New effects of environmental policy: does energy quota trading policy affect green entrepreneurship?

Saving energy is an important strategy to address the current energy crisis and environmental degradation. Regarding the pilot policy of the energy quota trading as a quasi-natural experiment by employing a difference-in-differences method, the purpose of this paper is to investigate the effect of this pilot policy on energy saving and its mechanisms based on city-level data in China from 2006 to 2020. We find that the energy quota trading policy can reduce the total energy consumption and energy consumption intensity of pilot cities, and the effect of the policy can gradually strengthen over time. The market-oriented reform of energy factor allocation can effectively promote energy saving and economic growth. These results are convincing through a series of robustness checks. The heterogeneity test shows that the energy quota trading has a significant energy saving effect on economically developed cities, densely populated cities and southern cities, but not in economically underdeveloped cities, sparsely populated cities and northern cities. Further mechanism inspection suggests that the pilot policy of energy quota trading mainly achieves energy conservation through industrial structure upgrading and green technology innovation. Our findings provide a valuable insight for China to control energy consumption and promote the high-quality development of the energy economy.

Innovation spillover effect of the pilot carbon emission trading policy in China

Trade policy with increasing returns and imperfect competition: Contradictory results from competing assumptions

Global warming combined with low carbon transition plans is threatening the future of high energy consumption industry sectors in the European Union (EU). The need to respond to environmental challenges is demonstrated by support for international level energy policies and legal requirements, such as the Kyoto Protocol which the EU supports, and increased EU-level environmental legislation and energy policies. The effect of these initiatives is gradually transforming industrial activities in the EU. However, since not all countries have adopted these policies, evaluation of their net effect needs to take account also of side-effects such as delocalization of industry activity and the legal environmental frameworks in the countries where companies have chosen to relocate. This paper analyses EU energy policy and its impact on a particular energy intensive industry, the European ceramic tile sector. The discussion in this paper is not about the purpose of EU legislation, but about its effects on a specific industry. The effect of policy on industry is not a new topic, but the question of the unwanted effects of environmental and energy policy on European industry is becoming more relevant as the struggle to achieve a post-carbon Europe increases. In focussing on a specific set of EU legislation on a particular industry this article adds to the debate by showing the negative effects of policy mechanisms. The need for a scientific evaluation of the systemic changes required for a transition to a resource-efficient, green and competitive low-carbon economy outlined in the 7th Environment Action Programme is highlighted. It is suggested that the EU should periodically re-evaluate its Emissions Trading Scheme legislation to include specific actions and a follow up system which would prevent the best performing environmental companies from delocalizing or shutting down.

<div> <p>Environmental policies have the purpose to protect ecosystems in their structure and function to maintain the ecosystem services they provide. They are based on scientific knowledge at the time they are established, and rarely are those assumptions revisited or is the effectiveness of these policies in protecting or promoting a particular ecosystem service tested. In this study, we revisit the first Swiss Federal Forest Law which protects mountain forests as a means of protection from natural hazards. It was established in 1876 following catastrophic flood events to preserve and restore the protective service of mountain forests by prohibiting clear-cutting and an excessive use of forests. Here, we provide a conceptual and methodological framework to explore the effects of the Forest Law on flood occurrence based on insights from preliminary results of a feasibility study. For the conceptual framework, we summarize the current scientific knowledge on i) forest effects on hydrological regimes and their protection service against floods, ii) reasons for reforestation in mountains and how the law may have contributed, and iii) other watershed changes affecting both reforestation and the forest-runoff interaction. We then develop the methodological framework based on insights from a case study on the Upper Rhone catchments, which serves as a prototype of an interdisciplinary methodological approach to answer the question of whether a forest protection law can serve as a means of flood protection. We explore the feasibility of answering this question given data are at different scales and resolutions. We suggest modeling to fill data gaps and discuss collaboration among natural and social sciences. Specifically, we propose that both natural and social scientists need to collaborate, with frequent exchange, to collect the data necessary to evaluate the relationship between legal forest protection and flood occurrence. We found an environmental historian is needed to evaluate if changes in forest cover can be attributed to mandates by the law, or rather cultural and societal developments. Further, a forest scientist or engineer in collaboration with a hydrologist will need to adapt and improve hydrological models that specifically include forest cover and structure. All scientists need to collaborate to find the information on historical and current forest cover (e.g., maps, postcards, orthophotos) and floods (e.g., archival documents, journal, newspapers, hydrological stations). Our case study indicates that data to answer the overarching question may be available and emphasizes the necessity of a true interdisciplinary approach allowing for consideration and combination of a variety of data sources and different temporal and spatial scales. The interdisciplinary framework we developed can serve as example for other ecosystem services, where similar questions on the effects of environmental practices and policies arise.</p> </div>

Contents: Environmental Externalities, Comparative Advantage, and Optimal Policy Choice: Environmental Abundance and Comparative Advantage: Environmental quality and the gains from trade, Horst Siebert Pollution, welfare, and environmental policy in the theory of comparative advantage, RA1/4diger Pethig Regulation, factor awards and international trade, Martin C. McGuire. Optimal Policies, Piecemeal Reform, Strategic responses: Environmental regulation in an open economy, Kerry Krutilla International trade and the environment: policy reform in a polluted small open economy, Brian R. Copeland Strategic environmental policy and international trade, Scott Barrett On ecological dumping, Michael Rauscher. Environmental Regulations and Loss of Competitiveness: Environmental control costs and border adjustments, Charles Pearson The pollution content of American trade, Ingo Walter International competitive displacement from environmental control: the quantitative gains from methodological refinement, John H. Mutti and J. David Richardson Industrial pollution abatement: the impact on the balance of trade, H. David Robinson The effects of domestic environmental policies on patterns of world trade: an empirical test, James A. Tobey. Trade Liberalization, Environmental damage, and Developing Countries: Trade Liberalization, Environment and Welfare: North-South trade and the environment, Brian C. Copeland and M. Scott Taylor The environment as a factor of production: the effects of economic growth and trade liberalization, RamA(3)n Lopez North-South trade and the global environment, Graciela Chichilnisky Open access renewable resources: trade and trade policy in a 2-country model, James A. Brander and M. Scott Taylor Export bans, environmental protection, and unemployment, Judith M. Dean and Shubhashis Gangopadhyay. Freer Trade and Pollution Havens: Competition in regional environmental policies when plant locations are endogenous, James R. Markusen, Edward R. Morey and Nancy Olewiler Trade policy and industrial pollution in Latin America: where are the pollution havens?, Nancy Birdsall and David Wheeler The environment and welfare implications of trade and tax policy, Hiro Lee and David Roland-Holst. Trade and Transboundary Pollution: Non-cooperative Analyses of Transborder Pollution and Trade Policy: International externalities and optimal tax structures, James R. Markusen Cross-border externalities and trade liberalization: the strategic control of pollution, Rodney D. Ludema and Ian Wooton Trade and transboundary pollution, Brian C. Copeland and M. Scott Taylor. Trade Restrictions and Coordination of Environmental Policy: Should a carbon tax be differentiated across sectors?, Michael Hoel The strategy of trade sanctions in international environmental agreements, Scott Barrett. Transborder Pollution Controls, Trade, and Welfare: The impact of selected abatement strategies on transnational pollution, the terms of trade, and factor rewards: a general equilibrium approach, John D. Merrifield Cutting CO2 emissions: the effects of alternative policy approaches, John Whalley and Randall M. Wigle International trade and environmental quality: how important are the linkages?, Carlo Perroni and Randle M. Wigle Reducing coal subsidies and trade barriers: their contribution to greenhouse gas abatement, Kym Anderson and Warwick J. McKibbin Index.

Since 2018, China has implemented the Environmental Protection Tax as a market-based envi-ronmental regulation tool to encourage enterprises, especially heavy-polluting ones, to reduce emissions and engage in green innovation. The effectiveness of this policy in promoting green innovation has become a focal point of attention for Chinese society, as it directly relates to the coordinated high-quality development of the economy and environmental protection, as well as the achievement of China’s “carbon peaking and carbon neutrality goals”. This study evaluates the green innovation effect of the Environmental Protection Tax policy on heavy-polluting enterprises in China using micro-data of listed enterprises from 2003 to 2019, based on the new market-oriented environmental regulation tool. We employ the propensity score matching and differ-ence-in-differences method (PSM-DID) to follow up on the green innovation effect of China’s Environmental Protection Tax policy and reveal its implementation effect. Empirical results indicate that, first, the Environ-mental Protection Tax policy contributes to heavy-polluting enterprises’ R&D innovation of green patents, and this conclusion holds through various robustness tests. Second, the policy’s impact on green innovation types of heavy-polluting enterprises exhibits heterogeneity, with a more significant positive effect on the utility model patent than on the invention patent. Third, the green innovation effect of the policy differs ac-cording to regional economic development and enterprise ownership attributes. Finally, financing constraints do not significantly affect the green innovation of heavy-polluting enterprises. These enterprises remain pro-active in green innovation, even under high financing constraints. To further promote green innovation of heavy-polluting enterprises and achieve China’s dual carbon goals, the government should continue to imple-ment and improve the Environmental Protection Tax policy, leveraging its positive effect on green innovation.

Introduction and Overview of the Economics of International Trade and the Environment, A. Batabyal and H. Beladi The Impact of Selected Abatement Strategies on Transnational Pollution, the Terms of Trade, and Factor Rewards: A General Equilibrium Approach, J.D. Merrifield International Trade in Waste Products in the Presence of Illegal Disposal, B.R. Copeland Environmental Policy When Market Structure and Plant Locations are Endogenous, J.R. Markusen, E.R. Morey, and N.D. Olewiler On Ecological Dumping, M. Rauscher Strategic Environmental Policy and International Trade, S. Barrett North-South Trade and the Global Environment, G. Chichilnisky Trade and Transboundary Pollution, B.R. Copeland and M.S, Taylor Environmental Policy and International Trade When Governments and Producers Act Strategically, A. Ulph Wildlife, Biodiversity, and Trade, E.B. Barbier and C-E. Schulz Game Governments Play: An Analysis of National Environmental Policy in an Open Economy, A. Batabyal Industrial Pollution Abatement: The Impact on the Balance of Trade, H.D. Robison The Effects of Domestic Environmental Policies on Patterns of World Trade: An Empirical Test, J. Tobey Unilateral CO2 Reductions and Carbon Leakage: The Consequences of International Trade in Oil and Basic Materials, S. Felder and T.F. Rutherford International Trade and Environmental Quality: How Important are the Linkages? C. Perroni and R.M. Wigle Environmental and Trade Policies: Some Methodological Lessons, V.K. Smith and J.A. Espinosa Carbon Taxes With Exemptions in an Open Economy: A General Equilibrium Analysis of the German Tax Initiative, C. Bohringer and T.F. Rutherford The Environment and Welfare Implications of Trade and Tax Policy, H. Lee and D. Roland-Holst The Impact of NAFTA on Mexico's Environmental Policy, B.W. Husted and J.M. Logsdon The Empirical Relationship Between Trade, Growth, and the Environment, L.R. Gale and J.A. Mendez

Achieving the Paris Agreement 1.5 C target requires a reversal of the growing atmospheric concentrations of methane, which is about 80 times more potent than CO 2 on a 20-year timescale. The Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report stated that methane is underregulated, but little is known about the effectiveness of existing methane policies. In this review, we systematically examine existing methane policies across the energy, waste, and agriculture sectors. We find that currently only about 13% of methane emissions are covered by methane mitigation policies. Moreover, the effectiveness of these policies is far from clear, mainly because methane emissions are largely calculated using potentially unrepresentative estimates instead of direct measurements. Coverage and stringency are two major blind spots in global methane policies. These findings suggest that significant and underexplored mitigation opportunities exist, but unlocking them requires policymakers to identify a consistent approach for accurate quantification of methane emission sources alongside greater policy stringency. ll

Renewable energy technology (RET) firms are key economic entities in the export of RET-related products and components, in which RET firms’ exports are affected largely by policy and market. Nonetheless, the effects of policy and market factors on RET firm-level export have never received attention from researchers. This study aims to fill the gap by taking a political economy approach to establish a structural equation model to analyze the path of political-economic factor-firms’ market orientation-based export. This study reveals that RET firms’ market-orientation-based export enhancement depends entirely on political forces. Particularly, two government intervention instruments, environmental policy and export promotion policy, were highlighted. However, the effects of renewable energy policies on the exports of RET firms through market orientation are negative and statistically significant. This study proves that the effects of inter-firm competition and market attractiveness on RET firms’ exports through their market orientation are negative and statistically significant and insignificant, respectively. Further, this study demonstrates that RET firms’ market orientation has a significant positive effect on their export performance. We conclude that in order to improve RET-related policy effectiveness and efficiency, it will be useful to consider firms’ heterogeneity in response to external factors. Additionally, a full mediation model in the academic investigation of the effects of various external factors, including public policies and market factors, on firm-level export, and the implementation of firm-level export-induced policy, taking into account firms’ managerial interpretations to external factors, should be considered.

FOR THE PAST 4 DECADES, THE ENVIRONMENTAL IMpact statement (EIS) process has been used to assess the environmental effects of major projects and policies that involve federal funds, such as designing highways, altering waterways, extracting resources on federal lands, and setting Corporate Average Fuel Economy standards. Created under the National Environmental Policy Act of 1969, EISs do not determine policy but rather ensure that stakeholders have full information about unintended environmental impacts before reaching a decision. By evaluating alternative proposals and their relative risks and benefits, an EIS helps decision makers choose options that promote favorable outcomes and mitigate adverse environmental consequences. A natural extension of this work is the use of health impact assessment (HIA) to examine the effects that a policy, program, or project may have on the health of a population. An HIA is defined as “a combination of procedures, methods and tools that systematically judges the potential, and sometimes unintended, effects of a policy, plan, programme or project on the health of a population and the distribution of those effects within the population. HIA identifies appropriate actions to manage those effects.” Most health professionals are probably more familiar with EISs and their intent and usage than with HIAs. Yet there has been a movement to adopt HIAs in public policy settings and legislation and in a recently emerging health policy literature that describes and advocates for this process. HIAs offer great potential for promoting health by encouraging decisions that protect and enhance health and health equity. There is increasing recognition that many contemporary health issues are profoundly influenced by factors outside the traditional realm of health and health care. Factors such as literacy, poverty, employment, and racism contribute to disparities in life expectancy as well as to health-related quality of life. Concerns about how to address these factors have led to a focus on “health in all policies,” in which policies in social sectors such as transportation, housing, employment, and agriculture ideally would contribute to health and health equity. An HIA offers a vehicle to make these health effects explicit. Unfortunately, the evaluation of health effects in policy making has been slow to take hold. The United States lags behind many European nations, Canada, and other countries in the use of HIAs. This situation is somewhat surprising, given that US environmental policy explicitly requires the examination of health effects as part of the National Environmental Policy Act. Although most EISs in the United States incorporate little about health effects, experience in California and Alaska has demonstrated that a wide range of health effects can be successfully integrated into the EIS process. Beyond increasing attention to health outcomes within EISs, the potential applications of HIAs are clearly evident. For example, although air pollution and injury prevention are often considered in major transportation projects, the influence of road design on physical activity and obesity is not. An HIA that recommends the addition of pedestrian and bicycle facilities (“complete streets”) to a transportation plan would contribute to a built environment that promotes the public’s health. The agriculture sector seeks to maximize productivity, meet consumer demand, and sustain livelihoods. From a health perspective, agricultural policy determines food quantity, quality, and prices that directly affect consumption patterns and therefore affect health. HIAs could be used to examine the health effects of proposed agricultural policies, such as ones that enhance production of energy-dense, nutrient-poor foods that contribute to the increasing obesity epidemic. HIAs of proposed zoning plans, which would contribute to decreased density of fast-food and liquor stores or increased density of restaurants and full-service grocery stores, especially in low-income areas, could result in changes that better promote health. In education, a timely HIA might have reduced the inadvertent effects of the No Child Left Behind legislation on physical education programs and health curricula by pro-

Riverscapes are degraded and threatened by human activities. We investigated the spatiotemporal dynamics and trends of land use/land cover (LU/LC) and ecosystem services (ES) in the floodplain of the Odra River in the Czech Republic over the last 80 years. Our focus was on: (i) the effects of changing political regimes and environmental policies on changes in LU/LC and ES (agricultural potential, natural flooding, and water provision and quality), and (ii) the effects of the establishment of a protected landscape area (Poodří PLA) on ES over the last 30 years. To assess LU/LC changes, we performed vectorization and categorization using aerial images. For ES assessment, we analyzed the spatial distribution of LU/LC and other characteristics in our study area. Potential agricultural ES showed a decreasing trend, similar to neighboring countries, while natural flood mitigation and water ES increased due to the decline in arable land. Policy assessments revealed significant changes in LU/LC. The Poodří PLA significantly enhanced ES by preserving the riverscape. This research demonstrates the under-researched long-term monitoring of ES, including before and after evaluation of the PLA, and highlights the importance of practical nature conservation for the riverscape ecosystem benefits to human society.

Development at the expense of the environment has led to severe environmental problems in China. Faced with the increasing demand for green from the masses, environmental pollution is not only a health issue but also a political issue. In order to achieve the dual goals of “economic growth” and “ecological protection”, the state vigorously advocates green innovation. In order to solve the problem of ineffective local environmental governance and official inaction, the environmental protection interview system came into being. After the region was interviewed for environmental protection, the government strengthened environmental governance and greatly increased the environmental costs of enterprises through stricter environmental regulations, reduction of environmental protection subsidies, and increased tax penalties. So, under the theme of green development, does environmental protection interview increase the willingness of enterprises to innovate and stimulate the improvement of the level of enterprise green innovation? What is the role of government subsidies? As an exogenous event, the implementation of the New Deal for Environmental Protection Interview in 2014 provides a good environment for us to test the effect of environmental protection interview policies. Based on the corporate citizenship theory and the planned behavior theory, this paper uses the DID method to explore the impact of environmental protection interview on enterprise green innovation, as well as the regulatory role of government environmental protection subsidies. The results show that: （1） Environmental protection interview has significantly improved the level of enterprise green innovation in interviewed regions, especially the level of practical green innovation. （2） Government environmental protection subsidies have a significant impact on the effect of environmental protection interview policies; and the lower the government environmental protection subsidy level, the stronger the role of environmental protection interview in promoting enterprise green innovation. （3） The driving force for enterprises in interviewed regions to carry out green innovation comes from internal self-regulation and external environmental constraints. The contribution of this paper lies in that: （1） In the research of environmental protection interview and green innovation, few scholars start from government support, considering the regulatory role of government environmental protection subsidies in this impact path. At the same time, no scholar eliminates the “noise” of non-environmental protection subsidies, and studies the impact of government environmental protection subsidies on the effect of environmental protection interview policies. （2） Existing studies mostly examine the impact of environmental protection interview on regional environmental governance and corporate behavior, but few pay much attention to the impact of government behavior on the effect of environmental interview policies. （3） Existing studies mostly examine the usefulness and adaptability of green innovation, ignoring the social attributes of enterprises, the necessity of corporate citizenship behavior, and the behavioral intention of enterprises. Based on the corporate citizenship theory and the planned behavior theory, this paper reveals the role of environmental protection interview and government environmental protection subsidies on enterprise green innovation strategies. （4） Incorporating government environmental protection subsidies into the theoretical analysis framework explains the impact of government environmental protection subsidies on environmental protection interview and enterprise green innovation, which is an important supplement to the effect of environmental protection interview policies in the context of China’s green development in the new era. It is a good reference for government departments to use government support to serve the environmental protection interview system, improve the effectiveness of environmental protection interview policies, and extend the timeliness of the effectiveness of environmental protection interview policies.

This study aims to evaluate the effect of waste management policies on manufacturing industry practices in Makassar City. This policy was implemented to regulate the disposal, treatment and recycling of industrial waste to reduce negative impacts on the environment and public health. Although this policy has been implemented, there are challenges in its implementation, such as technological limitations, high implementation costs, and lack of coordination between government agencies and industries. Qualitative methods were used in this study, with in-depth interviews with government representatives, industry managers, and affected communities. The results show that this policy has encouraged some industries to adopt environmentally friendly technologies, but there are still significant barriers that hinder the full effectiveness of this policy. To improve the effectiveness of the policy, recommendations include improved access to technology, more consistent enforcement of regulations, public education, and financial and infrastructure support. This research provides valuable insights for policy makers and industry practitioners in developing more effective and sustainable waste management strategies.

This paper aims to identify the impact of a "deep" (economic union) and "shallow" (Common Commercial Policy) integration on 4 Visegrad countries' trade with the EU and non-EU industrialized countries. Trade flows are analysed on the basis of sectors over the period of 1995-2011: the gravity model also utilizes sectoral value-added and sectoral output as proxies for the market size. The impact of regional trade agreements (RTAs) is evaluated for 17 WIOD sectors based on the research methodology developed by Baldwin (2006), Flam and Nordstrom (2003) and Fernandes (2006). Contrary to the mentioned research studies, this paper uses a more advanced econometric technique - the Poisson pseudo-maximum-likelihood method displayed in Silva and Tenreyro (2006). This paper concludes that both "deep" and "shallow" trade arrangements have a more pronounced effect on Visegrad high value-added product exports than on Visegrad low value-added product exports. Common Commercial Policy's trade effects on RTAs, for instance in the case of Mexico and Turkey, are comparable to its trade effects with EU countries. The Common Commercial Policy's effect on RTAs is almost absent in low-value-added product sectors of Visegrad countries. Thus, we conclude that integration with the EU influenced Visegrad countries' trade of higher value-added goods with both the EU and non-EU industrialized countries.