E-Journal Politeknik Negeri Samarinda
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Global Evolution of Power Market Designs
The design of the power market
determines how the sector can address complex economic,
social, environmental, and engineering challenges to deliver
sustainable and reliable electricity at least cost to
consumers. This is no simple task, as supply and demand must
be balanced every second, multiple resource and network
constraints must be satisfied, and the market must send the
correct price signals to motivate efficient generation and
investment in the sector over time. There is significant
heterogeneity in the electricity market designs adopted by
countries globally. No “one-type-fits-all” blueprint exists,
and for any design to function well, the country, political,
and economic context matters. At this juncture, the
experimentation continues. This paper takes stock of the
global patterns and trends in the adoption of different
power market design options, utilizing a unique new Global
Power Market Structures Database (Akcura 2024) covering 230
economies for the period 1989 to 2024. The paths these
countries have taken in structuring their power markets
provide valuable lessons on the multiple models that can
support the development of the power sector in different
country contexts. The paper draws on global experience to
shed light on promising design options for the future
Opening Up to the Future
The Sri Lanka Development Update
(SLDU) has two main aims. First, it reports on key
developments over the past 12 months in Sri Lanka’s economy,
places these in longer term and global contexts, and updates
the outlook for Sri Lanka’s economy. Second, the SLDU
provides a more in-depth examination of selected economic
and policy issues. It is intended for a wide audience,
including policymakers, business leaders, financial market
participants, think tanks, non-governmental organizations
and the community of analysts and professionals interested
in Sri Lanka’s evolving economy
A Cost-Benefit Analysis under Climate Change Scenarios
Although deaths and economic losses
due to extreme heat are rising globally, heatwaves remain a
"hidden hazard" whose impacts are underrecognized
due to measurement and valuation challenges. Cities in India
are developing Heat Action Plans that combine physical
cooling measures (such as urban greening and reflective
roofs) with public health measures (such as heat-health
early warning systems). However, there is a key knowledge
gap on the relative efficacy of these actions. To inform
debate on how scarce public funds could most efficiently be
allocated to reduce deaths and productivity loss due to
extreme heat, this paper develops spatially explicit heat
risk maps for Lucknow, Chennai, and Surat under climate
scenarios; models future health and economic losses under a
“no intervention” scenario; and estimates the costs and
benefits of alternative sets of heat mitigation actions. The
modeling suggests that by 2050, the number of heat-related
deaths could rise by one-third for the case study cities,
while labor productivity losses could affect between 2 and 4
percent of their economic output. Among the interventions
typically considered in city Heat Action Plans,
benefit-to-cost ratios are favorable but vary significantly.
Urban greening investments more than cover their costs based
on the health and labor productivity benefits of the heat
stress reduction they yield (benefit-cost ratio of 3:1).
However, heat-health early warning systems offer the
greatest harm reduction per dollar invested (benefit-cost
ratios exceeding 50:1), suggesting that they are
“low-hanging fruit” whose wider implementation across Indian
and global cities should be prioritized
Poverty Lines and Spatial Differences in the Cost of Living
This paper proposes a new method for
estimating a full-coverage spatial price index using data
typically available in household budget surveys. The food
component of the index is estimated at the household level
using reported expenditures and quantities, while the
nonfood component is derived indirectly as a ratio among
subnational poverty lines. The paper extends the analytical
framework described in Deaton and Zaidi (2002) and discusses
the advantages of this new methodology
The World Bank Group in Ecuador Country Program Evaluation, Fiscal Years 2008–22
This evaluation assesses the
relevance and effectiveness of the World Bank Group’s
support to Ecuador during Fiscal Years 2008-22. In 2007, the
government of Ecuador canceled ongoing operations and
brought relations with the World Bank Group (WBG) to a near
total break. The WBG’s support to Ecuador during the
evaluation period is thus set within the context of a
gradual and deliberate restoration of a partnership,
following a six-year period (Fiscal Years 2008-13) without a
formal engagement strategy. During this hiatus, the Bank
Group took proactive steps to rebuild dialogue with the
government of Ecuador and scope partnerships, using
nonlending technical assistance to respond to requests
across different sectors and levels of government.
Furthermore, by reestablishing lending at the municipal
level, the WBG was able to demonstrate strategic and
financial value and overcome the impasse in dialogue at the
national level. This evaluation examines the Bank Group’s
strategy along two interconnected fronts. Firstly, the
gradual reestablishment of a constructive partnership with
the government after a break in relations and, secondly, the
WBG’s support to the country’s rebalancing to a fiscally
sustainable, private sector–led growth model—one that
ensured [protection of the vulnerable over the transition.
The evaluation includes that may be of relevance to future
WBG engagements in Ecuador and future WBG engagements after
a hiatus in dialogue
The Policy Drivers behind Firm-Level Adoption of Green Technologies
Addressing climate change requires
the deployment of green technologies. Using novel
transaction-level import data from firms in 35 emerging
markets in a firm-level structural gravity model, this paper
examines the trade policy determinants of firms'
imports of products associated with green value chains of
solar photovoltaic, wind power, and electric vehicles. The
panel estimates indicate that firms' import response to
tariffs is particularly adverse for products associated with
green value chains relative to average imports, driven by
the solar value chain and downstream segments across all
green value chains. This effect is pervasive for both the
values and quantities imported by firms as well as for the
probability of firms importing these products. Moreover, the
effect is even more negative for undiversified firms. In
contrast, import regulations have a smaller and more varied
impact on firms' imports of products associated with
green value chains. The findings suggest that governments in
emerging markets should avoid adopting protectionist
policies that are increasingly used in high-income
countries, as their local firms rely on imports for the
short-term diffusion of green technologies
Results and Achievements - Building Resilience : Stories of Regional Integration for DRM in South Asia Empowering Countries and Communities, Enhancing Preparedness
South Asia, a region of immense
cultural and geographical diversity and economic vitality,
is also confronted with significant disaster risk management
(DRM) challenges. Launched in 2015, the European Union-South
Asia Capacity Building for DRM Program (EU-SAR DRM Program)
supported countries and institutions to improve
preparedness, contingency planning, and service delivery to
mitigate the impacts of disasters. By enhancing the capacity
of organizations operating at national, sub-national, and
regional levels tasked with disaster preparedness, response,
and early warning, the Program actively supported the
implementation of the South Asia Regional Integration
Strategy. This strategic framework underscores the critical
importance of enhancing hydro-meteorological services,
disaster preparedness, and climate resilience as pivotal
components to facilitate regional integration. The Program
effectively implemented 16 grants, each contributing
significantly to the overarching goal of enhancing
resilience in the region. The achievements stemming from
these grants are numerous and diverse, reflecting the
multifaceted nature of DRM. This booklet offers a selection
of activities to showcase the program’s breadth and impact.
From regional knowledge sharing and institutional capacity
building in hydromet and climate services to national
applications of landslide risk screening using remote
sensing, these actions highlight the significant progress
made in strengthening the resilience of South Asian nations
and communities to weather- and climate-related disasters
and underscore the impact of collaborative efforts in DRM
Unleashing Productivity through Firm Financing
The ability of firms to finance investments in physical and human capital and innovate through digital, green, and other technologies is central to productivity and economic growth. Yet a myriad of distortions and frictions can prevent the efficient allocation of financial resources to firms, negatively impacting their growth and productivity.
Drawing from a newly constructed Orbis data set for 2.5 million private firms, Unleashing Productivity through Firm Financing shows that misallocation of finance stifles aggregate productivity. This volume focuses on the links among firm financing, financial constraints, and firm performance, using comprehensive and underexploited firm-level data for emerging market and developing economies. This work explores both the effects of firms’ access to finance and the composition of finance (equity versus debt) on firm performance. It also provides a novel, quantitative assessment of the extent of constraints in debt and equity financing for private firms of different sizes and the impact of such constraints on aggregate growth and productivity. The findings provide robust analytical underpinnings for existing, practical knowledge in supporting access to finance for small and medium-sized enterprises in emerging market and developing economies
Restoring Stability and Boosting Prosperity
The Lao PDR is facing unprecedented
macroeconomic challenges, which jeopardize hard-won
development gains. Over the past two decades, the country
attracted considerable foreign investment and fostered
regional integration, which contributed to a long period of
high economic growth. Many human development indicators
improved during the period 2000–2019, including child and
maternal mortality, school enrolment, income poverty, and
gender equity. However, economic growth was predominantly
driven by large-scale investments in capital intensive
sectors, such as mining and hydropower, which created few
jobs and entailed environmental costs. Moreover, many public
investments were financed by external debt, gradually
jeopardizing debt sustainability and macroeconomic
stability. Long-standing structural vulnerabilities have
been exacerbated by the impacts of the COVID-19 pandemic and
adverse global macroeconomic conditions. Since 2021, the
national currency has depreciated considerably, and
inflation soared. This has had a large negative impact on
living standards, with many households struggling to cope.
Meanwhile, limited spending on education, health, and social
protection is undermining human capital and thus economic
growth prospects. Significant debt pressures, especially
short-term external liquidity constraints, have pushed the
country into debt distress. This Public Finance Review
identifies priority reforms to restore macroeconomic
stability and boost prosperity. The objective of this review
is to assess recent macro-fiscal performance, evaluate
emerging fiscal risks, and propose policy reforms to secure
fiscal sustainability, restore macroeconomic stability, and
promote shared prosperity. This report is comprised of five
chapters covering the main aspects of fiscal management:
chapter 1 evaluates recent macroeconomic performance while
placing fiscal policy in the broader macroeconomic context.
Chapter 2 assesses domestic revenue mobilization efforts and
scope for reforms to enhance tax collection. Chapter 3
investigates the size and composition of public expenditure,
as well as measures to increase its efficiency and
effectiveness. Chapter 4 discusses reforms of state-owned
enterprises with a view to improving their financial
performance, operational management, and corporate
governance. Chapter 5 documents the experience with
public-private partnerships and provides recommendations to
maximize value for money and reduce fiscal risks
Does the Source of Growth Matter?
This paper presents comprehensive
findings on the relationship between economic growth and
poverty. Using a first-difference model applied to data from
more than 80 countries spanning over 20 years, the paper
investigates how changes in gross domestic product affect
the Multidimensional Poverty Index and its subcomponents,
considering variations in income level, region, and resource
dependency. The analysis confirms that economic growth
generally reduces the Multidimensional Poverty Index,
although the magnitude of the effect varies significantly.
It is less pronounced in low-income countries, Sub-Saharan
Africa, Latin America and the Caribbean, and
resource-dependent countries. The paper disaggregates gross
domestic product growth by its dimensions, revealing that
growth driven by total factor productivity, consumption, and
sustainable growth significantly decreases the
Multidimensional Poverty Index. In contrast, factors such as
human capital development, capital deepening, investment,
government spending, exports, and imports show ambiguous
effects on the Multidimensional Poverty Index. These
findings suggest that the effectiveness of these factors
depends on country-level conditions. Given the clearer
positive impact of total factor productivity, consumption,
and sustainable growth on reducing multidimensional poverty,
policy makers should prioritize strategies that promote
these types of growth to fight poverty, especially in
contexts where the effects of other growth contributors are
uncertain or not well understood