Environmental Economic Policy Research Articles

TOWARDS HARMONY IN THE CAPITAL OF THE ARCHIPELAGO: VISION OF FUTURE SUSTAINABLE CITY DEVELOPMENT FUTURISTIC-ORIENTED

This research aims to explore and formulate a sustainable and futuristic-oriented development strategy for the capital of the archipelago that can integrate the principles of environmental, economic, and social sustainability in addition to utilizing sustainable advanced technology. This study employs an exploratory qualitative research methodology. and descriptive study design. This approach is carried out by collecting and analyzing data in depth through a document study. This study uses data analysis techniques by making a SWOT analysis to assess the advantages, disadvantages, and opportunities faced during the development of the Indonesian capital. Thus, it can be said that the overall plan for development for the Indonesian capital is sustainable and futuristic using an integrated approach by applying ESG sustainability principles and the use of environmentally friendly technology. Urban development close to the 20th century was accompanied by the growth of urbanization processes without planning so cities experienced gradual inefficiency, which resulted in the erosion of old buildings that were unable to fulfill the requirements of society. Through the above policies, it’s hoped that Indonesian capital will develop into a futuristic-oriented sustainable city by integrating the principles of ESG (environmental, social, and economic) sustainability using advanced, environmentally friendly technology. Recommendation formulation regarding the sustainable and futuristic-oriented development strategy for the Indonesian capital consists of Environmental Policy, Economic Policy, Social Policy, Planning and Supervision Policy, Technology Policy, and Collaboration and Participation for Sustainable City Futuristic.

Current Status of and Suggestions on Sewage Treatment Fees in China

China’s sewage treatment standards have been gradually improving, yet there is a widening gap between sewage treatment fees and actual costs. This discrepancy, where the fees for sewage treatment are lower than the actual operational expenses, poses a significant bottleneck to the sustainable development of China’s sewage treatment industry. As a core aspect of environmental economic policies, sewage treatment fees are pivotal in regulating water pollution emissions and addressing water resource shortages. Currently, there are major issues with sewage treatment fees, including an incomplete pricing system, insufficient fees, unclear fee distribution, and a heavy reliance on local finances. These problems impede systematic planning, diminish management efficiency, and hinder the sustainable development of the sewage treatment industry. Thus, future research efforts should prioritize the establishment of a pricing mechanism that comprehensively covers the full cost of sewage treatment. This article presents a concise summary and review of the current situation, types of fee collection, cost accounting methodologies, challenges, and proposed countermeasures for sewage treatment fees, and could serve as a relevant reference for future research on sewage treatment fees. By comprehensively addressing these issues, the sewage treatment industry would progress towards healthier and more sustainable development, ultimately achieving the goal of green growth.

PROMOTING QUALITY OF LIFE AND SUSTAINABILITY.

The promotion of quality of life and sustainability is an interdisciplinary theme of great contemporary relevance. It focuses on finding approaches that balance human well- being with preserving natural resources and the health of the planet. This theme covers a variety of areas, from public health and urban development to environmental conservation and economic policy. The objective of this study is to investigate strategies and practices that seek to improve people's quality of life in a sustainable way. This study is a bibliographic review, in which a multidisciplinary approach was adopted that integrated qualitative and quantitative analyses. Data collection covered the investigation of specialized literature, relevant case studies and an in-depth analysis of socio-environmental indicators. The results demonstrated that the promotion of quality of life and sustainability requires an integrated approach. Successful initiatives include the implementation of efficient public transport policies, the creation of urban green spaces, the adoption of renewable energies and education for environmental awareness. Public awareness and cross-sectoral collaboration also emerged as critical factors in achieving positive outcomes. Promoting quality of life and sustainability is not just a necessity, but an imperative to ensure a livable future for future generations. The integrated approach, combined with the participation of society and government engagement, can result in an effective balance between human well-being and preservation of the environment. By prioritizing sustainability in all spheres of life, we can aspire to a future where prosperity and care for the planet go hand in hand.

Unlocking the dynamic linkages between sustainable equity investment and economic policy uncertainty: An empirical analysis for G‐20 countries

AbstractThe study examines the dynamic relationships between sustainable equity investment and economic policy uncertainty of G‐20 countries using monthly environmental, social, and governance (ESG) equity and economic policy uncertainty (EPU) indices. Using the autoregressive distributed lag model and nonlinear autoregressive distributed lag model models, the study finds a negative long‐run relationship between sustainable equity investments and economic policy uncertainties in Australia, Canada, the USA, Brazil, Mexico, Germany, Italy, and Japan. Investors in these G20 countries may perceive that companies with higher ESG performance are more likely to face regulatory scrutiny, legal action, or reputational damage if they are associated with high levels of economic policy uncertainties. As a result, ESG market indices may underperform when EPU is high and vice versa. It supports prospect theory and suggests that individuals are more sensitive to potential losses than gains. On the contrary, the relationship is positive in the case of the USA, Brazil, China, and to some extent India. This might be because firms with high ESG performance could manage risks better and seize opportunities associated with EPU, which helps ESG market indices to outperform when EPU is high. It is supported by the legitimacy theory that says to maintain the legitimacy and credibility of the company, the investment must be invested in ESG initiatives, which can lead to improved long‐term financial performance and market value.

The Location Choice and Survival of Polluting Firms under Environmental Regulation in Urban Agglomerations of China

There are few studies discussing the relationship between the increasing intensity of environmental regulation in the central cities of urban agglomerations, which is the main method used to solve the problem of regional environmental pollution, with the survival status of polluting firms in different spatial locations. In order to more clearly describe the evolution trend of the spatial distribution of polluting firms and coordinate inter-city environmental regulation policies in a more targeted manner, we examine the impact of polluting firms’ location choice on their survival under the central–periphery spatial structure in national-level urban agglomerations from 1998 to 2013 with the accelerated failure time (AFT) model and Cox proportional hazards (Cox PH) model and using matching data of the Chinese Industrial Enterprise Database and the Chinese Industrial Enterprise Pollution Emission Database. The results find that (1) under the influence of central cities’ environmental regulations, there is likely to be an inverted U-shaped relationship between the survival of polluting firms and their spatial distance from the central cities; (2) the inverted U-shaped relationship is the motivation of the interaction between environmental regulation and market potential, which means increases in the environmental regulation intensity in the central cities of the urban agglomeration will have a negative effect on the survival of polluting firms, and the central cities’ market potential will partially offset the negative impact; (3) the inverted U-shaped relationship is more significant for private firms, and it does not necessarily exist for new entrants. The above results help to provide important policy inspiration for promoting the joint prevention and control mechanism for pollution in urban agglomerations and coordinate the effects of environmental regulation and economic transformation policies between central and peripheral cities.

Express packaging waste recycling: Stakeholders’ dynamic behavioral changes based on a computational evolutionary game theoretic approach

Identifying stakeholder behaviors is crucial in managing municipal express packaging waste. Prior studies have neglected the impacts of the advertising effect and environmental preference and thus fail to detect stakeholders’ behavioral changes under different policies. To address this limitation, we build a computational evolutionary game model that integrates the advertising effect, environmental preference benefits, and economic and information policies. A numerical simulation is then conducted via a differential equation solver embedded in MATLAB software to identify the behavioral changes of the government, express delivery enterprises, and consumers. The results indicate that subsidies induce enterprises and consumers to reach their stability strategy more quickly, with maximum behavioral change rates of 0.82% and 0.64%, respectively. The marginal impacts of information policy and environmental preference benefits are greatest for consumers, whose behavioral change rates can reach 1.33% and 1.52%, respectively. For enterprises, a 1.71% behavioral change rate can be achieved by increasing the government’s effort level. An increase in enterprises’ effort level causes both enterprises and consumers to reach a stability strategy more quickly and achieves behavioral change rates of 4.21% and 1.51%, respectively. Our model can be used to predict stakeholders’ behavioral changes in the waste disposal industry, and the findings of this study provide novel ideas for waste management practitioners to use in encouraging recycling behaviors.

A different look at the environmental Kuznets curve from the perspective of environmental deterioration and economic policy uncertainty: evidence from fragile countries.

Environmental degradation is one of the most significant issues that developing nations confront and needs to be resolved right away in order for them to achieve sustainable development. Government policies are crucial in this situation since emerging nations frequently struggle with the issue of policy ambiguity, which can result in environmental deterioration.In this context, this study investigates how policy uncertainty affects environmental degradation in the five fragile emerging economies known as the Fragile Five-Brazil, India, Indonesia, South Africa, and Turkey. Using data from 1996 to 2019, we estimate a Panel Quantile Regression analysis. The empirical findings indicate that economic policy uncertainty and technology innovation increases the environmental degradation whereas environmental degradation is slowed down by financial development and renewable energy consumption. Empirical evidence also confirms the presence of EKC hypothesis in fragile economies. Based on the findings, we suggest both a policy and an environmental framework for achieving sustainable development in fragile economies.

New insights from selected South Asian countries on the determinants of GHG emissions

In developing economies, there is a lack of certainty in energy and environmental economic policy. In contrast, research into the interplay between population, economic growth (GDP), renewable energy, nuclear energy, fossil fuels, and greenhouse gas (GHG) emissions has received comparatively little attention. Thus, the main motive of this exploration is to analyze the influence of population, economic growth, and various energy sources consumption on the selected South Asian economy's GHG emissions using the STIRPAT model. The period 1972–2021 is used to estimate results by considering cross-sectional dependence (CSD) and slope homogeneity (SH) tests, as well as second-generation unit root and cointegration tests. Due to the presence of SH, CSD, and mixed-order unit root problems, the cross-sectional autoregressive distributive lag (CS-ARDL) model has been used to estimate the value of selected variables. The impact of GDP and population is positive but insignificant for South Asian countries in the short run, but GDP is significant in the long run. The research also revealed that burning fossil fuels significantly contributes to atmospheric gas emissions level. In addition, renewable and nuclear energy play useful and substantial roles in reducing pollution in South Asian countries. Therefore, it is recommended that the economies of the South Asian countries maintain a uniform approach to economic policy to fully benefit from the advantages of increased green and safe energy production.

Simulation of urban transport carbon dioxide emission reduction environment economic policy in China: An integrated approach using agent-based modelling and system dynamics

Reducing greenhouse gas emissions has become a hot topic in the 21st century. As the main source of urban carbon dioxide (CO2) emissions, reducing transportation CO2 emission has also attracted great attention worldwide. To reduce traffic CO2 emissions, we propose a complex model that combines multiagent-based models and system dynamics models. From the perspective of the job-housing balance, we explore the interaction among urban socioeconomic development, low-carbon transportation, environmental economic policies (prices, charging policies, etc.), and other factors, simulate the urban traffic CO2 emissions system and policies, investigate the impact of different strategies on traffic CO2 emissions reduction and the economic advantages to the environment, and then select an optimal policy scheme. The analysis results indicate that if we want to achieve the goals of Beijing's future development planning through comprehensive industrial structure adjustment and policy adjustment, then Beijing should accelerate the implementation of the policy of collecting traffic congestion charges. The pricing of traffic congestion charges should be 40 CNY, the parking fees should be increased to 13 CNY, the starting fares of buses and subways should be increased to 2.6 CNY and 4 CNY, respectively, and taxi starting prices should be raised to 17 CNY. At the same time, through the simulation results of the coupling model, the CO2 emissions reduction effect of each scenario in 2050 is better than that of business as usual scenario (BAU). Compared with BAU, C8 scheme has the largest emission reduction, with emission reduction of 19.5975 million tons in 2050, and CO2 emissions reduction intensity of more than 50%. As a result, given a comprehensive scenario, C8 is the optimal long-term development route. Our findings serve as a foundation for key Beijing administrative departments to enhance the jobs-housing link, as well as a guide for the development and execution of environmental and economic policies to reduce traffic CO2 emissions.

The impact of environmental economic policies on firm development

Economic development and environmental protection are interdependent and interdependent. While vigorously developing the economy, environmental protection cannot be ignored. Enterprises are the main body to promote economic advancement. Consequently, it is extremely inevitable for policy makers to formulate scientific and reasonable sustainable development policies to drive the green development of enterprises. This paper studies the relationship between corporate green economic development and environmental policy by analyzing the impact of environmental policy on corporate competitiveness and innovation ability, using empirical analysis, data analysis and questionnaire methods. It is crucial to change the approach and improve the level of economic growth in the new economic advancement environment. The conventional approach of calculating economic gross and advancement foreground utilizing GDP and rate of economic growth is no longer appropriate given the present worldwide tendency that favors green and sustainable development. In order to achieve economic growth, it is required to develop accurate assessments of green economic efficiency indices that take into consideration how resource scarcity and environmental deterioration affect economic output. To contribute to China's coming green economic advancement and the execution of environmental legislation, it is thus imperative to thoroughly research the impacts of environmental legislation and green economic efficiency.

On the Coupling and Coordination Development between Environment and Economy: A Case Study in the Yangtze River Delta of China.

The coupling and coordination development of the environment and economy (CC2E) is one of the most vital issues to sustainable development. This paper adopted the coupling coordination model, projection pursuit algorithm, and random forest model to explore the spatial-temporal evolution and influencing factors of the CC2E in the Yangtze River Delta from 2015 to 2019, respectively. The results showed that: (1) The degree of coupling coordination (DCC) of the CC2E in most cities of the Yangtze River Delta has risen from primary coordination to intermediate coordination. (2) In the spatial perspective, the distribution of DCC is correlated with geographical location. The value of DCC in the western region was significantly lower than that of the eastern cities. (3) The influencing factors results showed that the GDP in the economic subsystem and the annual average concentration of PM2.5 in the environmental subsystem were the most influencing factors of DCC in the Yangtze River Delta. The established index system of CC2E and the measurements of CC2E provide a new idea for how to achieve sustainable development. Meanwhile, this study can provide recommendations for formulating the environmental protection and economic development policy.

A Stackelberg–Nash–Cournot Equilibrium in a Pollution Reduction Scheme

This paper presents a Stochastic Stackelberg–Nash–Cournot Equilibrium model with continuous market demand distribution to examine the effectiveness of ambient charges as an effective policy measure for reducing nonpoint source pollution in a hybrid scheme. To do so, we consider the supply side of an energy market with hybrid technology that competes in an oligopoly market setting. Within such a setting, each power plant or firm uses a mix of fossil fuels (F) and renewable energy sources (R) to generate power at any given time. The demand for electricity is not realized at the time when the firm (leader) makes the decision. The competition between the two energy sources available to leader is assumed to be of Nash–Cournot equilibria, implying that they use one energy source to generate electricity, whilst holding the other energy source as a constant when the followers reactions are known. Based on the assumption that the demand function is affine and power plants cost functions are quadratic, we obtain the Stackelberg–Nash–Cournot equilibrium. Hence, our analysis provides an interesting insight into the effectiveness of using ambient charges, within the context of a Stochastic Stackelberg–Nash–Cournot competition, as an environmental economic policy measure when included within a robust hybrid scheme. From an economical point of view, this allows pollutants to develop specific control technologies by undertaking research and development (R&D) measures or production processes to maintain emissions standards in a hybrid scheme. From a policy implementations point of view, the environmental authority can use the pollution abatement technology ratio to set ambient charges and industry specific pollutant quantitative limits subject to technological variations.

Research on co-control effect of environmental economic policies in China’s transportation sector

Research on co-control effect of environmental economic policies in China’s transportation sector

Environmental Issues, Economic Policies and Agricultural Development

Issue: Mar-Apr 2021
 This paper discusses economic policies that have supported a particular kind of agricultural development in Punjab, as well as environment-specific policies, that have sought to deal with various environmental problems arising from that pattern of development. In doing so, we highlight some major environmental issues associated with economic policies in the state, including with respect to water, air, soil and climate change. We analyse why and how economic policy failures, including at the national level, adversely affect environmental quality in Punjab. The aim of this paper is to highlight these issues, as a first step towards identifying policies that may do a better job of protecting the environment.

Global sensitivity analysis for offshore wind cost modelling

AbstractThe costs of offshore wind are decreasing rapidly. However, there is a need to better understand the key drivers behind these cost reductions. New environmental regulations, economic policies, technological advancements and financing structures have resulted in a set of relationships that need to be considered in order to define risks and profitability for the next generation of offshore wind farms. We use an industry‐leading offshore wind cost modelling tool which integrates site characteristics, technology specificities and financial modelling expertise and apply state‐of‐art global sensitivity analysis methods for different classes of offshore wind farms, ranking the contribution of around 150 input parameters that influence the cost of offshore wind development. We show that the top 5 parameters when building an offshore wind investment business case are the wind speed, target equity rate of return, turbine costs, drilling costs and debt service coverage ratio. The contribution of this paper can help guide additional efforts towards reducing the uncertainty of those key parameters to decrease costs and provide a framework to choose global sensitivity analysis techniques for offshore wind techno‐economic models.

Environmental Issues, Economic Policies and Agricultural Development: The Case of Punjab, India

This paper discusses economic policies that have supported a particular kind of agricultural development in Punjab, as well as environment-specific policies that have sought to deal with various environmental problems aris- ing from that pattern of development. In doing so, we highlight some major environmental issues associated with economic policies in the state, including with respect to water, air, soil and climate change. We attempt to analyze why and how economic policy failures adversely affect environmental quality in Punjab. The aim of this paper is to highlight these issues, as a first step towards identifying policies that may do a better job of protecting the envi- ronment. This is important because Punjab has been a trendsetter for India in its farm practices and policies.

The Impact of Economic Growth, Foreign Direct Investment, Urbanization, Fossils Fuel Consumption on Environmental Degradation in Emerging Asian Economies

The current examination ascertains the impact of foreign direct investment, urbanization, economic growth, fossil fuel consumption on carbon emissions in eleven rising Asian economies. Panel data has been scrutinized from 1990 to 2018, and (ARDL)/PMG model is executed. The outcomes of the model exemplify that in these growing Asian economies, the triumph to cuitivate economic growth, foreign direct investment, urbanization and fossil fuels are bestowing CO2 emissions and deteriorating the environmental circumstances at the regional level. Moreover, the conclusions emphasis that foreign direct investment is a source of environmental humiliation and increases carbon emissions at the regional level. Furthermore, outcomes of the investigate also confirmes the existence of (EKC) in these eleven emerging Asian economies. The study also suggest that by lessening the consumption of fossil fuel energy and encouragement of an environmental responsive economic growth policy will be suitable for the affluence in these emerging developing Asian economies and also the rest of world.

Research on the Impact of Carbon Tax on CO2Emissions of China’s Power Industry

Based on the TIMES model, a system for CO2emission reduction in China’s power industry is built in this paper. Four scenarios including different carbon tax levels are set up, simulating the CO2emissions of China’s power industry in 2020–2050 by using scenario analysis method. The power consumption demand, primary energy consumption structure, CO2emission characteristics, emission reduction potential, and cost of different carbon tax levels are quantitatively studied. In combination with the impact on China’s macroeconomy, the carbon tax level corresponding to the best CO2emission reduction effect of China’s power industry is obtained, aiming to provide key data and a theoretical basis for China’s low-carbon development as well as the optimization and adjustment of global power production system. The results show that with the development of economy and society in the future, China’s power consumption demand will increase year by year, while the primary energy consumption of the power industry will maintain a rapid growth. The power industry still relies heavily on fossil energy, which will cause great pressure on China’s economic development and ecological environment. Carbon tax will have an important impact on the primary energy supply structure of China’s power industry, and renewable energy can be developed in different degrees. CO2emissions will be significantly reduced, reaching the peak value during 2030–2040 in China’s power industry. The medium carbon tax level (TAX-2) set in this paper can meet the requirements of both CO2emission reduction effect and cost in the power industry, with the most elastic impact on the national economy and the smallest GDP loss, which can be used as an effective environmental economic policy tool.

Analysis on synergistic effects of the ecological environment construction and the economic growth — a case study of Shandong Province, China

Ecological environment construction is an important strategic decision to achieve sustainable development. It is also a potential motive force to ensure longterm, steady and orderly development of the economy. In consideration of the fact that Shandong Province is the typical epitome of China in the new era, this paper is based on comprehensive investigations on the construction status of ecological environment in 17 cities of Shandong Province, and constructs an analysis framework of the ecological environment construction and economic growth. Using methodologies of AHP Evaluation Model, Co-Integration Analysis, Granger Causality Test and Error Correction Model etc., this paper makes the empirical studies on the relations between environmental protection investment, industrial pollution control, urban environment construction, natural resources conservation and the ecological environment construction in Shandong Province. Our research found that: the overall level of ecological environment construction in Shandong province has been constantly and steadily enhanced, among which the level of urban environment construction has risen the most, followed by environmental protection investment, industrial pollution control and natural resources conservation. Besides, there is a long-term equilibrium relation between the ecological environment construction and economic growth of Shandong Province, among which the bidirectional synergistic effect on the environmental protection investment and economic growth of eastern Shandong is the most remarkable. Therefore, this paper puts forward countermeasures and suggestions, for example, implementing ecological development policies towards spatial differences, improving the ecological environment management, actively implementing environmental economic policies etc.

Optimization path for overcoming barriers in China’s environmental protection institutional system

Abstract The successful implementation of the most stringent environmental protection institution is crucial for China to prevent and control increasingly serious environmental issues. However, the current environmental protection institutional system (EPIS) is constrained by various barriers. This paper aims to construct a path analysis model to reveal the methods and timing to best select and overcome different EPIS barriers systematically, especially determining at which stage prioritizing corresponding barriers may lead to the optimal improvement of EPIS’s performance. The barriers categorized in the environmental legal, economic, administrative and public participation institutional subsystems are identified by combining an empirical survey and literature review. A novel path analysis model based on rough DEAMTEL-NK approach is proposed in which the interaction relationship and intensity between barriers are used to construct a heuristic path searching algorithm; the optimal path for overcoming barriers in China’s EPIS is determined by simulating the climbing optimization process of the system on the fitness landscape. The path results show that the defective integration among legislation, plans, and policies and the inadequate environmental economic policy assessment mechanism are the two key barriers that should be prioritized. This study provides a strategic tool or remedial measure for management to better optimize the implementation of the most stringent environmental protection institution and achieve environmental sustainability from the novel perspective of prioritizing approaches to overcoming barriers.