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Green Mining Construction (GMC) is the Chinese national strategy of the environmental regulation of the mining industry to motivate mining enterprises to improve their resource utilization efficiency, protect the environment and harmonize the relationship between enterprises and communities. This paper uses system dynamics (SD) and the Malmquist-Luenberger (ML) Index to model the sustainable effect of the policy instruments of Green Mining Construction, namely, environmental taxes and subsidies. A case study of typical coal mining enterprises in Anhui, China, is provided to demonstrate the application of the proposed model in which the corporate performances of three optional strategies in response to the Green Mining Construction policies are examined. The responsive strategies are categorized as scale expansion, technical innovation and environmental protection. The simulation results show the following: (i) The environmental taxes and subsidies with disparate rates can help enterprises that focus on technical innovation and environmental protection perform better, albeit with a certain degree of lag. (ii) The synergy impact of subsidies and taxes is not significantly more than the separate ones. (iii) Environmental regulations reduce the productivity of mining enterprises, but to varying extents. This negative effect of environmental regulation should be compensated by other measures. This study offers insights to help enterprises select optimal strategies in response to the Green Mining Construction policies and to inform the government of possible sustainable policy designs to promote the Green Mining Construction. The limitations of the model are discussed for further improvements in simulating the effect of environmental regulation. • The hybrid model is used to test the effect of mining environmental policy in China. • Environmental taxes and subsidies are effective, but there are delays. • The effect of policy combination is not better than that of the single policy. • The model negates the Porter hypothesis, but there are differences among enterprises. [ABSTRACT FROM AUTHOR]

Abstract In the late 1990s, China initiated the Conversion of Croplands to Forest Program (CCFP) and the Ecological Welfare Forest Program (EWFP) based on the Payments for Ecosystem Services (PES) principle. Positive socioeconomic outcomes of the programs are essential for the long-term success of eco-environment conservation. However, there is lack of understanding of their longer-term (over 10 years) impacts on rural livelihoods. In this paper, we examine income distribution and inequality of rural households under CCFP and EWFP in rural Anhui, China after 12 years of program implementation. Results show that CCFP-participating households have higher income inequality than non-participants, while the EWFP does not have a significant effect. Local off-farm work and out-migration with remittances are the two principal income sources and both add to inequality. A regression-based decomposition of inequality shows that the CCFP indirectly alters livelihoods by increasing out-migration with remittances, but it also adds to inequality from shifting livelihoods to non-agricultural activities. Meanwhile, EWFP payments positively affect agricultural incomes and contribute 16% to agricultural income inequality. Finally, human capital, natural capital and physical capital all play important roles in generating income and inequality, but the factors affecting inequality from agricultural and non-agricultural activities are different. Highlights • We examine rural household income distribution under two concurrent PES programs. • CCFP positively affects non-farm income via out-migration followed by remittances. • EWFP positively affects agricultural income and adds slightly to inequality. • Factors affecting agricultural and non-agricultural income distributions differ. [ABSTRACT FROM AUTHOR]