Do China Mainland and SARs Constitute an Optimal Currency Area?Evidence from Nonlinearity and Stationarity Behavior Testing on Real Exchange Rates

In this article, we use the unrestricted two-regime autoregressive threshold model to test both nonlinearity and stationarity of China’s real exchange rate against its Hong Kong and Macau special administrative regions (SARs). Our main finding is that China’s real exchange rate is neither linear nor stationary, indicating that the purchasing power parity does not hold between China Mainland and its two SARs, which implies, to certain extent, the three economies may not meet the condition of constituting an optimal currency area.     

Thermodynamic analysis of alternative marine fuels for marine gas turbine power plants

The marine shipping industry faces challenges to reduce engine exhaust emissions and greenhouse gases (GHGs) from ships, and in particular, carbon dioxide. International regulatory bodies such as the International Maritime Organization and National Environmental Agencies of many countries have issued rules and regulations to drastically reduce GHG and emissions emanating from marine sources. This study investigates the possibility of using natural gas and hydrogen as alternative fuels to diesel oil for marine gas turbines and uses a mathematical model to assess the effect of these alternative fuels on gas turbine thermodynamic performance. Results show that since natural gas is categorized as a hydrocarbon fuel, the thermodynamic performance of the gas turbine cycle using natural gas was close to that of the diesel case. However, the gas turbine thermal efficiency was found to be slightly lower for natural gas and hydrogen fuels compared to diesel fuel.     

The coordination mechanism of supply chain finance based on tripartite game theory

Supply chain finance (SCF) is concerned because of its service efficiency for the real economy. Beside the bank, some enterprises have provided the SCF service. E-commerce platform firms develop small and micro loan system in China. A given small enterprise can apply for a loan through its platform. Based on the latest SCF developments and the relevant literature, this study focuses on the coordination mechanism of SCF. We construct a game theory model including supplier, retailer and financial service provider to analyze the decision making of them. We find the optimal solution to the supplier, retailer and financial service provider.     

Modelling the effects of physical–biological interactions and spatial variability in spawning and nursery areas on transport and retention of sardine Sardinops sagax eggs and larvae in the southern Benguela ecosystem

A particle-tracking individual-based model (IBM) coupled with a 3-D hydrodynamic model was used to investigate how spatial variability in spawning and nursery grounds may influence transport and retention of sardine (Sardinops sagax) eggs and larvae in the southern Benguela ecosystem. A temperature-dependent Bělehrádek development model based on laboratory growth data was used to determine the duration of one egg and two larval stages. Successful transport/retention depended on each particle's stage of development rather than its age. Results show that recruitment could occur in two distinct nursery areas on the west and south coasts of South Africa. Three viable recruitment ‘systems’ were identified: two are retention-based (spawned and retained on the west coast (WC–WC) or the south coast (SC–SC)) and one is transport-based (spawned on the south coast and transported to the west coast (SC–WC)). In the WC–WC system, the vertical distribution of eggs influenced retention; at intermediate depths of spawning (25–50 m) eggs avoided both offshore Ekman drift and deep cold water. In the SC–SC system, the area of spawning was important; > 50% of eggs from the eastern Agulhas Bank (EAB) were retained in the south coast nursery grounds, whereas very few eggs were transported there from west of Cape Agulhas. In the SC–WC system, area of spawning was also important; 40% of the eggs spawned on the western Agulhas Bank (WAB) were transported to the west coast nursery ground. Sardine life history strategy could be divided between two main systems: the west coast system (spawning on the WAB and WC, and recruiting to the WC) and the Agulhas Bank system (spawning on the central and eastern Agulhas Bank, and recruiting to the SC).     

Drops in the bucket? A review of onshore responses to Somali piracy

That piracy needs to be addressed onshore is a widely shared assumption. While the majority of counter-piracy measures focus on the sea, a number of onshore counter-piracy initiatives have been launched. We can observe the seeds of an alternative land-based policy approach. One set of land-based programs aims at strengthening the legal and security state apparatus to better deter and punish pirates. The other set of programs aims at addressing local populations on regional, clan or village levels. Such projects aim at increasing surveillance, sensitizing populations for the consequences of piracy, and providing rehabilitation or alternative livelihood opportunities. In this article, I review the latter type of projects and discuss the promises and difficulties of addressing piracy by such measures. I discuss five major problems: knowledge problems, implementation problems, counterintuitive consequences, tensions towards other parts of counter-piracy strategy, and the securitization of aid.     

The implications of piracy on marine insurance: some considerations for the shipowner

A prominent feature of modern day piracy is the ransom that is demanded for the safe release of the ship, cargo and crew. The recent upsurge of this type of piracy, in areas of the world that are of strategic importance to the shipping industry, has created many challenges for shipowners, underwriters and the law relating to marine insurance. The aim of this paper is to examine how the marine insurance market is being affected by the threat of modern day piracy, and seeks to identify the options that are available for the recovery of a ransom payment by the shipowner. Moreover, this study aims to identify the legal issues that might prevent a shipowner from recovering a ransom payment under an insurance policy or from the other interests in a common adventure. The study establishes that a reasonably made ransom payment by the shipowner will amount to an extraordinary expense that is taken to minimise or avert a loss. Such an act can generally be recovered under the insurance policy as a sue and labour expense or from other interests in the common adventure as a general average expense. However, illegality, unseaworthiness and exemption clauses in a marine policy are identified as being legal issues that may prevent a shipowner from recovering the ransom payment. Some of these problems may be overcome if clauses are carefully drafted to specifically cater for modern day piracy in a marine insurance policy. Several inconsistencies may also be resolved by transferring the piracy peril to war risks cover. The shipowner’s duty is to respond to the changing circumstances, by ensuring that his vessel is sufficiently equipped and the crew is properly trained to resist a hijacking.     

Built environment and pedestrian behavior at rail rapid transit stations in Bangkok

Urbanization and demands for mobility have spurred the development of mass rapid transit infrastructure in industrializing Asia. Differences between the character of pre-existing urban structure in these localities and worldwide precedents suggest a need for studies examining how new rapid transit systems function locally. This study of Bangkok’s elevated and underground rail systems identifies relationships between the built environment and pedestrian behavior surrounding stations. Based on details of 1,520 pedestrian egress trips from three elevated and three underground stations in 2006, multiple regression and analysis of variance (ANOVA) revealed that types of pedestrian destinations, reflecting land uses, were related to length of walking egress trips. Trips to shopping centers and office buildings were longer, while trips to eating places were shorter. The most common type of pedestrian trip recorded was to another vehicle, and trips to automobile taxis and motorcycle taxis figured prominently. Policy implications of the findings are considered.     

How much noise reduction at airports?

Airport noise nuisance is a negative externality especially when it occurring near urban areas. Like all externalities, noise nuisance may be a reason for government intervention. When intervening, governments should set quantitative policy targets with care. In practice, this issue is generally neglected. This line of research sets the first step towards determining optimal policy targets in the case of noise nuisance near airports, more specifically in the case of Amsterdam Airport. We use hedonic pricing to establish the benefits of noise reduction. Furthermore, we develop a bottom-up cost function to analyze the costs of reducing noise for airlines. We then equate marginal costs and benefits to establish the optimal level of noise reduction, which appears to be 3 dB in the case of Amsterdam Airport. Welfare increasing measures include alternative approach procedures, regional substitution of planes within existing fleets and early depreciation of noisy planes increase welfare. Reducing the number of flights has a negative effect on net welfare.     

Numerical investigation of characteristics of water-exit ventilated cavity collapse

The collapse of the ventilated cavitation occurring on a cylindrical vehicle during the water-exit is numerically researched. The numerical model employs the finite volume method to solve the multiphase Reynoldsaveraged Navier-Stokes (RNNS) equations and uses the volume of fluid (VOF) method to capture the free surface. A practical water wave environment that the vehicle usually encounters is reproduced in a numerical wave flume, so that the water wave’s effect on the cavity collapse flow regime is investigated. The main feature of the waterexit collapse of a ventilated cavity is studied under the wave-free condition. The result indicates that a collapsing ventilated cavity experiences two stages, in which the pattern of cavity evolution is different. In the early stage, the cavity undergoes a rapid shrinkage as a closed body. In the late stage, the cavity releases gas from the front due to the increase of the cavity pressure. The water wave effect is investigated at three typical wave phases: the wave crest, the wave trough and the wave node. Results show that when the vehicle is launched under the wave node, the cavity collapse regime remains fairly axisymmetric and is similar to the wave-free case. However, when the vehicle is launched under the wave crest and trough, the cavity evolution presents highly three-dimensional (3D) features. The results of predicted cavity size, pressure distributions and hydrodynamic forces at different wave phases show that the wave effect is relatively weak at the wave node but becomes apparent at the wave crest and trough.