This paper experimentally explores the efficiency of the Groves mechanism and a profit sharing scheme in a corporate budgeting context. Specifically, it examines the effects of anonymous communication on both incentive schemes. The results show that although the Groves mechanism is analytically superior to the profit sharing scheme, the latter turns out to be advantageous for headquarters in our experiment. This is essentially due to the effects of communication on both incentive schemes. Under the profit sharing scheme, communication improves coordination and reduces inefficient resource allocation. Under the Groves mechanism, however, it leads to stable collusion strategies of the participants, and thus increases compensation costs.

In recent years, China’s dominant role in the rare earth market and the associated impacts have strengthened the interest in the recovery of rare earth elements (REE) from secondary resources. Therefore, numerous research activities have been initiated aiming at the recovery of REEs from different types of waste streams, which includes, inter alia, neodymium-iron-boron (NdFeB) magnets. Although several research projects have successfully been completed, most experts do not expect an industrial implementation in Europe within the next years. This article analyses the reasons for this situation, addressing the availability of sufficient amounts of NdFeB wastes, the technology readiness level of the developed processes in Europe, as well as the economic aspects. Based on these analyses, an estimation of a realistic timeframe for the industrial implementation of NdFeB recycling in Europe is deduced and critically discussed.

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Electricity is an indispensable building block for sustainable development. As national and international electrification measures in rural areas of Tanzania are progressing slowly, a solar-powered mini-grid system with second-life battery storage was commissioned on an island in Lake Victoria in 2019 to support local development. This article evaluates the socio-economic impacts associated with electrification through this system. On average, 42.31 kWh of electricity could be provided per day. The daily demand of the main infrastructure (hospital and school) was 18.75 kWh on average. The remaining capacity thus offers enough potential to supply private households and possible economic activities. In order to evaluate the impact of electrification, a qualitative survey was conducted on site 12 months after commissioning, with 7% of the people living there being interviewed. Language barriers as well as intercultural hurdles made the survey difficult and required an adaptation of the on-site implementation. The focus of the survey was on the areas of health, education and economics. The study revealed that the availability of electricity has enormous potential to improve people's living conditions. Initial successes could be seen, especially in the areas of health care and the economic sector. So far, electrification has had no influence on the area of education. While the connections for the main infrastructure have been institutionally supported, the system-related electricity price of €1.30/kWh has proven to be a major obstacle for private households. This is far too high for widespread use compared to incomes. The article thus focuses on the observation that full socio-economic development through electrification can only succeed if local people can afford it. Possibilities to solve this problem are analysed. Since the energy is generated on the basis of renewable resources, the analysis focuses on the use of mechanisms of the emissions trading system (ETS). The aim is to generate revenue through the sale of certified emission reductions (CERs) for the saved CO2 emissions and thus reduce the electricity price. A reference scenario of conventional energy production forms the basis for discussion of the effectiveness of the Clean Development Mechanism (CDM) and the Carbon Initiative for Development (Ci-Dev). In addition, the approach of a monthly free quota of electricity, the free basic electricity initiative (FBE), is included in the evaluation. Graphical abstract

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