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How far has the transition process to a circular economy progressed? How can this transition process be promoted? So far, the indicators used to analyse such questions have mostly been based on aggregate recycling rates or waste volumes. However, circular economy is much more than that. This paper develops a concept for empirically measuring the transition process along a company's value chain. The concept distinguishes 27 business activities that are relevant for the circular economy and thus enables detailed statements about the transition to the circular economy along the entire value chain and the three dimensions of the circular economy, i.e. efficiency, closing the resource loop and extending product life. Based on this concept, a representative survey of 8,000 Swiss companies was conducted. The data allow – for the first time and for a representative sample – the analysis of the determinants of the transition process to a circular economy using econometric estimations. The results suggest that the transition process has just started; most companies involved in circular economy activities focus on efficiency enhancing measures rather than on extending the life of products/services or closing the loop. In addition, the results show that circular economy pioneers are characterized by a willingness to invest a significant amount of available capital in the breadth of circular activities, have greater financial flexibility, and in some cases face greater non-price competition. Ultimately, the results suggest that the transition to a circular economy can only be successful if the necessary framework conditions are set in such a way that it is profitable for the company to significantly increase the degree of circularity. • Existing data inadequately reflect the transition to a circular economy at the company level. • This paper presents an initial concept for empirically measuring circular economy activities at the company level. • Based on this concept, a representative survey of 8,000 Swiss companies was conducted. • The results indicate that the transition process has just started. • Economic regressions allow to characterize the pioneers of the circular economy. [ABSTRACT FROM AUTHOR]

Green technology innovation (GTI) is an effective way to promote the green development of economy, and government environmental regulations are an important means to encourage enterprises to carry out GTI. Taking Chinese A-share listed enterprises from 2010 to 2019 as samples, this paper divides environmental regulations into three categories: command-based environmental regulation (ER 1), market-based environmental regulation (ER 2) and voluntary environmental regulation (ER 3), studies their impact on enterprise GTI, and discusses the joint effect of enterprise research and development (R&D) investment and government support from the perspective of internal and external linkage of enterprises. In addition, this paper also analyzes the compound effect and time effect of environmental regulation. The research conclusions are as follows: (1) From the perspective of policy types, both ER 1 and ER 2 could stimulate enterprises to carry out GTI, and the promotion effect of green utility model patents is slightly higher than that of green invention patents. ER 3 inhibits enterprise GTI. In addition, this paper finds that the effect of three environmental regulations acting at the same time is greater than that of one of them. (2) The mechanism analysis shows that the R&D investment of enterprise positively could moderate the relationship between ER 2 and green invention at the significance level of 5%, positively moderate the relationship between ER 2 and green utility model patent at the significance level of 1%, and negatively moderate the relationship between ER 3 and green utility model patent at the significance level of 5%. The government support could moderate the relationship between environmental regulation and green utility model patents at the significance level of 5% and 10%. (3) The effect analysis shows that the transformation rate of GTI in China needs to be improved. The three environmental regulations could have an effect on enterprise GTI in a short period, and ER 1 has the fastest effect. (4) Considering the differences in the level of economic development and resource endowments in various regions of China, this paper classifies the sample enterprises and finds that the impact of environmental regulation on enterprise GTI is heterogeneous in terms of location, ownership nature, factor density and industry type. The research results provide the important reference for the formulation and implementation of environmental regulation policies according to local conditions. • ER 1 and ER 2 could stimulate enterprise GTI. • The union effect of ER 1 , ER 2 , and ER 3 is better than one of them. • R&D positively moderates the relationship between ER 2 and GTI. • ER 1 has the fastest effect on GTI in three kinds of environmental regulations. • The effect of ER on GTI shows heterogeneity for different enterprise features. [ABSTRACT FROM AUTHOR]

Climate change has become a risk that companies, governments and stakeholders must consider. Climate risk affects everything from people's health to the performance of companies. The European Union has approved various legislations and action plans to counteract the effects of climate change in a pioneering strategy. Companies can play a critical role in mitigating climate change and creating a more sustainable future by integrating environmental considerations into their decision-making processes. However, this integration may impact their performance. This paper aims to analyse the effect of climate change on the stock returns of European companies. The study sample consists of 265 companies listed in the Stoxx 600 index between 2015 and 2021 and the methodology used is the econometric method for panel data. The results show that carbon emissions have a negative effect on the performance of companies. Oppositely, a good rating in the environmental pillar has a positive impact on returns. • Companies can help fight climate change by integrating environmental considerations. • Market values low exposure to climate risk. • Carbon emissions have a negative effect on companies' stock returns. • This study raises climate risk awareness for companies and offers measurement tools. • Good rating of environmental score impacts positively stock returns of companies. [ABSTRACT FROM AUTHOR]

Green power trading is an institutional innovation proposed by China to promote green and sustainable development. This policy aims to relieve the serious debt pressure of renewable energy generation enterprises, thus laying the foundation for achieving carbon reduction targets. This paper empirically examines the role of green power trading by constructing the difference-in-differences (DID) model. Our findings indicate that green power trading significantly reduces the debt levels of policy-covered generation enterprises. This effect is more pronounced for state-owned enterprises, companies with better ESG performance, companies in regions with higher degree of marketization and companies specializing in renewable energy power generation. Further research discusses the impact mechanism of green power trading in terms of external and internal environmental channels. We find that a strong green development atmosphere, especially the external atmosphere, will significantly reinforce the weakening effect of green power trading on corporate debt. Our research provides empirical evidence for the success of green power trading policy in its pilot phase. • Green power trading significantly alleviates the policy-covered firms' debt burden. • The role of green power trading presents heterogeneity in enterprise characteristics. • A better regional environment for green growth can stimulate the effect of green power trading. [ABSTRACT FROM AUTHOR]

The European Union has set ambitious targets for recycling and landfill disposal of urban waste by 2025 and 2035, respectively. Composting is considered one way to achieve these goals. This paper focuses on a case study of a compost industrial treatment facility to identify potential and economically feasible improvements for the process and the factory. Through a thorough analysis of the facility and its production process, a plant section suitable for reengineering intervention has been identified. A technological solution based on Industry 4.0 is proposed to facilitate the monitoring and control of the bio-oxidation phase. An economic and feasibility analysis of this investment has been carried out over a ten-year lifecycle, comparing it with the company's business plan. A hybrid simulation model has been implemented to simulate and evaluate the reengineered plant, revealing that the bio-oxidation phase can be shortened to an average of six days. This result suggests that the adoption of smart technologies to control these types of processes are desirable and should become a standard. The social and economic effects of this investment were also analyzed to evaluate how to reduce the fares keeping the investment still valuable for the community and the private entrepreneurs. [Display omitted] • European and Italian legislation framework for waste management and compost production. • Process analysis of a compost facility. • Re-engineering analysis to tackle the bottleneck of the compost facility. • Formalization of a simulation model to study the lifecycle of the re-engineered system. • Economic evaluation of the use case facility and of the re-engineered solution. [ABSTRACT FROM AUTHOR]

With the firm level datasets from 2004 to 2014, this paper uses the difference in differences (DID) estimator to explore the effects of China's high-speed rail (HSR) on firms' environmental efficiency. We find that China's HSR lowered SO 2 intensity (SO 2 per unit output value) by approximately 7.9%. More importantly, firms reduce SO 2 intensity mainly through innovation, productivity improvement, and the agglomeration of firms. Our additional analyses show that these observed effects of HSR are mainly driven by firms in core cities, while the environmental efficiency of firms in the peripheral cities seems to be unaffected. Heterogeneous effects indicate that the HSR has a more significant effect on dirty firms, state-owned firms, foreign firms, and large firms. Our results suggest that HSR construction could have contributed to the China's environmental governance. • Using a difference-in-differences estimator, it is the first study to analyze the effect of China's high-speed rail (HSR) on firms' environmental efficiency. • The HSR can significantly improve the environmental efficiency of firms in the affected areas. The results indicate that China's HSR significantly reduced the SO 2 intensity of affected firms by an average of 7.9 percent. • The affected firms improve the environmental efficiency mainly through innovation, productivity improvement, and the agglomeration of firms. • Our additional analyses show that these observed effects of HSR are mainly driven by firms in core cities. Other heterogeneous effects of the HSR are also examined. • There are important implementations for the present, especially for environmental protection and green development. [ABSTRACT FROM AUTHOR]

With the increasing carbon neutral targets claimed by responsible countries, many research has been done to investigate the impact of environmental regulation on green technology innovation (GTI). However, there still remains a gap at micro level that takes enterprise as research subject to figure out an effective regulatory mechanism that supports the development of GTI. Since the integration of technology and finance is the main trend in future progress of GTI, it is meaningful to study the decision-making behavior and influencing factors of heterogenous enterprises and banks under market-based environmental regulation policies. This paper established a tripartite evolutionary game model among two types of enterprises with distinct Research & Development (R&D) ability and banks. The results show that: (1) the scenario when subsidy to enterprises is greater than to banks leads to a better situation; (2) penalty has more significant influence on enterprises than subsidies at the early stage, and enterprises' strategic choices of independent R&D is more reliable on subsidies; (3) when the price gap between different levels of technology increases, enterprises are inclined to continuously invest in green R&D, while it will restrain enterprises' technology introduction behavior. • Market-based environmental regulation contains subsidy, penalty and trading market. • That subsidy to enterprises is greater than to banks leads to a better scenario to stimulate GTI. • Penalty has more significant influence on enterprises than subsidy at the early stage. • Enterprises' strategic choice of independent R&D is more reliable on the subsidy. • There exists a tradeoff between independent R&D and technology introduction when pricing. [ABSTRACT FROM AUTHOR]