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We study the implications of state-dependent costs of policy mismatch in political agency models where politicians have reputational concerns and "good" politicians share the same objectives as the voters. We find that state-dependent costs can increase the set of parameters where pandering is an equilibrium strategy. Indeed, in our model, pandering can arise even without office rents. Moreover, we show that voters do not necessarily prefer biased politicians to be in favour of the policy that produces the cheapest expected cost of mismatch. We discuss the implications of those results for populism, environmental policies and the equilibrium incentives to over- or under-provide lockdowns or other mitigation measures. [ABSTRACT FROM AUTHOR]

Government governance reform is not only a vital motivation for high economic quality but also an important factor in stimulating the government's environmental governance responsibility. The article empirically examines the fiscal Province-Managing-County (PMC) pilot reform on the synergic governance of haze and carbon reduction and its mechanism. The results show that the policy helps to realize the synergic governance of haze and carbon reduction, and the reform of fiscal Province-Managing-County promotes regional haze and carbon reduction mainly through structural effect, innovation effect, and fiscal expenditure responsibility effect. The heterogeneity analysis shows that the policy has an asymmetric effect on haze and carbon reduction under different administrative structures, economic structures and levels of government intervention. Further analysis shows a policy linkage effect between this policy and the Green Fiscal Policy. The policy has the situation of blood-sucking in the provincial capital city and leads to an increase in financial funds. The above results prove that the policy can help to realize haze and carbon reduction and provide practical ideas for the further expansion of the policy. At the same time, it provides the direction for the local government to realize the double-carbon goal. • The fiscal Province-Managing-County (PMC) pilot reform realizes the synergic governance of haze and carbon reduction. • There is a heterogeneous effect on haze and carbon reduction. • There is a policy linkage effect between this policy and the green fiscal policy. [ABSTRACT FROM AUTHOR]

This paper examines the impact of changes in the stringency of environmental regulations on productivity growth. We exploit several data sources, including the OECD Environmental Policy Stringency Index and balance sheet information from ORBIS and iBACH, to test the Porter hypothesis, according to which firms' productivity can benefit from more stringent environmental policies. We estimate the regulatory impact over a five-year horizon using panel local projections. To identify the direction of the effects, we estimate CO 2 equivalent emissions for all firms in our sample using a machine learning algorithm. As suggested by the country-level analysis and confirmed by the firm-level analysis, policy tightening negatively affects productivity growth of high-polluting firms and to a larger extent than that of their low-polluting peers. Hence, we do not find support for the Porter hypothesis in general. However, not all policies have the same impact – non-market based policies are the most detrimental to productivity growth – and not all highly polluting firms are affected in the same way – the negative impact is mitigated for large firms, which may benefit from easier access to finance and greater innovativeness. [ABSTRACT FROM AUTHOR]

China's coastal region is the major geographical unit for the future development of China's industrial sector. The transformation of basic structure to high-class development in China's coastal places is a significant tool for promoting the changes related to quality, power and efficiency in regional economic development. In the 21st century, environmental and energy issues have increased worldwide, and challenges related to environmental pollution, energy crises, and ecological imbalances have emerged. To climate change and energy utilization, the sustainable progress of clean energy is the new route of future energy development. Based on China's non-polluting energy growth process in the last ten years, this article explores China's clean/green energy policies and economic growth development plans. Clean energy utilization is crucial for sustainable development in the context of high-quality economic growth and climate change. However, the monetary evolution and carbon emission are not investigated whole from the clean energy aspects. Using Wind energy sources as the acceptable variable, this paper employs threshold regression and impulse functions to assess the energy consumption and economic growth on carbon emission in 30 Chinese provinces over the 2000 to 2020 period. The Deep Belief Network (DBN) model predicts wind energy utilization and efficiency. The results show that economic development and carbon emissions are connected. Further, growth influences promote the offset of carbon emissions. Green innovation alters the nexus of carbon emissions, and China's economy reduces carbon usage. It provides the decision-making policies for clean energy development. • China's Coastal region is the major geographical unit for the future development of China's industrial. • In high-quality economic growth and climate change, clean energy use is vital for sustainable development. • The utilization of wind energy and it's efficiency is predicted using Deep Belief Network (DBN) model. • Empirical results link economic growth with carbon emissions, showing growth promotes emissions offset. • Green innovation changes the economic growth-carbon link, aiding China's carbon reduction efforts. [ABSTRACT FROM AUTHOR]

The joint participation of multiple subjects is crucial for environmental governance. Using panel data for 273 Chinese cities during 2013–2019, this study investigates the impact and mechanism of public demands on environmental pollution. The results demonstrate that public demands measured by the number of environmental complaints placed on government leaders significantly reduce environmental pollution. Furthermore, increases in the rate and speed of government responses improve the effect of public demands on environmental governance. Public demands placed on provincial leaders reduce local environmental pollution to a greater extent than public demands placed on prefectural and county leaders. Province-level governments are more willing to consider public opinions and attach more importance to environmental governance; Prefecture-level governments prioritize province-level governments' attention to the environment when implementing environmental governance. Moreover, strong political ties between provincial and prefectural leaders and long tenures among prefectural leaders strengthen the pollution reduction effect of public demands placed on provincial leaders. The reduction effect of environmental complaints on pollution emission is more significant in cities with high level of Internet construction and environmental disclosure. Our results illustrate the role of public demands in environmental governance, offering a reference for developing effective environmental policies. • Public demands placed on government leaders reduce environmental pollution. • Effects are strengthened under effective government response. • Demands to provincial leaders are more effective than those to prefectural leaders. • Strong political ties and long tenures of prefectural leaders enhance the effects. [ABSTRACT FROM AUTHOR]

ESG investment and financing is a response to global warming and toxic carbon emissions. This is because market and financial development is expected to contribute to de-carbonisation in relevant firms. However, the opposite might occur with carbon-intensive industries. An option is to introduce a carbon tax or an emissions cap but this varies across countries. The impact of environmental policies and the development of financial markets are thus relevant factors to analyse in the debate regarding the best pathways to reduce pollution. This impact is not conclusive in extant studies. In order to meet this gap and to devise effective solutions to this problem, the mechanisms behind them need to be empirically clarified. To achieve this research objective, this study analyses the impact of these factors on welfare through pollution and growth. It examines the respective regulatory regimes of environmental taxes and emission quotas, using an R&D-based growth model with a monetary component. This is to identify the relationship between pollution emissions and financial markets. Results reveal that increasing environmental taxes and reducing nominal interest rates does in fact lead to pollution reduction and economic growth, as well as an increase in the quantity of money and credit through deflation. Reducing emission allowances has a similar effect. However, under emission quotas, it is found that a reduction in the nominal interest rate affects neither pollution emissions nor economic growth, although it does affect the quantity of money and credit. This is because the Fisher effect disappears when the emission quota caps output. A U-shaped relationship between emission allowances and the amount of credit then arises. Under an emissions trading system, the relationship between pollution emissions and financial development can be a win-win relationship or a trade-off relationship. This depends on the emission quota and nominal interest rate. These results suggest that, in addition to environmental policy instruments, financial market development can contribute to decarbonisation if there is the right environmental financial policy. A mix of environmental and financial policies is thus important in linking financial market development to decarbonisation. • Lower inflation, less pollution and economic growth by environmental tax increases. • Interest rate cuts lead to higher inflation, increased pollution and lower growth. • The tax and the interest rate have an inverse U-shaped relationship with welfare. • Under permits trading, interest rate cuts have no impact on pollution and growth. • Win-win relationship or trade-off between financial market and pollution reduction. [ABSTRACT FROM AUTHOR]

Although our knowledge of national carbon emission trading system and green certificate trading system are powerful incentive instruments that can deliver on increasingly ambitious climate targets in China, there remains an uncertainty of systems' structural reforms. This study builds on and extends a well-established dynamic computable general equilibrium (CGE) model to incorporate carbon trading system and green certificate trading system into the modeling framework, simulating a diverse of system development pathways further allows an exploration of the many possible policy effect. Then, using total factor productivity as a comprehensive indicator to asses policy effectiveness, the evolutionary trend of comprehensive effects under different paths are separately evaluated to discover the reforms' optimal range. Our work offers main results: First, these instruments provide a price signal. The introduction of a carbon allowance auction drive up carbon prices, while the implementation of a green certificate punishment and the expansion of the trading scope promote an increase in green certificate prices. Second, all policy scenarios that help reduce carbon emission intensity and optimize the power supply structure. However, in achieving the net-zero goal, the green certificate policy incurs more economic costs than the carbon trading policy. Indeed, the combination of multiple policy tools alleviates the decline of social welfare levels. Third, synergism design among policy tools: the focus should be on carbon trading policy from 2021 to 2030, green certificate trading policy from 2030 to 2050, and strengthened policy from 2050 to 2060. Reform measures within policies may need to be introduced in a timely manner. This study offers specific insights and tailored policy proposals to support policymakers in balancing environmental goals with economic and social needs in light of the aforementioned findings. Fig. 1. Introduction of the research questions Fig. 2. Framework of this paper. [Display omitted] • Carbon emission trading and green certificate trading policies were introduced into a dynamic CGE model. • The comprehensive performance of different scenarios were measured using total factor productivity index. • The policy effects of different scenarios were explored from 2020 to 2060. • The even more effective reform measures were adopt, within a single policy. • A sensible mix were proposed, within different policies. [ABSTRACT FROM AUTHOR]

Pesticides are critical for protecting agricultural crops, but the off-site transport of these materials via spray drift and runoff poses risks to surface waters and aquatic life. California's Central Coast region is a major agricultural hub in the United States characterized by year-round production and intensive use of pesticides and other chemical inputs. As a result, the quality of many waterbodies in the region has been degraded. A recent regulatory program enacted by the Central Coast Regional Water Quality Control Board set new pesticide limits for waterways and imposed enhanced enforcement mechanisms to help ensure that water quality targets are met by specific dates. This regulatory program, however, does not mandate specific changes to pest management programs. In this study, we evaluate the economic, environmental, and pest management impacts of adopting two alternative pest management programs with reduced risks to surface water: 1) replacing currently used insecticide active ingredients (AIs) that pose the greatest risk to surface water with lower-risk alternatives and 2) converting conventional arthropod pest management programs to organic ones. We utilize pesticide use and toxicity data from California's Department of Pesticide Regulation to develop our baseline and two alternative scenarios. We focus on three crop groups (cole crops, lettuce and strawberry) due to their economic importance to the Central Coast and use of high-risk AIs. For Scenario 1, we estimate that implementing the alternative program in the years 2017–2019 would have reduced annual net returns on average by $90.26 – $190.54/ha, depending on the crop. Increased material costs accounted for the greatest share of this effect (71.9%–95.6%). In contrast, Scenario 2 would have reduced annual net returns on average by $5,628.12 – $18,708.28/ha during the study period, with yield loss accounting for the greatest share (92.8–97.9%). Both alternative programs would have reduced the associated toxic units by at least 98.1% compared to the baseline scenario. Our analysis provides important guidance for policymakers and agricultural producers looking to achieve environmental protection goals while minimizing economic impacts. • Agricultural pesticide use in California has degraded surface water quality. • New regulations will require growers to adopt more sustainable practices. • We analyze impacts of two lower-risk pest management programs in three crops. • Both program scenarios reduce toxic unit contributions by over 98% versus baseline. • In contrast, the economic impact differs greatly between scenarios. [ABSTRACT FROM AUTHOR]

The trading of carbon emissions is a crucial regulatory method to address environmental pollution issues. This study takes China's carbon emission trading pilot policy established in 2013 as a quasi-natural experiment and uses the DID model to empirically test the urban panel data from 2006 to 2019. The results show that the carbon emission trading pilot policy can effectively reduce urban environmental pollution, and this effect is more noticeable in mid-western cities, northern cities, cities with fewer resources, and large-scale cities. In addition, to address the urban environmental pollution problem through this policy, the government is encouraged to raise its environmental protection awareness and put more effort into the innovation of technology. In general, this study uses carbon emission trading policies from China to confirm that market-based incentive environmental regulation tools can effectively reduce environmental pollution in urban areas. These findings can provide more theoretical support and empirical evidence for the government to use mechanisms of the market to effectively solve pollution problems, improve ecological environment quality, and accelerate the realization of green economy. • The DID model is used to track pilot policy impact on urban environmental pollution. • Carbon emission trading pilot policy can reduce urban environmental pollution. • The government's environmental awareness is the channel of action. • The government's technological innovation efforts are the channel of action. [ABSTRACT FROM AUTHOR]

This paper examines the investment incentives of market-based regulation, focusing on the technology characteristics that different regulatory schemes tend to incentivize. The firms' technology choice is socially optimal if and only if the aggregate emission allowance supply is completely inelastic. Furthermore, in the presence of uncertainty, elastic emission allowance supply, and strictly convex environmental damage, it is optimal to tax investments in technologies that induce a large variance in emissions. Lastly, price elastic supply of emission allowances may either increase or decrease the volatility in the product market, depending on the risk environment the firms face. The results indicate that introduction of permit price-stabilizing measures in an emission trading system will come at the cost of suboptimal technology investments, and may also lead to increased fluctuations in product prices. • I examine investment and technology characteristics induced by environmental regulation. • Firms' technology choice is suboptimal unless the cap on emissions is exogenous. • It is optimal to tax investment in technologies that induce large variance in aggregate emissions. • Elastic emission allowance supply can impact product market volatility. [ABSTRACT FROM AUTHOR]

Economists tend to view a uniform emissions price as the most cost-effective approach to reducing greenhouse gas emissions. This paper scrutinizes the assumptions in general equilibrium which underlie the established view that uniform emissions pricing is optimal, focusing on economies where society values the well-being of future generations more than private actors. When social and private discount rates differ, we show that a uniform carbon price is optimal only under restrictive assumptions about technology homogeneity and intertemporal decision-making. Non-uniform pricing spurs capital accumulation and benefits future generations. Depending on sectoral heterogeneity in the substitutability between capital and energy inputs, we find that optimal carbon prices differ widely across sectors and yield substantial welfare gains relative to uniform pricing. Realizing these welfare gains, however, requires that the regulator has information on the technology heterogeneity across sectors. Differentiated carbon pricing based on imperfect estimates of technology heterogeneity can yield significant welfare losses. [ABSTRACT FROM AUTHOR]

We present a formal model that analyzes the trade-offs between environmental policy and economic growth in a developing economy. The adoption of restrictive environmental policies limits the use of abundant fossil energy resources, which may slow down economic development and thus violate the Right-to-Development. If faster economic growth allows a country to grow out of pollution sooner, less stringent policies are good for growth and even for the environment, having adopted a long-term horizon. Accounting for a ceiling on cumulative emissions can reinforce the argument by providing an additional rationale to phase out pollution. One assumption is crucial for the argument to hold: polluting fossil energy is an essential input over the early phase of economic development, but not in the later phases. Such a discontinuity could result from structural change. We provide empirical evidence for the plausibility of a discontinuity in the elasticity of carbon dioxide emissions with respect to aggregate output, using cross country data, even if it does not appear to be as strong as assumed in the model economy. [ABSTRACT FROM AUTHOR]

The degree of substitutability between clean and dirty energy plays a central role in leading economic analyses of optimal environmental policy. Despite the importance, assuming a constant and exogenous elasticity of substitution has been a dominant theoretical approach. We challenge this assumption by developing a dynamic general equilibrium model with an endogenous elasticity of substitution that interacts with the relative share of clean inputs in the economy. We find strong dynamic feedback effects arising from endogenous substitution capacity that amplifies the impact of directed technical change and accelerates the transition to a green economy. [ABSTRACT FROM AUTHOR]

We study the influence of industrial lobbying on national climate policies and the formation of an international environmental agreement if the coalition countries use border carbon adjustments to protect domestic producers. We find that the effects of this political influence crucially depend on the distribution of carbon tax revenues. If these are transferred to the households, lobbying distorts carbon taxes downwards to reduce the tax burden and does not affect coalition sizes. This leads to higher emissions and lower welfare. By contrast, if tax revenues are given back to the firms, lobbies in the outsider countries favor carbon taxes, whereas lobbies in the coalition countries favor carbon subsidies to raise the international commodity price. This reduces the tax difference and the welfare difference between the countries, which reduces the free-rider incentives. Then, lobbying stabilizes the grand coalition and reduces global emissions compared to a "perfect" world without lobbying if the political influence is sufficiently strong. [ABSTRACT FROM AUTHOR]

Climate policy needs to set incentives for investors who face imperfect, distorted markets and large uncertainties about the costs and benefits of abatement. These investors decide on uncertain investments according to their expected return and risk (carbon beta). We study carbon pricing and financial incentives in a consumption-based asset pricing model distorted by technology spillovers and time-inconsistency. We find that both distortions reduce the equilibrium asset return and delay investment in abatement. However, their effect on the carbon beta and the risk premium for abatement can be decreasing (when innovation spillovers are not anticipated) or increasing (when climate policy is not credible). We show that the distortions can be overcome by modified carbon pricing by a regulator, or by financial incentives, implemented in our model by a long-term investment fund. The fund pays a subsidy to reduce technology costs or offers financial contracts to boost investment returns to complement the carbon price. The investment fund can thus pave the way for carbon pricing in later periods by preventing a capital misallocation that would be too expensive to correct, thus improving the feasibility of ambitious carbon pricing. [ABSTRACT FROM AUTHOR]

The ongoing debate concerning the ranking of taxes versus cap and trade for climate policy begins with Weitzman's (1974) seminal slope-based criterion and concludes that taxes likely dominate quotas. We challenge this conclusion and the intuition behind it. Because technology shocks and pollution stocks are both persistent, a technology shock alters the intercepts of both the marginal damage and abatement cost curves. The ratio of these two intercept shifts is as important as the ratio of slopes in ranking policies. Technology innovations diffuse gradually, strengthening the importance of the ratio of intercept shifts. For plausible parameter combinations, quotas can dominate taxes. [ABSTRACT FROM AUTHOR]

In decentralized environmental governance, local governments are likely to adopt the "beggar-thy-neighbor" strategy to relax regulations at boundaries. This study investigates the impact of China's Joint Atmospheric Prevention and Control Policy (JAPCP) in "2 + 26" cities enforced by the central government on pollution at provincial boundaries. The theoretical model suggests that dual incentives for environmental protection and economic growth may prompt local governments to reduce boundary pollution within the JAPCP-covered area while relocating pollution to uncovered boundaries. Based on Shandong Province data using the difference-in-differences approach, our analysis reveals a 9.6% decline in the air quality at JAPCP-covered boundaries compared to non-boundary areas and a 5.3% increase at JAPCP-uncovered boundaries, which is associated with migration of key regulated industries. Through examining annual work reports, we provide evidence that local governments modify regulatory intensity at various boundaries. These findings indicate that, while regional environmental policies are intended to promote inter-jurisdictional cooperation, the local government responses lead to unintended costs. [ABSTRACT FROM AUTHOR]

Accompanying China's accession to the World Trade Organization, the rapid development of the Chinese economy has led to increasingly serious environmental issues. However, the inherent mechanisms underlying the impact of Environmental Information Disclosure (EID) policy and trade on the environmental effects of Chinese paper enterprises remain unclear in the context of the era's requirement for a resource-conserving and environmentally-friendly society. The pollution problem in the papermaking industry has received attention worldwide, and how to balance the environmental and development issues of papermaking enterprises is an urgent issue that needs to be solved in the academic community. This study explores the impact mechanisms of EID policy and trade on the environmental effects of enterprises from the perspective of financial constraints. Utilizing the PSM-DID model, the study investigates the moderating effects of financial constraints on the EID policy and import-export trade. The findings reveal that both external and internal financial constraints have negative, detrimental effects on the environmental effects of the EID policy and trade. These constraints impede research and development investment and technological upgrades, hinder productivity improvement, and hamper the realization of "regulatory and trade innovation effects". This study enriches our understanding of the mechanisms by which trade affects the environmental effects of Chinese paper enterprises and further identifies the impacts of Chinese EID policy and trade on pollution emissions by enterprises, providing a theoretical basis and practical foundation for the government in formulating financial, environmental, and trade policies. • Analyzing the environmental effects of Chinese paper enterprises from the perspective of financing constraints. • This study validated the research hypothesis using three micro databases. • This study decomposes the impact mechanism into three aspects: scale effects, technical effects, and structural effects. [ABSTRACT FROM AUTHOR]

Climate change is a non-traditional security crisis affecting the global economy and diplomatic progress. In order to curtail carbon emissions and alleviate the perils of climate change at their roots, urban green innovation (UGI) has emerged as a pivotal technological solution. Using the expansion of the Yangtze River Delta urban agglomeration in China as a case study, this paper develops a quasi-experimental model to analyze the effects of regional integration policies on UGI. The main findings are: (1) Regional integration policies significantly enhance UGI and their impact is more pronounced with the expansion of urban agglomerations; (2) Regional integration policies contribute to the advancement of exploitative green innovation while tending to diminish exploratory green innovation; (3) The green innovation effects (GIEs) created by the expansion of regional integration policies are largely influenced by governmental mechanisms on environmental governance as well as residents' green preferences. Based on these findings, recommendations are put forward to promote UGI from the perspective of policy implementation. • The quasi-experimental models of urban agglomeration expansion on green innovation are constructed. • The positive effects of urban agglomeration expansion on green innovation are proven. • Urban agglomeration expansion can enhance exploitative green innovation and also reduce exploratory green innovation. [ABSTRACT FROM AUTHOR]

The environmental pollution and social well-being issue caused by the huge energy consumption in cities reflect the urgency of improving urban energy performance from multiple dimensions of economy, environment, and well-being. As a result, various countries and cities have promulgated a series of policies. However, the complexity of the policies makes the categories and utilities need to be further clarified, and the diseconomy caused by the lag of policy effect evaluation makes the focus of policy implementation need to be clear in advance. Therefore, based on public choice theory, this research follows the idea of "prior analysis" and takes Chinese cities as the research object. Firstly, the collected energy performance improvement policies of Chinese cities were analyzed and classified by the content analysis method, and the main utilities of all policies and the specific utilities of each category were summarized. Based on the multiple dimensions of urban energy performance research (namely, economy, environment and well-being dimensions), this research summarized the policy utilities that help to improve the urban energy performance of each dimension, and also preset the policy utility values. Secondly, the effect prediction model for urban energy performance improvement policies in each dimension was constructed by Back-propagation (BP) neural network. Thirdly, the energy performance of Chinese cities in 2020 measured by Data Envelopment Analysis method was taken as the benchmark value, and the energy performance of Chinese cities in 2025 measured by the policy effect prediction model was taken as the comparison value. According to the results of performance improvement, the energy performance improvement policies of Chinese cities were selected respectively from the dimensions of economy, environment and well-being. This research shows that: the energy performance improvement policies of Chinese cities mainly include six categories, namely energy conservation and emission reduction policies, energy development policies, ecological environmental policies, fiscal and tax policies, industrial policies and economic and social policies. It is needed to focus on ecological environmental policies, fiscal and tax policies and industrial policies to improve urban energy performance from the economic dimension. For the environmental dimension, the key and priority policies are ecological environmental policies. Compared with the economic dimension, the focus of implementing policies adds economic and social policies in the well-being dimension. In the implementation of policies, the differences of energy performance among cities can be reduced through multi-feature analysis of cities or regions, appropriate adjustment of specific measures and targets, and improvement of digital information management of urban energy performance. This research can effectively help cities clarify which policies require higher implementation intensity and attention before and during policy implementation, thereby maximizing multi-dimensional urban energy performance. • The types of urban energy performance improvement policies in China were proposed. • Policy utilities for improving performance in different dimensions were clarified. • Predictive models for policy effects in different dimensions were constructed. • Key policies have been selected before and during policy implementation. • The study considers multiple policies and cities, and three performance dimensions. [ABSTRACT FROM AUTHOR]

Achieving the global decarbonization goal under global conflicts is becoming more uncertain. Within this context, this article seeks to examine the effects of global environmental management and efforts to achieve this goal. Specifically, it investigates the role of democracy, control of corruption, and civil society participation as mechanisms that moderate the impact of environmental policy and legislation, particularly clean energy policy and climate change legislation (laws and regulations), on carbon emissions in highly polluted countries. The empirical results show that (i) the effects of democracy-clean energy policies and climate change legislation are relatively small in reducing carbon emissions; (ii) the effect of controlling corruption-climate change regulations is strong in reducing emissions, meaning that governments with higher control of corruption are more effective at enacting and executing laws and regulations dealing with environmental challenges which help achieve desirable environmental outcomes; (iii) strong civil society participation helps the execution of clean energy policies and climate change legislation to curb emissions, and (iv) the robustness check also provides strong evidence that higher control of corruption can contribute to the effectiveness of these policies and legislation in reducing carbon emissions. Overall, these findings suggest that the efficiency of well-designed environmental policy and legislation should be supported by a combination of higher civil society participation and greater control of corruption that can efficiently enforce such policies and legislation. • We examine the role of climate policies and legislation (CPL) in meeting net-zero emission. • We focus on the moderating role of democracy, control of corruption, and civil society. • The interaction effects of democracy and CPL on reducing carbon emissions are relatively small. • Corruption control complements climate change regulations for reducing carbon emissions. • Strong civil society participation complements CPL for reducing carbon emissions. [ABSTRACT FROM AUTHOR]

The latest report on the state of nature in Europe (2013–2018) shows that biodiversity is declining at an alarming rate, with most protected species and habitats in poor condition. Despite an increasing volume of collected biodiversity information, urgent action is needed to integrate biodiversity data and knowledge to improve conservation efforts. We conducted a study in Catalonia (NE Spain), where we collected management measures implemented between 2013 and 2018, including allocation, budget, pressures aimed, and habitats/species potentially benefiting. We integrated information on pressures and habitats/species with the measures to identify non-spatial management gaps. Then, we integrated the spatially explicit information to determine the spatial management gap, identifying geographical areas where species/habitats are under pressure without registered measures. We demonstrated the importance of integrating existing information. Our findings revealed that resources were often not distributed adequately across species/habitats, with biases towards certain taxa being a common issue. The non-spatial management gap analysis identified taxonomic groups, especially plants and mollusks with the wider management gaps. We also identified threatened areas, especially in the northeast of the region with the larger spatial management gaps. These results could guide priority objectives to optimize conservation efforts. Integrating different information sources provided a broader view of the challenges that conservation science is facing nowadays. Our study offers a path toward bending the curve of biodiversity loss by providing an integrative framework that could optimize the use of the available information and help narrow the knowing-doing gap. In the context of the EU, this example demonstrates how information can be used to promote some environmental policy instruments, such as the Prioritized Action Frameworks (PAFs). Additionally, our findings highlight the importance of supporting decision-making with systematic assessments to identify deficiencies in the conservation process, reduce the loss of critical ecosystems and species, and avoid biases among taxa. • Last report on the state of nature in Europe reveals declines in biodiversity. • We collected information on conservation measures regionally during 2013–2018. • We integrated this with species, habitats, and pressure distribution data. • We detected non-spatial management gaps across groups and spatial management gaps. • Results could enhance effective environmental policy instruments in Europe. [ABSTRACT FROM AUTHOR]

The Emission Trading Scheme (ETS) provides a market mechanism to mitigate carbon emissions and has been introduced in many countries. Its fundamental idea is to make carbon emissions costly. Consequently, firms undertaking cross-border expansions may have to consider this extra cost when entering markets with an ETS. They may avoid these countries or relocate their investment to countries without an ETS. Using a large sample of international firms between 2002 and 2019, we investigate this issue via a difference-in-difference approach. Our results show that ETS implementation leads to significantly less cross-border merger and acquisition (M&A) deals in the host countries, indicating an avoidance effect or potential carbon leakage. Further analysis reveals that ETS implementation decreases firms' financial performance and increases market risks, both contributing to cross-border M&A decisions. We demonstrate strong evidence of cross-sectoral differences, where carbon-intensive sectors tend to bear higher costs. This study contributes to the environmental economics and finance literature and provides evidence with policy relevance. • This paper explores the effects of Emission Trading Schemes on cross-border M&As. • ETS implementation is associated with a significant reduction in cross-border M&As. • The introduction of ETS can lead to lower financial performance of the acquiring firms. • Climate policy can significantly influence firms' strategic investment decisions. [ABSTRACT FROM AUTHOR]

In this paper, we assess the effectiveness of early climate policy in emerging economies by causally evaluating the impact of China's Low-carbon City Pilot (LCCP) on city-level per-capita CO 2 emissions and CO 2 intensity of GDP over the period 2003–2017. The idiosyncrasies of the policy design pose significant challenges for causal identification, which we overcome within a synthetic control framework. Contrary to previous contributions, our results suggest that the LCCP had no significant impact on either carbon emissions or intensity. The main takeaway of our empirical investigation is that even in emerging economies, effective environmental policy requires transparent, quantifiable targets, and credible enforcement. [ABSTRACT FROM AUTHOR]

This paper extends the literature on the potential negative employment effects of environmental policy by bringing to the fore a key factor that directly regulates its magnitude: the elasticity of substitution between labor and energy. Using firm-level data from the French manufacturing sector and addressing endogeneity concerns, we provide empirical estimates that point to strong complementarity between labor and energy. We then investigate the empirical relevance of the elasticity of substitution in studying firms' response to changing energy prices. Our findings suggest that the negative employment effects of rising energy prices are largely driven by firms with limited substitution capacity. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of the timing of adaptation on the stability of international environmental agreements (IEAs) for different levels of cooperation. This issue is addressed by solving a three-stage coalition formation game in a Nash-Cournot setting. In the first stage, countries decide non-cooperatively on their participation in an IEA. Then, depending on the timing, countries decide on adaptation and emissions in the second and third stage. The game is solved for three levels of cooperation. Countries can either cooperate on emissions (emission agreement), on adaptation (adaptation agreement), or both actions (complete agreement). When emissions are chosen first, this extension to an emission–adaptation game is a generalization of the pure emission game. However, when adaptation is chosen first, the grand coalition is stable, provided that countries sign a complete agreement. With partial cooperation, stable coalitions are small. The results establish a connection between the strategic role of adaptation, the levels of adaptation of non-signatories and signatories for the different types of agreements and the participation in an IEA. Moreover, the results indicate that the grand coalition is stable even when it significantly enhances net benefits. [ABSTRACT FROM AUTHOR]

This article evaluates if and to which extent policy can steer innovation towards eco-friendly technologies. We construct a cross-country dataset on sectoral green innovation and complement it with data on policies designed to address environmental market failures: environmental taxes, regulation, and R&D subsidies. While all of these tools exert a positive effect on green innovation, our IV estimates reveal substantial heterogeneities across policies. Overall, green innovation reacts most strongly to R&D subsidies for renewables, but interaction effects between different policies need to be considered. [ABSTRACT FROM AUTHOR]

Promoting green and low-carbon development has become the consensus of the policymakers and the academic, with green transformation of enterprises being the top priority. This paper adopts the difference-in-difference model to investigate the effect of green credit policy on green transition in China, by utilizing the "Green Credit Guidelines" (2012 Guidelines) policy as a quasi-natural experiment. Using panel data from publicly listed companies in China, an empirical investigation is conducted, we explain the dependent variable from two dimensions: economic performance and environmental performance, leading to the following results. First, the green credit policy affects the economic performance and environmental performance of treated firms positively, and the robust tests confirm the reliability of this primary conclusion. Second, the indirect impact of green credit policy on green transition can be explained through two mediating mechanism channels including internal capacity building and external market attention. In addition, the proposal of "Dual Carbon Targets" makes the impact a slight change. Finally, heterogeneous test also shows that the implementation effect of green credit policy is better in non-state-owned enterprises with high political relevance. These findings are providing valuable insights to promote green transition by designing more effective green credit policies. • We identify the effect of green credit policy on green transition. • We employ multiple econometric models to ensure the robustness. • We provide the empirical evidence for heterogeneity. • We investigate the intermediary channels from two ways. [ABSTRACT FROM AUTHOR]

Rapid developments in environmental infrastructure have contributed to significant improvements in green total factor productivity, but further investigation is required to provide a detailed assessment to understand the policy mechanisms involved. This paper analyzes environmental progress in China through MMQR, CCEMG, and AMG as empirical strategies for 30 provinces in China. Our empirical results reveal that energy optimization through renewable energy is the most effective channel to improve green total factor productivity, though it is not the only available option. Since environmental regulations, infrastructure development, and green technology innovation also directly impact energy efficiency, adopting these within policy channels will positively impact environmental sustainability. Our empirical approach helps suggest novel environmental policy suggestions. In particular, policymakers must introduce structural changes within energy developments to foster renewable energy. Furthermore, China must increase environmental spending to upgrade its energy infrastructure further and solve ecological issues. These insights offer valuable policy guidance for decision-makers in China and globally, aiming to foster economic and environmental sustainability and achieve zero-carbon transition goals. • The current study analyses the role of green factor productivity in zero carbon transition. • We use 30 chinese provincial datasets from 2005 to 2020. • Energy transition is the most effective channel to improve green total factor productivity. [ABSTRACT FROM AUTHOR]

This paper investigates the non-monetary motivations of farmers' adoption of agri-environmental policies. Unlike the monetary (income) motivations, non-monetary drivers can not be directly observed but can be identified from observational data within appropriate quasi-experimental designs. A theoretical justification of farmers' choices is first formulated and a consequent natural experiment setting is derived. The latter admits heterogeneous, i.e. Individual, Treatment Effects (ITE) that, in turn, can be interpreted in terms of more targeted and tailored policy expenditure. A Causal Forest (CF) approach is adopted to estimate these ITEs for both the treated and not treated units. The approach is applied to two balanced panel samples of Italian Farm Accountancy Data Network (FADN) farms observed over the 2008–2018 period and concerns agri-environmental policies delivered through the Common Agricultural Policy (CAP). Results show how heterogeneous the farmers' response and the associated non-monetary motivations can be, thus indicating room for a more efficient policy design. • Existence and relevance of non-monetary motivations in environmental adoption is investigated. • A theoretical justification of farmers' choices is formulated and a consequent natural experiment setting derived. • A Causal Forest approach is adopted to estimate the Individual Treatment Effects. • The approach is applied to two balanced panel samples of Italian farms over the 2008–2018 period. • Results indicate room for a more efficient policy design in this field. [ABSTRACT FROM AUTHOR]

Green innovation (GI) is increasingly recognised as an effective strategy for tackling climate change, mitigating environmental issues, and promoting sustainable development. Using panel data of the Chinese listed firms from 2007 to 2019, this study adopts the difference-in-differences approach to assess the impact of the green finance policy (GFP) initiated by the Chinese government in 2012 on the green innovation performance of firms. The findings reveal that the GFP significantly boosts the green innovation performance of heavily polluting enterprises (HPEs). Notably, this effect is more pronounced in state-owned enterprises and firms with high dependence on external finance. Compared with penalty-based regulations, incentive-based and voluntary environmental regulations demonstrate more significant moderating effects on the relationship between the GFP and green innovation performance for HPEs. We also identify improved efficiency in the usage of green investments as a potential mechanism through which the GFP enhances the green innovation performance of HPEs. Further comparative analysis shows that green enterprises can achieve simultaneous improvement in both the quality and quantity of green innovation, whereas HPEs predominantly exhibit enhancements in innovation quantity. To maximise the GFP's positive effects, it is recommended to facilitate more targeted bank lending towards HPEs to support their structural transformation. Additionally, the coordinated deployment of diverse environmental policy instruments is advised to exploit their synergistic effects. • This paper confirms the positive relationship between Green Finance Policy (GFP) and the green innovation. • We develop a novel machine learning approach to enhance the accuracy of variable measurements. • Firms with different ownership structure and external finance reliance are impacted differently by the GFP. • Both incentive-based and voluntary environmental regulations have positive moderation effects. • GFP can improve the green innovation by enhancing the green investment efficiency. [ABSTRACT FROM AUTHOR]

The ongoing invasion of Russia of Ukraine and energy crises have sparked concern about economic and geopolitical stability all over the world. In Europe, the war has destabilized and endangered the energy cooperation and transition between European countries within and outside of the EU. This emergency has shown once more the importance of energy resilience policies to offset the vulnerability of energy systems and energy insecurity at the national and regional levels. Consilience has been reached on the necessity of enhancing EU energy security as an adaptation strategy. This work contributes to the existing scholarship on renewable energy transition and citizens' perception, focusing on European Union member states. Key characteristics of the renewable energy transition in the EU prior to the energy crisis and the war in Ukraine are examined. To this end, we analyze selected economic, environmental, social, policy and political variables on energy sorting from the Eurobarometer studying European citizens' perceptions. The exercise makes use of spatially-clustered regression to explore spatial heterogeneity and to elicit determinant information on specific regional groups. We learn that southern Europeans attribute less importance to energy infrastructure to facilitate the renewable energy transition and repute the EU solidity not a requirement for energy security access. Conversely, northern European citizens tend not to associate the responsibility of the EU in guiding competitiveness and policy toward green energy sources transformation. Robustness tests confirm our hypothesis. Regardless of regional differences, the EU energy and ecological transition will thrive with industrial and political cohesion. This process will pass through increased trust in institutions and dedicated energy policy action which will smooth the risks and disruptions coming from current and future shocks. • Eurobarometer variables European citizens' perceptions of renewable energy transition are analyzed. • Spatial heterogeneity statistics builds regional clusters southern Europeans ex-ante analysis of the Ukraine war and energy crisis. • Southern Europeans attribute less importance to energy infrastructure for renewable energy transition • Southern Europeans repute EU solidity not a requirement for energy security access. • Northern European citizens do not associate EU competitiveness with green energy sources transformation. [ABSTRACT FROM AUTHOR]

The Chinese government has attached great importance to pollution emission reduction. Since public environmental preference plays an important role in curbing polluting emissions by companies, this paper aims to explore the impact of public environmental preference and government environmental regulation on corporate pollution emissions. The coordinating role of environmental preference in the implementation of environmental regulatory policies is analyzed using pollution emission data of Chinese enterprises. The results show that both environmental preference and environmental regulation have significant inhibitory effects on corporate pollution emissions. The inhibitory effects are achieved by promoting the green technology progress. With high environmental preference, environmental regulation can effectively curb corporate emissions. This paper is helpful for policy makers to formulate ecological and environmental protection policies and cultivate public environmental preferences. • Environmental preference has inhibitory effect on corporate pollution emissions. • Promoting green technology progress helps inhibiting corporate polluting emissions. • With high environmental preference, environmental regulation can curb emissions. [ABSTRACT FROM AUTHOR]

Citizen support is an important precursor to climate change mitigation polices. Public opinion can shape public policy and vice versa. This paper uses the 2010 International Social Survey Programme (ISSP) Environment Module to investigate cross-national differences in support for climate policy. We introduce size of government, measured by government revenues as a share of GDP, as a new country-level factor. Our sample includes 31,511 responses from 33 countries. We use multilevel models to estimate the relationship between country-level factors and environmental policy support, conditional on a series of individual factors. Increasing the size of government by one standard deviation reduces support for environmental policy by 0.13 points on a 5-point scale. For comparison, a one standard deviation increase in GDP per capita leads to a 0.24 increase in support and a one standard deviation increase in air pollution leads to a 0.13 point increase. The implication for environmental policy is that high tax countries have an aversion to price and tax increases aimed at protecting the environment. We conclude that use of taxes for environmental policy must include clear expectations for how revenues will be recycled or how other taxes will be lowered if they are to gain widespread support. • Size-of-government is proposed as a new country-level characteristic of environmental policy support. • Increasing government size reduces support for environmental policy. • GDP per capita and air pollution are positively associated with environmental policy support. • High tax countries have an aversion to environmental price and tax increases. [ABSTRACT FROM AUTHOR]

Encouraging enterprises to engage in green innovation is a potent strategy for reducing carbon emissions from production. As one of the largest carbon emitters, China has launched a series of policies to achieve carbon peaking and neutrality collectively referred to as China's dual carbon policy. However, existing research on the impact of China's dual carbon policy on green innovation by heavy-polluting enterprises is insufficient. To fill this gap, this study constructed a theoretical model to draw hypotheses about the impact of the dual carbon policy on enterprises' green innovation and verified this impact using a difference-in-differences model to conduct a quasi-natural experiment based on data from 2010 to 2022 from Chinese A-share-listed enterprises. The results indicate that the dual carbon policy had a significantly positive influence on green innovation in heavy-polluting enterprises. Moreover, environmental tax mediated this effect, while enterprises' total costs and subsidies positively moderated it. Additionally, the impact exhibited variations based on several key factors, including green patent type, carbon emissions, enterprise ownership structure, and Environmental, Social, and Governance ratings. This study supplements related research on the effects of environmental policy on green innovation and provides both theoretical and empirical support for adapting subsequent environmental policies. • This study explores the impact of China's dual carbon policies on green innovation by firms. • We create a theoretical model and validate it using data from listed Chinese firms. • The dual carbon policies significantly increase green innovation by firms. • This relationship is mediated by environmental tax and moderated by firm costs and subsidies. [ABSTRACT FROM AUTHOR]

Since especially the 12th Five-Year Plan (2011–2015), China has made great efforts to reverse the increasing trend of NO x emissions through end-of-pipe measures. With the Ozone Monitoring Instrument (OMI) level 2 swath product of tropospheric NO 2, this study explores the temporal-spatial patterns of NO x concentrations over China's coal-fired power plants from 2005 to 2020 and investigates the evolution of its control strategy. The nationwide deployment of flue-gas denitration facilities was a critical measure to mitigate NO x emissions from coal-fired power plants, while this study externally assesses the implementation gap of their operation. Our results illustrate that, besides the impacts of economic cycles, China's control strategy experienced a dramatic transformation from an ad hoc campaign style for meeting short-term temporary targets to more sustainable, technology- and governance-centered institutional arrangements for ensuring long-term fundamental solutions. Furthermore, the satellite-based assessment may provide not only ex post evaluation, but also in-time and independent data for more effective and efficient environmental compliance monitoring. • We use satellite data to investigate the evolution of China's NOx control strategy. • We found that ad hoc campaigns were launched in 2000s for temporary targets. • In 2010s, technology & governance-centered strategy ensured sustainable solutions. • Temporal-spatial analysis shows varied policy implementation paces across regions. • Satellite-based assessment can strengthen environmental policy implementation. [ABSTRACT FROM AUTHOR]

Floodplain buyouts are an increasingly common policy for mitigating flood risk. Recent research has explored the costs of buyouts and their impacts on municipal finance and tax base. However, little work has explored the effects of buyouts on surrounding residential land values, an aspect that could contribute to the extensive literature on the land value impacts of urban land uses, including open space and ecological restoration. This study evaluates the residential land value impacts of buyouts in Mecklenburg County, North Carolina (USA), an area with extensive, municipally- and federally-funded buyouts (n = 348). Using a quasi-experimental research design that matches treatment parcels (near buyouts) to control parcels to isolate the causal impacts of buyouts, we find that buyouts are responsible for weak increases (p<0.1) in the area-normalized sales values ($/ft2) of neighboring (within 0.15 km) single-family residential properties. We additionally find positive – but also weak – sales value relationships with (1) buyouts that have programmed post-buyout land uses, such as parks or other recreation areas (USD$25.46/ft2 [$274.05/m2] when 0.15–0.2 km from buyout; p<0.05), and (2) the average age of proximal buyouts ($0.34/ft2 [$3.66/m2] within 0.1–0.15 km; $0.30/ft2 [$3.23/m2] within 0.15–0.20 km; both p<0.01). Our results suggest that post-buyout land uses may have impacts on local tax base and should play a larger part in municipal buyout decisions. • We isolate floodplain buyouts' causal impacts using treatment-control parcel matching. • Buyouts weakly increase sales values ($/m2) of nearby (<0.15 km) residential parcels. • Decisions on post-buyout land uses could impact local tax base. [ABSTRACT FROM AUTHOR]

Geopolitical risks and environmental policy have become increasingly important in the European Union (EU), which is committed to tackling climate change and protecting the environment. However, geopolitical risks can undermine its environmental policy objectives. Thus, the study evaluates the relationship between geopolitical risks and environmental policy in nineteen EU countries from 1994 to 2020 through panel bootstrap Granger causality. The results show that geopolitical risks significantly influence environmental policy in Denmark, Estonia, Finland, France, Germany, Luxembourg, and Romania. On the other hand, the findings reveal that environmental policy causes geopolitical risks only in Latvia, while there is no relationship in the remaining countries. Therefore, policymakers must develop resilience to geopolitical risks, promote renewable energy, strengthen environmental regulations, and address social and economic implications to reduce environmental policy vulnerability to geopolitical risks. • Geopolitical risks affect ecological policies in Denmark, Estonia, Finland, France, Germany, Luxembourg, and Romania. • Environmental policy causes geopolitical risks only in Latvia. • Policymakers, promote renewables, enhance regulations to cut vulnerability to geopolitical risks. [ABSTRACT FROM AUTHOR]

Based on the unique perspective of local environmental regulations promulgated in Chinese prefecture-level cities from 2000 to 2018, this paper examines the impact of urban environmental legislation on green total factor energy efficiency (GTFEE). The results show that implementing environmental legislation significantly improves local GTFEE , with comprehensive protection regulations contributing to local energy efficiency improvements, while the impact of pollution prevention regulations is insignificant. This conclusion remains robust to multiple scenarios. Potential mechanisms through which environmental legislation can guide urban green transition include the industrial upgrading effect represented by "clean industry development" and "polluting industry exit", as well as the technical innovation effect achieved through "new technology generation" and "old technology upgrading". Furthermore, environmental legislation with a higher degree of regulatory effectiveness has a greater potential for energy saving. Environmental legislation has a more significant impact on improving GTFEE in cities in non-old industrial bases, with less frequent turnover of officials, and in central and western regions in China. This study evaluates the positive impact of urban environmental legislation on GTFEE , aiming to advancing the rule of law in local environmental pollution governance and thereby promote urban green transition. • Use a Difference-in-Differences model to explore the effect of urban environmental legislation. • Environmental legislation guides urban green transition development. • The impact of heterogeneous urban environmental regulations on green transition development. • Industrial upgrading and Technical innovation have positive mediating roles. • Environmental legislation policy has city attributes, official turnover and location heterogeneity. [ABSTRACT FROM AUTHOR]

Volatile organic compounds (VOC) contributing to smog formation, have been an important indicator of atmospheric governance during China's "14th Five-Year Plan". VOC would be possibly incorporated into the scope of environmental protection tax, but previous studies have seldom explored impacts of VOC control policies at national and regional levels. Here, we design a national uniform VOC control policy, as well as two regionally differentiated policies based on regional disparities in PM 2.5 concentrations and energy intensity by using a cross-scale dynamic computable general equilibrium (CGE) model. Our analysis is to assess the impacts of these policies on VOC, CO 2 , sulfur dioxide (SO 2), nitrogen oxides (NO X), and PM 2.5 emissions, air quality and environmental equity, and to estimate health benefits, policy costs and net benefits. We find that national and regionally differentiated VOC control policies generally lead to VOC emission reductions and generate co-benefits on emission reductions in CO 2 , SO 2 , NO X and PM 2.5 at national and provincial levels. However, regional emission leakage exists due to differences in the provincial costs of VOC mitigation. The regionally differentiated VOC pricing policies are found to be more effective to enhance environmental equity than the uniform policy. In particular, the regionally differentiated VOC control policy based on provincial energy efficiency is found to be superior to other policies in terms of improve air quality. Furthermore, the human health benefits associated with VOC pricing policies would partially offset policy costs at both the national and regional levels. Our results suggest that policymakers would pay attention to developing regions with low energy efficiency which have the great emission reduction potential. Advanced producing technology and further end-of-pipe control measures to reduce non-combustion PM 2.5 emissions are needed. VOC policy designed based on provincial energy efficiency provides great insights for environmental policy making to accomplish 2035 goal of building a Beautiful China. • National and regionally differentiated VOC tax policies are designed. • VOC tax generates climate co-benefits. • Regional emission leakage exists associated with regionally differentiated policies. • Regionally differentiated VOC tax are effective to enhance environmental equity. • Human health benefits associated with VOC tax partially offset policy costs. [ABSTRACT FROM AUTHOR]

This empirical study examines the impact of environmental regulations on carbon productivity under varying conditions using panel data from Chinese provinces from 2011 to 2019. Prior research has reported inconsistent results regarding the relationships between these variables. We developed a spatial Durbin model (SDM) and tested the non-linear effects of environmental regulation on carbon productivity from a spatial linkage perspective. The results demonstrate a U-shaped curve representing the local-neighborhood effect of environmental regulations on carbon productivity. This curve is further dissected into two components: the average direct effect (ADE) and the average indirect effect (AIE). Furthermore, the findings indicate that green technology progress and pollution transfer act as moderating factors in shaping the U-shaped curve. Green technological progress has steepened the U-shape curve, whereas pollution transfer has flattened it. Based on these findings, we propose three recommendations for the formulation of environmental regulation policies. • We examine the effects of environmental regulations on carbon productivity. • Different conditions are compared and considered. • The local neighborhood effect represents a U-shaped curve. • Moderating roles of green technology progress and pollution transfer are explored. [ABSTRACT FROM AUTHOR]

New environmental policies and initiatives increasingly drive firms to develop sustainable technologies, yet it is unclear why firms often decide not to capture value from the technologies that they create. We argue that the under-implementation of environmental technologies can be explained by the concept of institutional decoupling, which suggests that organizations may engage in symbolic actions without necessarily taking the risk of implementing a new technology in a less established market when there is no decisive evidence of its commercial viability. Focusing on the Korean Green Certification Program, a government-initiated review system for environmental technologies, we find that the timing of certification is a key source of variation in the implementation of certified technologies. Our findings also show that the main effect is conditioned by performance feedback and niche density—the factors that shape a firm's risk perceptions. Implications for organization studies, sustainable innovation, and environmental policies are discussed. • Firms often develop sustainable technologies and obtain formal certifications. • However, the degree to which they actually implement certified technologies varies. • We show that the timing of obtaining certification is a key factor of variation. • The timing effects are also conditioned by a firm's risk perceptions. [ABSTRACT FROM AUTHOR]

Environmental licensing is a command-and-control (C&C) instrument used at the state level in Brazil to enforce compliance with legal requirements and environmental standards; however, it does not encourage continuous improvement. The objective of this paper is to propose a methodology that can be used as a licensing and monitoring policy for industrial activities, based on both command and control and economic instruments. Therefore, the development of a matrix to measure the environmental performance of companies is proposed so as to include mandatory compliance requirements, environmental management requirements and continuous improvement indicators. Performance assessment could be used by the environmental agency as a tool to support environmental management policy change by working with environmental incentives for better-performing companies. The results obtained with the matrix will demonstrate exactly what the theory describes: in an environment where the control imposed to the entrepreneur is by the attendance of a legislative standard and not the demonstration of continuous improvement, there is no evolution of the environmental performance over the 3-year period of the companies. Consequently, the inclusion of a tool to assess environmental performance constitutes a requirement for the environmental evolution of the country. • Development of a matrix for the use of environmental management in licensing. • Licensing is an instrument of command and control. • The matrix makes it possible to apply economic instruments. • Improvement environmental performance for enterprises. [ABSTRACT FROM AUTHOR]

This paper analyzes the economic implications of an environmental policy when we account for the life expectancy of heterogeneous agents. In a framework in which everyone suffers from pollution but health status also depends on individual human capital, we find that the economy may be stuck in a trap in which inequality rises steadily, especially when the initial pollution intensity of production is too high. We emphasize that such inequality is in the long run costly for the economy in terms of health and growth. Therefore, we study whether a tax on pollution associated with an investment in pollution abatement can be used to address this situation. We show that a stricter environmental policy may allow the economy to escape from the inequality trap while enhancing the long-term growth rate when the initial inequality in human capital is not too large. [ABSTRACT FROM AUTHOR]

We study theoretically and numerically the effects of an environmental tax reform using endogenous growth theory. In the theoretical segment, mobile labor between manufacturing and R&D activities, and elasticity of substitution between labor and energy in manufacturing lower than unity allow for a growth dividend, even if we consider preexisting tax distortions. The scope for innovation is reduced when we consider direct financial investment in the lab, or elastic labor supply. We then apply the core theoretical model to a real growing economy and find that a boost in long-run economic growth following such a carbon policy is a possible outcome. Redistribution of additional carbon tax revenue by lowering capital taxation performs best in terms of effciency measured by aggregate welfare. In terms of equity among social segments the progressive character of lump-sum redistribution fails when we consider very high emissions reduction targets. [ABSTRACT FROM AUTHOR]

We introduce nine papers on sustainable resource dynamics. In addition, we provide analytical results on the effect of stochastic damages on optimal economic growth, the effects of habits and loss aversion on the cost-benefit discount rate, and the effect of a carbon budget and carbon capture and storage (CCS) on optimal investment in technical change. [ABSTRACT FROM AUTHOR]

We analyze a transboundary pollution differential game where pollution control is spatially distributed among a number of agents with predetermined spatial relationships. The analysis emphasizes, first, the effects of the different geographical relationships among decision makers; and second, the strategic behaviour of the agents. The dynamic game considers a pollution stock (the state variable) distributed among one large region divided in subregions which control their own emissions of pollutants. The emissions are also represented as distributed variables. The dynamics of the pollution stock is defined by a parabolic partial differential equation. We numerically characterize the feedback Nash equilibrium of a discrete-space model that still captures the spatial interactions among agents. We evaluate the impact of the strategic and spatially dynamic behaviour of the agents on the design of equilibrium environmental policies. [ABSTRACT FROM AUTHOR]

We consider the resource-extraction policy of a government that is lobbied by an environmental organization and an extraction firm from foreign countries. To analyze this situation, we propose a sequential Nash bargaining solution: The government bargains with both lobbies simultaneously. Should this trilateral negotiation fail, it chooses one lobby for a bilateral negotiation. The disagreement point then is to bargain with the other lobby. Finally, should this second bilateral negotiation break down, the government chooses the welfare-maximizing policy. As long as cumulative extraction is low, such that stock-dependent extraction costs are also low and extraction profits are high, the environmental organization has a weak bargaining position, but it takes influence to reduce extraction. Once that cumulative extraction has increased so much that extraction profits are below a threshold, the bargaining positions change, and the environmental organization gets compensated by the extraction firm for not letting the trilateral negotiation fail. [ABSTRACT FROM AUTHOR]

The paper develops a general framework for the analysis of environmental shocks in growing economies. Endogenous capital investments allow identifying the dual role of capital as a buffer against shocks and a source of pollution. We study the effects of recurring natural disasters on optimal growth and efficient environmental policies. Emissions may cause continuous fluctuations, entail discrete and recurring jumps, or trigger so-called "tipping points" with large costs to the economy. Closed-form solutions are provided for all the model variants. We discuss possible applications in environmental economics and identify current research gaps. [ABSTRACT FROM AUTHOR]