Does environmental regulation affect analyst forecast bias? Evidence from China's Low-Carbon Pilot Policy.

This study investigates the impact of China's Low-Carbon Pilot Policy on analyst forecast behaviors. Using a staggered difference-in-difference approach, we find that the program reduced analyst forecast errors and divergence, as mandatory sustainability disclosures enable analysts to incorporate new information to improve forecast quality. The effect is concentrated in state-owned firms and manufacturing-oriented cities. Additional tests explore accounting information quality and investor attention as plausible channels. Overall, exploiting a major Chinese environmental regulation, we provide novel evidence that green policies can enhance transparency and capital market efficiency. The findings offer implications for regulators, investors, and managers as countries pursue climate change mitigation strategies.

The climate impact of high seas shipping.

Strict carbon emission regulations are set with respect to countries' territorial seas or shipping activities in exclusive economic zones to meet their climate change commitment under the Paris Agreement. However, no shipping policies on carbon mitigation are proposed for the world's high seas regions, which results in carbon intensive shipping activities. In this paper, we propose a Geographic-based Emission Estimation Model (GEEM) to estimate shipping GHG emission patterns on high seas regions. The results indicate that annual emissions of carbon dioxide equivalent (CO2-e) in shipping on the high seas reached 211.60 million metric tonnes in 2019, accounting for about one-third of all shipping emissions globally and exceeding annual GHG emissions of countries such as Spain. The average emission from shipping activities on the high seas is growing at approximately 7.26% per year, which far surpasses the growth rate of global shipping emission at 2.23%. We propose implementation of policies on each high seas region with respect to the main emission driver identified from our results. Our policy evaluation results show that carbon mitigation policies could reduce emissons by 25.46 and 54.36 million tonnes CO2-e in the primary intervention stage and overall intervention stage, respectively, with 12.09% and 25.81% reduction rates in comparison to the 2019 annual GHG emissions in high seas shipping.

Policy assessments for the carbon emission flows and sustainability of Bitcoin blockchain operation in China.

The growing energy consumption and associated carbon emission of Bitcoin mining could potentially undermine global sustainable efforts. By investigating carbon emission flows of Bitcoin blockchain operation in China with a simulation-based Bitcoin blockchain carbon emission model, we find that without any policy interventions, the annual energy consumption of the Bitcoin blockchain in China is expected to peak in 2024 at 296.59 Twh and generate 130.50 million metric tons of carbon emission correspondingly. Internationally, this emission output would exceed the total annualized greenhouse gas emission output of the Czech Republic and Qatar. Domestically, it ranks in the top 10 among 182 cities and 42 industrial sectors in China. In this work, we show that moving away from the current punitive carbon tax policy to a site regulation policy which induces changes in the energy consumption structure of the mining activities is more effective in limiting carbon emission of Bitcoin blockchain operation.