ISSN 2047-8747 (Print) ISSN 2047-8755 (Online) Volume 9 Issue 3 2020

Volume 8 Issue 1 - Economic Appraisal of Carbon Emitting Projects and Global Warming
Erhun Kula
This article focuses on how carbon emissions from various sources which contribute to climate change are evaluated in economics. It has been argued by some economists that in cost-benefit analysis empirically based discount rates are too high wiping out distant environmental costs of many projects to the detriment of the environment. To this effect the British Government recommended %3.5 declining discount rate over time in the economic appraisal of projects and in this way, it has been claimed, future generations would not suffer from environmental externalities, Likewise Stern Review on climate change, published in 2006 which generated a good deal of controversy, also suggested the use of a low, but not declining, discount rate especially for projects with serious environmental consequences such as global warming. In this way the distant consequences of carbon emitting projects will have bearing in the current decision - making process. This paper shows that neither Stern’s low discount rate nor the British Government’s declining figure will achieve their stated objectives because both like traditional models wipe out the environmental costs that will occur in the distant future. The paper instead recommends the use of intergenerational discounting criterion that places a substantial weight on future costs of all projects which are creating environmental externalities.
Volume 8 Issue 3 - Assessing Debt Sustainability in Zambia
M Chengo and J P S Sheefeni
Debt has been a major concern in most developing countries including Zambia and it can be traced back to their dependence on mineral resources. Majority of these nations have landed into unsustainable debt which has greatly hindered economic growth and development. This paper looked at what sustainable debt is and the different ways it can be determined. It also aimed at determining where Zambia’s current debt stands and to compare two different approaches of analysing debt sustainability. Majority of the analysis on debt sustainability has been conducted using debt ratios such as the debt-to-GDP ratio, the debt-to-exports ratio, the debt-to-government ratio. This study however used a different approach called the accounting approach which is recommended by HIPC. HIPC stands for Heavily Indebted Poor Countries and was formed by the International Monetary Fund (IMF) and World Bank to give debt relief to its member countries. The study covers the period 1980 to 2017. The study found that Zambia’s current level of debt is unsustainable based on the accounting approach and that there is no difference between HIPC and IMF results

Volume 7 Issue 3 - Stock market returns, Volatility and Credit Rating Announcement: The Case of Greece

Christos Floros, Efthalia Tabouratzi, Alexandros Garefalakis, Charamis Dimitrios

The ongoing debt crisis has led the discussion on the role of credit rating agencies (e.g. Fitch, Moody’s and S&P) during the financial crisis and their connection with the financial markets. This paper examines the impact of rating news on the returns of the Greek General Price index of the Athens Stock Exchange (ASE). We focus on the three major rating agencies of credit capacity, i.e. Fitch, Moody’s and S&P. Our study includes announcements (rating downgrades) about the Greek economy over the period 2009-2011. First, we measure the variation of volatility using closing, open, high and low prices; volatility is linked to the arrivals of financial and accounting information and news. We find evidence of high volatility for the periods December 2009 and April-June 2010. Further, we report that the negative news or downgrades have an economically and statistically significant (negative) impact on the Greek stock market returns only on the day of announcement. The Greek stock market perceives the degradation (downgrades) as surprises. These findings are recommended to financial managers and investors dealing with the Greek stock market.

Volume 8 Issue 3 - Food for thought: Greggs’ vegan sausage roll – the power of corporate outreach and brand

Dawn Carr of PETA

The global market for vegan food has seen explosive growth that shows no signs of abating. The online food-delivery platform Just Eat reported a 987% increase in demand for vegetarian and vegan food in 2017 (Just Eat, 2018).
The appetite for vegan options is being driven by young people striving to reduce the amount of harm their food choices cause to others, the planet, and their own health. One in five young people think everyone will be vegan by 2030 (Williamson, 2018). The widespread and growing availability of an abundance of tasty plant-based foods is making it easier than ever to give vegan eating a try.
Book Reviews
Kenneth Friedman reviews in Volume 8, Issue 3:
Sino-US Trade War: A New Challenge to Globalisation
Ed. Surender Mor; 105 p. 
Vista International Publishing House: Delhi; 2018
ISBN: 978-93-83905-19-5

This is a group of essays clustered, at different distances, around the general theme of the United States – People’s Republic of China trade war and its impact on India. The trade war itself, for many economists, illustrates the failure of politicians to understand economic issues. Did the P.R.C. regularly steal intellectual property? Yes. (Did the U.S., in its economic infancy, regularly steal intellectual property? Yes.) Does the P.R.C. use tariffs and government subsidies to gain ‘illicit’ advantage? Yes. (Did the U.S. for centuries use tariffs and government subsidies to gain ‘illicit’ advantage? Yes.)

Book review Volume 9, Issue 2 by Edward Price
Radical Uncertainty - Decision Making Beyond the Numbers
John Kay and Mervyn King, W. W. Norton and Company, March 2020
ISBN: 978-0-393-35357-0

Why, given we cannot perfectly reconcile our ex ante expectations with our ex post observations, do some people endlessly claim otherwise? Why, moreover, do these same people very often appear to lead markets, academia and government? And to what effect?.