Cross-regional collaborative governance in the process of pollution industry transfer: The case of enclave parks in China.

To promote the effectiveness of cross-regional collaborative governance of pollution firm transfer, a stochastic evolutionary game model among three sectors (flying out parks, pollution firms, and flying in parks) was proposed. According to the three policy goals, three paths of collaborative governance were investigated using numerical simulations. Our findings focus on the following three aspects: (i) If policymakers want to urge more parks and pollution firms in the three sectors to choose a cooperation strategy, additional relocation subsidies from superior governments for pollution firms have the most remarkable effect. However, excessive subsidies will push flying out parks to inhibit the transfer of pollution firms. (ii) If policymakers intendto urge parks and pollution firms to cooperate quickly, increasing the environmental costs of firms will play key role. Notably, even if the environmental costs are low, they can still considerably and positively affect choosing a transfer strategy of for pollution firms. (iii) If policymakers expect defection parks and pollution firms to be as few as possible during the regulation process, the cost-sharing mechanism with only two sectors (flying in parks and flying out parks) is invalid. Introducing higher-level departments or other sectors for cost-sharing to escape the current dilemma is necessary.

Does real estate bubble affect corporate innovation? Evidence from China.

With the rapid increase of downward pressure on China's economy, the stability of the property market, as an important part of the economic transformation process, also has a far-reaching impact on enterprises' R&D investment. We select the data of Chinese large and medium-sized industrial enterprises from 1998 to 2015 as our research sample and propose a new combination measurement model based on closeness degree to measure the real estate bubble level in China accurately. The structural vector autoregressive (SVAR) theory is utilized to empirically test the dynamic relationship between the real estate bubble, corporate liquidity, and R&D investment. The results indicate that the real estate bubble level in China is increasing, and a certain risk of deviating from the safety interval in the future exists; The rapid expansion of the real estate bubble has a continuing negative impact on corporate R&D investment, that is, its "credit mitigation effect" is much smaller than the "capital relocation effect," and industrial enterprises will fall into the so-called "low-tech lock-in" state. In other words, to a certain extent, the development of this kind of real estate bubble will not be conducive to the transformation and upgradation of enterprises and long-term economic growth.

Is carbon neutrality feasible for Korean manufacturing firms?: The CO2 emissions performance of the Metafrontier Malmquist-Luenberger index.

To achieve carbon neutrality, the Korean government has promoted regulatory policies on the transition toward a carbon free economy in 2050. Unfortunately, these policies face strong complaints from industries with respect to losing international competitiveness owing to extra cost burdens. Is it feasible to achieve a carbon neutral economy with these regulatory policies? This study tries answering the question by evaluating the CO2 emissions performances of the Korean manufacturing industry for feasible solutions toward a carbon neutral economy. For this purpose, we adopted the metafrontier Malmquist-Luenberger (MML) index to reflect group heterogeneity at the technology level. Forty subsectors of manufacturing industrial data were collected from 2012 to 2017, which were classified under four technological levels: high, middle-high, middle-low, and low. The CO2 emissions performance showed a poor effect from the policies, with an overall 0.8% deterioration (-0.8%) in the CO2 emissions. Under the group heterogeneity, the middle-high and middle-low technology groups showed a significantly slower upward trend, implying that the environmental regulatory regime did not have a strong effect on these groups. To obtain a feasible solution for this fine tuning, MML decomposition was implemented in the second stage. As the efficiency change is the main driver that influences the CO2 emissions performance, the Korean government should encourage the catching-up effect in industries via a green cultural revolution, as well as provide strong incentives to avoid negligible performance in the innovation effect, supported by more market-oriented emissions trading schemes (ETSs).