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                    <text>Hydrogen Production via Natural Gas Reforming Process – A Life Cycle Assessment
Approach
Murat Öztürk, Nuri Özek
Department of Physics, Faculty of Art and Sciences, Suleyman Demirel Univesity,
32260Isparta/ Turkey
E-mails: muratozturk@sdu.edu.tr, nuriozek@sdu.edu.tr
Abstract
The use of hydrogen as a sustainable alternative fuel and energy carrier is gaining more
acceptance as the environmental impact of hydrocarbons becomes more significant. Hydrogen
can be produced from various energy sources, such as steam reforming of natural gas, coal
gasification, water electrolysis and thermo-chemical water splitting. Hydrogen production is
accomplished by steam reforming of natural gas and other fossil primary energy at
approximately 97% of total and less than 3% is based on renewable energy sources, such as
solar, wind, biomass, geothermal, etc. Today, steam reforming of natural gas is the most
important and economic ways of the hydrogen production. The environmental performance of
products or processes has become a key issue, which is why ways to minimize the effects on
the environment are investigated. One of the effective ways for this purpose is life cycle
assessment (LCA). In this paper, LCA of hydrogen production by natural gas reforming
(NGR) process are investigated for environmental affect. The investigation uses LCA, which
is an analytical tool to identify and quantify environmentally critical phases during the life
cycle of a system or a product and/or to evaluate and decrease the overall environmental
impact of the system or product.
Keywords: Environmental effects, hydrogen production, LCA, natural gas reforming

252

�1. INTRODUCTION
The energy carrier hydrogen can help solve some energy challenges. Since, its oxidation does
not emit greenhouse gases; its use does not contribute climate change, provided it is derived
from clean energy sources. Moreover, conversion to electricity via fuel cells is efficient and
environmental benign (Solli 2004). There are several ways to produce hydrogen including
steam reforming of natural gas, coal gasification, water electrolysis and thermo-chemical
cycles. The most commonly used method for hydrogen production is natural gas reforming
(Dufour et. al 2009). Natural gas is one of the most important energetic resources. Its
importance is growing in the economic world. The methane reforming process is therefore
widely studied because of its importance in the petrochemical industry (Gresser and et. al
1998).
In addition, due to the increase in hydrogen demand and the importance of synthesis gas as a
major feedstock for carbon chemistry and fuel cells, methane reforming reactions have
become more important. Notably, the one site hydrogen production has received considerable
attention (Armor and et. al 1999; Roch and et. al 2003; Matsumura and et. al 2004; Kusakabe
and et. al 2004). The steam reforming of methane (SRM) is currently the most cost-effective
and highly developed method for production of hydrogen at relatively low cost and high
hydrogen to carbon ratios are desired for hydrogen production (Sharma and et. al 2007;
Profeti and et. al 2008; Xu and et. al 2008; Maluf and et. al 2009). However carbon formation
is always the main drawback of the reaction. Some recent works pointed out the basicity role
of the support and of the reduction conditions in the carbon formation. In fact, two other
factors seem to be important to decrease the carbon deposition: size of metal particles and
interactions between the metal particles and the support.
In order to evaluate potential options for the future energy strategy it is of interest to evaluate
hydrogen energy system. It has become of great interest to evaluate power system using
different criteria. In this respect there are a number of methods, which are used with
respective procedure in presenting quantitative merits for the rating of different power system
designs (Afgan and Carvalho 2000). Among popular methods applied in the evaluation of
power system are: thermodynamic method, energy cost evaluation method and LCA method.
Each of the methods is based on the optimization function reflecting a single indicator in
evaluation of individual options of power plant design. It has been noted that the energy
system complexity requires multivariable assessment taking into a consideration different
aspect of power system. It is obvious that beside the economic valorization of the power
system the modern approach has to take into a consideration other aspect of the individual
design of power system. Since energy production in the power system is based on different
physical principles each power system option will reflect the importance of different
optimization parameter. Also, each power system option will use different energy source,
which conversion in the finale energy will impose different interaction with its environment
(Afgan and et. al 2000). In this paper LCA is used to compute life cycle emissions and
material use of hydrogen production via natural gas reforming process (without CO2 capture),
and the results are compared using process criteria and value scaling for a similar plant.

�2. Analysis of Life Cycle Assessment
The concept of a LCA simply means that the inputs to the cycle (energy, materials, etc.) and
outputs (energy waste materials, products, etc.) are evaluated for each step of a product or
process life (Ciambrone 1997). LCA analysis can have a positive impact on human health, the
ecosystem and natural resources. Specially, LCA is a systematic technique that uses four steps
to assess the potential impacts associated with a product, process or service: i-) Goal
definition and scoping, ii-) life cycle inventory, iii-) life cycle impact assessment, iv-) life
cycle interpretation. It establishes the context in which the assessment is to be made and
identifies the boundaries and environmental effects to be reviewed for the assessment.
Inventory Analysis identifies and quantifies energy, water and materials usage and
environmental releases (e.g., air emissions, solid waste disposal, and wastewater discharge).
Impact Assessment assesses the human and ecological effects of energy, water, and material
usage and the environmental releases identified in the inventory analysis. Interpretation
evaluates the results of the inventory analysis and impact assessment to select the preferred
product, process or service with a clear understanding of the uncertainty and the assumptions
used to generate the results.
3. Natural Gas Reforming Process
A simplified basic diagram of a conventional steam reforming process of natural gas is shown
in Figure 1. The process basically consists of three main steps: I-) Synthesis gas generation,
II-) water-gas shift reaction, and III-) gas purification. Natural gas feedstock is mixed with
process steam and reacted over a nickel based catalyst contained inside a system of alloyed
steel tubes (Steinberg and Cheng 1988). To protect the catalyst, natural gas has to be
desulphurized before being fed to the reformer. The following reactions take place in the
reformer (Veziroglu and Barbir 1998).
(

)

(H=+206.16 kJ/molCH4)

(1)
(H=-41.15 kJ/molCO)
(2)
The reforming reaction is strongly endothermic and energy is supplied by combustion of
natural gas. The metallurgy of the tubes usually limits the reaction temperature to 700-925°C.
The synthesis gas leaving a catalytic reformer is typically a mixture of H2, CO, CO2 and
CH4. After the reformer the gas mixture passes through gas purification units to remove CO2,
the remaining CO and other impurities in order to deliver purified hydrogen. Several
commercial processes can be used for removing CO2 (and CO), such as wet scrubbing,
pressure swing adsorption, and recently membrane processes.

254

�Shift
conversion

Heat recovery
CH4

Gas
purification
H2

Desulfurization

CO2

Reformer

Sulfur

Fuel

Figure 1. Block diagram of hydrogen production via NGR process
4. Environmental Assessment of Hydrogen Production via NGR Process
LCA analysis is carried out by the National Renewable Energy Laboratory (NREL) for
renewable-based (wind electrolysis) and fossil-based (NGR process) system in order to
compare the two different types of systems currently seen as feasible near-term hydrogen
generation options (Spath and Mann 2001). The natural gas system considered in NREL study
was assumed to be sized as 1:5 millionNm3/day. This reflects the typical size of the current
systems found in oil refineries. In this study, unlike the literature (Spath and Mann 2001),
impact values of material use and environment are scaled and also it is determined that which
impact values should be improved.
4.1. Material Use and Environmental Impacts
Regional Air Impacts; The main air pollutions and the quantities emitted to the air during the
life cycle of NGR process are given in Table 1. Most of the air emissions in the hydrogen
production process originate from the natural gas production and distribution process steps.
NGR process plant itself produces a small amount of the listed air emissions during its
operation. The regional air emissions from the life-cycle of the process result in a total of 47.7
g/kgH2 of air emissions.
Table 1. Air emission of NGR process

255

Pollutant

Emission
(g/kgH2)

Pollutant

Emission
(g/kgH2)

Benzene (C6H6)

1.4

Non-methane hydrocarbons

16.8

�Carbon monoxide (CO) 5.7

Particulates matter

2.0

Nitrogen oxide (N2O)

Sulfur oxide (S2O)

9.5

Total emission

12.3

47.7

Global Warming; The greenhouse gases carbon dioxide (CO2), methane (CH4) and nitrous
oxide (N2O) are considered as contributing factors for the global warming potential (GWP) of
the system, which is expressed as the amount equivalent to CO2 emissions. GWP of CH4 and
N2O are 21 and 310 times that of CO2, respectively. Therefore, the GWP of the NGR process
is found to be 11,888 gCO2-equivalent/kgH2, with contributions of 89.3%, 10.6% and 0.1%
from CO2, CH4 and N2O, respectively. The distributions of the greenhouse gas emissions are
as follows: 25% from natural gas production and distribution, 2.3% from electricity
generation, 0.4% from construction and decommissioning, 78.4% from hydrogen plant
operation and -2:5% (credit) from avoided operations.
Water Impacts; The total amount of water emission from NGR process plant is 0.2 g/kgH2,
with the primary pollutant being oils (60%) followed by dissolved matter (29%). The water
pollutants come primarily from the material manufacturing steps required for pipeline and
plant construction.
Solid Wastes; The total amount of solid waste generated by the NGR process is 202 g/kgH2, a
majority of which comes from the natural gas production and distribution steps. The
compressor stations and the natural gas reforming plant have electricity requirements that are
significant (80% of solid waste generation is due to these power requirements). The electricity
required to operate the pumps and compressors in the system are provided from the national
grid.
Land Use; The engineering, procurement and construction company (CB&amp;I), involved in
projects for natural resource industries such as oil and gas, is annoyed about the land use of
natural gas reforming facility. An approximation of 37.5x45 m (0.17 ha) of land area for a 0.5
milNm3/day facility is given. This land area is scaled to a 1.5 milNm3/day facility size (to
mach the assumed facility size given in the literature (Spath and Mann 2001)), giving a land
area of 0.5 ha/MW.
Water Use; A total amount of 19.8 L/kgH2 of water is used in the NGR process. The majority
of the water is consumed at the hydrogen plant. The smaller percentage (24.0%) is the amount
that is consumed during the conversion of natural gas to hydrogen while the higher percentage
(71.2%) is a result of the excess steam production.
Energy Use; The total energy consumption (on LHV basis) of NGR process is 183.2
MJ/kgH2, which is mainly from the natural gas extraction and transport steps of the process.
Materials Use; The non-feedstock resources (fossil fuels, minerals and metals) utilized within
the boundaries for NGR process are given in Table 2. The most resource used is natural gas.
Iron and limestone are made use of in the construction of the pipeline that transports the
natural gas to the NGR plant, as well as the constriction of the NGR plant itself most of the oil
is consumed while producing and distributing the natural gas and coal is the main sources of
256

�electricity (which is used by the plant). A total amount of 3855 g/kgH2 of materials is used by
the system.
Table 2. Resources consumption of NGR plant

Resources

Consumption
(g/kgH2)

Resources

Consumption
(g/kgH2)

Coal

159.2

Limestone

16.0

Iron (ore)

10.3

Natural gas

3642.3

Iron (scrap)

11.1

Oil

16.4

Total Consumption

3855

4.2. Life Cycle Assessment of the Processes
The information gained on the performance of NGR process on all of the criteria is initially
entered in Table 3. The best and worst cases is the noted (based on the maximization or
minimization of the criterion from literature), and the range between the best and worst case is
indicated as seen in Table 4.
Table 3. Environmental impact, resource use and cost data for NGR process

Impacts

Value

Unit

Impacts

Value

Unit

Regional Air Impacts (RAI)

47.7

g/kgH2

Water (W)

19.8

L/kgH2

Global Warming (GW)

11888

gCO2/kgH2

Energy (E)

183.3

MJ/kgH2

Water Impacts (WI)

0.2

g/kgH2

Materials (M)

3855

g/kgH2

Solid Wastes (SW)

202

g/kgH2

Cost (C)

1.38

$/kgH2

Land (L)

0.5

ha/MW

Cost (C)

5.60

$/GJ

The data is then scaled according to these ranges, to result in values ranging from zero (the
worst) to one (the best). This calculation is done by using the following formulation.
257

�(

)⁄(

)

(3)
where, X is scaled data, Xw and Xb is the worst and best value assumed for data, respectively.
Table 4. Example data on the performance of the NGR process on the criteria and value
scaling

Criteria (Raw Data)
RAI

GW

WI

SW

L

W

E

M

C

47.7

11888

0.2

202

0.5

19.8

183.3

3855

1.38

Best

Best

Best

Best

Best

Best

Best

Best

Best

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Worst

Worst

Worst

Worst

Worst

Worst

Worst

Worst

Worst

80.0

30000

10.0

3000

3

130

500

30000

8.0

Criteria (Scaled Data)
RAI

GW

WI

SW

L

W

E

M

C

0.40

0.60

0.98

0.93

0.85

0.84

0.63

0.87

0.82

Table 4 demonstrates a portion of the raw data, best/worst cases, ranges and value scaled data
to illustrate the explanations above.
5. CONCLUSION
Environmental effects normally are not revealed in market prices. By assigning monetary
values to these effects, they will be enabled to have a place in the market, thus providing
grounds for more effective decision-making. Since the market is deficient in representing the
external costs resulting from the environmental impacts, there is no incentive to incorporate
this cost in the decision-making process. However, if the market takes the externalities into
account, then a final decision will also have to include both the private and external costs,
thus providing a fairer system. In this study, LCA of hydrogen production via natural gas
258

�reforming is presented. Obtained impact values of material use and environment are scaled
from 0 (worst) to 1 (best). Accordingly, water impacts (WI) and solid wastes (SW) impacts
values of this process are good. In addition, land (L), water (W), materials (M) and cost (C)
values are average, meaning neither good nor bad. However, it is emphasized that values of
regional air impacts (RAI), global warming (GW) and energy (E) should be improved in
terms of environment.
REFERENCES
Afgan, N.H. and Carvalho, M.G. (2000) Sustainability Assessment Method for Energy
Systems, Kluwer Academic Publisher , Boston.
Afgan, N.H., Carvalho, M.G. and Hovanov, N.V. (2000) Energy System Assessment with
sustainability Indicators, Energy Policy, 28, 603-612.
Armor, J.N. (1999) The multiple roles for catalysis in the production of H2. Applied Catalysis
A General, 176, 159-176.
Ciambrone, D.F (1997) Environmental Life Cycle Analysis. Lewis Publishers.
Dufour, J., Serrano, D.P., Galvez, J.L., Moreno, J. and Garcia C. (2009) Life cycle assessment
of processes for hydrogen production: Environmental feasibility and reduction of greenhouse
gases emissions, International Journal of Hydrogen Energy, 34, 1370-1376.
Kusakabe, K., Sotawa, K.I., and Iwamoto, T. (2004) Methane steam reforming over Ce-ZrO2supported noble metal catalysts at low temperature. Fuel Process Technology, 86, 319-326.
Maluf, S.S. and Assaf, E.M. (2009) Ni catalysts with Mo promoter for methane steam
reforming. Fuel, 88, 1547-1553.
Matsumura, Y. and Nakamor, T. (2004) Steam reforming of methane over nickel catalysts at
low reaction temperature. Applied Catalysis A General, 258, 107-114.
Profeti, L.P.R., Ticianelli, E.A. and Assaf, E.M. (2008) Co/Al2O3 catalysts promoted with
noble metals for production of hydrogen by methane steam reforming. Fuel, 87, 2076-2081.
Roch, H.S., Jun, K.W. and Park, S.E. (2003) Methane-reforming reactions over Ni/CeZrO2/q-Al2O3 catalysts. Applied Catalysis A General, 251, 275-283.
Sharma, P.O., Abraham, M.A. and Chattopadhyay, S. (2007) Development of a novel metal
monolith catalyst for natural gas steam reforming. Industrial and Engineering Chemical
Research, 46, 9053-9060.
Steinberg, M. and Cheng, H.C. (1988) Modern and prospective technologies for hydrogen
production from fossil fuels. Hydrogen Energy Progress VII, 2, 699-740, Pergamon Press.
Solli, C. (2004) Fission or fossil: A comparative life cycle assessment of two different
hydrogen production methods, Master‘s thesis, Norwegian University of Science and
Technology, Trondheim, Norway, Jun.
Xu, J., Yeung, C.M.Y., Ni, J., Meunier, F., Acerbi, N. and Fowles, M. (2008) Methane steam
reforming for hydrogen production using low water-ratios without carbon formation over
ceria coated Ni catalysts. Applied Catalysis A General, 345, 119-127.
259

�Veziroglu, T.N. and Barbir, F. (1998) Hydrogen Energy Technologies, United Nations
industrial development organization, Vienna.

Seed Micromorphological Investigations On 7 New Taxa Of Crocus Chrysanthus
(Herbert) Herbert From Turkey
Feyza Candan
Biology Dept, Botany Section, Faculty of Arts and Science, Celal Bayar University, Manisa,
Turkey
Abstract
This Investigation is made to determine seed micromorphological properties of four
subspecies and tree varieties of Crocus chrysanthus have been distinguished:Crocus
chrysanthus (Herbert) Herbert subsp. chrysanthus with 3 varieties (var. chrysanthus, var.
bicoloroceus F. Candan &amp; N. Özhatay, and var. atrovioloceus F. Candan &amp; N. Özhatay),
Crocus chrysanthus (Herbert) Herbert subsp. punctatus F. Candan &amp; N. Özhatay, Crocus
chrysanthus (Herbert) Herbert subsp. kesercioglui F. Candan &amp; N. Özhatay and Crocus
chrysanthus (Herbert) Herbert subsp. sipyleus F. Candan &amp; N. Özhatay. Scanning electron
microscope was used to determine micromorphological features as regards mature seeds of all
taxa.
Keywords: Crocus chrysanthus (Herbert) Herbert, seed micromorphology.
1.INTRODUCTION
Among the Angiosperm members, Iridaceae family is an invincible family with its attractive
flowers. The taxa that belongs Iridaceae family are herbs with rhizomes, corms and bulbs
(Mathew, 1984).
Iridaceae family is resembled with 6 genus in Turkey. These are Iris L., Hermodactylus
Miller, Gynandriris Parl., Crocus L., Romulea Maratti and Gladiolus L. (Mathew, 1984).
Crocus species are perennial plants, adopted to overcome a dry dormant period in the form of
an underground corm, in many ways resembling Colchicum L. (Mathew, 1982; Bowles 1924,
1952).
The genus Crocus L. (Iridaceae) presently consists of 90 species, mainly in the Mediterranean
Region and the drier floristic areas of the Irano-Turanien Region. The majority of species are
restricted to Turkey and the Balkans. Turkey is an especially rich country in terms of Crocus
species, with 31 species recorded in the Flora of Turkey (Mathew, 1984). The thirty-second
species mentioned in Flora of Turkey is C. boissieri Maw. This plant collected in Turkey by
Tchihotcheff in 1853 and then it has not been refound (Mathew, 2001). Since, the Flora of
Turkey was written, five new taxa were described as C. biflorus Mill. subsp. albocoronatus
260

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                <text>The use of hydrogen as a sustainable alternative fuel and energy carrier is gaining more  acceptance as the environmental impact of hydrocarbons becomes more significant. Hydrogen  can be produced from various energy sources, such as steam reforming of natural gas, coal  gasification, water electrolysis and thermo-chemical water splitting. Hydrogen production is  accomplished by steam reforming of natural gas and other fossil primary energy at  approximately 97% of total and less than 3% is based on renewable energy sources, such as  solar, wind, biomass, geothermal, etc. Today, steam reforming of natural gas is the most  important and economic ways of the hydrogen production. The environmental performance of  products or processes has become a key issue, which is why ways to minimize the effects on  the environment are investigated. One of the effective ways for this purpose is life cycle  assessment (LCA). In this paper, LCA of hydrogen production by natural gas reforming  (NGR) process are investigated for environmental affect. The investigation uses LCA, which  is an analytical tool to identify and quantify environmentally critical phases during the life  cycle of a system or a product and/or to evaluate and decrease the overall environmental  impact of the system or product.  Keywords: Environmental effects, hydrogen production, LCA, natural gas reforming</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

duties, to evaluate its effectiveness, discover weak points in its operation and propose
measures
to
eliminate
the
appearance
of
weakness.
In other words, the internal audit activity is organized by the management of the business
entity or other business entities to assist in the evaluation of the operation as a whole or to
individual segments. In terms of business and management functions in enterprises, internal
audit can be monitored as part of steering control, where business functions are subject to
examination in order to perform more efficiently, thus ensuring the functioning of an
information subsystem
which however, the guide provides information for making
appropriate business decisions. According to the definition of the Committee of audit practice
(Auditing Practice Committee-APC) Internal audit is an element of internal control sistem set
by management of the business entity, banks or other institutions for examination, evaluation
and reporting function of accounting and other controls in operation. Internal audit is
introduced in order to improve the decisions of managers or to satisfy statutory requirements.
Institute of Internal Audit in the UK, apart from this definition, the internal template defines
as an independent activity in the corporate assessment of the operation, established as a
service office of the corporation. It is a control function that works by evaluating the
adequacy and effectiveness of other controls and supervision. From these definitions can
freely conclude that the primary task of Internal Audit, through sight and evaluation to assess
the activities of the business entity, to provide adequate assistance to owners and management
of the business entity in order to more effectively engage them to perform undertaken
professional activities. For this goal to be achieved, the internal audit of users of this type of
service offers numerous analyzes, suggestions, recommendations, advice and information
directly related to activities subject to internal audit.

Do Private Savings Offset Public Savings in Turkey?
Muhittin Kaplan1, Hüseyin Kalyoncu, Hasan Göcen1
1Meliksah University, Faculty of Economics and Administrative Sciences, Department of
Economics, Kayseri, Turkey
2Meliksah University, Faculty of Economics and Administrative Sciences, Department of
International Trade and Business, Kayseri, Turkey
Email: mkaplan@meliksah.edu.tr, ,hkalyoncu@meliksah.edu.tr,hgocen@meliksah.edu.tr
Abstract
The issue of whether public savings offset private savings, and visa vice, has important
implications for the effectiveness of fiscal policy. This study examines long-run relationship
between public and private savings rates using annual Turkish data for the period 1975-2005.
The result of Engle-Granger cointegration test has shown that there is no long-run relationship
between private and public savings ratios. However,once endogenously determined structural
break is allowed, the test results confirm the existence of the cointegration relationship
between private and public savings. Econometric estimation of the offset coefficients using
both FMOLS and DOLS yields values of between -0.11 and -0.82. The results also indicate
that the potency of fiscal policy significantly reduced with the liberalization of financial
markets.
230

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Keywords: Savings, Offset coefficient, Ricardian Equivalence, DOLS, FMOLS.
JEL Classificiation: E6, H6, E21.
1. INTRODUCTION
The relationship between private and public savings has been central issue in both the
theoretical and the empirical literature. The importance of the subject stems from the fact that
the effectiveness of fiscal policy is closely related to the responsiveness of private saving to
changes in fiscal stance. The relationship between lower public deficits and national savings,
however, remains controversial both theoretically and empirically. Theoretically, while
Keynes (1936) assumes no relationship between private and public savings, Friedman (1957)
and Modigliani (1946) develop models showing full substitution between private and public
savings.Barro (1974) also introduced the notion of perfect substitutability between private and
public savings, which is called RicardianEquivalence Proposition (REP).
Although there area number of opposing views in the theoretical literature, ultimately, it is an
empirical issue to determine the extent to which private savings offset public savings. In the
empirical literature, the relationship between private and public savings is investigated for
different countries using different econometric methodologies. However, there is no
consensus over the size offset coefficient (for a survey see Seater, 1993, Holmes 2006 and
Ricciuti 2007). Studies on advanced economies have shown that about half of the change in
public savings is offset by an opposite change in private saving (Masson et. al. (1998);
Hemming et. al. (2002); Holmes (2006); Mandal and Payne (2007); Seater and Mariano
(1985); Leiderman and Razin (1988); Makin and Narayan (2009); De Castro andFernandez
(2009)). Although empirical studies are limited in number, offset coefficients were found to
be higher for developing countries than for developed countries (Loayza et. al. (2000); Lopez
et. al. (2000); De Mello et. al.(2004); Edwards (1996); Masson et. al. 1998; Bulir and Swiston
(2009)).
This study provides evidence on the validity of the REP by applying powerful econometric
techniques of DOLS and FMOLS to time series data a developing country, Turkey. This
paper is organized as follows. Section II sets out the econometric methodology and the data
employed in this study. Section III presents the results. Section IV concludes.
2. Methodology and Data
Empirical studies on testing the REP estimate the following model:
(1)

where
refers to private sector savings as a proportion of GDP,
is public sector
savings as a ratio to GDP; is the long-run public-private offset (substitution) coefficient is
the intercept term and represents usual error term. takes value between 0 (no offset) and 1 (full offset). If
, then a decrease in public sector savings is fully offset by an increase
in private sector savings.
231

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The data employed in our empirical analysis is an annual private and public sector as a
percentage of GDP obtained from State Planning Organization (SPO) publications for the
years 1975 and 2005. Before estimating the long-run offset function given in equation (1), we
first need to investigate the time series properties of the private and public sector saving
ratios. Results obtained from unit root tests which are performed to determine whether
savings variables have a unit root are presented in Table 1a (ADF, DF-GSL, PP, KPSS and
ERS unit root tests) and Table 1b (Ng-Perron). Examination of the Tables show that the null
hypothesis of unit root could not be rejected for both private and public sector savings ratios.
Table 1a. Unit Root Test Results
PSR

GSR

Constant

Constant and Trend

Constant

Constant and Trend

ADF

-1.432876

-1.133958

-1.473065

-2.322051

DF-GLS

-1.367547

-1.595668

-1.384922

-1.798766

PP

-1.454917

-1.253357

-1.479741

-1.480789

KPSS

0.538798

0.110454

9.029962

0.380299

ERS

8.002194

13.83224

8.084297

12.96383

Note: ADF, DF-GSL, PP, KPSS and ERS stand for Augmented Dickey-Fuller (1979), Phillips Perron (1988),
Elliot, Rothenberg, and Stock (1996), Kwiatkowski, Phillips, Schmidt and Shin (1992), Elliot, Rothenberg, and
Stock point optimal (ERS, 1996) unit root tests.

Table 1b. Ng-Perron Unit Root test Results
MZa

MZt

MSB

MPT

PSR

-3.24375

-1.25975

0.38836

7.53622

GSR

-3.23349

-1.27022

0.39283

7.57531

Asymptotic critical values*:
1%

-13.8000

-2.58000

0.17400

1.78000

5%

-8.10000

-1.98000

0.23300

3.17000

10%

-5.70000

-1.62000

0.27500

4.45000

Note: The number of lags used in Ng-Perron (2001) unit root test is determined by Schwarz Information Criteria
(SIC) and turned out to be zero for all specifications.

Having established that private and public savings ratios are I(1) variables, we need to test for
cointegration between private and public savings to avoid spurious regression.To determine
whether there is long-run relationship among these variables, the Engle-Granger (1987)
methodology is employed. Testing for cointegration within this methodology involves
232

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

extracting the residuals from equation (1) and testing for unit root in residuals. The EngleGranger bivariate cointegration equation and the ADF tests applied to residuals are reported in
Table 2. The optimal lag determined by using Schwarz and Akaike information criteria turned
out to be zero. The cointegration test statistic is -2.086 with a probability value of 0.251
implying non-rejection of the null of unit root in residuals. Hence, there appears to there is no
long-run relationship between private and public sectors savings ratios.
Table 2. Engle- Granger Cointegration Test
Dependent Variable
PSR

ADF test statistics (probability):

Constant

GSR

20.157

-1.009

(0.531)*

(0.101)*

-2.086 (0.251)

Test Critical values:

1% level

-3.671

5% level

-2.964

10% level

-2.621

Note: The values in parenthesis are standard errors. * indicate significant at 1% level.

However, the residual based cointegration tests have a low power in the presence of a
structural break (Gregory and Hansen, 1996). For this reason, we applied Gregory-Hansen
cointegration procedure to test whether there is long-run relationship among private and
public savings. Specifically, Gregory and Hansen (1996) provide the following three
structural break alternatives given by equations (2a-2c):
(2a)
(2b)

(2c)

where D represents a dummy variable equal to 0 if is less than or equal to unknown timing
of change , otherwise it is equal to one; is time trend; other variables are defined as before.
The first cointegration regression (2a) is allowed to have a level break, the second model
includes level shift and time trend and third model includes regime shift variable.
Given that the structural break point is unknown, Gregory-Hansen procedure involves
computing the cointegration test statistics for each possible break and taking the minimum
233

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

test statistics (ADF test) across all possible break points. That is, the break point is unknown
and determined by finding the minimum value for the ADF statistic. The Akaike Information
criterion (AIC) is used to determine the number of lags of the change in the residual used in
computing the ADF statistic and turned out to be zero for all three models. The results of the
Gregory-Hansen Cointegrationprocedure for all specifications indicate that the null of no
cointegration is rejected with an endogenous break year of 1989. The ADF statistics for
equations (2a-2c) are -5.082, -5.34836 and -5.15361 respectively and they are statistically
significant at 5 percent level.
3. Empirical Results
Having found evidence of cointegration and having established that private and public saving
are I(1), the equations (2a-2c) are estimated using the Dynamic OLS (DOLS) proposed by
Stock and Watson (1993) and the FMOLS proposed by Phillips and Hansen (1990). The
results obtained from FMOLS and DOLS estimators are presented in Tables 3a-3c.
Examination of the Tables indicates that while the FMOLS coefficients of offset (betas)
ranges between -0.82 and -0.46, the DOLS coefficients of betas ranges from -0.74 to -0.11
yielding a partial offset.For models (2a) and (2b), coefficient on government savings is
statistically significant at 1% level. However, the offset coefficient is insignificant in the
model (2c). The long-run offset coefficient estimated by FMOLS (DOLS) is -0.458 (-0.11)
but they are both statistically insignificant. However, there was statistically significant (at 5%
level) change in the slope coefficient,
, after 1989 for DOLS estimates. Thus
allowing for the slope change in the regime shift specification in the DOLS case, the long-run
coefficient is -0.72 (
. The structural break dummy, D, is significant across alternative
estimates implying the presence of structural break in the data. Taken together, the results
show that a structural break did occur in the long-run relationship between private and public
saving in 1989.
Table 3a. FMOLS and DOLS Estimates for Level Shift Model, 1975-2005

Constant

GSR

D

FMOLS

DOLS

16.129

15.734

(1.002)*

(0.682)*

-0.709

-0.741

(0.129)*

(0.0967)*

5.112

5.377

(1.268)*

(0.891)*

Note: *, **, *** indicate significance at 1%, 5% and 10% level of significance respectively. The values in
parenthesis are standard errors.

234

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Table 3b. FMOLS and DOLS Estimates for Level Shift with trend Model, 1975-2005

Constant

GSR

D

TREND

FMOLS

DOLS

18.263

13.892

(1.310)*

(1.393)*

-0.819

-0.577

(0.124)*

(0.148)*

7.320

4.693

(1.503)*

(1.049)*

-0.193

0.137

(0.084)**

(0.088)

Note: See the note in Table 3a.

Table 3c. FMOLS and DOLS Estimated for Regime Shift Model, 1975-2005

Constant

GSR

D

DGSR

FMOLS

DOLS

14.571

11.685

(2.977)*

(2.263)*

-0.458

-0.109

(0.462)

(0.349)

6.627

9.355

(3.032)**

(2.318)*

-0.268

-0.613

(0.483)

(0.322)**

Note: See the note in Table 3a.

4. Concluding Comments
This study examines the long-run relationship between private and public sector saving ratios
using FMOLS and DOLS methodologies. Empirical findings of this study can be summarized
as follows. First, there is no long-run relationship between private and public savings unless
235

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

endogenous structural break in the cointegration relationship is allowed in Turkish case.
Secondly, the extent of offset coefficients ranges from -0.82 to -0.11 supporting weak form of
Ricardian equivalence. Statistically significant change in the slope coefficient in DOLS case
also shows that the substitution (offset) between private and public savings are stronger after
1989. This point is particularly worth mentioning because financial repression in Turkish
economy was fully removed at this date. Thirdly, the results of the paper suggest that the
effectiveness of fiscal policy implementations by the government has decreased significantly
after achieving financial liberalization in 1989.The statistically significant and relatively large
coefficient (
) on regime shift variable can be taken as an evidence for this
argument.
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Edwards, S. (1996), “Why are Latin American’s savings so low? An international
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Elliot, G. and T. J. Rothenberg and J. H. Stock (1996), “Efficient tests for an autoregressive
unit root”, Econometrica, 64: 813-836.
Engle, R. F. and C. W. J. Granger (1987), “Co-integration and Error Correction:
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Gregory, A. W. and B. E. Hansen (1996), “Residual based tests of cointegration in models
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Hemming, R. and M. Kell and S. Mahfouz (2002),“The effectiveness of fiscal policy in
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OECD”, Journal of Economics and Finance, 30:285-296.
Keynes, J. M. (1936),“The general theory of employment, interest and money”, Macmillan,
Houndsmills, UK.

236

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Kwiatkowski, D. P. C. B. Phillips, P. SchmidtandY. Shin (1992), “Testingthenullhypothesis
of stationaryagainstthealternative of a unitroot”, Journal of Econometrics, 54:159-178.
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Lopez, J. H. and K. Schmidt-Hebbel, and L. Serven (2000), “How effective is fiscal policy in
raising National saving?”,Review of Economics and Statistics, 82:226-238.
Mandal, A. and J. E. Payne (2007), “The long-run relationship between private and public
savings: an empirical note”, Journal of Economics and Finance, 31: 99-103.
Masson, P. and T. Bayoumi and H. Samici (1998),“International evidence on the determinants
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237

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                <text>The issue of whether public savings offset private savings, and visa vice, has important  implications for the effectiveness of fiscal policy. This study examines long-run relationship  between public and private savings rates using annual Turkish data for the period 1975-2005.  The result of Engle-Granger cointegration test has shown that there is no long-run relationship  between private and public savings ratios. However,once endogenously determined structural  break is allowed, the test results confirm the existence of the cointegration relationship  between private and public savings. Econometric estimation of the offset coefficients using  both FMOLS and DOLS yields values of between -0.11 and -0.82. The results also indicate  that the potency of fiscal policy significantly reduced with the liberalization of financial  markets.Keywords: Savings, Offset coefficient, Ricardian Equivalence, DOLS, FMOLS.  JEL Classificiation: E6, H6, E21</text>
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                    <text>A Cross – Sectional Analysis of Environmetal Sustainability Practices
Toksari Murat1, Uçan Okyay2
1Nigde University, Department of Business,
2Nigde University, Department of Economics
E –mails: mtoksari@nigde.edu.tr, okyayu@hotmail.com
Abstract
In 1970s and 1980s the concept of sustainability developed as a process of protection for the
elements that social, economic and eceological systems need. During the Environment and
Development Summit held in 1992, decisions were made about the works to protect and
improve the environmental sustainability with the help of objective policies. By revealing
sustainability specifically focuses on the social, economic and ecological target, Brountland
report states that meeting Socia-Economic needs is limited to the carrying capacity of ecosystem.
Environmental sustainability is divided into three categories. They are resource management,
energy management and product sustainability. While, solid waste and water conservation
compose the resource managament, energy managament includes energy conservation,
renewable energy, GHG emission reduction, energy sufficient. Finally, product sustainability
involves product transportation, supply chain audit, product stewardship and Life Cycle
Program.
In this context, environmental sustainability index and environmental performance index
were prepared by the universities of Yale and Colombia. With environmental sustainability
index, it is intented to reach perfection in the current and future environmental qualities of the
countries. This index, is a tool when aiming to be qualified and is an important mechanism
for testing the environmental performance. As for environmental performance index, it has
been developed by using result-oriented indicators.
In this study, the countries whose performances enter the scope of the environmental
performance index were compared, 149 countries in 2008 and 163 countries in 2010 were
included in this index.
Keywords: Sustainability, environmental performance index, environmental sustainability
index, Turkey
454

�1.INTRODUCTION
Dictionary meaning of the concept of sustainable is “today's needs without
compromising the ability of future generations to meet their own needs met unless otherwise
indicated”. The concept of sustainability in the final report in 1987 by the United Nations
Commission on Environment and Development is defined as follows: "Humanity, without
compromising the ability to respond to the needs of future generations, by providing the daily
needs, has the ability to make development sustainable”.
The term “sustainability” was coined by the United Nations appointed Brundland
Commission and later refined by the UN Commission on Environment and Development held
in Rio de Janeiro (Blackburn, 2007). The best – known definition of sustainability, as
established by the UN Commission on Environment and Development, states that
“development is sustainable where it meets the needs of the present without compromising
the ability of future generations to meet their own needs (WCED, 1987).
The concept of sustainability on different topics in the discipline of economic
stability, debt sustainability in order to be able to express the ability of being able to continue,
such as sustainable growth around the macro-economic definitions are used extensively.
However, the concept of sustainability in all areas, especially in the field of economics
Brundland by the World Commission on Environment and Development Report, has
expanded the definition of sustainable development.
Since the 1980s, the development of international environmental discussions of
sustainable development, applied science, environmental and international policy areas
examined as a multi-faceted concept that has become the focal point of development
strategies (Carvalho, 2001: 62; Bakırtaş ve Bakırtaş, 2007: 223).
Sustainable Development, briefly, to meet the demands and needs of future
generations without restricting the ability and facilities, can be expressed as the present needs
are met.
This defines the extent of development mentioned above, under six headings
summaries spreadable. These are can be expressed as the environment, the future, quality of
life, justice, precautionary principles, and holistic thinking. In addition, there are 3
dimensions of the sustainability of the development which are indisputable and can not
distinguish between each other (Arzu Özyol, http://hydra.com.tr/uploads/kutup9.pdf):
Social Dimension: Continuing education for the public "quality of life will provide increasing
benefits for themselves and the whole of the next generations,

455

�The Economic Dimension: Due to limited resources, these resources can improve people's
quality of life and how the fairest way to determine what is the most effective way to
distribute
The Environmental Dimension: Recycled or not, the use of any determination as to ensure
the continuity of natural resource
In this context, one of the dimensions of the environmental dimension of sustainable
development for environmental sustainability are discussed for the first time in the capital of
Brazil, Rio De Janeiro on Environment and Development Summit held in 1992. In this
summit, the objective of environmental sustainability is necessary for the protection and
development policies, concluded that the aid. The most important work in this area of
Environmental Sustainability Index (CSI) 's prepared. This index is prepared jointly by Yale
University and Columbia University. Index has 21 indicators is entegrated to 76 data. This 21
quality indicators provide to compare five different subjects: the peripheral system, stress
levels of this system, the human population sensitivity to environmental degradation,
environmental stress and institutional capacity and global resposibility (Global Leaders,
2001:9).
The paper organized as follows. Section 2 discusses the theoretical background.
Section 3 summarizes the literature.The methodology is presented in Section 4. The overall
conclusion and result are in the final section.
2. Theoretical Background
Although sustainability is important for ensuring the future Quality of the global
environment, it can also be viewed as a business opportunity, an investment in the future and
a pathway to innovation and creative thinking (Satterfield et al. 2009; Hontou et al. 2006;
Cowan et al. 2010).
Today business, now more sensitivity towards environmental activities as a cost item
or to see the threat of competition as an oppurtunity rather than one have to see (Lee et al.,
2006: 292). For this reason, environmental innovation can be stated as environmental risk
education or more generally as a contribution to sustainable development goals, new ideas,
attitudias, development and implemntation of products and process (Rennizgs, 2000: 322).
Environmental product innovation in the production and even the destruction of the product
until they begin to become waste throughout the product life cycle to eliminate or reduce the
negative effects on the environment includes the innovative activities (Büyükkeklik et al.,
2010: 375).

456

�3. Literature
Author

Year

Method

Result

Robert Goodland 1996
and Herman Daly

Distinguishing
development
from
sustainability and from growth, the paper
describes the concept of natural capital and
uses the concept to present four alternative
definitions of environmental sustainability.

The final section describes
how one large development
agency, the World Bank, is
endeavoring to incorporate
these new principle into its
operaions.

Gregory Theyel

2000

There are discernible differences in the
enviromental innovation and performance of
US chemical firms that can be explained by
differences in the management practices and
characteristics of the firms.

Firms in the chemical industry
and in other industries can
learn from the leading firms in
this research. Firms that do
mak
environmental
management part of production
management are likely to be
leaders in innovation for
pollution
prevention
and
environmental performance.

Smita
B. 2003
Brunnermeier
and Mark A.
Cohen

Panel data models to study how
environmental
sustainability
by
Us
manufacturing ındustries responded to
changes
in
pollution
abadement
expenditures and regulatory enforcement
during the period 1983 through 1992.

Environmental
innovation
responded to increases in
pollution
abatement
expenditures. Also find some
emprical
evidence
that
environmental innovation is
more likely to occur in
industries
that
are
internationally competitive.

Sergio et. al.

This paper anayses and discusses the
potentional role of evolutionary theories in
environmental innovation with emphasis on
sustainability.

The study concludes that eco –
evolution is efficient when
identifying non – optimal
technological trajectories and
sustainable
options
for
innovation on the base of
existent knowledge.

2003

Allen S. Bellas 2007
and Nancy F.
457

Following their introduction in the mid - Anslysis indicates that there
1970s, fabric filters, a new type of industrial are spesific characteristics of

�Nentl

scrubber, experineced aggressive growth,
and by 1990, this new technology (EIA)
form 767, using t tests, cross tabulations and
binominal regression to identify the
characteistics of those boilers, plants and
utilities that installed fabric filters from the
alte 1970s to 1990.

David Hillier

2008

Dallas M. Cowan 2010
Et. Al.

early adopters of fabric filter
techonology such as the
capacity and age of the
associates boiler, the capacity
and size of the utility, and
whether the utility was
privately or publicly owned.

An opinion piece, that presents the view of There are those who believe
four authors on the current state of the that
marketing
and
depate in this field.
sustainability
simply
be
reconciled, while there are
others
who
argue
that
marketing can contribute to the
development of sustainable
consumption.
Benchmark analysis, They have collected
information on the sustainability programs
of the largest US companies in each of the
26 industrial sectors.

Thes have called product
sustainability one in which
toxicologist and environmental
scientist can play a vital role
helping to ensure that a
manufactured item will indeed
be considered acceptable for
distrubition now

4. Methodology
Environmental Sustainability Index was developed for monitoring of environmental
sustainability covering natural resources, past and present pollution levels, environmental
management efforts, contributions and society for the protection of the global values. This
index defines the sustainability of countries' capacity to improve the existing environmental
quality (Yıkmaz, 2011: 73).
Variables to allow comparisons between countries in the index, percent change is usually
determined. Some of them are diveded by GDP, imports of goods and services, to get avarage
values. After getting the proper comparison of variables, for the missing data, forecasting and
consolidation various transformations is applied to perform. In the first stage variables were
examined for normally distribution.
2 stage way is used for the skewness problems.
458

�If the value is larger than 2 variables are taken in natural logarithm. Next, if they are larger
than 4 after the transformation .They all transformed to old values except the variables that
have larger than 4.
Since at the normal distribution, observations are distributed symmetrically around mean
value of skew is zero(0). Statistical methods to estimate the missing data (Markov ChainMonte Carlo simulation model) were applied. However, some variables, the index of
ecological and geographical factors are not within the scope of work because of missing data
could not be estimated.
The results of distributions are truncated by "Winsorization" technique in order to prevent
skewness because of the extreme values of the data. Priorities of the indicators vary by
country, generally acceptable weights for the indicators is not known, equal weight was
applied. Indicators are equally weighted variables in the form of the firms themselves.
Preserves the relative locations of receiving countries in order to avoid differences in the
scale of the z-scores were calculated. High values for the variables expressed in a high zscores of environmental sustainability; (variable value-mean value) / standard deviation of
the variables that environmental sustainability is for high-low values, (average of the
variable-variable value) / standard deviation was calculated using the formula (WEF, 2005).
5. Results and Conclusion
It’s emphasized that when Environmental Sustainability Index score is high, it’s more likely
to leave a healthier environment to the future generations. Upon looking into the results of the
index,it’s seen that none of the countries received high scores from 21 indicators. The results
of the Environmental Sustainability Index show that, environmental performance is closely
related to ,low population density, good governance the economic vitality (WEF, 2005).
Table 1. Countries in the years 2002 and 2005 Environmental Sustainability Index (ESI)
Performance Comparison Chart
Country

ÇSE
2002

ÇSE 2002 ÇSE
Ranking
2005

ÇSE 2005 Çse Point ÇSE as the
Ranking
Difference Difference

Finland

73,9

1

75,1

1

1,2

0

Norway

73

2

73,4

2

0,4

0

Uruguay

66

6

71,8

3

5,8

3

459

�Sweden

72,6

3

71,7

4

-0,9

-1

Iceland

63,9

8

70,8

5

6,9

3

Canada

70,6

4

64,4

6

-6,2

-2

Switzerland

66,5

5

63,7

7

-2,8

-2

Guyana

-

-

62,9

8

-

-

Austria

64,2

7

62,7

9

-1,5

-2

Argentina

61,5

15

62,7

10

1,2

5

Brazil

59,6

20

62,2

11

2,6

9

Gabon

54,9

36

61,7

12

6,8

24

Australia

60,3

16

61

13

0,7

3

New
Zealand

59,9

19

61

14

1,1

5

Latvia

63

10

60,4

15

-2,6

-5

Peru

56,5

29

60,4

16

3,9

13

Paraguay

57,8

25

59,7

17

1,9

8

Costa Rica

63,2

9

59,6

18

-3,6

-9

Croatia

62,5

12

59,5

19

-3

-7

Bolivia

59,4

21

59,5

20

0,1

1

Irelan

54,8

38

59,2

21

4,4

17

Colombia

59,1

22

58,9

22

-0,2

0

Lithuania

57,2

27

58,9

23

1,7

4

Alabania

57,9

24

58,8

24

0,9

0

460

�Central
African
Republic

54,1

43

58,7

25

4,6

18

Estonia

60

17

58,2

26

-1,8

-9

Denmark

56,2

31

58,2

27

2

4

Panama

60

18

57,7

28

-2,3

-10

Slovenia

58,8

23

57,5

29

-1,3

-6

Japan

48,6

78

57,3

30

8,7

48

Germany

52,5

50

57

31

4,5

19

Namibia

57,4

26

56,8

32

-0,6

-6

Russia

49,1

73

56,1

33

7

40

Bostwana

61,8

13

55,9

34

-5,9

-21

France

55,5

33

55,2

35

-0,3

-2

Papua New 51,8
Guinea

52

55,2

36

3,4

16

Portugal

57,1

28

54,2

37

-2,9

-9

Malaysia

49,5

68

54

38

4,5

30

Congo

54,3

40

53,8

39

-0,5

1

Netherlands

55,4

34

53,7

40

-1,7

-6

Mali

47,1

85

53,7

41

6,6

44

Chile

55,1

35

53,6

42

-1,5

-7

Bhutan

56,3

30

53,5

43

-2,8

-13

Armenia

54,8

37

53,2

44

-1,6

-7

461

�Unites States 53,2

45

53

45

-0,2

0

Slovakia

61,6

14

52,8

46

-8,8

-32

Belarus

52,8

49

52,8

47

0

2

Ghana

50,2

65

52,8

48

2,6

17

Myanmar

46,2

90

52,8

49

6,6

41

Laos

45,9

92

52,5

50

6,6

42

Ecuadar

56,2

32

52,4

51

-3,8

-19

Cuba

51,2

58

52,3

53

1,1

5

Hungary

62,7

11

52

54

-10,7

-43

Tunisia

50,8

61

51,8

55

1

6

Georgia

-

-

51,5

56

-

-

Uganda

48,7

77

51,3

57

2,6

20

Moldova

54,5

39

51,2

58

-3,3

-19

Zambia

49,5

69

51,1

59

1,6

10

Senegal

47,6

81

51,1

60

3,5

21

Bosnia51,3
Hezzegovina

55

51

61

-0,3

-6

Israel

50,4

63

50,9

62

0,5

1

Tanzania

48,1

80

50,3

63

2,2

17

Nicaragua

51,8

51

50,2

64

-1,6

-13

46,1

91

50,2

65

4,1

26

Combined
Kingdom
462

�Madagascar

38,8

128

50,2

66

11,4

62

Greece

50,9

60

50,1

67

-0,8

-7

Italy

47,2

83

50,1

68

2,9

15

Cambodia

45,6

97

50,1

69

4,5

28

Mongolia

54,2

42

50

70

-4,2

-28

Bulgaria

49,3

71

50

71

0,7

0

Gambia

44,7

102

50

72

5,3

30

Thailand

51,6

54

49,8

73

-1,8

-19

Malawi

47,3

82

49,3

74

2

8

Spain

54,1

44

48,8

75

-5,3

-3,1

Indonesia

45,1

100

48,8

76

3,7

24

Kazakhstan

46,5

88

48,6

77

2,1

11

Guenia
Bissau

38,8

127

48,6

78

9,8

49

Sri Lanka

51,3

57

48,5

79

-2,8

-22

Kyrgyzstan

51,3

56

48,4

80

-2,9

-24

Venezuela

53

48

48,1

81

-4,9

-33

Guinea

45,3

98

48,1

82

2,8

16

Oman

40,2

120

47,9

83

7,7

37

Jordan

51,7

53

47,8

84

-3,9

-31

Nepal

45,2

99

47,7

85

2,5

14

Benin

45,7

94

47,5

86

1,8

8

463

�Honduras

47

47,4

87

-5,7

-40

Serbia and Montenegro

-

47,3

88

-

-88

Canary
Islands

-

-

47,3

89

-

-

Macedonia

47,2

84

47,2

90

0

-6

Turkey

50,8

62

46,6

91

-4,2

-29

Czech
Republic

50,2

64

46,6

92

-3,6

-28

Romenia

50

66

46,2

93

-3,8

-27

South Africa

48,7

76

46,2

94

-2,5

-18

Mexico

45,9

93

46,2

95

0,3

-2

Algeria

49,4

70

46

96

-3,4

-26

Burkina
Faso

45

101

45,7

97

0,7

4

Azerbaijan

41,8

113

45,4

98

3,6

15

Nigeria

36,7

133

45,4

99

8,7

34

Kenya

46,3

89

45,3

100

-1

-11

India

41,6

116

45,2

101

3,6

15

Poland

46,7

87

45

102

-1,7

-15

Chad

45,7

95

45

103

-0,7

8

Niger

39,4

123

45

104

5,6

19

Mozambique 51,1

59

44,8

105

-6,3

-46

Morocco

72

44,8

106

-4,3

-34

464

53,1

49,1

�Rwanda

40,6

119

44,8

107

4,2

12

Jamaica

40,1

121

44,7

108

4,6

13

Ukraine

35

136

44,7

109

9,7

27

United Arab 25,7
Emirates

141

44,6

110

18,9

31

Togo

44,3

105

44,5

111

0,2

-6

Belgium

39,1

125

44,4

112

5,3

13

Bangladesh

46,9

86

44,1

113

-2,8

-27

Democratic
43,3
Republic of
Congo

109

44,1

114

0,8

-5

Guetemala

49,6

67

44

115

-5,6

-48

Egyptian

48,8

74

44

116

-4,8

-42

El Salvador

48,7

75

43,8

117

-4,9

-42

Syria

43,6

107

43,8

118

0,2

-11

Deminic
Republic

48,4

79

43,7

119

-4,7

-40

Liberia

37,7

130

43,4

120

5,7

10

Sierra Leone

36,5

134

43,4

121

6,9

13

South Korea

35,9

135

43

122

7,1

13

Angola

42,4

110

42,9

123

0,5

-13

Resource: WEF 2005
142 countries in 2002 and 146 countries in 2005 were evaluated from the aspect of country
index. All the countries except Guayana, Georgia, Ivory Coasts and Somalia were both in
2002 and 2005 country index.
465

�In the table given the index average of all countries in 2002 was 49,7 and 49,9 in 2005. But
when 2002 and 2005 index values are compared, a decrease in most of the countries has been
seen. This situation indicates that environmental sustainability has decreased or it may be
because of the difference in two years indicators.
However, significant changes in country rankings can be observed. For example, Madagascar
ascends from being 128th to 66th , Japan from 78th to the 30th, Mali from 85th to 41st ,
Russia from 73rd to 33rd , Malaysia from 68th to the 38th order , but Zimbabwe descends
from being 46th to 128th, Guatemala from 67th to 115th , Egypt from 74th to 116th, and
Hungary from 11th to 54th. Turkey has 50,8 points in 2002 Index with an order of 62. In
2005 Turkey has 46,6 points and descends to the 91th order. Turkey is over the avarage in
2002 while it is under the avarage in 2005.
In this study we try to compare the two Environmental Sustainability Index in 2002 and 2005
for the world countries. This situation shows the index is very sensitive to the choice of
indicator. Low-scoring countries in 2002 are Kuwait, United Arab Emirates, North Korea,
Iraq and Saudi Arabia, while in the 2005 study, North Korea, Iraq, Taiwan, Turkmenistan and
Uzbekistan, countries receive the lowest score The highest rated 5 countries in the 2002
Environmental Sustainability Index are: Finland, Norway, Sweden, Canada, Switzerland,
while in 2005 they are: Finland, Norway, Uruguay, Sweden and Iceland. Common features of
these countries have significant natural resources and population density is low.
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http://sedac.ciesin.columbia.edu/es/esi/esı2005 (23.04.2012).

Stewardship,

Traffic Accident Detection By Using Machine Learning Methods
Nejdet Dogru, Abdulhamit Subasi
International Burch University,Sarajevo, Bosnia And Herzegovina
E –mails: ndogru@ibu.edu.ba, asubasi@ibu.edu.ba
Abstract
There are lots of studies about preventing or detecting the car accidents. Most of them
includes sensing objects which might cause accident or statistics about accidents. In this
study, a system which detects happening accidents will be studied. The system will collect
necessary information from neighbor vehicles and process that information using machine
learning tools to detect possible accidents. Machine learning algorithms have shown success
on distinguishing abnormal behaviors than normal behaviors. This study aims to analyze
traffic behavior and consider vehicles which move different than current traffic behavior as a
possible accident. Results showed that clustering algorithms can successfully detect
accidents.
1.INTRODUCTION
Recent inter vehicular studies are acquiring commercial interest via the DSRC/WAVE
standard in Vehicular Ad Hoc Networks (VANETs). Possible future services among vehicles
are topic of many studies(Xu et al., 2004; Nandan et al., 2005; Lee and Gerla, 2010)
In VANETs, vehicles are able to communicate with each other in vehicle-to-vehicle (V2V) or
with roadside network infrastructure in vehicle-to-Roadside Communication (V2R) manner.
Some of the envisioned applications for vehicular networks are : vehicle collision warning,
security distance warning, driver assistance, cooperative driving, cooperative cruise
control,dissemination of road information, internet access, map location, automatic parking,
driverless vehicles(Boukerche et al., 2008)
Most of applications need traffic speed and travel time measurements. These measurements
can be used to help roadway users to decide which route to use or when to depart etc. Also
These measurement can be saved to analyze traffic speed and travel time patterns for
different time intervals. Currently local detectors at specific points along the road are used to
468

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                <text>Neural-Network Applications for Analysis of Infilled Frame</text>
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                <text>Muhiddin, Bağcı</text>
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                <text>The modelling of infilled frames is complex due to the large number of variables as well as  the non-linear material behaviour involved. Artificial Neural Network (ANN) is found to be a  tool capable of solving such problems. This has led to the increasing use of ANN for  analysing infilled reinforced concrete frames. This paper reports the details of a study  conducted using ANN for predicting the failure of an infilled reinforced concrete infilled  frame subjected to lateral loading. Using the data generated based on analytical solutions, the  ANN model was trained. The so trained model was tested for different set of input parameters  and the output values were compared with the actual values based on analytical results. The  agreement was found to be good.  Keywords:. Artificial Neural Network (ANN), Infilled Frame, Equivalent strut method</text>
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                    <text>Neural-Network Applications for Analysis of Infilled Frame
Muhiddin Bağcı, Hakan Başaran
Celal Bayar University, 45140, Manisa, Turkey.
E-mails: muhiddin.bagci@bayar.edu.tr,hakan.basaran@bayar.edu.tr,ali.demir@bayar.edu.tr
Abstract
The modelling of infilled frames is complex due to the large number of variables as well as
the non-linear material behaviour involved. Artificial Neural Network (ANN) is found to be a
tool capable of solving such problems. This has led to the increasing use of ANN for
analysing infilled reinforced concrete frames. This paper reports the details of a study
conducted using ANN for predicting the failure of an infilled reinforced concrete infilled
frame subjected to lateral loading. Using the data generated based on analytical solutions, the
ANN model was trained. The so trained model was tested for different set of input parameters
and the output values were compared with the actual values based on analytical results. The
agreement was found to be good.
Keywords:. Artificial Neural Network (ANN), Infilled Frame, Equivalent strut method
1. INTRODUCTION
The principle behind Artificial Neural Networks is the functioning of the human brain.
Different areas in engineering and technology use this technique for solving complex
problems. In civil engineering, it is successfully applied to areas like optimal design of
structures, earthquake characterization, damage detection etc. It is found to be efficient for
analysing structures which are otherwise very difficult to analyse due to various constraints.
Different approaches have been used in the past to analyse the infilled-framed structures. In
general, the theoretical studies were followed by experiments to evaluate the reliability of the
proposed method. In most of the experimental investigations, only models are used since
testing of prototype structures will be costly, time consuming and laborious. The infill walls
are used as partitions and / or architectural elements. The presence of infill is usually
neglected in conventional designs. Since the interaction between the frame and the infill plays
an important role in the stiffness and strength of infilled frames, a method in which the infill
portion is neglected will not be a realistic one.
Maurizio Papia [1998] used numerical analysis to examine the behaviour of infilled frames
subjected to horizontal loads. Stafford Smith [1962] studied the behaviour of infilled frames
subjected to inplane loading, by replacing the infill by an equivalent strut and considering the
445

�infill neither as an integral part nor bonded to the frame. Stafford Smith and Carter [1969]
considered the possibility of failure occurring either by diagonal cracking or by crushing of
infill. By an analogy with the behaviour of beam on elastic foundation, the contact length was
expressed as a function of λh, where λ is a non-dimensional parameter. The method was
evaluated by testing a three-storey prototype building. The estimated values agreed well with
the experimental results. A six-storey steel frame with rigid joints was analysed by Jenkins
[1995] using ANN. He concluded that ANNs could be used for the analysis provided the
training data is sufficient and the number of units in the hidden layer is adequate to represent
the internal features and relationships connecting input and output values. Muralikrishna and
Gangadharam [1999] investigated a single bay single storey portal frame subjected to inplane
nodal loads and demonstrated that ANN can accommodate the non-linear behaviour of
infill/frame materials as well as their non-homogeneity and, the uncertainties like lack of fit
at the frame/infill.
2. ARTIFICIAL NEURAL NETWORKS
The present study is concerned with the prediction of the collapse load and the displacement
of infilled reinforced concrete frames under lateral loading using ANN .For this, a five storey
building with number of bays ranging from one to five is considered. The data for training
and testing were formed using analytical results.For generating the data analytically,
equivalent strut method was used. The database consists of 63 sets of results, of which 55 sets
were used for training the network, and the remaining 8 were used for testing
2.1. Equivalent Strut Method
The design method based on equivalent strut concept developed by Stafford Smith and Carter
[1969] is used here for the analysis. This method predicts the lateral strength and stiffness of
the brick infilled composite frame .
The stiffness and strength of an infilled panel depend not only on its dimensions and physical
properties but also on its length of contact with the surrounding frames. The length of contact
α is governed by the relative stiffness of the infill and the frame and Stafford Smith and
Carter [1969] suggest an approximate relation,


h




2h

(1)

in which h= height of storey and λh = a non- dimensional parameter expressing the relative
stiffness of the frame and the infill ,

 h 4

446

E m t sin 2
4E c I c h

(2)

�where Em = Young’s modulus of elasticity of infill, t = Thickness of infill, h1 = Height of
infill ,Ic = Second moment of area of the column, Ec = Young’s modulus of elasticity of
column concrete and θ = Slope of the infill diagonal to the horizontal.
The relative stiffness parameter λh provides the key to the estimation of an infilled frame’s
behaviour, and it therefore assumes a prominent role in the development and presentation of
the methods for predicting the strength and stiffness.
In estimating the lateral strength of an infilled frame, it is necessary to find the weakest of the
various modes of failure of the frame and the infill. The possible failure modes of the frame
include the tensile failure of the columns and beams, shear failure of the column and, joint
failure between the column and the beam.
An approximate method to determine the strength, based on these modes, is to analyse the
forces in the equivalent pin-jointed frame subjected to known horizontal loading, assuming
the infills to be replaced by diagonal struts. The calculated tensile load in the column and
beam and the shearing components of the load in the diagonal struts may then be compared
with the respective strengths of the columns and beams. Assuming the frame has adequate
strength, the brick infill may fail by one of the following modes.
-Tension cracking of the mortar joints and masonry
-Shear cracking along the interface between the bricks and mortar (bed joints)
-Local crushing of the masonry at the mortar in one of the compressed corners of the infill.
2.1.1 Diagonal cracking of infill
The diagonal tensile strength of masonry may be assumed to be equal to the tensile strength
of the mortar in all cases where the mortar has lower tensile strength than the individual
bricks. Using the curves relating the width of the of the equivalent strut and the
nondimensional parameter λh given by Stafford Smith and Carter [1969] , the diagonal
cracking tensile strength of brickwork was obtained by Govindan [1986] as

l
Rt
 3.1 l
ft h t
h
l





0.98

 h

0.48
 ll 


 l 
h 

-0.1

(3)

where Rt = Diagonal load on the infill to cause cracking, ft = Tensile stress of the infill and
l1 = length of infill.
2.1.2. Shear strength of infill
The resistance of masonry to shear stresses is usually considered to be provided by the
combined action of the bond, shear strength and the friction between the masonry and mortar.
Using the design curves given by Stafford Smith and Carter [1969], the following
447

�relationship was derived by Govindan [1986] for calculating the shear failure load of the
infill.

l
Rs
 1.65 l
fs ht
h
l





0.6

 h

 ll

 l
-0.05 h






0.50

(4)

where Rs = Diagonal load on the infill to cause shear failure of infill and fs = Maximum
shear stress of the infill.
2.1.3. Compressive failure
After cracking in the brick infill due to shear and/or tension, it has been observed from
experiments that the corner region of the infill, where crushing takes place generally extends
along the column contact length α. Based on this, Stafford Smith and Carter [1969]
developed an approximate formula for the diagonal compressive strength
Rc = α t Secθ fm

(5)

where Rc = Compressive failure load and fm = Compressive stress of the infill. Substituting
the value of α, the compressive failure load can be expressed in the nondimensional form as

Rc


sec 
fm ht 2 h

(6)

. For a given infilled frame, λh can be calculated and these expressions can be used to obtain
ll

the failure load corresponding to the infill for any aspect ratio,

hl

.

Unit load method has been used for calculating the deflection of the frames. The equivalent
strut width for each individual panel in a multistory building varies with the applied loading
and consequently, the stiffness of the structure decreases as the lateral load increases. The
stiffness of the equivalent frame for any value of load can be determined by considering
appropriate equivalent widths of the diagonal struts for the particular load and computing
FUL
Σ A E . It is often useful to know the total lateral displacement at a particular loading. Based

on the Mechanics of materials approach, the horizontal displacement under any load as given
by Stafford Smith and Carter [1969] is
δH= H Σf

FUL H 2
+
A I E 2 Hc

Σs

FUL A I _ A C
AE
A I .A C

(7)

where δH = total horizontal displacement under applied load, H = Applied load, Σf =
Summation sign for all beams and columns in the frame including diagonal strut, Σs =
Summation sign for all diagonal struts only, F= force in members due to applied load H, U =
Force in members due to unit load applied, at the point and in the direction in which
448

�displacement is required, AI = Initial cross-sectional area of members, including diagonal
strut when H/Hc=0. Ac = Cross-sectional area of diagonal struts when H/Hc=1 in critical
panel, all others proportioned accordingly, E= Modulus of elasticity of frame members and
infill, Hc = Horizontal load, to cause crushing in the critical panel infill, determined from the
appropriate value of Rc / (fm. h t ) for the particular value of λh, L=Length of member.

2.2. Identification of Parameters
Based on a critical study of the parameters affecting the strength and stiffness of infilled
frames, ten major parameters were identified. They are; aspect ratio, number of bays, area of
column, column steel, column stirrups, area of beam, beam steel, type of concrete, type of
steel used for the construction and a non-dimensional parameter λh representing the infill
behaviour. Concrete of grades C20, C25, C30, C35 and steel of grade S420 and S500 are
used in the analysis. Hence the number of nodes or processing elements in the input layer of
the network comes to 14 representing the ten parameters listed above plus the four extra
grades for concrete and steel considered. The output layer consists of three nodes for the
collapse loads corresponding to frame as well as infill and the top storey displacement of the
frame at the verge of failure.
Table 1. Range of Values for Data Base
Parameter

Symbol

Range

Aspect ratio

l/h

1 to 2.5

No.of bays

B

1 to 5

Area of column

Ac

0.02 to 0.15

Area of column steel

Acst

Area of beam

Ab

0.0068 to 0.0100
m2
0.05 to 0.12 m2

Area of beam steel

Abst

Area of stirrups

Asv

Non-dimensional
parameter
Grade of concrete
449

characteristic

length Λh

C20,C25,C30
C35

0.000315
0.00250 m2
0.000195
0.00113 m2

to
to

2 to 15

and 20, 25, 30 and 35
MPa

�Grade of steel

S420,S500

420, 500 MPa

2.3 Configuration of the Network
2.3.1 Selection of error tolerance
A numerical study of training and testing of the network was done keeping the error tolerance
values as 0.1, 0.01 and 0.001.For an error tolerance of 0.1, the number of cycles required is
less: but the results are less accurate. In the case of 0.001, even though the accuracy is high,
the numbers of cycles required are very high. Hence, keeping in mind the number of cycles
required for convergence together with the accuracy needed for training and testing, the error
tolerance was chosen as 0.01.
2.3.2 Selection of number of hidden layers.
The first step in the configuration of the network is the selection of the number of hidden
layers to be used. The parametric study is made to find out the optimum number of hidden
layers as well as the number of nodes for the present problem. With one hidden layer, the
architecture is able to attain the required error tolerance of 0.01 within 5000 cycles
considered for all the combinations of neurons considered. The network with one hidden
layers having the 14-10-3 architecture is chosen since it reaches the required error tolerance
with the least number of cycles, which in turn will reduce the CPU time requirement.
2.3.3 Selection of learning rate and momentum parameters
For the chosen architecture of 14-10-3, the number of cycles required to reach the desired
error tolerance of 0.01 are computed for different learning rates and momentum parameters.
The results are shown in Table 2. From the table, it can be seen that a learning rate of 0.7 and
momentum parameter of 0.9 are the optimum values since only this combination requires the
minimum number of cycles to achieve the required error tolerance. Hence, these values are
used in the analysis.
2.3.4 Training of the network
Using the 14-10-3 architecture and the learning rate, momentum parameter values of 0.7, 0.9
, the network is trained and then tested. For training the network, totally 55 data set are used
which are listed under Table 2. These data sets were generated analytically using the
equivalent strut method.

450

�Table 2. Data Set Used Training
INPUT

OUTPUT

B

l/h

S420

S500

C20

C25

C30

C35

Ac

Ab

Acst

Abst

λh

Asv

C-F

C-I

Δ

1

1

1

0

1

0

0

0

0.02

0.02

0.0068

0.000315

2

0.000195

18.8

89.34

25.467

1

1

1

0

0

1

0

0

0.06

0.05

0.0214

0.001030

6

0.000503

61.1

186.9

34.896

1

1

1

0

0

1

0

0

0.06

0.05

0.0214

0.001030

10

0.000503

61.1

136.80

35.769

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5

1.5

0

1

0

0

1

0

0.11

0.08

0.0357

0.001730

10

0.000785

826

766.7

121.133

5

2

0

1

0

0

1

0

0.11

0.08

0.0357

0.001730

4

0.000785

1035

547

70.98

5

2

0

1

0

0

1

0

0.11

0.08

0.0357

0.001730

8

0.000785

1035

899

142.049

NOT: C-F = Collapse load corresponding to frame in kN , C-I= Collapse load corresponding to infill in kN, Δ=
Displacement of frame at the top level under collapse load in mm.

2.3.5 Testing of the network
The network, after being trained, is tested with 8 data sets.. The data sets used for testing the
network are shown in Table 3.
Table 3. Data Set Used Testing
INPUT

OUTPUT

B

l/h

S420

S500

C20

C25

C30

C35

Ac

Ab

Acst

Abst

λh

Asv

C-F

C-I

Δ

2

1

1

0

0

1

0

0

0.05

0.05

0.0214

0.001030

6

0.000503

148

301.1

61.383

2

2.5

0

1

0

0

1

0

0.11

0.08

0.0357

0.001730

4

0.000785

546

217.6

28.237

3

1.5

1

0

0

1

0

0

0.06

0.05

0.0214

0.001030

6

0.000503

322

612.4

42.905

3

2

0

1

0

0

1

0

0.11

0.08

0.0357

0.001730

8

0.000785

658

515.2

81.409

4

1

1

0

1

0

0

0

0.02

0.02

0.0068

0.000315

2

0.000195

101

281.3

11.115

4

1.5

1

0

0

1

0

0

0.06

0.05

0.0214

0.001030

2

0.000503

429

394.3

46.650

5

2

0

1

0

0

1

0

0.11

0.08

0.0357

0.001730

8

0.000785

1035

899

142.049

5

2.5

0

1

0

0

0

1

0.15

0.12

0.0510

0.002500

15

0.001130

1795

700.6

110.669

3. RESULTS and DISCUSSION
451

�The collapse load and displacement predicted using ANN is compared with the actual values
in Fig.1. In these figures, the diagonal lines represent a one to one correspondence, that is,
when the predicted and the actual values are identical.
The results clearly show that for the frame and infill failure, the collapse load values
predicted using neural network vary only marginally (the maximum variation is only 4%)
from the actual values for the data formed using equivalent strut method. In the case of the
displacement of the frame under collapse load, the predicted values using neural network
vary only marginally (maximum of 5%) from the actual values, be it based on experiments or
equivalent strut method. It can be stated that overall the prediction is very good.

Figure 1. Comparison of predicted and actual values.
4. CONCLUSION
The conventional analysis of infilled frames is complex due to the large number of
parameters and the non-linear behaviour involved. Hence, the practice is to ignore the
contribution from the infill and analyse the structure as a bare frame. However, it is well
known that the infill affects the behaviour of the structure significantly. In this context,
Artificial Neural Network is increasingly used effectively as a tool for the analysis of infilled
reinforced concrete frames. In this paper, a multilayer feed forward network with back
452

�propagation algorithm has been adopted to model a five storey infilled frame with number of
bays ranging from one to five. The training patterns were generated using the equivalent strut
method with different modes of failures in the frame and infill to arrive at the collapse load
for the infill and frame as well as the displacements. The performance of the network has
been demonstrated by comparing the output with the analytically generated values. Based on
the investigation, it can be stated that ANN models can predict the behaviour of infilled
frames efficiently.
REFERENCES
Maurizio, P. (1988). Analysis of Infilled Frames Using a Coupled Finite Element and
Boundary Element Solution Scheme. International Journal of Numerical Methods in
Engineering, 28, 731-742.
Stafford, S. B. (1962). Lateral Stiffness of Infilled Frames’, Journal of Structural Divisions,
ASCE, 88, 183-199.
Stafford, S.B. &amp; Carter, C. (1969). A Method of Analysis for Infilled Frames’, Proceedings
of the Institution of Civil Engineers 44, 31-48.
Jenkins, W.M., (1995). Neural Network Based Approximation for Structural Analysis.
Developments in Neural Networks and Evolutionary Computing for Civil and Structural
Engineering. Edinburgh.
Muralikrishna, N. &amp; Gangadharam, D. (1999). Analysis of Infilled Frames a Study Using
Neuralnets’, Journal of Structural Engineering, 26, 173-178.
Laurence, F. (1993). Fundamentals of neural network-Architectures, Algorithms, and
Applications’. Prentice Hall, Eaglewood Cliffs: NJ 1993.
Hojjat, A &amp; Hyo S. P. (1995). Counter propagation neural networks in structural engineering’
, Journal of Structural Division, ASCE, 14 , 1205-1212.
Wael, W. E., Mohamed, E. &amp; Ahmad, H. (2003). ‘Three strut model for concrete masonry
infilled steel frames. Journal of structural Division ASCE , 129, 177-185.
Perumal, E. B. (1995). Influence of Brick Infill on Multistory, Multi-bay R.C.Frames’, Ph.D
Thesis, Coimbatore Institute of Technology, Coimbatore.
Govindan, P. (1986). Composite Action and Ductility of Reinforced Concrete Frames With
Brick Infill’, Ph.D Thesis, Anna University

453

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                <text>Neural-Network Applications for Analysis of Infilled Frame</text>
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                <text>Muhiddin, Bağcı</text>
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                <text>The modelling of infilled frames is complex due to the large number of variables as well as  the non-linear material behaviour involved. Artificial Neural Network (ANN) is found to be a  tool capable of solving such problems. This has led to the increasing use of ANN for  analysing infilled reinforced concrete frames. This paper reports the details of a study  conducted using ANN for predicting the failure of an infilled reinforced concrete infilled  frame subjected to lateral loading. Using the data generated based on analytical solutions, the  ANN model was trained. The so trained model was tested for different set of input parameters  and the output values were compared with the actual values based on analytical results. The  agreement was found to be good.  Keywords:. Artificial Neural Network (ANN), Infilled Frame, Equivalent strut method</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Dudu Evren, Ü., Ç. Kanlıtepe, C. Çıracı, G. Dönmez, 2001. Tuz Göl,’nden (Konya-Türkiye)
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Su Ürünleri Dergisi, 1. Alg Teknoloji Sempozyumu p, 225-232 (In Turkish).
Durmaz, Y., Gökpınar Ş., 2006. Dunaliella salina (Chlorophyceae) Büyümesi Üzerine
Tuzluluğun Etkileri. E.Ü. Su Ürünleri Dergisi, pp:121-124.
Garcia, F., Freile-Pelegrin, Y., Robledo, D., 2007. Physilogical characterization of Dunaliella
sp. (Chlorophyta, Volvocales) from Yucatan, Mexico. Bioresource Technology,pp:1359-1365
Javor, B., 1989. Hypersaline Enviroments: Microbiology and Biogeochemistry. 1st Edn.,
Springer-Verlag, New York, pp:328.
Lamers, P.P., Janssen, M., De Vos, C.H.R., Bino, J.R. and Wijffels, R.H. 2008. Exploring and
exploiting carotenoid accumulation in Dunaliella salina for cell-factory applications. Cell
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Kaçka, A., Dönmez, G., 2008. Isolation of Dunaliella spp. from a hypersaline lake and their
ability to accumulate glyserol. Bioresource Technology, pp.8348.
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Taherzadeh, M.J., Adler, L., Liden, G., 2002. Strategies for enhancing fermentative
production of glycerol-a review. Enzyme Microbiol. Technol. 31, 53–66.
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fermentation: a review. Biotechnol. Adv. 19, 201–223.

Interactions between chemicals used in aquaculture and environment in terms of
sustainable development
Muhammet Altunok , Fatih Gülec , Zerife Peker , Klaus Kümmerer
Abstract
Aquaculture that is the farming of aquatic organisms such as fish, crustaceans, molluscs and
aquatic plants, is the fastest growing animal production sector in the world. Global production
from aquaculture for human consumption amounted to 73 million tonnes and the value of
US$ 110 billion in 2009 and comprised almost fifty percent of the world’s fish supply.
Aquaculture, thus, plays an important role in global efforts towards eliminating malnutrition
and brings significant health benefits by nutritional well-being. It significantly dominates
most devoloping countries in terms of contribution to development by increasing gross
domestic product, providing employment opportunities and improving incomes.
The potentially adverse impacts of aquaculture that is also threat the sustainability when the
sector grows unregulated or under poor management, is of considerable current environmental
118

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

and public interest in the world. Besides eutrophication and genetically modified organisms
(GMOs), the main environmental pressure associated with intensive aquaculture is chemicals
(antibiotics, hormones, fungicides, pesticides, antifoulants, anaesthetics and disinfectants)
used in aquaculture. The intensive systems are often associated with various greater use of
different types of antibiotics and chemicals generate very different effects on the environment,
mainly on water and sediment quality (nutrient and organic matter loads), natural aquatic
communities (toxicity, community structure, biodiversity), and microorganisms (alteration of
microbial communities, drug resistant strains).
The interactions between humans, antibiotics, bacteria, fish and aquatic environments are
poorly understood and recent studies show a significant pollution of surface waters with
antibiotics and other chemicals which are potential risk to drinking waters. Moreover, as a
vicious circle and often as well, aquaculture is also negatively affected by pollution of water
supplies by other human activities (ie: agriculture and industrial activities).
The environmental approach to sustainable development can control the use of chemicals to
eliminate or reduce any negative effects to an acceptable level. Sustainability requires global
action, and therefore an effective solution can be achieved on the basis of environmentallyfriendly management systems towards social-ecological aquaculture to integrate aquaculture,
environment and society locally and globally. This paper, consequently, addresses the
relevance of the environmental approach to the role of aquaculture in sustainable
development.
Keywords: Aquaculture, Chemicals, Antibiotics, Environment, Sustainable Development
1.INTRODUCTION
Securing a safe and sustainable food supply for an increasing population is one of the world's
biggest challenges. Fish and aquatic organisms provide an important source of protein. But,
global population demand for aquatic food products is increasing while traditional wildcapture fisheries have reached a plateau.
Aquaculture is the farming of aquatic organisms such as fish, crustaceans, molluscs and
aquatic plants in ponds and large net-cages. Farming of aquatic organisms is becoming an
important source of food in both international trade and subsistence sectors. After growing
steadily for the last four decades, it is now a substantial global industry supplying nearly half
of the world's supply of fishery products (fish and other aquatic organisms) consumed as
food. It may be an alternative supply to the increasing demand for aquatic products, strong
international competition, constant change in consumer needs and expectations, and also
depletion of fisheries, providing to reduce the pressure on wild stocks. In terms of its
economic productivity, the contribution of aquaculture to trade, both local and international, is
also increasing. The aquaculture industry has a potential for further development, but there are
some problems with environmental concerns and market instability, locally and globally.
Eutrophication, genetically modified organisms (GMOs), chemical pollution, exotic species
wild fish stocks and pathogens are some examples of the main environmental impact concerns
associated with intensive aquaculture (Naylor et al. 2000). Under potential risk of these
impacts, without any rules in context of ecological assessment and sustainable practices, it is
not to be expected that aquaculture will continue to supply the demand for aquatic products
for a long time.
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At this time of strong public concern throughout the world particularly about the impact of
aquaculture on human health and environment especially regarding the use of chemicals are
reflected in the FAO Code of Conduct for Responsible Fisheries (FAO 1995). In this Code
there are several advices, such as the promoting effective farm and fish health management
practices (favouring hygienic measures and vaccines), the ensuring safe, effective and
minimal use of chemicals (e.g. therapeutants, hormones and drugs, antibiotics and other
disease control chemicals), regulating the use of chemical inputs in aquaculture (if they are
hazardous to human health and the environment).
Status and scope of aquaculture
Overall, 80 percent of the world fish stocks are reported as fully exploited or overexploited
and are thus unable to withstand additional fishing pressure. The continuing depletion of the
world’s fish stocks has led to an increasing demand for aquatic food from aquaculture which
has been expanded rapidly worldwide.
According to the Food and Agriculture Organization (FAO), the global total production of
fish, crustaceans and molluscs, including wild capture and aquaculture, reached to
approximately 145 million tonnes in 2009 consisted of 90 million tonnes captured which has
been stayed level since 2001, plus 55 million tonnes produced by farms (Figure 1).
Aquaculture production has continued increasing at an average annual growth rate of 6.1
percent from 34.6 million tonnes in 2001 to current level and the value of aquaculture
production was estimated at USD 105.3 billion in 2009. It is the fastest growing sector of the
food economy. About 84 percent of total fishery production (121.8 million tonnes in 2009)
was used for direct human consumption. Global per capita consumption has been increased
steadily and reached to an average of 18 kg in 2009 with the share of aquaculture production
in total food supply at 46 percent. According to FAO projections, it is estimated that in order
to maintain the current levels of consumption, an additional 40 million tonnes of seafood will
be required by 2030 and global aquaculture production will need to reach minimum 80
million tonnes by 2050 (FAO, 2007). According to the international marketing records 38.5
percent (live weight equivalent) was exported in 2009 and the value reached USD 96.0
billion. The share of developing countries in this percent was 50.6 percent by value and 60.1
percent by quantity (live weight equivalent) in 2009.
Figure 1. Trends in world aquaculture production (FAO, 2010)

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All of these statistics show the important role of aquaculture in global efforts against hunger
and malnutrition for both developed and developing countries by supplying fish and other
aquatic products contain excellent animal protein and other essential fatty acids, vitamins and
minerals. It also contributes to food availability to improve global food security. In terms of
food quality, aquatic products bring significant health benefits and contribute to nutritional
well-being.
It can also make important contributions to the social and economic development of countries
through improving incomes, providing employment opportunities and increasing the effective
use of resources. It significantly contributes to the national gross domestic products in many
developing countries. This may provide a more productive investment opportunity for local
resources as well as playing important socio-economic role in rural regions.
2.What is sustainability or sustainable development?
In general, "sustainability" and "sustainable development" is a concept to guarantee a liveable
environment for all people in the long term. In this concept, aquaculture is highly diverse and
consists of a broad spectrum of species, systems and practices. Thus, several indicators, codes
and guidelines for sustainable development in aquaculture have been evaluated in recent years
(Folke and Kautsky, 1989; Subasinghe et al., 2009). Mostly these indicators can generally be
grouped into two main categories: Ecological and socio-economical indicators. Ecologic
indicators are aiming preservation of a functional environment, while socio-economic
criterions are to provide clear economic advantages for aquaculture farmers and social equity
to improve the community's welfare in the long term.
There is still little known, how sustainability can be increased in aquaculture and there is no
complete practicable criteria to certify the sustainability status of aquaculture operations.
According to the criteria systems in previous evaluations, sustainable development is an
integrative framework involving ecological, economical and social sustainability. Although,
all may seem of equal importance, the current focus is primarily on the economy to achieve
the competitiveness. However, environmental issue is a very important part of the
development process as no activity in aquaculture will take place if there is not good quality
water resources left. Economy and society fundamentally rise up on the natural world and
resources, and these are serving to improve the standing of environmental concerns.
Therefore, sustainable development in aquaculture industry must be environmentally friendly
that means conserving land, water and wildlife resources.
Along with too much complexity in sustainable development of aquaculture, there are many
concerns about environmental indicators containing two important components, resource use
and pollution. In this respect, the sustainable use of natural resources was described by EU
Commission in 6th Environmental Action Programme (6 EAP) as: "the consumption of
resources and their associated impacts cannot exceed the carrying capacity of the environment
and the linkages between economic growth and resource use must be limited". Water
resources are essential for life and health besides food and other products put huge demands.
Globally, the problem of water shortage is getting worse as the needs for clean water increase
in agriculture, industry and households because wastage and pollution is alarming critical
limits day by day. Therefore, everyone must be a part of efforts to conserve and protect the
water resources.
Aquaculture will continue to play an increasing role in fishery products to meet the globally
rising demand but the chemicals used in aquaculture put pressure on the environment around
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the world (Costello et al., 2001). As a result of technical development and incorporation of
advanced technology much of the fish farming systems have moved from extensive to
intensive systems that pose environmental risks and threats to the surrounding ecosystem in
rivers, water reservoirs and oceans. Much scientific literatures have identified the
environmental risks and impacts of the farming of aquatic organisms in open systems
(Costello et al., 200; Buschmann et al., 2009).
Another important concern is intensification implies increasing the number of individuals and
increase potential for the spread of pathogens. This spreading is requiring greater use of inputs
(e.g. disinfectants, drugs) and greater generation of waste products presenting a global threat
to both the aquatic environment and consumer safety (Kümmerer, 2009). To date, however,
aquacultural chemicals have not been paid sufficient attention to the significant risks that
would accompany the growth of the industry.
Chemical inputs and current situation of chemical usage in aquaculture
Table 1: Analysis of the chemical usage in aquaculture.
Wide range of potentially hazardous chemicals used in aquaculture
operations.
Strengths

Disease problems worldwide.
Uncontrolled and high local use of aquacultural chemicals.
Inefficient control and regulations for chemical usage in aquaculture
There is insufficient monitoring of chemical residues for aquatic products.
Technical knowledge of chemical analysis specific to aquaculture
practices is limited.

Weaknesses

Concept of carrying capacity models to aquaculture systems are nonexistent for certain locations and particularly closed basins in countries.
There is no certification system and guidelines developed for
environmentally sound and sustainable aquaculture and not harmonized
worldwide.
Lack of successful environmentally friendly aquaculture demonstration
sites for extension purposes nationally.
Sustainable and environmentally sound aquaculture practices will reduce
the pressures on environment.

Opportunities

Increasing awareness in local and international.
Generating public environmental awareness and education
Developing of technology and knowledge on the chemicals used in
aquaculture.
Inefficient waste management in aquaculture.

Threats

There is still no monitoring system for aquacultural chemicals in
environment.
Lack of institutional infrastructure to facilitate sustainable aquaculture

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development.
Low technical level of fish farmers.
Lack of knowledge of the environmental impacts of aquacultural
chemicals.
The aquaculture industry is a kind of agricultural sector and chemicals developed originally
for animal husbandry but now it common use in both. The chemicals are also essential for
increased and controlled production of progeny in hatcheries, increased feeding efficiency,
improvement of survival rates, control of pathogens and diseases, and reduction in transport
stress (Howe et al., 1995). However, effects of chemicals on the aquatic environment have not
been specifically evaluated. The lack of data on their use has complicated the problem. The
chemicals used in aquaculture includes soil and water treatments, fertilisers, disinfectants,
herbicides, antibacterial agents, other therapeutants, pesticides, feed additives, anaesthetics
and hormones.
Antifoulants: are used on solid surfaces, ropes and generally on nets in cage aquaculture
systems. Even if the antifoulants are generated and used for protection of boat surfaces, they
are also used to treat nets and this usage must be of concern if used in fish culture.
Disinfectants: are applied as external treatment for fish and especially for eggs and fry. These
agents are applied directly in aquatic environment and some of them could be very
persistently toxic to aquatic life at low concentrations such as formalin. Farmers will be
ensure that the potential for contamination of the environment will be able to minimised.
Pesticides: generally are used to control ectoparasits in fish culture. Some of them such as
organophosphates may produce vital effects on the health of farm workers.
Anaesthetics: are used in stripping of broods and during transport of fish in aquaculture to
sedate and calm the aquatic organisms.
Hormones: plays an important role to control and induce ovulation for the control of
reproduction as well as sex control for mono-sex production in aquaculture.
Veterinary pharmaceuticals: are applied in aquaculture as medicated feed and diluted in water
and most of them are preferred to prophylactic use rather than against diseases in many
countries. Therefore, using of these therapeutic agents are controlled by drug licensing
programmes, monitoring of limits on tissue residues and for environmental residues to
minimise the risks in terms of human and environmental health.
Heavy use of antibiotics in aquaculture:
Antimicrobials have been applied in aquaculture for over 50 years and its use has grown both
in numbers and quantity, as the problem of diseases has increased. Although they were highly
successful at first, improper using led to problems, and concern is now centred on treatment
failures. Moreover, it is now an expanding problem for human and animal health and for the
environment.
Antimicrobial compounds are persistent and can exhibit toxicity in sediments, and can
therefore affect the natural microbial community near aquaculture sites (Herwig and Gray,
1997). This residue potential may disturb the balance of the environmental micro-flora. One
of the major concerns with use of antibiotics (from any source) is the potential for bacteria to
develop resistance to the compounds and for the resistance traits to be manifested in other
bacteria including human pathogens (Guardabassi et al., 2000). Treatments may fail for
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several reasons, but probably the most consistent and fundamental cause of their failure is the
emergence of resistant bacteria. The risk posed to human health by disturbance of the
gastrointestinal flora, selection of resistant strains and allergies is also addressed elsewhere.
Quantities of antibiotics used in aquaculture are small compared to other forms of food
production and published data show the use of antibiotics in aquaculture has been diminishing
in some areas by regulations. Despite the low relative usage of antibiotics in aquaculture
compared to other food production systems, their use remains an issue of concern as
aquaculture is often practiced in relatively pristine environments and the exact quantities
applied directly to water.
All of the chemicals were not originally developed for aquaculture use and environmental
residues have been ignored. Therefore, it is difficult to estimate the size of risk because of the
lack of knowledge on the biological responses to chemical residues in receiving waters and on
the concentrations in farm's surrounding environment (sea, effluents and sediments). It is also
little known that fates of chemicals in the aquaculture system and the residues in cultured and
wild organisms. The picture is yet more bleak for environment with regard to the interactive
effects of multiple chemicals in relation to biological effects.
Human health and environmental concerns regarding the use of chemicals in aquaculture are
reflected in the FAO Code of Conduct for Responsible Fisheries (FAO 1995). In this Code
there are several advices, such as the promoting effective farm and fish health management
practices (favouring hygienic measures and vaccines), the ensuring safe, effective and
minimal use of chemicals (e.g. hormones, therapeutants, antibiotics and other disease control
chemicals), regulating the use of chemical inputs in aquaculture (if they are hazardous to
human health and the environment).
A demonstration of an aquaculture activity from Turkey
Aquaculture has been developed in Turkey rapidly. Commercial aquaculture production in
marine and inland waters takes place all over the country. By 1995 there are approximately
800 fish farms (mainly producing rainbow trout) in inland waters and 400 marine fish farms
(mainly seabream and seabass) in operation in the country. However, little detailed
information is available on the environmental impacts of this industry.
Environmental assessment strategies for aquaculture operations were developed and proven in
some countries. However, the application of such strategies would be inappropriate without
modification and adaptation to the ecological particularities of the environments where
aquaculture operations located. Problems and antimicrobials vary from farm to farm (e.g.
cultured species, diseases, different capacities of surrounding environments, climate, level of
eutrophication, composition and diversity of fauna and flora) and require site-specific
environmental risk assessments.
Available data show that large quantities of antibiotics have been applied in the aquaculture
operations in Turkey. As being reference for local intensity, the selected river basin is located
in the south-western of Turkey. There are 16 trout fish farms in various capacities (totaly
appr. 10.000 tonnes/year), including family farms (100 tonnes/year) and businesses (3.000
tonnes/year).
Figure 1. Fish farms on Esen River in Fethiye (Turkey)

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Antimicrobials and disinfectants are generally used
prophylactically and therapeutically in these farms;
Oxytetracycline (appr. 700-800kg/year),Tribrissen
(Sulphadiazine/Trimethoprim) (appr. 750 kg/year),
erythromycin (appr. 400 kg/year) and the others
which are used appr. 100-200 kg/year, e.g.
enroflaxacin, amoxicillin, doxycyline, florfenicol
and last one is formaldehyde used as a disinfectant
(appr. 3500 liter/year), (Altunok, personal
communication). Previously published literatures
suggest that, in general, only 20-30% of antibiotics
are actually taken up by fish from medicated food;
thus, approximately 70-80% reaches the
environment (Samuelsen, 1989). For example, the
apparent oral bioavailability of oxytetracycline in
rainbow trout was reported approximately 5-6% (Björklund and Bylund, 1990). Some of these
chemicals and compounds have considerable adverse environmental effects, and, therefore
their use in aquaculture must be carefully assessed. The fate of such compounds should be
carefully addressed locally. Since the environmental impacts and risks are site-specific,
environmental approach to sustainable aquaculture development requires the integration of its
economic, environmental and social components at local levels towards global motion
planning.
3. Sustainability criterions regarding to chemicals
The limited availability of natural resources coupled with increasing demand for fishery foods
the need to move forward in aquaculture to become more sustainable. Compared to other
animal production systems, aquaculture is put under special pressure to become more
sensitive to environment because the industry uses important natural resources (freshwater,
rivers, wetlands, coastal and open ocean areas). The aquaculture industry is working towards
reducing use of chemicals and other artificial substances but there is still not effective
precautions and conservation plans regarding to chemical use in aquaculture for the most part
of the world. Thus, it appears that global efforts are needed to promote more judicious use of
chemicals in aquaculture. These efforts should focus on;
-increasing the investment on aquaculture
-alternative environment-friendly substances and methods of treatment,
- developing of vaccines
-developing welfare conditions for fish and other aquatic animals,
-developing an overall management system that is widely applicable throughout the world, to
monitor and control the chemicals.
-using of the chemicals in a manner that does not constitute a hazard to human health and the
environment and in accordance with the appropriate legislation.
-legislations must be strict and include every possible usage of chemicals (e.g. antibiotics may
be used on prescription from a veterinarian for the therapeutic (not prophylactic) treatment.

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-the regulation of discharges. In this regard, site specific discharge conditions may include
limits on the location, maximum biomass, types and quantities of chemicals due to
requirement for monitoring water and sediment quality locally.
- Increasing government support to encourage organic and alternative aquatic food farming.
4.CONCLUSION
At present, the fish farms do not treat their effluents and discharge them to the environment
increasing the environmental pollution worldwide. Pollution of water resources due to
chemicals plays primary role in ecosystem degradation, but chemical analyses alone may not
be sufficient to describe the adverse effects of the complex mixtures of chemicals present at
contaminated sites. The potential utility of biomarkers for monitoring both environmental
quality and the health of organisms inhabiting polluted ecosystems has received increasing
attention during the recent years. The complexity of these issues and often the lack of data
concerning their effects on aquatic environment as well as the lack of monitoring at field
situations and surveillance systems, are the factors limiting the risk analysis process. In
addition, the direct consequence of this lack of data is that many hazardous chemicals are not
classified, and are therefore sold without appropriate labels or safety data sheets. Thus, many
chemicals are used in the workplace while their potential effects on the health of workers
exposed to them and on the environment are barely known, or known too late. This
insufficiency of data is more pronounced in the most of countries, especially where
technology and resources are limited or less available. Therefore, it is urgently needed to be
determining the actual quantitative risk of aquaculture chemicals in the environment locally.
Furthermore, the policy of safe and effective use of chemicals must be developed.
Appropriate strategies must be chosen, according to individual requirements for country’s and
region’s. Strengthening research efforts and programs for human training and development, as
well as enhancing mechanisms for information exchange and technology transfer, may be
encouraged through international collaboration. The development of an appropriate and
effective impact assessment and monitoring system for aquatic farms is essential in order to
ensure the sustainable development of aquaculture, while taking into consideration other
aspects of integrated management of the areas, including tourism, fishery, other industries and
environmental protection.
REFERENCES
Bjorklund, H. and G. Bylund. 1990. Temperature-related absorption and excretion of
oxytetracycline in rainbow trout (Salmo gairdneri R.). Aquaculture 84: 363-372.
Buschmann, A., Cabello, F., Young, K., Carvajal, J., Varela, D.A., Henríquez, L. 2009.
Salmon aquaculture and coastal ecosystem health in Chile: Analysis of regulations,
environmental impacts and bioremediation systems. Ocean &amp; Coastal Management 52 (2009)
243–249.
Costello, M. J., Grant, A., Davies, I. M., Cecchini, S., Papoutsoglou, S., Quigley, D. &amp;
Saroglia, M. 2001. The control of chemicals used in aquaculture in Europe. Journal of
Applied Ichthyology 17, 173-180.
FAO, 1995. Code of Conduct for Responsible Fisheries. Food and Agricultural Organization
of the United Nations, Rome, 41pp.
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FAO. 2007. The role of aquaculture in sustainable development. Thirty-fourth Session. 17-24
November 2007, C 2007/INF/16 Rome. FAO. 10 pp.
FAO. 2010. The State of World Fisheries and Aquaculture. Rome. 197 pp.
http://www.fao.org/docrep/013/i1820e/i1820e.pdf
Guardabassi, L., A. Dalsgaard, M. Raffatellu and J. Olsen. 2000. Increase in the prevalence of
oxolinic acid resistant Acinetobacter spp. observed in a stream receiving the effluent from a
freshwater trout farm following the treatment with oxolinic acid-medicated feed. Aquaculture
188: 205-218.
Folke. C., N. Kautsky. 1989. The role of ecosystems for a sustainable development of
aquaculture. Ambio 18: 234-243
Herwig, R.P., and J.P. Gray. 1997. Microbial response to antibacterial treatment in marine
microcosms. Aquaculture 152: 139-154.
Howe, G.E., L.L. Marking, T.D. Bills and T.M. Schreier. 1995. Efficacy and toxicity of
formalin solutions containing paraformaldehyde for fish and egg treatments. The Progressive
Fish Culturist 57: 147-152.
Kümmerer, K. 2009. Antibiotics in the aquatic environment – A review – Part I.
Chemosphere 75 (2009) 417–434.
Naylor, R. L., Goldburg, R. J., Primavera, J. H., Kautsky, N., Beveridge, M. C. M., Clay, J.,
Folke, C., Lubchenco, J., Mooney, H. and Troell, M. 2000. Effect of aquaculture on world
fish supplies, Nature, vol. 405, pp. 1017-24.
Samuelsen, O.B. 1989. Degradation of oxytetracycline in seawater at two different
temperatures and light intensities, and the persistence of oxytetracycline in the sediment from
a fish farm. Aquaculture, 83, 7–16.
Subasinghe, R., Soto, D. and Jia, J. 2009. Global aquaculture and its role in sustainable
development. Reviews in Aquaculture, 1: 2–9

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Table 1 Monthly descriptive statistics and estimated parameters of length-weight relationships for both sexes of S. aurita in the Izmir Bay (central
Aegean Sea) from November 2004 to October 2005. (M: male, F: female, n: number of individuals, a and b: parameters of length-weight
relationships, 95% C.I of a and b: 95% confidence intervals of a and b, r2: regression coefficient).

Weight characteristics

TL Range

Mean TL

W Range

Mean W
(±SD)

Months

Sex

n

(cm)

(±SD)

(g)

November
2004

M

55

19.8-23.5

21.67±1.
07

F

91

18.7-23.5

21.69±1.
16

M

119

19.0-24.0

F

129

M

December

January 2005

February
128

Length characteristics

Relationship parameters

a

95% CI of a

b

95% CI of r2
b

56.43-96.72 77.62±13.9
8

0.0020

0.00190.0021

3.425 2.7034.147

0.87
4

47.80116.77

81.22±15.6
8

0.0021

0.00100.0032

3.429 2.8993.959

0.88
0

20.04±1.
16

45.46117.10

58.78±14.4
7

0.0018

0.00070.0029

3.453 3.0613.845

0.93
6

18.8-25.5

20.49±1.
56

42.84138.40

64.41±21.0
5

0.0007

0.00040.0010

3.762 3.5024.022

0.97
3

44

21.2-25.3

22.56±1.
01

72.30107.95

85.83±11.2
4

0.0500

0.00590.0941

2.389 1.9092.869

0.66
2

F

102

21.7-25.6

23.22±0.
90

102.31143.32

94.25±13.9
0

0.0023

0.00060.0040

3.380 2.9043.856

0.88
6

M

92

18.1-25.3

21.22±1.

37.15-

68.06±20.6

0.0006

0.0002-

3.777 3.327-

0.94

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March

April

May

June

July

129

71

131.12

7

0.0010

4.227

0

F

90

18.7-24.6

21.85±1.
50

42.70123.23

73.32±19.0
3

0.0008

0.00040.0012

3.715 3.3334.097

0.95
4

M

75

21.6-23.8

22.75±0.
65

83.88119.52

94.67±10.4
6

0.0067

0.00550.0079

3.058 2.3003.816

0.69
3

F

62

22.5-25.0

23.37±0.
83

91.52132.22

102.84±12.
40

0.0083

0.00710.0095

2.989 2.1353.843

0.87
5

M

129

20.4-23.6

22.03±0.
97

62.40-94.87 77.29±11.4
7

0.0064

0.00080.0120

3.035 2.3773.693

0.83
3

F

74

21.3-24.6

22.68±1.
18

96.16112.47

89.63±14.4
6

0.0361

0.00360.0686

2.501 2.0132.989

0.62
7

M

63

22.1-24.6

23.13±0.
83

96.67129.17

106.70±9.8
3

0.1361

0.00690.2653

2.121 1.8832.359

0.68
1

F

72

21.5-25.6

23.79±1.
04

84.97150.75

121.58±16.
77

0.0060

0.00170.0103

3.130 2.6703.590

0.93
0

M

20

20.3-23.7

22.47±1.
68

62.72101.50

91.55±26.4
1

0.0073

0.00720.0074

2.789 2.3093.269

0.89
6

F

81

19.7-25.7

23.38±1.
90

64.54141.00

102.39±22.
55

0.0262

0.00580.0466

2.619 2.1273.111

0.91
7

M

136

18.1-21.1

19.59±0.
99

44.10-64.39 53.52±7.33

0.0203

0.01110.0295

2.645 2.3412.949

0.95
9

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August

September

October

Overall

130

F

91

18.0-22.6

20.37±1.
57

41.36-80.63 60.74±14.6
3

0.0074

0.00220.0126

2.984 2.5203.448

0.95
4

M

56

15.0-26.5

20.57±3.
33

23.48165.29

73.26±41.0
5

0.0024

0.00190.0029

3.389 3.2573.521

0.99
6

F

84

14.2-28.5

24.55±3.
95

22.39205.80

140.47±57.
74

0.0044

0.00220.0066

3.215 2.8993.531

0.96
3

M

26

16.6-23.9

20.26±2.
61

30.88109.14

66.86±28.5
3

0.0016

0.00070.0025

3.517 3.1253.909

0.99
1

F

78

19.1-25.6

22.98±1.
96

53.84138.82

103.53±26.
64

0.0048

0.00230.0073

3.174 2.8423.506

0.96
6

M

106

19.6-22.0

20.75±0.
53

64.85-87.35 77.02±5.12

0.1010

0.04230.1597

2.189 1.8052.573

0.70
7

F

60

19.5-22.0

21.02±0.
58

71.71-91.73 80.06±5.88

0.0624

0.02130.1035

2.350 1.9182.782

0.79
8

M

921

15.0-26.5

21.32±1.
73

23.48165.29

77.06±21.3
6

0.0033

0.00240.0042

3.279 3.1093.449

0.87
3

F

1014

14.2-28.5

22.29±2.
08

22.39205.80

90.87±31.2
7

0.0025

0.00190.0031

3.375 3.2293.521

0.90
7

M+F 1935

14.2-28.5

21.81±1.
97

22.39205.80

84.03±27.6
7

0.0027

0.00220.0032

3.340 3.2323.448

0.89
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All the LLRs values are given in Table 3. The values for coefficient of determination (r2) for
all the length-length parameters of male, female and combined were ˃0.9, and highly
significant (p˂0.001). LLRs were measured as TL=a+bFL, FL=a+bSL and SL=a+bTL
equation in all sexes and combined. In all the samples together, LLRs are as follows:
TL=-1.3284+1.2087FL, FL=1.4623+0.9581SL and SL=0.0000+0.8382TL. The results further
indicated that LLRs were highly inter correlated (r2˃0.9, p˂0.01).
Table 3 Length-length relationships between total length (TL), fork length (FL) and standart
length (SL) of S. aurita in the Izmir Bay (central Aegean Sea) from November 2004 to
October 2005 (n: number of individuals, a: intercept, b: slope, r2: regression coefficient).

Sex

Equation

n

a

b

r2

-1.0161

1.1915

0.984

1.1368

0.9761

0.984

SL = a + bTL

0.0000

0.8462

0.999

TL = a + bFL

-1.4792

1.2168

0.975

1.6747

0.9469

0.974

SL = a + bTL

0.0000

0.8330

0.999

TL = a + bFL

-1.3284

1.2087

0.980

1.4623

0.9581

0.980

0.0000

0.8382

0.999

TL = a + bFL
Male

Female

All

FL = a + bSL

FL = a + bSL

FL = a + bSL
SL = a + bTL

921

1014

1948

REFERENCES
Avşar, D., (1998). Fisheries biology and population dynamics. University of Cukurova,
Faculty of Fisheries, Adana, Turkey, pp. 303 (in Turkish).
Bagenal, T.B., &amp; Tesch, F.W., (1978). Age and growth. In: Methods for assessment of fish
production in fresh waters, 3 rd edn. T. Begenal (Ed.). IBP Handbook No. 3, Blackwell
Science Publications, Oxford, 101-136.
Binohlan, C.; Froese, R., &amp; Pauly, D., (1998). The length-length table. In: R. Froese, D. Pauly
(Editors). Fishbase 1998: Concept, Design and Data Sources. ICLARM, Manila, pp. 124.

131

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Erkoyuncu, I., (1995). Fisheries biology and population dynamics. Ondokuz Mayıs
University, Faculty of Fisheries, Sinop, Turkey, pp. 265 (in Turkish).
Froese, R. (2006). Cubelaw, condition factor and weight-length relationships: history, metaanalysis and recommendations. J.Appl.Ichthyol. 22, 241-253.
Gonçalves, J.M.S., Bentes, L., Lino, P.G., Ribeiro, J., &amp; Canaroo, A.V.M., (1997). Weightlength relationships for selected fish species of the small-scale demersal fisheries of the south
and south and southwest coast of Portugal. Fish. Res., 30(3), 253-256.
Koutrakis, E.T., &amp; Tsikliras, A.C., (2003). Length-weight relationships of fishes from three
northern Aegean estuarine systems (Greece). J. Appl. Ichthyol. 19, 258-260.
Lalèyè, P.A., (2006). Length-weight and length-length relationships of fshes from the Ouémé
River in Bénin(West Africa). J. Appl. Ichthyol. 22, 330-333.
Moutopoulos, D.K., &amp; Stergiou, K.I., (2002). Length-weight and length-length relationships
of fish species of the Aegean Sea (Greece). J. Appl. Ichthyol. 18(3), 200-203.
Pauly, D., (1993). Fishbyte section editorial. Naga, the ICLARM Quarterly, 16, pp. 26.
Petrakis, G., &amp; Stergiou, K.I., (1995). Weight-length relationships for 33 fish species in Greek
waters. Fish. Res. 21, 465-469.
Wootton, R.J., (1990) Ecology of teleost fishes. Chapman and Hall, London.

Could government legalize illegal settlement by improving their energy efficiency?
Janjusevic Jelena, Begovic Radojevic Milica,
UNDP, Podgorica; Montenegro
Abstract
In recent months we are faced with serious budget problems in Montenegro, the solution of
which, among other things is seen in reducing the number of employees in state
administration. On the other hand, the costs of living are significantly above the disposable
budget of households. Particular problem is the high cost of electricity, which recently
132

�</text>
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                <text>Interactions between chemicals used in aquaculture and environment in terms of  sustainable development</text>
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                <text>Muhammet , Altunok</text>
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                <text>Aquaculture that is the farming of aquatic organisms such as fish, crustaceans, molluscs and  aquatic plants, is the fastest growing animal production sector in the world. Global production  from aquaculture for human consumption amounted to 73 million tonnes and the value of  US$ 110 billion in 2009 and comprised almost fifty percent of the world’s fish supply.  Aquaculture, thus, plays an important role in global efforts towards eliminating malnutrition  and brings significant health benefits by nutritional well-being. It significantly dominates  most devoloping countries in terms of contribution to development by increasing gross  domestic product, providing employment opportunities and improving incomes.  The potentially adverse impacts of aquaculture that is also threat the sustainability when the  sector grows unregulated or under poor management, is of considerable current environmental and public interest in the world. Besides eutrophication and genetically modified organisms  (GMOs), the main environmental pressure associated with intensive aquaculture is chemicals  (antibiotics, hormones, fungicides, pesticides, antifoulants, anaesthetics and disinfectants)  used in aquaculture. The intensive systems are often associated with various greater use of  different types of antibiotics and chemicals generate very different effects on the environment,  mainly on water and sediment quality (nutrient and organic matter loads), natural aquatic  communities (toxicity, community structure, biodiversity), and microorganisms (alteration of  microbial communities, drug resistant strains).  The interactions between humans, antibiotics, bacteria, fish and aquatic environments are  poorly understood and recent studies show a significant pollution of surface waters with  antibiotics and other chemicals which are potential risk to drinking waters. Moreover, as a  vicious circle and often as well, aquaculture is also negatively affected by pollution of water  supplies by other human activities (ie: agriculture and industrial activities).  The environmental approach to sustainable development can control the use of chemicals to  eliminate or reduce any negative effects to an acceptable level. Sustainability requires global  action, and therefore an effective solution can be achieved on the basis of environmentallyfriendly  management systems towards social-ecological aquaculture to integrate aquaculture,  environment and society locally and globally. This paper, consequently, addresses the  relevance of the environmental approach to the role of aquaculture in sustainable  development.  Keywords: Aquaculture, Chemicals, Antibiotics, Environment, Sustainable Development</text>
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                <text>2012-05-31</text>
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                    <text>Offline Signature Recognition Using Machine Learning
Mohammad Ikhsan Bin Zakaria, GunayKarli
Engineering and Information Technologies, International Burch University,
Sarajevo, Bosnia and Herzegovina.
E-mails: mohammad.ihsan.z@gmail.com, gkarli@ibu.edu.ba
Abstract
Biometric behavior can be recognized through the signature behavior of a person. It is mostly
used for authorization and authentication in legal documentation papers. Signature
recognition has two ways of verification, dynamic or online recognition and static or offline
recognition. In this paper we use offline recognition to analyze signature images using
Artificial Neural Network. We used mark minutia masking as the feature extraction. We
proposed offline signature recognition using machine learning with supervised learning
algorithm. The aim of using artificial neural network is to automatically find signatures that
match to the owners of the signatures. Based on our evaluation, after we compared feed
forward backpropagation and other supervised learning network such cascade-forward
network, it revealed cascade-forward shown the highest accuracy100 % with low mean
square error 0.
Keywords: biometric, offline signature, machine learning
1.INTRODUCTION
Offline signature recognition is the technique to prevent forgery against security issue on
legal documentation papers. In many legal companies they use this system to protect their
customers. The process of gathering signature image is done by taking signatures from
volunteers to sign on papers for ten times and we take that signatures scan to the computer
and format as 200 dpi into gray scale image format. Reducing noisy and mark minutia arethe
difficult tasks here, because besides we have to keep the information of signature images as
valid as we can. There are few methods that applied offline signature recognition such as
signature region of interest using auto cropping [1]. The signature images will be cleaned up
from unwanted space or image around signatures. In this method the authors proposed image
auto cropping as it is mentioned on image normalization. In [2] they proposed offline
signature recognition and verification scheme which is based on extraction of several features
including one hybrid set from the input signature and compare them with the already forms.
In feature extraction [2] they used Euclidean distances from vertical and horizontal sectioning
of signature. In [3] they proposed offline handwritten signature recognition which is trained
in low-resolution scanned signature images using learning vector quantization classifier. The
accuracy rate [3] was 98% for random test set of 150 handwritten signature images of 10
1

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

persons. Offline signature recognition and verification [4] based on four speed stroke was
proposed. In [4] they used stroke angle and stroke speed as feature extraction.
This paper is organized into five sessions. The following is an introduction of the topic in this
session 1, session 2 describes the proposed method, in session 3 describe signature image
preprocessing and feature extraction, in session 4 describes implementation, results. In final
session describes conclusion.
2.SIGNATURE IMAGE PREPROCESSING
In this paper signature image preprocessing can be done in six steps as follows: (1)
Histogram Equalization (2) Fourier Transform (3) Binarization (4) Signature Direction (5)
Region of Interest (ROI) Area and (6) Thinning. Thinning image process is one most
particular step in this stage, because thinning produces single layer line of signature. Minutia
marking stage needs thinning before applying bifurcation skim step. Signature image
preprocessing is influenced by the original which was taken using colors pen. Thinning
process produces skeleton of signature which has single-pixel image.
2.1. Minutia Marking Feature Extraction
During image preprocessing, we include minutia marking as our feature extraction; here the
mask digit skimmed all possible digits with 1s and 0s value. We carried out minutia marking
to state image bifurcation and decision or termination. In general we have 3x3 matrices, if the
central pixel is one and have exactly three one-value neighbors; the central pixel is a ridge
branch. If the central pixel is one and has only one-value neighbor, then the central pixel is a
ridge ending [5].Using minutia detection on the binary skeleton would be performed by
labeling as minutiae pixels which is cross number (CN). Some methods consider the pixels
which CN &gt;= 3 correspond to bifurcation as shown in figure 1 (a) or if CN = 2 it correspond
to ridge ending[5], [6].

(a)

(b)

(c)

Figure 1: (a) Bifurcation (b) Termination (c) Triple counting branch
Figure 1 (c) describes the special case which a genuine branch is triple counted. If both
uppermost pixel with value 1 and the rightmost in same 3x3 block has pixel 1, so the two
pixels are marked as the braches [6]. All three figures 1 (a), 1 (b) and 1 (c) are filtered using
bifurcation template. Ridge thinning signature images are filtered using this bifurcation
masking. In [5] discussed about mark minutia extraction. The bifurcation template is used to
cover all possible high bit 1s and eliminate 0s bit after thinning process. Basically CN for
pixel P in bifurcation template is in [5] and shown in figure 2 CN is estimated using equation
(1).
2

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Figure 2: Basic format CN for P
(1)

Where Pi is the bi-level pixel value in the neighborhood of P with Pi = 0s or 1s and P1 = P9.
3. IMPLEMENTATION AND RESULTS
In implementation we used Artificial Neural Network supervised learning to classify
signature images that are given in training and we tested to find the match of signatures and
the owners. We evaluated the result in testing session. The experimental platform is the Intel
dual core T3400 2.10GHz, 4 GB RAM, Windows 7 and the software is MATLAB 7.0.0.199
(R.14). On the first part of training and testing, we experimented feed-forward
backpropagation and then followed by other supervised learning network such as Cascadeforward network, Elman Recurrent network and Learning vector quantization.
3.1. Proposed Method
The offline signature recognition using machine learning or Artificial Neural Network as
proposed method in this study is illustrated in figure 3.

Figure 3: Block diagram of proposed method
The first step in the proposed method deals with collecting of signatures and scanned them,
the second step describes signature image preprocessing in session 2. The third step describes
feature extraction, in this step we used minutia marking. The final step describes the
signatures classification processing using feed-forward backpropagation, cascade-forward
network, Elman recurrent network and learning vector network. One of the sample testing
results for each classification neurons are plotted in figure 4. Original or genuine signatures
3

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

were collected from 30 students at International Burch University; each student gave 10
signatures samples. After converting 300 signatures into gray scale format, we divided them
into 300 single signature images. The file was analyzed for neuron classification session. The
following session describes ANN classification and testing results.
3.2. Feed-forward Backpropagation Network (newff)
In this experiment we used feed-forward backpropagation network to calculate mean square
error as the measurement for performance on the neural networks. We also consider the
influence of training algorithm and transfer function which can change the approximation of
recognized signatures. In figure 4 (a) shows the example of testing results. In that testing
session we obtained combination of attributes such as number of inputs, hidden layers,
training algorithm and transfer function. It was the highest accuracy 66.6667 % and the
lowest mse 0.4286. Table 1 shows the attributes training algorithm and transfer function
influenced the final result of testing. The biggernumber of hidden layers with different
combination of transfer functions, the bigger time it took the machine to analyze. Moreover,
number of hidden layer and combination of transfer functions tansig or logsig did not make
big changes or differences for accuracy rate. The lower result of mean square error, the
higher the rate of accuracy we got. However the results of neural network testing were not
precisely matched but we rounded into the nearest integers. After integers are rounded and
there were compared with the predicted integers or classes.
Table 1 Testing on Feed-forward Backpropagation Networks

4

Input

Architecture of
NN

Training
Algorithm

Transfer Function

MSE

Accuracy

10

10-1

traingdm

logsig, purelin

0.714
3

61.9048
%

10

10-1

traingdm

tansig, purelin

0.571
4

57.1429
%

10

10-1

traingdx

tansig, purelin

0.571
4

57.1429
%

10

10-10-1

traingdm

tansig, logsig, purelin

0.476
2

66.6667
%

10

10-10-1

traingdx

tansig, logsig, purelin

0.476
2

66.6667
%

20

20-10-10-1

traingdm

tansig, logsig, logsig,
purelin

0.619
0

52.3810
%

20

20-10-10-1

traingdx

tansig, logsig, logsig,
purelin

0.714
3

66.6667
%

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

20

20-10-10-1

traingdm

logsig, tansig, tansig,
purelin

0.619
0

52.3810
%

20

20-10-10-1

traingdx

logsig, tansig, tansig,
purelin

0.428
6

66.6667
%

The performance of training is influenced by number of hidden layers, training algorithm,
learning methods. Generally,mseis calculated in MATLAB using logic below. In equation
(2) it is just additional description of calculating mse using MATLAB. In equation (3), we
used the logic to compare between target output and actual output. We calculate the integers
in target output that are larger or equal to actual output and converted them into 1s.

(2)

;

;

(3)

3.3. Cascade-forward Network (newcf)
Table 2 shows training and testing using cascade-forward networks, we calculated the mseto
find the significant error during our testing.
Table 2 Testing Cascade-forward Networks
Input

Architecture
of NN

Training
Algorith
m

Transfer Function

MSE

Accuracy

10

10-1

trainlm

logsig, purelin

0.4286

71.4286 %

10

10-1

trainlm

tansig, purelin

0.4762

66.6667 %

10

10-1

trainbfg

tansig, purelin

0.4286

57.1429 %

10

10-10-1

trainlm

tansig, logsig, purelin

0.3810

76.1905 %

10

10-10-1

trainbfg

tansig, logsig, purelin

0.5238

61.9048 %

20

20-10-10-1

trainlm

tansig, logsig, logsig, purelin

0.0952

90.4762 %

5

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

20

20-10-10-1

trainbfg

tansig, logsig, logsig, purelin

0.5238

61.9048 %

20

20-10-10-1

trainbfg

logsig, tansig, tansig, purelin

0.4762

52.3810 %

20

20-10-10-1

trainlm

logsig, tansig, tansig, purelin

0

100 %

Our attributes in table 2 are training algorithm trainlm and trainbfg, where during testing
session trainbfg spent more time than trainlm to find output. In final testing we obtained 20
inputs with two hidden layers and tansig as transfer function, we got 100 % matched in
accuracy rate and 0 in mse error. Thus we concluded that the lowest mse in this network
produced the highest accuracy we got. However, mse does not always affect the changes of
accuracy rate or neural network output. It is because the output of neurons is not always
precise. As a sample of training and testing, figure 4 (b) shows testing result. Figure 4 (b)
shows the testing result with mse 0.4286 and accuracy rate was 71.4286 %.
3.4. Elman Recurrent Network (newelm)
The basic structure table in Elman networks is the same as previous networks in feed-forward
backpropagation and cascade-forward networks as shows in table 3.
Table 3 Testing on Elman Recurrent Network

6

Input

Architecture
of NN

Training
Algorithm

Transfer Function

MSE

Accuracy

10

10-1

trainlm

logsig, purelin

0.4286

57.1429
%

10

10-1

trainlm

tansig, purelin

0.1429

85.7143
%

10

10-1

trainbfg

tansig, purelin

0.6190

66.6667
%

10

10-10-1

trainlm

tansig, logsig, purelin

0.8095

71.4286
%

10

10-10-1

trainbfg

tansig, logsig, purelin

0.4286

71.4286
%

20

20-10-10-1

trainlm

tansig, logsig, logsig,
purelin

0.7143

57.1429
%

20

20-10-10-1

trainbfg

tansig, logsig, logsig,
purelin

0.7143

42.8571
%

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

20

20-10-10-1

trainlm

logsig, tansig, tansig,
purelin

0.0476

95.2381
%

20

20-10-10-1

trainbfg

logsig, tansig, tansig,
purelin

0.4762

95.2381
%

In this experiment the lowest mse is 0.0476 and the highest accuracy is 95.2381 %. From
table 3 shows that there are two highest accuracy rates but with difference mse, thus the best
output is the one that has lower mse error, even though it has same accuracy and uses same
inputs, hidden layer but different training algorithms. Trainlm shows the lowest mse result.
As a sample of testing session in this network, figure 4 (c) shows 71.4286 % accuracy and
0.8095 mse.
3.5. Learning Vector Quantization (newlvq)
In learning vector quantization, the hidden layer value has to be positive integers so it became
limited for us to analyze. Relating to the classes, we provided 21 classes of signatures. We
trained 105 signatures and we tested using 21 signatures. In excel file we put addition column
as the name of each classes such as class 1 has five 1s, class 2 has five 2s and so on. So here
we provided different kind of table which consists only training algorithm, mse and
efficiency.

Table 4 Training and testing newlvq
No. Hidden
Neurons

Class
Percentages

Training Algorithm

MSE

Accuracy

10

.6 .4

learnlv2

0.4286

71.4286 %

20

.6 .4

learnlv2

0.4286

71.4286 %

10

.6 .4

learnlv1

0.4286

71.4286 %

20

.6 .4

learnlv1

0.4286

71.4286 %

10

.8 .2

learnlv2

0.4286

71.4286 %

10

.8 .2

learnlv1

0.4286

71.4286 %

Table 4 (d) illustrates combination of learning algorithm, typical of classes and number of
hidden neurons. The results show us, there are no significant changes during testing either
7

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

using learnlvq1 or learnlvq2 and hidden neurons. Even though, we combined all possible
values. Thus learning vector quantization gave the highest accuracy 71.4286 % with 0.4286
mse.

(a)

(b)

(c)

(d)

Figure 4: (a) Feed-forward backpropagation, (b) Cascade-forward, (c) Elman Recurrent (d)
Learning Vector Quantization
4. CONCLUSION
Based on experiments in previous chapter, we can conclude few points which related to the
results. The highest accuracy in feed-forward backpropagation testing result was 66.6667 %
and the lowest mse in that network was 0.4286. In cascade-forward network testing, the
highest accuracy rate was 100 % and the lowest mse in that testing was 0. Moreover, when
we tested Elman, the highest accuracy in that testing network was 95.2381 % and mse was
0.0476.On the other hand, learning vector quantization network has some differences in
attributes. For instance, we used learnlv1 or learnlv2 as learning algorithm and compet as
training algorithm, so we don’t compare this network with other three network algorithms in
previous evaluation. The highest accuracy in learning vector quantization was 71.4286 %
with 0.4286 mse. Thus cascade forward network was the best fit in this method, because the
network produced 0 errors and 100 % accuracy with 20 inputs.
REFERENCES
Souvola, J. &amp;Pietikainen, M. (2000), Adoptive document image binarization, The Journal of
The Pattern Recognition Society, page 225-236.
Bhuyan, M., Sarma, K. K., &amp; Das, H. (2010). Signature Recognition and Veriﬁcation using
Hybrid Features and Clustered Artiﬁcial Neural Network (ANN). International Journal of
Electrical and Computer Engineering.
8

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Khuwaja, G. A. &amp;Laghari, M. S. (2011). Offline Handwritten Signature Recognition. World
Academy of Science, Engineering and Technology 59.
Basavaraj, L. &amp;Sudhaker Samuel, R.D. (2009). Offline-line Signature Verification and
Recognition: An Approach Based on Four Speed Stroke Angle. International Journal of
Recent Trends in Engineering, Vol 2.
Zhao, F., &amp; Tang, X. (2006). Preprocessing and postprocessing for skeleton-based ﬁngerprint
minutiae extraction, Pattern Recognition 40 (2007) 1270 – 1281, The Journal of Pattern
Recognition Society.
Zhili, W. (2002). Fingerprint Recognition. Unpublished Bachelor’s Thesis, Hong Kong
Baptist University.

A Case Study of Probit Model Analysis of Factors Affecting Consumption
of Packed and Unpacked Milk in Turkey
Meral Uzunoz1, Yasar Akcay2
1Gaziosmanpasa University Faculty of Agriculture Department of Agricultural Economics,
Turkey
2Gaziosmanpasa University Faculty of Economic and Administrative Sciences Department of
Economics, Turkey
E-mails: meral.uzunoz@gop.edu.tr,yasar.akcay@gop.edu.tr

Abstract
This paper focused on the effects of some socio-demographic factors on the decision of the
consumer to purchase packed or unpacked milk in Sivas, Turkey. The data were collected
from 300 consumers by using face to face survey technique. Binary probit model has been
used to analyze the socio-economic factors affecting milk consumption of households.
According to empirical results, consumers with higher education and income levels tend to
consume packed milk consumption. Also, milk price was affective factor packed and
unpacked milk consumption behavior. The majority of consumers reads the contents of
packed milk and is affected by safety food in their shopping preferences.
Keywords: Milk consumption, Consumer preferences, Binary probit model

9

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                <text>Offline Signature Recognition Using Machine Learning</text>
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                <text>Mohammad Ikhsan, Bin Zakaria
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                <text>Biometric behavior can be recognized through the signature behavior of a person. It is mostly  used for authorization and authentication in legal documentation papers. Signature  recognition has two ways of verification, dynamic or online recognition and static or offline  recognition. In this paper we use offline recognition to analyze signature images using  Artificial Neural Network. We used mark minutia masking as the feature extraction. We  proposed offline signature recognition using machine learning with supervised learning  algorithm. The aim of using artificial neural network is to automatically find signatures that  match to the owners of the signatures. Based on our evaluation, after we compared feed  forward backpropagation and other supervised learning network such cascade-forward  network, it revealed cascade-forward shown the highest accuracy100 % with low mean  square error 0.  Keywords: biometric, offline signature, machine learning</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Akten, M. &amp; Akten, S. (2011). The sustainable concept of Tourism; Example of Sarıgöl 1.
Symposium of National Sarıgöl country and values, Sarıgöl.
Büyükyeğen, G. (2008). Edirne city center and it’s close environment. The evaluation of
recreational resource values in the context of sustainability, Zonguldak Karaelmas University
Institute of scierse, Department of land scape architecture, Master’s Thesis, Bartın.
Gezici, F. (1998). The Impact of tourism actions fort he purpose of sustainable regional
development. A comparative research on Turkey. ITU the Institute of Science, Departmentof
urban and regional planning, Istanbul.
Newman, P. &amp; Kenworhy, J. (1999). Sustainability and cities; overcoming, automobile,
Dependence.
Oral, S. &amp; Şenbük, U. (1996). Structural evaluation of tourist regions in terms of sustainable
tourism. 19. World Town Planning Day, Colloqium proceedings, MSU Broadcast part of the
city and regional planning, Istanbul.
Tozar, T. (2006). Ecological Planning methods developed for sustinability of natural
Resources, Master’s Thesis, Yildiz Technical University, Institute of science, Department of
Urban and regional planning, Istanbul.
ACTM- Aydın Culture &amp; Tourism Magazine, 2011, 2, 40-48

Economic Dimension Of The Environmental Policies Applied In Turkey And Its
Potential Effects On Sustainable Development
Mevlüt Karabiçak, Serpil Ağcakaya
Abstract
The purpose of the paper is to analyse the economic dimension of environmental policies still
being applied in Turkey and to research the potential effects of sustainable development. In
1987 Bruntland Report was published by UN World Commission on Environment and
Development and attention on sustainable development was attracted. In the aforementioned
report, against the ever deteriorating environmental problems, the necessities of establishing
the vital bridge between environmental development and economic development and the
sustainability of development are accepted.
The first precaution coming to mind for preventing environmental destructions that causes
crucial costs for national economies is the efficient and productive use of current resources
and the establishment of an optimal equilibrium between current and future generations in
terms of the use of resources. Being sensitive in terms of the principle of sustainable
development in the formation of environmental policies is accepted to be an important
approach for the prevention of environment. Although the sustainable development
endeavours cause significant costs, it is observed that new policies are constantly formed in
terms of environment. In the scope of the paper, the potential effects of environmental
policies that aim to decrease the negative effects created by the destruction of environment
and to turn the world into a more habitable area on sustainable development are analysed
through national and international data.
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1.INTRODUCTION
The subject of environment is the most essential and common problem of the whole world.
This matter to great extend originates to excessive usage of factors. Environmental destruction
particularly, during th recent years has shown the gradual increase, so that the whole living
beings or lifeless creatures have been negatively effected. In one hand the necessary
expenditures to be mad efor protecting the living standarts and hence, stil to raise it more and
on the other hand aiming that each of these expenditures not to cause the mentioned
environmental destruction. The necessity of establishing a multi directioned balances in
between the production and consumption stands as a reality. This phenomenon brings forth
the mutual influence of the lifeless and living beings to the present agenda and so has
continiously been increasing the economical costs of the environmental protections. This
point meanwhile, determines the borderlines of the environmental sciences as well.
The wide pronounciation of the term environment was first met in daily languages of the
communities at early 1970’s. At first glance the term environment may be considered to ben
an easily understandable concept but it’s very complicated structure shows itself when
carefully examined.
Environmental pollution has both productional and consumptional dimensions. During the
formation of these two phases, many harmful effluents gets produced and do spread around.
Unacceptably high levels of such effluents and their contaminating effects getting into the air,
soil and water and polluting the underground. So, all these do cause the increased
environmental destruction. This destruction shows itself sometimes as like desert, drought,
erosions, poverty, impropriety, negligence and irresponsibility. Environmental problems,
nowadays have essentially changed its nature and have rather gained a global dimensions by
passing over the national borders.
Reducing the costs and relieving the negative pressures upon the sustainable developments
needs a new approach towards the matter. This new approach can only be provided by
international, national and regional collaborations. This study will cover how and what kind
of method should be applied for avoidance of negative environmental effects but not reducing
the social welfare and sustainable development what probable costs will be faced to and how
these can be possibly met.
2.CONCEPTIONAL FRAME
Environmental science can be accepted as a branch investigating and studying the mutual
effects amoung the living beings and their surroundings and so putting up the obtained results
to discussions. Ecology and the economy by some means are the concepts with in eachother.
Ecology aims to utilize less of factors for protection of environment. The economy, however,
is aiming for a higher level developments for higher prosperities. Henceforth, such sustainable
development forms thee common denominator of the coincidence between these two
concepts. The Brutland report about “our common future” defines the sustainable
development as, to meet todays, requirements with out benefitting from the possibilities being
planned to meet requirements of the future generations. (Gönel 2010, p.275)Another view for
sustainable development is that it need to benefit from protecting the ecological processes and
life supporting systems by means of obtaining a continious use of ecosystems and the genuses
(Ertürk Hasan 2009, p.397) By this definition the economical development target was focused
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to the point succeding on the potential economical growth whilist protecting the benefitted
natural capital stock. (Dağdeviren 2003, p.143.)
Sustainable development doesn’t only aims to form an environment that would be clean, safer
and livable but also deals with the view that it should be more stable, healthful, prosperous
and with higher living standarts, which suits well to human being. (Gönel 2010, p.285)
Therefore, the borderlines of sustainable development is overapping or completing with the
environmental protection standarts it is therefore possible to qualify the sustainable
development as an environmental confidant. This environmental confidant development has
the potential capability of going over the environmental problems and solve. This potential,
along with bringing up the new growth sources as productivity can a pronovelty (newness),
new markets, security and stability, effective use and optimal distrubution of these sources.
(http://www.oecd.org/dataoecd/36/10/48060835.pdf).
3.ENVIRONMENTAL PROBLEMS AND THE PROCESS OF ENVIRONMENTAL
SCIENCE
Environmental problems are as old as the history of human being. As the use of sources
started to increase along with the industrial revolution, which has caused the increased
environmental destruction since then. The first signs of pollution was noticed in England. One
of the pollution are as in England were rivers. England, therefore has taken actions against all
kinds of river pollution forms by the law passed in 1876 (Burows 1980, p.158) The first
warning about the possible global heat rise due to CO2 gas was made by Swedish scientist
Svante Ahrrenius in 1898 but wasn’t recognised as a serious one. (Karbuz, 2002, p.9) The
first human death disastors took place in the town of Donora (Penn) in 1948 and the other one
in London in 1952 had shown the necessity to take precautions against the pollutions.
(Turkman 2000, p.36)
Some scientists and thinkers have expressed their views about the possible great catastrophies
along with the continued environmental destructions, which all were initiated by spoiling the
natural structure by human race since 1960’s. Paul Erlich’s publication in 1968 named
“population bomb” and Rachel Garson’s book of “silint spring” 1962 are example of the
releavant problems. In 1968 Unesco called upon a conference “UN Biosphere Conference” by
which, the first steps fort he ecologically sustainable development were taken. 1972 is another
turning over point on this particular activities. A meeting was held in Stockholm with 114
participant countries. (Karbuz, 2002, p.9) The most important result obtained from this
conference was the common approach shown by the participating countries of different
regimes and development levels fort he point of environmental responsibilities. The markedly
expressed principal idea at this conference was, tol ive in an environment that would most suit
too human honour and good health (Ertürk, 2009, p.234) Another important result was
“Mediterrenean action plan”, along with the warnings of environmental consciousness at
Stockholm conference, 16 participiant mediterrenean countries have approved the action plan
to save mediterrenean sea from the pollution (Görmez 2003, p.86-87)
The worlds environment and the development comission was formed in 1983 under the
chairmanship of GRO Harlem, the prime minister of Norway and had published a report with
the topic of “Our common future” which had created a great interest. (Uslu, 1990, p.53)
((http://en.wikipedia.org/wiki/Brundtland_Commission) Fallowingly, a top meeting took
place in Rio de Jenerio in 11.02.1992 where, the agende 21 of this meeting had consisted of
800 pages in 40 chapters. After this conference total of 165 countries signed in 1993 the
“Biological Assortment or variety” agreement. In 1994, 150 countries signed “The climatic
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changes environmental agreement” which led to the formation of United nations sustainable
development commission. (Gönel, 2010, p.290)
In 1997, Rio +5 conference was held with rather lesser attendance and not much of sufficient
progress could be achieved on the above mentioned development. Again in 1997, the Kyoto
protocol was found acceptable in Kyoto and was offered to the signitures in 1998 in New
York, but somehow by the delays of USA, Russia and China could become effective on Feb
15,2005. The second top meeting for sustainable development was held in Johannesburg from
Aug 26 to Sept. 4, 2005. More than 100 participations from the presidential or ministerial
levels along with many civil public organizations and employer representatives was achieved.
(Gönel, 2010, p.291)After this meeting two basic documents came out. One was the political
proclomation and the other was the implementation plan. In this meeting 5 very important
decisions were taken in the fields of water projects, energy, health, agriculture, biological
variations and the protection of ecosystem administrations. (Karabıçak Armağan 2004, p.212)
In 2007, Lula Silva, the president of Brazil, in his speech to UN General Assembly made an
offer to hold a global top meeting Rio+20 to discuss the subjects about the sustainable
developments in the world. His offer was approved on Dec. 24.2009 by the UN general
assembly and the date was set for June 20-22.2012. The four points to be focused in this
meeting are ; (http://www.mfa.gov.tr/uluslararasi-cevre-konulari.tr.mfa
-To review promises(engagements)
-The new problems arouse
-Struggles against poverty and the gren economy by means of sustainable development
-Associational frames for sustainable development
The Rio +20 UN sustainable development conference scheduled to be held in June 20-22.
2012 is actually an indication of the sensibility and the will to promote the mentioned matters.
(http://www.uncsd2012.org/rio20/index.html).
In Turkey too, under the responsibility and coordination of the ministry of development those
Project activities within the framework of Turkey’s supportive projects to the preparations for
Rio+20 conference and on the subjects of fortifying the systems of protected areas of Turkey,
sea and the protected seaside areas to be made easier fort he continuation.
(http://www.undp.org.tr/Gozlem3.aspx?WebSayfaNo=3510). In this context a meeting was
held in Ankara on Feb. 22.2012 on the sustainable development prosessing the future
(http://www.csb.gov.tr/gm/tau/index.php?Sayfa=haberlerdetayHYPERLINK
"http://www.csb.gov.tr/gm/tau/index.php?Sayfa=haberlerdetay&amp;Id=520"&amp;HYPERLINK
"http://www.csb.gov.tr/gm/tau/index.php?Sayfa=haberlerdetay&amp;Id=520"Id=520).
4.ECONOMICAL DIMENSIONS OF ENVİRONMENTAL PROTECTION POLICIES
TO BE IMPLEMENTED AND IT’S RELATION TO DEVELOPMENT
In the literature of economy it was admitted that human needs are ever lasting but are limited
for the sources to meet these requirements. So it seems possible to meet these requirements
with such sources. Therefore, the necessity for all sorts of technological and technical
effectiveness taken under considerations fort he usage of natural resource. Again the
mentioned effectiveness here must coincide with the effectiveness in the consumption and in
the distribution of the sources. The effective and reasonable utilisation of sources carries up
the prosperity to the agenda. The development of a community can olnly be by maximizing
the social relief and prosperity. Promoting this social prosperity with out any reduction leads
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the fact that a balance must be built between the existing and future generations. In our times
it is believed that this balance can only be provided with the principles of sustainable
development.
Basic problem of the underdeveloped countries is too crowded population and the poverty.
Communities through out the history and before the industrial terms and those of
industrialized communities the fact of population had the recycling effects qualitatively and
quantitatively over the economy. Of course these recyclines and transformations in economy
is affecting the structure of population. The volume of population is an indicator affecting
upon the production, division, consumption and also gets affected itself from these facts.
(Küçükkalay, Türkcan, 2008, p.89) Over population adversly affects the distribution ofi
income and promoting the excessive use of sources. This situation causes the in effectiveness
among the production consumption and sharing and eventually negatively effects upon the
living quality. Therefore the importance of development by means of economy which basicly
measures the growing problems of the countries has been dominant factor in our days. To
protect the level of prosperity of developed countries and overcoming the prolonged revolving
poverty of the poor countries can only be realized by sustainable developments. According to
the thesis of povertytrap the reason why some countries are poor is just because they’re poor.
In this povertytrap there is a steady state where per capita and per outputs are low. Therefore,
whenever such a poor country intends to break this chain falls back into the same circle.
(Ünsal 2007, p.179) United Nations development program is taking two indexes under
consideration one is human poverty index and the other one is human development index.
Human development index is the one that UNDP has produced aiming to show the
development differences of the nations in international level. Such dimensions like health,
education, living standarts had all been added to this index. For obtaining an index, the life
expectancy at birth representing the health, the mean years of schooling represents expected
years of schooling and per GNDP used for representing the living standarts.
(http://hdr.undp.org/en/statistiks/hdi/
Studying datum given in Table 1 here below, the
living standart gross national income per capita is 13559 USD, which is 62% high than
Bosnia Herzegovina while the life expectancy at birth is 4% and expected years of schooling
is 10% lower. Mean years of schooling in Bosnia is 2,2 years more than Turkey with the
average of 8,7 years. Additionally human development index in Bosnia Herzegovina is 0,710
higher than Turkey. World Bank uses 1 USD/day measures to determine the level of
poorness. Nowadays 1,2 billion people are living below this amount. Another measure is food
energy method. By this internationally accepted method, the minimum level of calories
determined but the consumption of other than foods were omitted. (Cepni 2010, p.201)
Table 1. Fixed Values Used in Human Development Index

Health
Edication
Living
Standards

Turkey
(2010)
Life Expectancy At Birth
72,7
Mean Years Of Schoolling
6,5
Espected
Years
Of
11,8
Schoolling
Gross National İncome Per
13.359 $
Capita
Human Development Index

247

0,679

Bosnia Herzegovina
(2010)
75,5
8,7
13,0
8.222 $

0,710

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Source:http://hdr.undp.org/en/statistiks/hdi;http://hdr.undp.org/en/statistics/hdi/.
(http://hdr.undp.org/en/media/HDR_2010_EN_Table1_reprint.pdf .

/

;

Economical growth has a numerical properties expressing income per capita and physical
increases in production where as the economical development includes not only numerical
factors but also qualitative elements. In order to mention about the development there must be
an improvment in processing rules and in quality levels of foundation and establishments.
(Çepni, 2010 ; p.199) Nowadays the occurances of some negative progress about the
environmental protection are directing the countries and communities to behave more
sensitively. Instead of the developments with in definite borders and careless use of sources
such a sustainable development that would cover the coming generations was found to bee
more acceptable view all over the world. Sustainable development therefore is the kind that
covers the economy, environment and the communities together. Here the fundamentual
problem is the excess financial burdens that sustainable development policies may cause.
There are various opinions about the mentioned financial costs. Whilst the traditional
approaches are rather distant on sustainability, the environmentalists are rather quite insistant.
There are some views stating the possibilities of setting a harmonious acceptence between
these two views. The aims of sustainable development aren’t too far from the economical
development targets. Actually, the object of sustainable development is simply to look after
an adjustment or harmony between the economical requests and conveying capacity of
ecosystems. (Gönel, 200, p.276) If such an adjustment could be realized in all countries, then,
both the global rivalry will not be adversly affected by these policies and non of the
economical stability will be spoiled or destroyed. Therefore, no social prosperity decrease. To
set up such a harmony definitely is diffucult but is never impossible.
Minimising the environmental costs and converting the negativities to adventages forms
firstly will depend upon the conversion of negative extroverts into introvert which may form
during the production. Improving the sustainable living qualities, determining and
implementing the methods would eradicate the negativies caused by the production and
consumptional activities however what may be nede to provide this is the conformity between
the targets desired to reach and the chosen instruments.
(Toprak:2006, p.151);
(Dağdemir:2003, p.141-155); (Çokgezen, 2007:102). Have been able to maintion about some
principles for the solution of existing environmental problems within the sustainablity. These
principles are; “sustainable developments”, “the polluatant pays”, “precaution”, collabration
complementary high level protections, avoidance and avoidance at source.
4.1.The Principle of Sustainable Development
The essential projection point of this principle is the relation of environmental problems with
the economical development. Environmental effluent Have a certain recyling (revaluation)
capacity, which peovides appriciable savings in the utilization of natural sources. The
ecological and natural living transformation gets negatively affected when the environment
receives rapid pollution over the recyling capacity. (Başol and others.2007, p.163) The
additional factors like over population migration problems, unorganized urbanization,
increased traffic jams, earthquakes, wars, social disorders and complications have all great
additional negativity to the ones mentioned above. Nowadays civil urbanization ratio is
increasing rapidly in great number of countries and the population density gets higher in
bigger towns. This unbalanced distribution of population leads to infrastructural insufficiency
and so to over usage of sources will end up with increased pollution.
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First of all the new technologies are needed for setting a suitable environmental protection
policy that would match to sustainable development principles. This can only be realized by
some attentive plans or precautions. For example, millious of wehicles nowadays are moving
around all round the world. Additional milllions are joining them everyday. By charging
higher taxes for those vehicles harmful to the environment and lesser taxes for unharmful to
the environment and lesser taxes for unharmful ones might be the collobarative support of
research and development centers the minimisation of these negative effects upon the
environment can reasonably be reduced. We can classify the renovations as renevals of
products, processes and organisations. The first two are expressed as technological renevals.
The organisational one can be taken as example to “just in time” renewal principles. Through
the aid of technological renevations improved production schemes and new methods can be
developed. Technological renovations, whilist making thee new products more populer, it
may also become a reason fort he birth of a sector. It’s very important to select the most
suitable one among the alternative technologies. Developing countries can not explore new
Technologies but can obtain them through the transferances. (Kaya, 2008. p.281) but these
developed countries don’t give chance to them for such transferance of new Technologies.
Insufficient Technologies may have negative effects upon the environmental protection, that
is why many of those underdeveloped countries become rather a field or source of poluution.
The foremost duties about the sustainable developments are up to the central and local
authorities. Uncontrolled, unhealthful and rapid civil urbanisation results in increased
squatters shacks round the suburban areas. A great deal of sharing the benefits due to rapid
urbanisation causes the destruction of historical background and sites of the town.This excess
and denser growth of inhabitant areas loose their gren nature and turno ut to be a mass of
concrete structures. Insufficiency of present technical and social infrastructure creates very
unhealty appearence (Türkmen 2000, p.140). Local authorities should take necessary
precaution mutually with central authorities, civillion social and Professional organisations to
make their towns a beter place to live in. Some randomly made construction plan check ups
and modifications have been creating very unlucky effects upon historical and cultural
structure of the towns. Environmental and touristic sites get badly and irrevocably harmed by
such wrong administrations.
Traffic jam is another negative factor in sustainable developments. Thousands of people are
loosing their lives and wasted in Turkey and all around the world. Better results can be
obtained if the suitable correction can be made infrastructures of transportational fascilities be
improved and when the proper transference of existing usable sources be realized.
Earthquakes cause tremendous collapses and lose of lives all over the world. Those can save
themselves may have psychological disorders. So, careful studies and calculations of the
constructions and beter selection and use of good quality materials will provide strong
fascilities. This will avoid the lose of many lives and sarrowness.
Health is one of the indicator to emphesise the importance of sustainable development. For a
helaty community a clean enviroment is firstly needed. Living in a clean, neat media does
increase the quality of life. Lesser expenditures for health increases communal savings, such
savings will help the development of the countries progresses and to have a prosperous life.
World peace is the subject that can be benefited from to obtain best results in sustainable
developments.No natural destruction can compete with the pollution may be caused by the
wars. The matter of armaments and wars were always neglected to mention in the
environmental literatures by which they do put forward their views by all chance about the
environmental protection. Neverthless should those invested billions of dollars for armaments
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be allocated to help settling peace, protecting cultural values and for an honourable human
living, there would remain no poverty, hungerness and pollution all over the world. Those
realistic countries, being aware of loses due to wars always stay away from supporting, feding
or provking the terrorism. This takes the human being to peace and confidence.
4.2.Who Polluts Will Pay Principle
Environmental cost inclusively to turn the responsibility and duty of preventing the pollution
over to the pollutant by charcing the total cost of the use of natural sources. However, its not
always possible to identify the pollutant. That’s why a great potion of the pollution cost are
rather made paid by the public through the taxes. For instance, Turkey being an OECD
member has been having maximum revenue through the taxes relevant to environment, that
4,8% GNDP of Turkey and 25% of the total income taxes weren’t set up for environmental
purposes. Neverthless the ratio of expenditures fort he prevention of pollutions to GNDP,
1,1%could hardly be increased to 1,2%. (http://www.oecd.org/dataoecd/54/17/42198785.pdf,
p.21) It’s rather diffucult to detect or identify the individuals causing the pollutions. There is a
need for very precise good detection network. To realize such an attempt, public should be
with reasonable education conscious, capable of preserving his civil rights an be dynamic
ones. There should be no pressure on dense population and poverty, as otherwise the problem
of hunger will exist in such a community. If the individuals are having some fear and
anxiousness for their survivals, environmental problems are then nothing more than a fantastic
matter for them. Therefore the subject sustainable development is definitely an ethical
concept. Communities or individuals must have ethical responsibilities that not look after only
fort he prosperities of their own groups but must for those who have no support and uncapable
of expressing themselves.
4.3.Precaution and Prevention Principle
Necessary precaoutions must be taken before making any decisions and testing for probable
reactions may arise from such decisions. All precautions no matter how effective they may be
won’t be sufficient once the environmental destruction occurs.
4.4.Completing and Collaboration Principles
Environmental protection must be in harmony with other policies and must go for
collaboration in all fields when necessary. But, reducing the globally occured pollutions it is a
must to have an international colaboration. The dimensions of such international
collaborations and sharing the attendances rather depends on the countries capacity in creating
Technologies and their usage.
4.5.High Level Protection Principles
When taking any kind of decision the authorised unit or societies must take the environmental
policies under considerations. Law makers should also obey these rules as well.
4.6.Prevention at Source Principle
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Environmental harms must be readily prevented at source, otherwise there will be not much
meaning once the damage occurs. For example, one of the most important subject of Turkey
is forest fires. The main point about such fires is not to have the start of such fires because the
useful flora and wildlife can nnot be reobtainable. Such fire does not only destroy the nature,
but burns those inhabitants site sor villages. Billions of tl.s worthed goods get simply lost.
Turkish development policies from the planning period to present times has shown a progress
towards the sustainable development with in the dimensions of economy environment and
community activities. In spite of the marked progresses achieved in this field, the observation
and evaluations of sustainable developments have remained limited. Some small scale local
studies were realized on this subject neverthless the need preparing Turkey’s national
sustainable development indication set and index is stil valid.
5.SUMMARY
The most essential principle in environmental protection is to provide proper utilisation of
natural sources in right balance and to look after and pressure rightfull share among the
generation. Therefore, it is a must to seriously accept research and developments for
introducing new Technologies into the circulation. Must be precise to benefit from the
recycling possibilities for effluents coming from the productions and to aim to edible sources
and use the sources but not finish. Environmental and economical policies those will provide
the sustainability must take over a dominant role. Excessive productions and selfishness in
consumptions will never be ethical and will also maket he most reasonably applicable policies
invalid about the environmental protection. The complementary policies which the
international collaborations and harmony and will fallowing the effectiveness of the
appropriate distrubution of the sources, productions and consumptions seems to give very
meaningful results and high level protective precautions are thought to be a fruitful and will
be preventive against the probable environmental problems right at the source before coming
into being fort he global effectiveness of the sustainable development policies and to transfer
a livable environment to the generations. An intelligance having the power and desire to live
in a clean and neat surroundings snd also fighting against all sorts of pollutions in the world
must build its soverignty all over the world.
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                <text>Economic Dimension Of The Environmental Policies Applied In Turkey And Its  Potential Effects On Sustainable Development</text>
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                <text>The purpose of the paper is to analyse the economic dimension of environmental policies still  being applied in Turkey and to research the potential effects of sustainable development. In  1987 Bruntland Report was published by UN World Commission on Environment and  Development and attention on sustainable development was attracted. In the aforementioned  report, against the ever deteriorating environmental problems, the necessities of establishing  the vital bridge between environmental development and economic development and the  sustainability of development are accepted.  The first precaution coming to mind for preventing environmental destructions that causes  crucial costs for national economies is the efficient and productive use of current resources  and the establishment of an optimal equilibrium between current and future generations in  terms of the use of resources. Being sensitive in terms of the principle of sustainable  development in the formation of environmental policies is accepted to be an important  approach for the prevention of environment. Although the sustainable development  endeavours cause significant costs, it is observed that new policies are constantly formed in  terms of environment. In the scope of the paper, the potential effects of environmental  policies that aim to decrease the negative effects created by the destruction of environment  and to turn the world into a more habitable area on sustainable development are analysed  through national and international data </text>
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                    <text>BİNGÖL, M., (2006), İşletmelerde Bilişim Teknolojileri ve Yenilikçilik, Yüksek Lisans Tezi,
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İletişimi, Yazılım ve İnternet, Siyasal Kitabevi, Ankara.

Obstacles in collaborative consumption websites’ development: A case from Bosna and
Herzegovina
Merima Bejtagic-Makic1 , Suncica Hadzidedic2
International Burch University, Sarajevo, Bosnia and Herzegovina
Sarajevo School of Science and Technology, Sarajevo, Bosnia and Herzegovina
E-mails: merima.bejtagich@gmail.com, suncica.hadzidedic@ssst.edu.ba
Abstract
According to Rachel Botsman, a renowned social innovator, the 21st century will be
characterized by collaborative consumption. It is a new mode of business backed up by
network technologies and based on the ancient methods of trading by bartering and swapping.
Collaborative consumption websites engage and specialize in information, service and goods
sharing, swapping, renting, lending, and trading. The power of these new marketplaces is in
changing the way people view ownership and consumption, alleviating the hardship of
economic recession, freeing the flow of knowledge and information, and creating a business
model which supports the reuse of goods and space for a greener world.
The content of this research paper provides an understanding of the drivers for collaborative
consumption technology in a developing country in economic recession time, precisely
Bosnia and Herzegovina (B&amp;H). The key research question to be addressed in this study is:
What are the issues faced in B&amp;H when embarking on a collaborative consumption website
development project?
Keywords: collaborative consumption (CC), swapping, website development, green
technologies, emerging technology issues, system requirements, case study, empirical
approach, collaborative technologies
1. INTRODUCTION
1.1 Collaborative Consumption
Global economic crisis, environmental issues, social and economic inequality, hyper
production have lead to assets such as skills, time, goods, services, land, gardens, and "stuff"
to be in a state of "idle capacity" i.e. under-utilization. Therefore, this created a need for an
alternative way of obtaining goods and services which is through collaboration consumption.

588

�“Collaborative consumption” is a return to the beginnings of human society, which is based
on swapping and renting goods and services. If the 20th century was defined by hyper
consumption and is a growing culture and economy, the 21st century will be defined by
collaborative consumption, according to Rachel Botsman speaking at Wired 2011 in October
21.
Botsman, R. and Rogers, R. (2010) in their book ‘What’s Mine is Yours’ state that "The
collaboration at the heart of Collaborative Consumption may be local and face-to-face, or it
may use the Internet to connect, combine, form groups, and find something or someone to
create "many to many" peer-to-peer interactions. Simply put, people are sharing again with
their community - be it an office, a neighborhood, an apartment building, a school, or a
Facebook network. But the sharing and collaboration are happening in ways and at a scale
never before possible, creating a culture and economy of ‘What's Mine is Yours’”.
1.2 Research Objectives
The objective of the here proposed research is: To provide an understanding of the drivers,
and barriers, for collaborative consumption technology in a developing country in economic
recession time, precisely Bosnia and Herzegovina (B&amp;H). Specifically, the key research aim
is to explore the issues faced in B&amp;H when embarking on a collaborative consumption
website development project.
The research is based on experience from an actual CC website development project. Using a
case study approach, the paper addresses the following sub-questions:
R1: Do B&amp;H website design and development companies have the capacity to engage on and
deliver a CC website development project for a specified price and time?
R2: What are the problems, i.e. obstacles, faced in the actual process of development of such
a website in B&amp;H?
R3: What solutions can be suggested to the problems in order to accomplish successful
implementation of CC website in B&amp;H?
2. REVIEW OF COLLABORATIVE CONSUMPTION WEBSITES
2.1 Functionalities of CC Websites
CC websites are distinguished from other websites on the Internet in its user friendly design
and picturesque demonstrations with less writing. They use colors such as blue, green and
some light versions of grey, brown and yellow. Most CC websites contain the following
functions: ‘How it works’ – a link usually known as About Us which shortly describes the
services offered on the website, “Item catalogue” - goods and services are divided into
categories which make it easier for users to search, “Search button” along with advanced
search to help users get to what they want efficiently and effectively, “personal list” of items
offered and items wanted, “message exchange” for creating an offer and exchanging personal
messages, member review, security measures encompassing a privacy policy and terms of
use, and detailed membership application form. Majority of collaborative consumption
websites exhibit a focus on one type of collaborative transaction – swapping, renting,
borrowing, or sharing, and moreover focus on a specific group of categories.

589

�2.2 Existing CC Websites
In this section, successful collaborative consumption websites around the world are
introduced:
2.2.1 Airbnb: is an online global and travel network of accommodations offered by locals for
rent. In 2011 Airbnb was awarded ‘The best website’ prize by the Guardian.
2.2.2 Taskrabbit.com: is an online and mobile service networking marketplace. It is a virtual
neighborhood called a "Service Networking”. It allows you to post a task you need to get
done and gets you in touch with friendly, reliable people who will do it for you for a small
fee.
2.2.3 swap.com: is leading the global swap movement both online and in communities across
all categories.
2.2.3 whipcar.com: allows a car owner to rent out their car for a certain fee to an approved
driver with spare car time, when the car owner is not using it.
2.2.4 landshare.net: Landshare brings together people who have a passion for home-grown
food, connecting those who have land to share with those who need land for cultivating food.
2.2.5 pik.ba: it is the Bosnian version of e-bay, and the first Bosnian website for buying and
selling which aims at connecting the buyers and sellers in one place. It also includes options
for renting and swapping the products available.
2.2.6 ekupon.ba: is a pioneer groupon website in B&amp;H which features a daily deal on the best
stuff to do, see, eat, and buy on 50%-90% discount and this way attracts a lot of people to buy
that same product or service.
2.2.7 tajpi.ba: is a community based website where people ask questins and get answers from
the members. This way they share information and collaborate by exchanging their
knowledge, experiences and advice in their field.
3. METHODOLOGY
The CC website development process described and explored in the here presented
retrospective case study was a project started in February 2011 by the authors.
The project was divided into six SDLC (System Development Life Cycle) phases: analysis,
design, implementation/development, testing, installation/deployment and maintenance. The
first month of the project was spent on planning the schedule for website development,
evaluating the cost, and analyzing website requirements. Requirements’ gathering was
conducted through the evaluation of existing collaborative consumption websites.
Design of the website’s home page, as adjusted to the common trend by CC websites, was to
present a user with an instructional video, registration and log in buttons, list of categories in
the form of pictures, application for a newsletter, and advertisements. CC functions of the
website which were to enable users to swap and rent items were specified into: registration
form, log in, member account information, adding new items, message exchange for website
users, member review upon offer acceptance, overview of items a member is offering and
those they are seeking, automatic matching of items, separate overview of items rented,
upgrading member’s status to premium member for a fee.
Upon completion of the analysis phase it was concluded the optimal choice for website design
and development was outsourcing.
590

�3.1 Addressing Research Sub-question R1
After initial research on the companies offering web design and website development, the
following selection criteria was developed: cost of the service, time required to complete the
project, communication – availability to meet in person and discuss requirements, references
and portfolio – prior experience on similar projects, resources – availability of in-house team
of developers, and bonus offers - suggestions for marketing, SEO, hosting offers, domain
registration, affiliate marketing, etc.
Requests for proposal were sent to five BH companies (denoted as C), one local freelancer,
and also posted on freelancer.com. Table 1. represents their offers for each of the selection
criteria.
Table 1: Criteria used for website developer’s selection
Criterion

C1

C2

C3

C4

C5

BH
freelancer

freelancer
.com

Cost

Average

Low

Average

High

Average

Low

Low

Duration

Average

Average

Average

Long

NS/NA

Long

Short

Communic.

In-person

Online

In-person

In-person

In-person

In-person

Online

References

Few

Many

Many

Average

Many

Few

Average

Resources

None

Team

Team

Team

Team

1 person

1 person

Bonus offers

None

None

Domain,
affiliate
marketing

None

NS/NA

None

None

(Note: NS/NA – not specified or the company did not answer to the RFP)
C3 (from now on mentioned in the text as the Developer) was chosen as the company to
provide the website design and development. Reasons for the choice were that it was a
company with several years of experience, with a fully functional team of designers and
developers, who have presented to project owners their work on previous large projects, and
were able to offer additional services, including full reliance on them for maintenance, hosting
packages and affiliate marketing.
3.1.1 Project Schedule and Budgeting
In the agreement with the Developer, the remaining phases of the SDLC were specified
(Table 2). The duration of Design, Development and Testing phases for the project was 4
months - starting end of May 2011, ending beginning of October 2011. Website deployment
was supposed to occur by the second week of October, to coincide it with the start of a new
academic year at B&amp;H universities.

591

�Table 2: Project’s work breakdown and schedule
SDLC Phase
Analysis

Design

Development

Testing

Deployment

Tasks
Project cost agreement
Task scheduling
Requirements clarification and detailing
Website design
Categories’ icons design
Logo design
Swap and rent modules
Domain registration
Software testing (throughout development by
Developer)
End-user testing
Hosting package
Making website available for public use
Affiliate marketing, social networks’ ads

Duration
end of May –
middle of June
(15 days)
middle of June –
middle of July
(1 month)
middle of July –
end of September
(2.5 months)
end of September
(1 week)
beginning of October
(15 days)

Total cost of the website was partitioned on individual website functions, i.e. modules. The
payment method agreed upon was monthly installments.
4. RESULTS AND DISCUSSION
Project’s design phase kick-off date was end of May. Two meetings were held between
project’s owners and the Developer’s designer to specify website design - webpage elements,
colors, and text position. After three unsatisfactory solutions for home page design, final
design was offered and accepted middle of July.
A week into the development phase indications of project delay arose. The Developer notified
that while there will be some work on the project in August, they have incurred other
obligations which were more urgent for them. Till the end of July, three modules were
completed. A module which followed was Adding Items (creating items and categories). The
creation of this module extended to the whole month of August. Lack of communication
during that period, private obligations from the owners’ side, the month of Ramadan, not
organizing performance tracking meetings, and neglecting the work on this project from the
Developer’s side, caused key changes and iterations in the development of this module.
Beginning of September, a meeting was finally arranged to clarify requirements, go over
business logic behind each of the functionalities, and discuss about corrections to user
interfaces. Only a month remaining till the end of the development phase, the major modules
for making the website operational were not even started. Nevertheless, project owners were
assured the delivery date would be met.
Due to the fact that only one month was left till the deadline, tension was high at both ends. It
was agreed that end of September was the final deadline to start testing the existing modules.
Testing had not been carried out at all from the owner’s side, given that the approach chosen
by the Developer was waterfall SDLC approach; in this methodology one SDLC phase has to
be completed in order to move into the next.
592

�The first end-user testing efforts caused emergence of ever more serious issues. It was evident
project deadline was going to be broken.
4.1 Addressing Research Sub-question R2
End-users tested usability and functionality of the website in a scenario where it was assumed
this website was present and available for use in B&amp;H online market. Based on the results of
end-user testing, it was determined the website was not ready to be put online for use. The
development phase had to be extended.
The problem was exacerbated when the testing process caused an unintentional change of the
approach to website development. The Developer tried to hang on to the waterfall approach
they found the most familiar. The owners adopted a practice of weekly testing efforts to keep
track of the development progress, thus pushing towards a more rapid and agile, development
approach. As a result, the Developer was simultaneously requested to complete the remaining
modules, and they were provided a list of changes that needed to be made to the existing
modules. Quality of delivered functions decreased, delivery dates were prolonged, and respect
in communication on both sides was deteriorating. The diversion of approaches taken by the
two sides caused the Developer to enter into multiple loops to complete the ever growing
changes to the already existing modules, while never starting to work on new modules.
In the meantime, internal changes and fractions happened in the Developer company, which
reduced the development team to two persons. In addition, they were forced to delegate
resources to other projects they were accepting. This resulted in only one person working
partially on the CC website development project.
Two months after the initial project deadline, both sides were bitter, distrustful and stressed
out. The owners felt the Developer was not competent and did not put interest nor invest time
into this particular project; on the other hand the Developer felt they were stretched to
multiple sides, had company issues to deal with, the project was outgrowing itself and the
actual costs were by far exceeding the initial price set. Communication plummeted, to the
point where replies on both sides were either rude or not given at all.
The situation culminated when beginning of December the Developer came with the
suggestion to terminate the work on this project. A new deadline was set - 15 days from the
meeting date in order to finish the the most essential functionalities. Despite the agreement,
communication was again dissatisfactory, work lagged or was not being carried out according
to specifications, and the deadline itself was again breached. It was finally obvious that no
serious business could tolerate more delays. The Developer provided the following options for
the project:




Option 1 – continue working with the same Developer till the project is completed
Option 2 – owners keep the functionalities and design completed till that point
(without the right to source code), and the Developer keeps the money paid till that
point
Option 3 – terminate the relationship, in which situation the Developer would keep the
source code and design without the right to present or sell it to someone else, but
would return the owners the money paid till that moment

Option 1 was unacceptable to both sides. Option 2 was not the best for the owners since it
would take a new programmer much longer to understand the code written by someone else
593

�than to write it from scratch. Therefore, Option 3 was chosen by the owners as the only
solution.
5. CONCLUSION AND RECOMMENDATIONS
Implementing collaborative consumption technology in a small developing country, like
Bosnia and Herzegovina, opens multiple possibilities. Several websites of collaborative nature
already exist in BH, but the website which was to be built in the studied project was to abide
to the true principles of collaborative consumption. In conclusion, let us outline the key
sources of the project’s failure:











Client not taken seriously
Unclear and not detailed system requirements
Misunderstood system requirements
Too much freedom handed over to developers – trust in their expertise
Lack or improper communication between owners and developers
Lack of periodic and constant activity progress check-up
Insufficient resources planned for the project by developers
Selection of an inappropriate system development approach
Loss of motivation and resulting decrease in quality of work performed
Project outgrowing itself, thus planned time and price

In future work on this topic, what remains is answering the research sub-question R3.
Valuable lessons were learned from embarking on this project and problems faced on it. In the
next phase of this study, the CC project will be continued with applying the recommended
and learned practices of website development, including: clear and thorough requirements
specification, agile development methodology adoption (Bauer 2005, Dave 2011), frequent
testing and continuous, regular activities tracking.
REFERENCES
Bauer, M. (2005) Successful web development
http://www.sitepoint.com/successful-development/

methodologies

article,

URL

Botsman, R. (2012) What’s Mine is Yours: The Rise of Collaborative Consumption. 2012.
URL http://www.collaborativeconsumption.com.
Botsman, R. and Rogers, R. “ What's Mine Is Yours: The Rise of Collaborative
Consumption” Happer Collins, NY
Dave, R. (2011) Web development methodologies: Agile vs. Waterfall, URL
http://www.cmswire.com/cms/web-cms/web-development-methodologies-agile-vs-waterfall012266.php
Ideas for modern living: collaborative consumption | Life and style | The Observer . 2012.
URL: http://www.guardian.co.uk/lifeandstyle/2011/jan/30/ideas-modern-living-collaborativeconsumption.

594

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                <text>According to Rachel Botsman, a renowned social innovator, the 21st century will be  characterized by collaborative consumption. It is a new mode of business backed up by  network technologies and based on the ancient methods of trading by bartering and swapping.  Collaborative consumption websites engage and specialize in information, service and goods  sharing, swapping, renting, lending, and trading. The power of these new marketplaces is in  changing the way people view ownership and consumption, alleviating the hardship of  economic recession, freeing the flow of knowledge and information, and creating a business  model which supports the reuse of goods and space for a greener world.  The content of this research paper provides an understanding of the drivers for collaborative  consumption technology in a developing country in economic recession time, precisely  Bosnia and Herzegovina (B&amp;H). The key research question to be addressed in this study is:  What are the issues faced in B&amp;H when embarking on a collaborative consumption website  development project?  Keywords: collaborative consumption (CC), swapping, website development, green  technologies, emerging technology issues, system requirements, case study, empirical  approach, collaborative technologies</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Khuwaja, G. A. &amp;Laghari, M. S. (2011). Offline Handwritten Signature Recognition. World
Academy of Science, Engineering and Technology 59.
Basavaraj, L. &amp;Sudhaker Samuel, R.D. (2009). Offline-line Signature Verification and
Recognition: An Approach Based on Four Speed Stroke Angle. International Journal of
Recent Trends in Engineering, Vol 2.
Zhao, F., &amp; Tang, X. (2006). Preprocessing and postprocessing for skeleton-based ﬁngerprint
minutiae extraction, Pattern Recognition 40 (2007) 1270 – 1281, The Journal of Pattern
Recognition Society.
Zhili, W. (2002). Fingerprint Recognition. Unpublished Bachelor’s Thesis, Hong Kong
Baptist University.

A Case Study of Probit Model Analysis of Factors Affecting Consumption
of Packed and Unpacked Milk in Turkey
Meral Uzunoz1, Yasar Akcay2
1Gaziosmanpasa University Faculty of Agriculture Department of Agricultural Economics,
Turkey
2Gaziosmanpasa University Faculty of Economic and Administrative Sciences Department of
Economics, Turkey
E-mails: meral.uzunoz@gop.edu.tr,yasar.akcay@gop.edu.tr

Abstract
This paper focused on the effects of some socio-demographic factors on the decision of the
consumer to purchase packed or unpacked milk in Sivas, Turkey. The data were collected
from 300 consumers by using face to face survey technique. Binary probit model has been
used to analyze the socio-economic factors affecting milk consumption of households.
According to empirical results, consumers with higher education and income levels tend to
consume packed milk consumption. Also, milk price was affective factor packed and
unpacked milk consumption behavior. The majority of consumers reads the contents of
packed milk and is affected by safety food in their shopping preferences.
Keywords: Milk consumption, Consumer preferences, Binary probit model

9

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

1.INTRODUCTION
Milk is a unique food item that needs to be available in the market without any shortage since
it plays a key role in infant feeding and alleviating nutritional poverty in all other age groups.
It has been perceived by consumers as an important source of nutrients, especially calcium
for good bone and teeth health (Alwis et al. 2009). Therefore, it is advisable to consume an
adequate amount of milk and milk products for healthy lifestyle (Hatirli et al. 2004).
Increasing population and income, together with the growing popularity of dairy products,
particularly among developing country consumers is a key factor behind strong demand in
the medium term. Demand continues to be encouraged by the growing influence of retail
chains and multinational companies in these countries, which is facilitating improved
consumer access to dairy products. The demand for milk and dairy products is expected to
remain particularly strong in important developing dairy markets such as North Africa, the
Middle East and East Asia, but also in more mature markets such as those in the European
Union, the United States and Russia. The rate of growth and per capita consumption of milk
and milk products remains significantly different among regions. LDC (Least Developed
Countries) consume less than 50 kg per person per year on average, compared with 100 kg
per person for developing countries, while the developed regions of North America and
Europe consume well in excess of 200 kg per person (in milk equivalent). Such a per capita
consumption disparity represents an investment potential and future opportunities for both the
domestic and global dairy sectors (OECD/FAO 2011).
However, per capita milk consumption in Turkey is low by any comparison due to Turkish
people’s consumption patterns, income levels and nutritional habits. Turkey is far behind the
European countries and the world in milk consumption (Pazarlioglu et al. 2007). In Turkey,
annual per capita milk consumption is 26 lt (WMDA 2011). Per capita milk consumption are
66,9 lt in EU, 90.0 lt in USA, 91.5 lt in Canada, 108.14 lt in Austria, 78.2 lt in New Zeland,
87.2 lt in Russia, 97.0 kg in Sweden, 80.1 lt in Ukrain (AEPDI 2011).
Milk is consumed as unpacked fluid milk and packed fluid milk in Turkey. Unpacked fluid
milk, also called street milk in Turkey, refers to milk that is produced at farms without any
control and packed fluid milk refers to milk produced under fluid milk technology such as
pastorization or UHT. Respective shares of milk processing plants in total milk consumption
of Turkey are 27% modern dairy factories, 33% for medium sized establishments and dairies,
20% for uncontrolled producers, 20% for producers’ self consumption (Pazarlioglu et al.
2007).
The main goal of this study was to determine the effects of some socio-demographic factors
on the decision of the consumer to purchase packed or unpacked milk.
2. DATA AND METHODS
2.1. Data
The data was obtained by direct interviewing the individual households of 300 residences
who live in Sivas province. The survey was conducted in June 2009. The sample size was
determined using the Possibility-Sampling Method (Yamane 2001).

10

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

n

( Nt 2 . p.q)
(d 2 N  t 2 . p.q)

where N is the number of households in Sivas province (63153) (TURKSTAT 2009), t is z
number is the required confidence interval (for 95 percent confidence interval t = 1.96), p is
possibility for an event to occur (the rate of consuming packed milk, 0.5), q is the possibility
for an event not to occurring (the rate of not consuming packed milk, 0.5), d is acceptable
error rate during sampling (0.0564).
2.2. Methods
The probit model is a statistical probability model with two categories in the dependent
variable (Liao, 1994). Probit analysis is based on the cumulative normal probability
distribution. The binary dependent variable, y, takes on the values of zero and one (Aldrich
and Nelson 1984). Binary probit model was employed to the survey data to see the effects of
socio-economic and demographic variables on the consumer purchase decision of packed and
unpacked milk.
In the binary probit model, packed milk preference (PACKMILKPREF) was taken as 1,
while unpacked milk as 0. It is assumed that the ith household obtains maximum utility it has
packed milk preference rather than unpacked one.
The probability pi of choosing any alternative over not choosing it can be expressed as in
equation (1), where ɸ
variable (Greene 2011).

Y

i

pi= prob


 t2
 1 X    xi (2 ) 1 / 2 exp  
 2


dt  ( xi   )


(1)

The relationship between a specific variable and the outcome of the probability is interpreted
by means of the marginal effect, which account for the partial change in the probability. The
marginal effect associated with continuous explanatory variables Xk on the probability
P(yi=1|X), holding the other variables constant, can be derived as equation 2 (Greene 2011);

pi

  ( xi  )  k
xik

(2)

where  represents the probability density function of a standard normal variable.
The marginal effect on dummy variables should be estimated differently from continuous
variables. Discrete changes in the predicted probabilities constitute an alternative to the
marginal effect when evaluating the influence of a dummy variable. Such an effect can be
derived from equation 3 (Greene 2011).
  ( x , d  1)  ( x , d  0)

(3)

The definition belong to variables are defined in Table 1. In the study, the variables
considered affecting choices of households between preference alternatives are: gender
(GEN), age (AGE), education (EDU), professional status (PS), marital status (MS),
household size (HS), income (INC), milk consumption (MILKCON), milk price (MILKPRI),
11

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

reason of milk preference (PREFREA) and place of milk buying (MILKPLACE). In earlier
studies (Hill and Lynchehaun, 2002; Fuller et al., 2004; Hatirli et al., 2004; Vandermersch
and Mathijs, 2004; Peng et al., 2006; Pazarlioglu et al., 2007; Celik et al., 2006; Akbay and
Tiryaki, 2008; Alviola and Capps. 2009; Kilic et al., 2009; Tiryaki and Akbay, 2010)
properties such as household size, gender, age, education, professional status, marital status,
household income, ethnicity, and advertising were studied as exogenous variables.
Table 1. Definition of Variables
Variables

Defination

MILKPRE (Milk preference)

1= Packed milk; 0= Unpacked milk

GEN (gender)

1= Male; 0= Female

AGE (age)

0= 18-25; 1= 26-35; 2= 36-44; 3= 45 or older

EDU (Education)

0= Illiterate and primary school graduates; 1= Secondary
school graduates; 2= High school graduates; 3=
University graduate; 4= Post graduates

PS (Professional Status)

1= Employee; 2= Labourer; 3= Self employed; 4= Offprofession; 5= Retired

MS (Marital Status)

0= Married; 1= Single; 2= Divorced

HS (Household Size)

Average household
(People/Family)

INC (Income)

Average
monthly
(TL/Month/Household)

household

MILKCON (Milk Consumption)

Average
monthly
(kg/Month/Household)

milk

MILKPRI (Milk Price)

Packed milk price (TL/kg), unpacked milk price (TL/kg)

PREFREA
Preference)

(Reason

of

size.

Number

of

People
income;

consumption

Milk 0= Price; 1= Trade mark; 2= Taste; 3= Natural, organic
4= hygiene, package

MILKPLACE (Place of Milk Buying)

1= home delivery 2= selling point 3= supermarket 4=
handsellers 5= local bazaar 6= buying from village

In this study, in order to determine the most appropriate model the variables described
above, it was made various model experiments and was tested whether statistically significant
at 1% significance level or not. As a result, three estimators (EDU, INC, MPRICE) in the
probit model were found statistically significant at 1% level. Final model is below;
12

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

MILKPREi = β0 + β1EDUi + β2INCi + β3MILKPRIi + εi
3. RESULTS
The male respondents constitute 64.34% of total respondents while female respondents
constitute 35,66 % of it. Average age was 38.04. Educational attainment was classified into
five categories, illiterate and primary school graduates (14.33%), secondary school graduates
(8.33%), high school graduates (39.67%), university graduate (36.67%) and post graduates
(2.00%).
Average household size was found to be 3,95 people that is lower than the average household
size (4.50 people) of Turkey (TURKSTAT 2011).
Households earning less than $349 constituted 10 percent of total respondents, households
earning between $350 and $1050 (49 percent) and households earning higher than $1051 (41
percent). The survey results illustrate that average annual income of households was found
$8003 that was lower than the annual income per capita ($8215) of Turkey (UN 2011).
In Sivas, per capita average annual milk consumption is 39.96 kg per capita whereas it is 26
kg in Turkey (WMDA 2011; 8). 71.3% of households preferred packed milk while 28.7%
unpacked milk. 41.86% of illiterate and primary school graduates and 82.30% of university
graduates consume packed milk. While 73.33% of consumer in low income group consume
unpacked milk, 90.24% of consumer in high income group consume packed. 39.54% of
households preferred unpacked milk as a priority because of cheaper than packed milk. The
most important reasons were quality (28,64%) and hygiene (28.64%) for packed milk choice
of consumers.
Respondent consumed unpacked milk provided by home delivery (62.79%) and buying from
village (16.28%). Households consumed packed milk preferred supermarket (89.09%) and
selling point (10.91%). According to the results, consumers made a point of sell-by date
(44.09%), taste (36.82%) and brand (9.09%) for packed milk.
Table 2 presents results estimated from binary probit model. The model is significant at 1%
level of probability. The estimated coefficients and standard errors reveal which factor
influence respondents consumption intentions for fresh milk consumption. A statistically
significant coefficient suggests that the likelihood of consumption of product will increase/
decrease as the response on the explanatory variable increase/decrease (Borooah 2002).
McFadden Pseudo coefficient of determination (R2) was calculated about 0.288. This value
represents that variables placed in the model explain high level the probabilities of packed
and unpacked milk choice of consumers. Three estimators (EDU, INC, MPRICE) in the
probit model were found statistically significant at 1% level.
Table 2. Estimates of the binary probit model
Variable

Coefficient

Constant
EDU

-0.36167
0.29694

13

Std. Error
0.76226
0.12694

z- Statistic

Probability

-4.745
2.339

0.0000
0.0193

Marginal
Effects
-1.0164
0.0835

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

INCOME
MPRICE
Log-likelihood
Restricted Log-L
Pseudo-R2
x2 (df =11)
Significance level
Akaike
Info
Criteria

0.00057
-0.61494
-136.6527
-187.5953
0.288
105.66

0.00022
0.51561

2.548
6.110

0.0108
0.0000

0.0161
-0.0089

0.000
0.991

onsumer’s education level (EDU) was found out an important socio-economic factor for the
probabilities of packed and unpacked milk choice of consumers. In estimated model,
education level variable was statistically important at significant level 1% and related
positively. As educational level increases, tendency to consume rises packed milk and
decreases unpacked fluid milk. Educational level might be a good starting point to increase
the awareness of consumers concerning fluid milk consumption (Pazarlıoglu et al. 2007).
Estimated model results support to this hypothesis.
According to the estimated results, household’s income level (INCOME) is one of the factors
affecting their packed and unpacked milk consumption behavior. This variable is included in
the model because low-income families may consume more unpacked milk when milk prices
are lower. There is a positive relationship between packed consumption consumers’ income
level and it is statistically significant at the level of 1%. For a household with high income
level, the probability of consuming packed milk decreased by only 1.6%. It would emphasize
that when income level rised, packed milk consumption increased. This result is a significant
and expected. Thus, households preferred unpacked milk (39.54%) as a priority because of
cheaper than packed milk. When increased in income level, consumption preferences of
households tend to the packed milk. It is a known fact that unpacked milk was unhygienic.
Therefore, it is said that households tend to the consumption of unpacked milk because of
their economic difficulties.
On the other hand, milk price (MPRICE) was determined as other main factors affecting their
packed and unpacked milk consumption behavior. Price was the primary reason mentioned in
the survey for not purchasing packed fluid milk, as it was perceived as being quite expensive
compared to unpacked fluid milk. In average, Turkish consumers have been sensitive to price
of foods which they consume (Kilic et al. 2009). This variable found out significant at 1%
level and was related negatively. This sign indicated that consumers who were sensitive to
price were less likely to consume packed milk. According to the results, implied that
consumers preferred price of packed milk are expensive compared to unpacked milk were
less likely to consume packed milk. When milk price increased, the probability of packed
milk consumption decreased 0,9%.
4. CONCLUSIONS
This study focused on the socio-demographic factors influencing milk consumption in Sivas,
Turkey. The findings of this study show that consumer’s socio-economic characteristics were
affected unpacked and packed milk consumption preferences. According to the results from
binary probit model; education, income and milk price are significant and associated with
packed and unpacked fluid milk consumption. According to empirical results, consumers
14

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

with higher education and income levels tend to consume packed milk consumption. Also,
milk price was affective factor packed and unpacked milk consumption behavior. In the light
of the findings, the necessary policies are needed as providing of accessibility to adequate
price, healthy, safety food and a mechanism reached to the level of per capita milk
consumption in developed countries. Also, on the basis of the results of this study, it would
be expected seller’s and companies’ marketing strategies on packed milk by looking at
specific consumer preferences.
REFERENCES
AEPDI (2011). Dairy Situation and Outlook: 2011-2012 (Agricultural Economics and Policy
Development Institute) Publication No: 191, ISBN: 978-975-407-326-3, Ankara.
Akbay, C. and Tiryaki, G.Y. (2008). Unpacked and Packed Fluid Milk Consumption Patterns
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Affecting Fresh Milk Consumption Among The Mid-Country Consumers, Tropical
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Borooah, V.K. (2002). Logit and Probit: Ordered and Multinomial Models. Series
Quantitative Applications in the Social Science, No 138, Tousand Okas: Sage Publications.
Celik, Y., Bilgic, A., Karlı, B. and Celik, S. (2006). Factors Affecting Milk Consumption
Pattern in Southern Anatolian Region: An Application of a Two-stage Econometric Model,
Bodenkultur, 57(2), 57-64.
FAPRI (2012). World Dairy: 2011 Agricultural Outlook, http://www.fapri.iastate.edu
Fuller, F.H., Beghin, J.C. and Rozelle, S. (2004). Urban Demand for Dairy Products in China:
Evidence from New Survey Data, Working Paper 04-WP 380, Iowa, USA.
Greene, WH (2011). Econometric Analysis, Seventh Edition. Prentice Hall, New Jersey.
Hatirli, S.A., Ozkan, B., and Aktas, A.R. (2004). Factor Affecting Fluid Milk Purchasing
Sources in Turkey, Food Quality and Preference, 15(6),509-515.
Kilic, O., Akbay, C. and Tiryaki, Y. (2009). Factors Affecting Packed and Unpacked Fluid
Milk Consumption, Agricultural Economics– Czech, 55(11),557–563.
Liao, T.F. (1994). Interpreting Probability Models: Logit, Probit, and Other Generalized
Linear Models, Thousand Oaks, Sage Publications, Inc., California, USA.
OECD/FAO (2011). OECD-FAO Agricultural Outlook 2011-2020, URL http://dx.doi.org
Pazarlioglu, M.V., Miran, B., Ucdogruk, S. and Abay, C. (2007). Using Econometric
Modelling to Predict Demand for Fluid and Farm Milk: A Case Study from Turkey, Food
Quality and Preference, 18,416–424.
Peng,Y., West, G.E. and Wang, C. (2006). Consumer Attitudes and Acceptance of CLAEnriched Dairy Products, Canadian Journal of Agricultural Economics, 54(2006), 663–684.
15

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Tiryaki, G. and Akbay, C. (2010) Consumers’ Fluid Milk Consumption Behaviors in Turkey:
An Application of Multinomial Logit Model, Quality and Quantity, 44,87–98.
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Integration And Sustainability Of Technology-Enhanced Systems Into Learning
Environment: Cankiri Karatekin University Case Study
Ari Murat1, Pekel Abdullah2
1Cankiri Karatekin University, Chairman of Informatics Department, Cankiri, Turkey
2Marmara University, School of Foreign Languages, Istanbul, Turkey
E-mails: mari@karatekin.edu.tr, abdullah.pekel@hotmail.com
Abstract
As a result of the continuous search for global competitiveness through providing the society
with high quality education in the light of emerging technologies, Cankiri Karatekin
University has embarked on a strategic planning and a pilot study on transition to Distance
Education (DE). Providing on-demand training for professional development, lifelong
learning, career change aimed at quite varied groups in society, Cankiri Karatekin University
sets its sight on maximizing the quality of communication and intellect sharing between
academic staff as well as enabling the effective assessment of their academic performance
thanks to the integrated e-learning/distance education and corporate communication platform.
According to this tested project based model, distance education infrastructure and
educational e-materials have been prepared and used as a supplement to formal education. By
this means, ensuring students’ and teachers’ readiness is aimed for the success of the future
pure distance education programs. The study evaluates the pilot project titled “Integrated Elearning and Teaching Environment” by Cankiri Karatekin University, which was founded in
2007 and strives for developing as a globally competitive academic institution by employing
an effective and efficient model in the use of technology in education. The technical
background features as well as results of the pilot project have been evaluated and further
suggestions have been presented, considering distance education practices in the world in
general and, in particular, the potential that Turkish Higher Education and Cankiri Karatekin
University carry in the field.
Keywords: Distance Education; e-learning;
Communication; Teaching Environment
16

Life

Long

Learning;

Institutional

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                <text>This paper focused on the effects of some socio-demographic factors on the decision of the  consumer to purchase packed or unpacked milk in Sivas, Turkey. The data were collected  from 300 consumers by using face to face survey technique. Binary probit model has been  used to analyze the socio-economic factors affecting milk consumption of households.  According to empirical results, consumers with higher education and income levels tend to  consume packed milk consumption. Also, milk price was affective factor packed and  unpacked milk consumption behavior. The majority of consumers reads the contents of  packed milk and is affected by safety food in their shopping preferences.  Keywords: Milk consumption, Consumer preferences, Binary probit model</text>
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2012)

Risk Tolerance and Investment Preferences in Bosnia and Herzegovina
Mela Hadrovic, Ugur Ergun
International Burch University, Faculty of Economics,
71000, Sarajevo, Bosnia and Herzegovina.
E-mails: mela_hadrovic@hotmail.com, uergun@ibu.edu.ba
Abstract
Risk tolerance is considered as an important factor in making financial decisions, saving and
investment choices. This paper has examined level of investment risk tolerance and
investment preferences of B&amp;H’s population and it had explored whether demographic and
socioeconomic factors to risk tolerance and investment preferences. Using a randomly chosen
sample of 200 individuals above the age of 20, empirical analysis has shown that above
independent variables that are significantly affecting individual’s risk tolerance are income
level, education level and gender. Regression analysis has proven that above average risk
tolerance is associated with higher income level and higher education level. Moreover,
analysis has supported the assumption that males are more risk tolerant then females.
Regarding the investment preferences, obtained results show that the out of eight independent
variables, only variable measuring whether an individual has a financial commitment is
significantly negatively related to the investment.
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Keywords: Risk tolerance, Risk aversion, Investment preferences, demographic and
socioeconomic factors, regression model, level of significance.
1. INTRODUCTION
Risk tolerance is being defined as degree to which an investor is willing and able to accept the
possibility of an uncertain outcome to an economic decision. This means that risk tolerance is
maximum amount of uncertainty one is willing to accept when making a decision, in this case
financial decision (Holton, 2004).Due to the fact that risk tolerance is major factor affecting
financial decisions, numerous researches have been done to explore and define what are the
factors affecting risk tolerance. These researches have been considering demographic,
socioeconomic and attitudal factors as factors affecting risk tolerance and have examined
factors such as gender, age, marital status, income level, education, occupation and others as
determinants of individuals risk tolerance. (MacCrimmon&amp;Wehrung, 1986; Grable &amp; Lytton,
1998; Hallahana et al., 2004).
The primary goal of the research is to analyze how risk tolerant or risk adverse are people in
Bosnia and Herzegovina, to examine their investment preferences and to test what
demographic and socioeconomic factors are significantly affecting level of risk tolerance and
investment preferences.
The paper is organized as follows. In the next section, sample of date is being introduced and
described and independent and dependent variables are being shortly described and analyzed.
The same section also explains the methodology of the research. Section 3 presents and
discusses results of the empirical analysis. Finally, Section 4 summarizes the research and
presents key conclusions of the research.
2. DATA, VARIABLES AND STATISTICAL ANALYSIS
2.1. Data
The research is based on the data gathered from the survey. 200 individual have been asked to
complete 10 question survey and survey instrument contained information about respondents’
demographic and socioeconomic characteristics. Two hundred respondents were randomly
chosen and survey was performed by phone and this is why there are no missing values for
any question.
2.2. Variables
In the first analysis risk tolerance variable is taken as dependent variable. It represents the
self-assessed level of risk tolerance each respondent has determined for himself. In the second
analysis investment type is defined as dependent variable and it is taking following values for
different types of investment: 1=deposit, 2=lend to someone, 3=stocks, 4=real estate,
5=mutual funds, 6=gold and silver and 7=collectibles.
When considering independent variables, based on the previous research performed by
Demirel and Gunay (2011) and Al-Ajmi (2008), age, marital status, education level, number
of dependents, stability of income source, and whether individual has financial commitments
are chosen as variables that are expected to be significantly affecting risk tolerance and
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investment preferences. Independent variables and their values are being summarized in the
table below.

Variable
Gender

Measurement
1= male

Variable
Number of dependents

2= female
Age

Respondents’ age (20 Stability
– 60)
source

of

Measurement
Respondents’
number of
dependents

income 1 = unpredictable
2= somewhat
predictable
3= reasonably
predictable
4= predictable
5= very predictable

Marital Status

1= married

Income

1= &lt;300 KM
2= 300 – 700

2= not married

3= 700 – 1000
4= 1000 – 1500
5= 1500 – 2000
6= 2000 – 2500
7= &gt;2500
Education

1= secondary
2= postsecondary
3= Bachelor
4= Master
5= PhD

Table 1. Independent variable definitions

2.3. Statistical Analysis

224

Financial
commitments

0= no loan
1= having loan

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The model used for the empirical analysis is multiple regression model that permits estimating
effect on Yi of changing one variable X1i while holding the other regressors constant (Stock
&amp; Watson, 2006). Multiple regression models that are going to be estimated is as following:
Yi = β0 + β1Age + β2Gender+ β3Status + β4Educ + β5Dep + β6FreqY + β7IncLev + β8Loan (1)
Model developed is used for both analyses, for testing significance of independent variables
in relation to either risk tolerance in first case and investment preferences in the second
analysis.
3. RESULTS AND DISCUSSION
3.1. Sample characteristics
Regarding the sample characteristics, out of 200 respondents 58.5% were male and 41.5%
were female. Respondents have ranged from 22 to 59 years old and approximately 70% of all
respondent are in the age range from 25 to 46. Furthermore, 60.5% of respondents are married
and 39.5% are not married. For the simplification of the analysis “not married” are considered
all who are either single, divorced, separated, widowed, etc. (Grable &amp; Lytton, 1999). Most of
the respondents are having either secondary or bachelor degree, 45% and 39% respectively,
while all other education level account only for 16%. When it comes to the number of
dependent, response have ranged from 1 to 5 members and most of the respondents, about
37% of them have 4 family members. Considering income aspect, most of the respondents
have either predictable or at least reasonably predictable (stable) income source, accounting
for approximately 65% of all response. Data on the income level match the data provided by
Federal Office of Statistics that the average salary is approximately 800 KM and survey has
shown that most of the people are in the income group from 700 – 1000 KM (Federal Office
of statistics)
When considering dependent variables, it is evident that people in Bosnia and Herzegovina
are below average risk tolerant given the fact that approximately 70% of respondent have
rated their risk tolerance 5 or less then 5, on the scale from 0 to 10.
The unwritten rule states that people in B&amp;H only believe in investment in real estate and this
research has proven so, 57% of all respondents have stated that they would invest in real
estate, while all other six types of investment account for the 43% (deposits 20%, lending to
someone 0.5%, stocks 9%, mutual fund 4.5%, gold and silver 8% and collectibles 1%).
3.1. Risk tolerance estimated model
Coefficientsa
Model

1
225

Unstandardized
Coefficients

B
(Constant) 2.274

Std. Error
.354

Standardized
Coefficients
Beta

t
6.425

Sig.
.000

95,0% Confidence
Interval for B
Lower
Upper
Bound
Bound
1.576
2.972

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

.096
.385

.443

2

IncLev
.669
(Constant) 1.733

6.949
4.499

.000
.000

.479
.973

.859
2.492

.102
.149
.399

.357
.217

3

IncLev
.540
Education .476
(Constant) 1.389

5.265
3.203
3.481

.000
.002
.001

.338
.183
.602

.742
.770
2.176

IncLev
.478
.103
.316
Education .519
.147
.236
Gender
.793
.289
.172
a. Dependent Variable: RiskTol
Table 2.I Multiple regression; coefficients

4.627
3.525
2.746

.000
.001
.007

.274
.228
.223

.682
.809
1.363

Based on the stepwise multiple regression, the final estimated model for the risk tolerance is
as follows:
Y = + 1.389 + 0.478IncLev + 0.519Educ + 0.793Gender (2)
β0 represents the intercept and the its value in the final model is 1.389 meaning that if all
independent variables are zero value of an individual’s risk tolerance will be 1.389. This can
further be explained as human nature of being resistant to risk. Furthermore, although gender
variable is statistically insignificant (0.07&gt;0.05) model includes it because of significant
bivariate correlation with risk tolerance. In such a situation, researcher can decide whether to
include given variable in the model or not.
R2 and adjusted R2 are measures that quantify the extent to which the regressors account for
the variation in the dependent variable. Since R square is increasing when every next variable
is added to the model, adjusted R2is better measurement of the mode fit (Stock &amp; Watson,
2006). The estimated model has adjusted R2value of 0.253 meaning that 25.3% of the
variations in the dependent variable are explained by income level, education level and gender
variables. This indicates that research should be revised and improved by adding new
independent variables that are potentially affecting risk tolerance and better predicting
variations. Variables that could be considered for the future research could be: current
economic situation in the county, economic expectations, interest rates and financial
knowledge (Ribeiro, 2001; Grable &amp; Lytton, 1999).
3.2. Investment preferences estimated model
All the independent variables have been introduced in the model and by performing stepwise
multiple regression the following coefficient were estimated:

226

Coefficients

a

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Model

Unstandardized

Standardized

95,0% Confidence Interval

Coefficients

Coefficients

for B

B
1

(Constant

Std. Error

3.833

.158

-.514

.208

Beta

t

Sig.

Lower Bound Upper Bound

24.213

.000

3.521

4.146

-2.474

.014

-.924

-.104

)
Loan

-.173

a. Dependent Variable: Investment

Table 3. II Multiple regression; coefficients
As shown in the table above out of eight independent variables, only variable measuring
whether an individual has a financial commitment proved to be significantly affecting
investment type.
Y= 3.833 – 0.514Loan

(3)

Equation (3) shows that if all independent variables are exactly zero, value of dependent
variable (investment type) will be approximately 3.833, approaching value of investment in
real estate. Moreover, adjusted R2 has a value of 0.025 meaning that produced equation
provides explanation for only 2.5% of variations in investment type preferred by respondents.
The graph shows that most of the respondents (57%) have answered that they would invest in
the real estate. 20% would
make deposit in the bank,
while other four investment
types all together account for
30%. As in the case of risk
tolerance, insignificance of
independent variables suggests
that further research should be
performed by introducing new
variables mentioned in the
previous section. Conventional
wisdom claims that people in
B&amp;H
only
believe
in
investment in real estate and
consider it the least risky. This
explains the outcome of the
survey.
Figure 1 Graphical representation of investment types
4. CONCLUSION
In this study, model for testing significance of demographic and socioeconomic factors in
determining risk tolerance and investment preferences was developed. Firstly, income level,
education level and gender were proven to be significant and positively related to risk
tolerance. As each of these variables increase, risk tolerance is increasing. Secondly, multiple
227

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

regression models has identified that only financial commitments are significant for
determination of investment and this relation is negative, showing that if an individual has a
financial commitment it investment will decrease or it will choose less risky investment. Due
to the fact that both estimated models are having low adjusted R2, they are not a very good
explanation of variations in dependent variables; in the future of the research new variables
should be included. Until now research was mostly focused on demographic characteristics of
each survey respondent, but in the future more of the socioeconomic factors characteristic for
Bosnia and Herzegovina are going to be considered. In this way, current economic situation,
macroeconomic data, interest rates, economic expectations and individual’s financial
knowledge are going to be used as predictors of risk tolerance and investment preferences.
This will improve the model, it will provide more complex and accurate explanation of what
are the possible reasons why risk tolerance and investment preferences vary. However
research needs improvements in the future, the overall conclusion of the is that demographic
and socioeconomic factors are affecting risk tolerance and investment preference.
REFERENCES
Al-Ajmi, Y. J. (2008). Risk Tolerance of Individual Investors in an Emerging Market.
International Research Journal of Finance and Economics.Vol. 17, pp. 15-26.
Demirel, E. and Gunay, S. G. (2011).Financial Risk Taking Behavior Comparisons between
Two Different Countries Based on Demographic Factors: Turkey and Macedonia Case.
Middle Eastern Finance and Economics.Vol. 10, pp. 111-120.
Federal Office of Statistics. Last Accessed on 4 27, 2012, from http://www.fzs.ba/
Grable, J. E.and Lytton, R. H. (1998). Investor risk tolerance: Testing the efficacy of
demographics as differentiating and classifying factors. Financial Counseling and Planning, 9
(1), pp. 61-74.
Grable, J. E. and Lytton, R.H. (1999).Assessing Financial Risk Tolerance: Do Demographic,
Socioeconomic,And Attitudinal Factors Work?. Journal of the FRHD/FERM.
Hallahana, T. A., R. W. Faffb and M. D. McKenziea, 2004. “An Empirical Investigation of
Personal Financial Risk Tolerance”, Financial Services Review 13, pp. 57–78.
Holton, G. A. (2004). Defining risk.Financial Analyst Journal.60 (6),pp. 19-25.
MacCrimmon, K. R. and Wehrung, D. A. (1986).Taking risks.New York: The Free Press.
Ribeiro, B. M. and Teixeira, J. R. (2001).An econometric analysis of private-sector
investment in Brazil.Cepal.Review 74, pp. 153-166.
Stock, J. H. and Watson, M. W. (2006).Introduction to Econometrics.2nd edition, Pearson
Education International

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