Designing a circular carbon and plastics economy for a sustainable future.

The linear production and consumption of plastics today is unsustainable. It creates large amounts of unnecessary and mismanaged waste, pollution and carbon dioxide emissions, undermining global climate targets and the Sustainable Development Goals. This Perspective provides an integrated technological, economic and legal view on how to deliver a circular carbon and plastics economy that minimizes carbon dioxide emissions. Different pathways that maximize recirculation of carbon (dioxide) between plastics waste and feedstocks are outlined, including mechanical, chemical and biological recycling, and those involving the use of biomass and carbon dioxide. Four future scenarios are described, only one of which achieves sufficient greenhouse gas savings in line with global climate targets. Such a bold system change requires 50% reduction in future plastic demand, complete phase-out of fossil-derived plastics, 95% recycling rates of retrievable plastics and use of renewable energy. It is hard to overstate the challenge of achieving this goal. We therefore present a roadmap outlining the scale and timing of the economic and legal interventions that could possibly support this. Assessing the service lifespan and recoverability of plastic products, along with considerations of sufficiency and smart design, can moreover provide design principles to guide future manufacturing, use and disposal of plastics.

The impact of bank's engagement in shadow banking activities on bank's sustainability: Evidence from Chinese commercial banks.

The economic and environmental consequences of bad banking practices have aroused much attention. In China, banks are at the center of shadow banking activities through which they avoid regulation and support environmentally unfriendly businesses such as fossil fuel companies and other high-pollution enterprises. In this paper, we study the impact of bank's engagement in shadow banking activities on its sustainability by using annual panel data of Chinese commercial banks. The result shows that bank's engagement in shadow banking activities has a negative impact on its sustainability and the negative impact of bank's engagement in shadow banking activities is more pronounced for city commercial banks and unlisted banks which are less regulated and lack corporate social responsibility (CSR). Furthermore, we explore the underlying mechanism of our findings and prove that bank's sustainability is impeded because it transforms high-risk loan into shadow banking activities which are less regulated. Finally, by using difference-in-difference (DiD) approach, we find that bank's sustainability improved after the financial regulation on shadow banking activities. Our research provides empirical evidence that the financial regulation on bad banking practices is beneficial for bank's sustainability.

Environmental regulation and green innovation of polluting firms in China.

The main objective of this paper is to study the impact of the Ambient Air Quality Standard (2012) on the green innovation of Chinese firms in polluting industries. The analysis features "leverage effect" of Porter Hypothesis imposed by environmental regulations and exploits exogenous variations caused by the promulgation of the new policy. Based on the exogenous variations, this paper uses the time varying PSM-DID method. The findings of this study suggest that the implementation of the new policy improves firms' green innovation. Increments in R&D investment and environmental protection investment are channels through which the new standard positively affects firms' green innovation. The cross-sectional heterogeneity analysis exhibits that the effect of this environmental regulation is stronger for firms with bigger size and lower financial constraints. The contribution and significance of this study are as follows: our study enriches understanding of the impact of environmental regulation on firms' green innovation by empirically confirming the influencing channels of the impact of environmental regulations on green innovation. In addition, this paper contributes to the firms' green innovation literature by empirically validating the role of corporate characteristics in moderating the effect of environmental regulations.

Does pollution levy standard reform promotes green innovation? Evidence from China.

Taking advantage of the quasi-natural experiment generated by the adjustment of pollution levy standard in different Chinese provinces and utilizing detailed prefecture-level data from 2004 to 2014, we rigorously examine the effect of an increase in pollution levy standard on green innovation by adopting the difference-in-differences method. We find that an increase in pollution levy standard can significantly promote regional green innovation, with a magnitude of nearly 12.8%, as compared with their control group. Additionally, we find that financial development and intellectual property protection tend to reinforce the positive effects. Our study suggests that the Chinese government should strengthen its institutional structure to promote green innovation.

Non-linear effects of heterogeneous environmental regulations on industrial relocation: Do compliance costs work?

Reasonably designing environmental regulations for compliance-driven industrial relocation can avoid new pollution havens. The Cournot duopoly model simulates that the necessary condition for industrial relocation is differentiated market costs. Then, based on the province-industrial data of six Chinese pollution-intensive industries during 2005-2019, this study applies spatial Durbin model to explore the non-linear effects of heterogeneous environmental regulations on industrial relocation. Results shown that command-and-control environmental regulation manifests a U-shaped curve with local industrial relocation, with inverted U-shaped spillover effect radiating a road distance of 650 km, and both internal and external costs play the mediating roles; Market incentive environmental regulation has inverted U-shaped curves with industrial relocation in local and neighboring regions, it creates dual costs and works well in both short and long terms, which is the most potential regulatory tool to avoid pollution relocation accompanying industrial relocation; Voluntary environmental regulation exhibits inverted U-shaped relationships with industrial relocation in direct and spillover effects, and works through increased external cost rather than internal cost. Its spatial spillover radiates the longest 1250 km due to rapid spread of public opinions, but this effect takes more than 3 years to be effective.

The effect of the new Environmental Protection Law on corporate financialization in China.

Using data from non-financial listed firms in China from 2008 to 2020, this study investigates the effect of the new Environmental Protection Law on corporate financialization based on the difference-in-differences model. Findings show that the law's implementation significantly increases the financialization behaviors of corporations in polluting industries. This effect remains robust after a series of robustness checks. Heterogeneity analyses suggest that the policy effect of the law is more pronounced for non-state-owned enterprises, enterprises with high fixed assets ratios, and enterprises in regions with excellent market competition. The new Environmental Protection Law also promotes the financialization of enterprises by increasing costs, reducing commercial credit financing capabilities, increasing risks, and hindering innovation. This article provides new evidence for understanding macro-environmental regulation and micro-firm effects.

Impact of Environmental Regulation on Scientific and Technological Competitiveness of Resource-Based Cities in China-Based on Panel Data of 33 Resource-Based Cities.

After the economy enters a "new normal" era in China, resource-based cities are under pressure in terms of transformation, upgrading and sustainable development. This paper uses the panel data of 33 resource-based cities from 2008 to 2018 to empirically analyze the impact of environmental regulation and innovation compensation on scientific and technological competitiveness. The results show that there is a positive U-shaped relation between environmental regulation and scientific and technological competitiveness. This means that when environmental regulations exceed a certain level, continuing to increase regulations will significantly enhance technological competitiveness, but most samples are still on the left side of the turning point. At the same time, the labor productivity and fiscal capacity of non-agricultural industries in the region may have a strong regulatory effect. In a region with higher labor productivity in non-agricultural industries or stronger local fiscal capacity, environmental regulation is more likely to reflect the attribute of "innovation compensation" and advance scientific and technological competitiveness. At this stage, we should optimize the trans-regional compensation mechanism for resource-rich regions, increase investment in pollution management and ecological protection and impose stricter admission standards on industrial projects. Besides, skilled laborers should be cultivated and innovation and entrepreneurship be supported to realize the green and sustainable development of resource-based cities in the new era.

The effect of environmental regulations on innovation in heavy-polluting and resource-based enterprises: Quasi-natural experimental evidence from China.

Environmental protection regulations adopted by governments affect the microeconomic behavior of enterprises. The Chinese government began piloting the outgoing leading officials' accountability audit of natural resources assets (OANRA) in some regions in 2014. Based on this quasi-natural experimental setting, this paper chose heavy-polluting and resource-based enterprises in pilot regions of China from 2011 to 2016 as examples for studying the impact of the OANRA on enterprise innovation and further examines the role of government subsidies in this process. The study finds that the OANRA has no significant impact on enterprise innovation. However, with support from government subsidies, the OANRA dramatically accelerates enterprise innovation investment. The results are still seen after applying propensity matching analysis (PSM), balancing panel data and deleting special provinces. Further analysis shows that this effect is more obvious among small-scale, state-owned enterprises that are located in areas with high degrees of marketization and high bank credit constraints. This study advances the research of the OANRA's effects on the microeconomic behavior of enterprises. Moreover, the adjustment effect of government subsidies also provides great reference value to making rational use of policy to cooperate with the OANRA.

Deregulation and the Assault on Science and the Environment.

The quality of the environment is a major determinant of the health and well-being of a population. The role of scientific evidence is central in the network of laws addressing environmental pollution in the United States and has been critical in addressing the myriad sources of environmental pollution and the burden of disease attributable to environmental factors. We address the shift away from reasoned action and science to a reliance on belief and document the efforts to separate regulation from science and to remove science-based regulations and policies intended to protect public health. We outline the general steps for moving from research to policy, show how each has been undermined, offer specific examples, and point to resources that document the enormity of the current efforts to set aside scientific evidence.

The accessibility of data on environmental risk assessment of pharmaceuticals - are environmental risk assessments information on emissions with respect to international and European environmental information law?

In the pharmaceutical sector, the right of access to environmental information is in most cases not feasible as the authorisation holders refer to commercially/industrial confidential information (CCI). However, CCI can not refuse access to environmental risk assessments (ERAs) if ERAs are to be classified as information on emissions. Pharmaceuticals inevitably enter the environment as a consequence of their intended use. This release is calculated in the ERA as predicted environmental concentration when a pharmaceutical is approved. The release of pharmaceuticals into the environment falls consequently under the term 'emissions into the environment'. In addition, the ERAs assessing the risk of this release are to be classified as 'information on emissions into the environment'. Therefore, the practiced secrecy of ERAs of pharmaceuticals and their official assessment reports is incompatible with Art. 4 Aarhus Convention, and the European and national implementing provisions for this article, which require access to such environmental information on emissions for everyone, irrespective of whether they concern CCI. With this legal disclosure obligation of ERAs, there is an enforceable right of access for everyone, which shows the necessity for establishing a publicly accessible database based on active pharmaceutical ingredients with substantiated information on the ERAs.

The Role of Environmental Tax in Alleviating the Impact of Environmental Pollution on Residents' Happiness in China.

Background: Environmental tax has been implemented by the government in response to the demands of the residents to control environmental pollution. However, a tax has a wide effect on many interacting aspects of the society. It remains unknown whether enacting an environmental tax for the government can improve the residents' happiness. This study aimed to examine the impact of air and water pollution on residents' happiness and evaluate whether an environmental tax can alleviate the impact of air and water pollution on residents' happiness. Methods: Based on the 2015 Chinese General Social Survey Data, 28 provinces in China were divided into two categories according to their environmental tax rates: baseline-tax areas (n = 13) and high-tax areas (n = 15). The ordered probit model was used to analyze the impact of air and water pollution on the residents' happiness in baseline-tax areas and high-tax areas, respectively. The Chow Test was used to test whether the impact of environmental pollution on happiness was different between baseline-tax areas and high-tax areas. Results: The impact of air pollution on residents' happiness was statistically significant in the baseline-tax areas (coefficient -0.162, 95% confidence interval (CI) -0.239, -0.086, p < 0.001), but the significance was weakened in the high-tax areas (coefficient -0.030, 95% CI -0.060, 0.000, p = 0.051). The Chow Test showed that the absolute value of the regression coefficient in the baseline-tax areas was significantly higher than the value in the high-tax areas (F = 12.712, p < 0.001). Similarly, the impact of water pollution on residents' happiness was statistically significant (coefficient -0.264, 95% CI -0.353, -0.174, p < 0.001) in the baseline-tax areas and in the high-tax areas (coefficient -0.063, 95% CI -0.091, -0.035, p < 0.001), but the Chow Test showed that the absolute value of the regression coefficient in the baseline-tax areas was significantly higher than the value in the high-tax areas (F = 13.758, p < 0.001). Conclusions: Both air and water pollution impair residents' happiness. The present study shows for the first time that enacting an environmental tax significantly alleviates the negative effect of air and water pollution on residents' happiness. The findings of the present study provide empirical evidence for the government to levy environmental tax.

Optimal Coordination Strategy for International Production Planning and Pollution Abating under Cap-and-Trade Regulations.

Because both pollution emissions and production policies often are international in scope, it is necessary to find optimal coordination strategies for international production planning and pollution abating. Differential game models are developed for multiple neighboring countries to reach optimal decisions on their production planning and pollution abating under cap-and-trade regulations. Non-cooperative and cooperative differential games are presented to depict the optimal tradeoffs between production planning and pollution abating. Hamilton-Jacobi-Bellman (HJB) equations are then employed to analyze the asymmetric and symmetric feedback solutions. Numerical simulations are used to illustrate the results. Five different dividends are also discussed. With the proposed strategies, more improvement will be directed toward production supplies and environmental issues than ever before.

Innovation stages, knowledge spillover, and green economy development: moderating role of absorptive capacity and environmental regulation.

In the past 20 years, the green economy has increasingly attracted the attention of governments and policy makers. However, most studies have only focused on the relationship between the green economy and innovation, and little attention has been given to the relationship between the different innovation stages and the green economy. This study draws on eco-innovation and institutional theories and proposes a model to empirically investigate the effects between the different innovation stages and green economy. Furthermore, it explores how these effects are mediated by knowledge spillover and moderated by absorptive capacity and environment regulations. We use data from the last 5 years (2012-2016) obtained from different China regions to empirically test the model. Results show that knowledge innovation, research and development (R&D) innovation, and product innovation have the same significant positive impact on knowledge spillovers. R&D and product innovation have a significant positive impact on green economy, whereas knowledge innovation has no significant effect on the development of the green economy. Knowledge spillover partially mediates the relationship between the innovation stage and the green economy. Meanwhile, absorptive capacity positively moderates the relationship between knowledge spillover and the green economy. However, environmental regulation negatively moderates the relationship between knowledge spillover and the green economy. In addition, corresponding measures are proposed based on the conclusions.

Does economic policy uncertainty matter for carbon emission? Evidence from US sector level data.

Economic policy uncertainty (EPU) will affect the external business environment of economic entities, which in turn affects the decision-making of economic entities. Meanwhile, carbon emissions are closely related to the production decisions of microeconomic entities. Thus, studying the relationship between EPU and carbon emissions helps to clarify the impact of institutional factors behind carbon emissions, which is significant for achieving green development. Based on US sector data, we apply a novel parametric test of Granger causality in quantiles to analyze the relationship between EPU and carbon emissions (its growth and uncertainty). We find that there is an outstanding pattern of Granger-causality from the US EPU to the growth of carbon emissions in the tails of the growth distributions of carbon emissions in the industrial sector, residential sector, electric power sector, and transportation sector, except in the commercial sector. That is, carbon emissions are affected by EPU when the growth of carbon emissions is in a higher or lower growth period. Lastly, we find that the US EPU affects carbon emissions uncertainty over the entire conditional distribution for all sectors.

Backward and forward multilevel indicators for identifying key sectors of China's intersectoral CO2 transfer network.

Many countries face a dilemma of economic growth and carbon emission mitigation, which is highly associated with energy consumption. In order to initiate effective policies for controlling carbon emissions, it is important to identify the key sectors in the value chain, thus proposing corresponding measures. To date, however, energy and carbon emissions have been studied mainly from a production or consumption perspective, with important interactions between sectors being seldom considered. In response, a new CO2 flow model is presented in which input-output analysis and network theory are combined with multilevel indicators to identify the key sectors affecting carbon emissions in terms of total, immediate, and mediative centrality effects. The model is demonstrated with an analysis of 2007 and 2012 China sectoral data, showing that Production & Supply of Electric Power, Steam and Hot Water (PESH), Nonmetal Mineral Products (NMMP), and Coal Mining & Dressing (CMDG) played key roles in China's carbon transfer network; the roles of Electronic & Telecommunications Equipment (ETET), Instruments & Office Machinery (IOMY), and Electric Equipment & Machinery (EEMY) had the largest immediacy effect; and, acting as key transmission sectors, PESH, Smelting & Pressing of Metals (SPOM), and NMMP controlled a large share of CO2 transfer. The measures used are closely related to, and provide new insights into, the traditional indicators of sector centrality. At the same time, the proposed multilevel indicators are supplements for techniques that aim to instruct sector-level carbon mitigation policies.

Foreign direct investment, environmental regulation, and environmental pollution: an empirical study based on threshold effects for different Chinese regions.

On the basis of previous studies on the relations among foreign direct investment (FDI), environmental regulation, and environmental pollution, this work uses provincial panel data from 2000 to 2014 to study the effects of FDI and environmental regulation on environmental pollution by applying the panel-corrected standard error (PCSE) method. This paper then utilizes environmental regulation as the threshold variable to estimate the threshold effects of environmental regulation on FDI's influence on environmental pollution in a threshold regression model for the eastern, central, and western regions of China. The results show that stricter environmental regulation can substantially reduce the pollution in each region. FDI can decrease environmental pollution in the eastern and central regions, but it can increase pollution in the western region. There are double-threshold effects of environmental regulation on the effects of FDI on environmental pollution in each region. When the environmental regulation level is between the first threshold and the second threshold, FDI can decrease environmental pollution much more in the eastern and central regions and increase environmental pollution much less in the western region.

Environmental regulation in transition: Policy officials' views of regulatory instruments and their mapping to environmental risks.

This study re-analysed 14 semi-structured interviews with policy officials from the UK Department for Environment, Food and Rural Affairs (Defra) to explore the use of a variety of regulatory instruments and different levels of risk across 14 policy domains and 18 separately named risks. Interviews took place within a policy environment of a better regulation agenda and of broader regulatory reform. Of 619 (n) coded references to 5 categories of regulatory instrument, 'command and control' regulation (n = 257) and support mechanisms (n = 118) dominated the discussions, with a preference for 'command and control' cited in 8 of the policy domains. A framing analysis revealed officials' views on instrument effectiveness, including for sub-categories of the 5 key instruments. Views were mixed, though notably positive for economic instruments including taxation, fiscal instruments and information provision. An overlap analysis explored officials' mapping of public environmental risks to instrument types suited to their management. While officials frequently cite risk concepts generally within discussions, the extent of overlap for risks of specific significance was low across all risks. Only 'command and control' was mapped to risks of moderate significance in likelihood and impact severity. These results show that policy makers still prefer 'command and control' approaches when a certainty of outcome is sought and that alternative means are sought for lower risk situations. The detailed reasons for selection, including the mapping of certain instruments to specific risk characteristics, is still developing.