements. For these reasons, a feasibility study was conducted to evaluate the efficacy of restoring a tidal freshwater marsh in the Potomac River near Alexandria, Virginia. The study focused on science rather than engineering questions, and thus differed in approach from other feasibility studies that are mostly engineering driven. The authors report the framework they used to conduct a feasibility study to inform other potential restoration projects with similar goals. The seven steps of the framework encompass (1) initiation of a feasibility study, (2) compilation of existing data, (3) collection of current site information, (4) examination of case studies, (5) synthesis of information in a handbook, (6) meeting with selected stakeholders, and (7) evaluation of meeting outcomes. By conducting a feasibility study using the seven-step framework, the authors set the stage for conducting future compliance studies and enhancing the chance of a successful restoration.     

The impact of commodity price risk management on the profits of a company

It is well recognized that for the producing companies hedging the commodity price using financial products like forwards or futures has become an important part of the company's production process. But apart from the direct impacts of hedging on the production and hedging costs the use of financial products affects the financing of the company: hedging the volatile commodity prices leads to a reduction of the risk premium the company has to pay for its debt capital, since hedging contributes to more confidence of the investors in the redemption of the debt. In this paper we therefore analyze this dependency of hedging and financing and derive optimal hedging extents for companies in different market situations based on a long-term model. By hedging the commodity price, companies can realize a surplus in profits. Thereby, the optimal hedging extent for a monopolist is often up to 100%, whereas for companies in a polypolistic market the optimum is always less than 100%. These results are illustrated by examples for a producing company.     

Potential for rainwater use in high-rise buildings in Australian cities

Rainwater is a traditional but underutilized water resource that has today had a resurgence due to the worldwide water crisis. This paper demonstrates the outcomes of research on the feasibility of rainwater use in high-rise residential envelopes for four Australian cities of Melbourne, Sydney, Perth and Darwin. Different climate patterns and various levels of water demand management were established for determination of storage dimensions; annual tank water use; reduction in both imported water flow and stormwater disposal; and water spillage from tanks. High level water demand management was a profoundly effective tool for reducing potable water supply, especially in combination with rainwater use. The economic feasibility of rainwater use systems were estimated; with Sydney having the shortest payback period compared to other cities either both with 3A rated appliances (8.6 years) or 5A ones installed (10.4 years). That was due to the higher and more consistent rainfall in Sydney. An outcome of this study was that Sydney was likely most suited to rainwater use, followed by Perth, Darwin, and then Melbourne. The objective of this study was to fill in the gap in estimating feasibility of rainwater use in various Australian cities. This investigation endeavors to provide assistance to water authorities and urban planners of Australian cities with the consideration of the potential of rainwater harvesting.     

The effect of the price of gold on its production: a time-series analysis

Production of gold in Australia has grown strongly in recent years. Australia is ranked the world's third largest gold producer, only South Africa and the US produce more than Australia. Most of the Australian gold production comes from one of its states, Western Australia. In this paper, we use recent developments in econometric time series analysis to present an analysis of gold production and prices during the period 1948–1994. The results show that if the price of gold (relative to costs) increases by 10% and the price (in levels) remain the same for the next 5 years, then in the first year gold production will rise by 0.3%; in the second year by 2.2%; in the third year by 7.4%; in the fourth year by 8.9% and in the fifth year by 10.7%.     

An analysis of university sustainability reports from the GRI database: an examination of influential variables

In the business context, many papers have examined whether certain variables can affect sustainability disclosure practices. However, research on universities has mainly been addressed to explore the extent of sustainability information reported with little focus on determining the factors that may affect it. This paper analyzes the influence exerted by some variables concerning the extent of information reported in the university sustainability reports included in this study. To accomplish this task, data were collected using a content analysis of the university sustainability reports extracted from the GRI sustainability disclosure database. The findings reveal that sustainability disclosure practices by universities are explained by different factors, among which are institutionalization, geographical region, external assurance and leadership. Such results are supported jointly by the underpinnings of the institutional and legitimacy theories in response to coercive and mimetic pressures and by the need to improve reputation in society.     

The environmental auditing privilege debate: Disclosure,compliance, and legislative issues

This article discusses the primary arguments advanced in the debate in favor of and against the adoption of a qualified privilege to protect audit findings and explores various alternative incentives for promoting the practice of environmental health and safety auditing and for encouraging voluntary disclosure of audit findings to the regulators. This article also examines whether establishing a privilege provides the greatest motivation to auditing and disclosure, particularly in the context of EPA's recent reevaluation of its policy on auditing.     

Advancing voluntary chemical governance? The case of the Swedish textile industry dialogue

Voluntary environmental governance is a widely used policy approach that has been criticized for its lack of effectiveness. This raises fundamental questions about how to design processes that can advance voluntary programmes in a way that makes them more successful. In this paper, we analyse a government-initiated dialogue process to phase out hazardous chemicals through voluntary action by the Swedish textile industry. The analysis shows that information transfer primarily motivated business participation, while consumer pressure, regulatory threats and traditions of government–business cooperation played minor roles. The institutional design of the dialogue ensured close interaction within a homogeneous group, but collective actions were limited by disagreement about the problems to be addressed, prior unilateral environmental commitments by leading companies, and ambivalent engagement. This case provides valuable insights into the effect of institutional design on the actual interplay between business and government and its effects on voluntary governance.     

COST SHARING IN TRANSITION: THE CASE OF PLAN 6, CENTRAL ARIZONA PROJECT1

ABSTRACT: In the past, development of Federal water resource projects depended heavily or exclusively on Federal financing of construction costs. However, pressures on the Federal budget, environmental issues, and the notion that there are economic efficiency gains when beneficiaries of Federal water resource projects increase their cost share are causing changes. The case of the Central Arizona Project Plan 6 is a noteworthy example of the transition to more non-Federal participation in water resource development. This is because the non-Federal financing is to be provided for a project already under construction. The negotiation and terms of the Plan 6 financing agreement between the Department of the Interior and multiple interests in Arizona are used as an example of how Federal water project cost sharing is in a state of transition. The negotiation process is described, a financial analysis is provided, and the terms of the agreement and policy issues that were deliberated in the Executive Branch of the Federal Government are discussed.