Investment Environment Research Articles

Environmental Regulation, Cost Shifting, and Firms’ Environmental Investment Choice: Evidence from China

Environmental Regulation, Cost Shifting, and Firms’ Environmental Investment Choice: Evidence from China

Carbon Neutral Strategies in the Case of Google Inc: A Case Study of Carbon Offset Mechanisms and Renewable Energy Projects

Abstract: Facing the serious challenge of global climate change, Google Inc. has adopted a series of innovative strategies to reduce its carbon footprint and promote corporate sustainability. This paper provides an in-depth analysis of how Google reduces carbon emissions and promotes sustainable development through a series of innovative measures, including large-scale investment in renewable energy, improving data center efficiency, implementing carbon offset projects, and promoting technological innovation in the field of transportation. These actions demonstrate Google's commitment to environmental protection and provide a model for other companies to follow. The study evaluated the economic feasibility and environmental benefits of Google's strategies through a cost-benefit analysis. The results show that despite technical challenges and market uncertainty, Google's environmental investments can bring significant economic benefits in the long term while having a positive impact on the environment. These strategies help Google achieve its carbon neutrality goals and provide momentum for the global transition to a low-carbon economy. In addition, the study emphasizes the importance of socio-cultural factors in promoting environmental strategies. Google has raised public awareness of climate change and enhanced social support for environmental actions through community involvement and educational programs. These findings reveal the need for companies to adopt environmental protection measures in the context of globalization and provide practical guidance for other organizations to implement sustainable development strategies.

Analysis and Prospects of Business Models in China's Emerging Catering Industry

Abstract: With the improvement of the national economic level and consumption upgrading, the catering industry plays an increasingly important role in daily life. It has become an important indicator to measure the social and economic development of a region and reflects the real situation of the living environment and investment environment of a region. The catering industry and the development of the times are closely related. the catering industry promotes the development of the times to a certain extent. Also, the progress of the times boosts the development of the catering industry, providing opportunities and challenges. This paper focuses on the development status and business model of the emerging catering industry and explores the characteristics of the relevant business model. Combined with the five-year financial statements of the emerging catering giant Haidilao Company, the company's business model is analyzed in depth to find out the factors affecting the company's financial situation. After that, this paper makes a scientific prediction for the future development of the company and puts forward reasonable suggestions.

Can Trade Policy Uncertainty Drive Green Innovation? Empirical Evidence From the US–China Trade War

ABSTRACTChina's rapid economic growth in recent years has coincided with heightened environmental regulations and an upsurge in greenhouse gas emissions, necessitating a greater emphasis on green innovation to mitigate environmental risks. Concurrently, the US–China trade war has elevated trade policy uncertainty (TPU). This study uses the TPU surge from the trade war as a quasi‐natural experiment, employing text analysis of annual reports to assess firms' TPU perceptions. Using a difference‐in‐differences method, we find that increased TPU significantly hinders green innovation. Firms' responses vary with environmental advantages, regulation levels, and government subsidies. Mechanisms include reduced environmental investment, decreased executive attention to environmental issues, and corporate social responsibility. These findings underscore the importance of a stable trading environment for promoting green innovation.

Perception of Women Towards Investment in Different Investment Alternatives

Women are empowered to take active participation in investment activities through financial education and an inclusive investment environment. Several alternatives to investing are available, including mutual funds, real estate, precious metals, savings accounts, and stocks, which offer potential returns through regular income or capital appreciation. Investment alternatives are differentiated by their unique features, risks, returns, and ease of management. Investors, before investing, must take these features into account in relation to their risk tolerance, goals, and time horizon when considering any particular alternative. As women are recognized for making risk-averse investment decisions, their investments are impacted by numerous factors. The primary goal of this study is to understand the investment perception of women towards different investment alternatives. While the main factors influencing investment decisions are return, risk, and liquidity, several other factors specifically influence women investors, such as social and cultural norms, peers, and family members. Primary data was collected through a well-structured questionnaire consisting of Likert scale questions. SPSS software was used for data analysis. The initial results of the survey showed that 70% of the respondents had an average understanding of different investment options, whereas only 5% had high knowledge of different investment alternatives. When it comes to interest in a particular investment, mutual funds are the most preferred alternative. Additionally, 72% of women respondents show a moderate level of risk tolerance among all respondents in the study.

Retraction Note: Measuring technical efficiency associated with environmental investment: does market competition and risk matters in banking sector.

Retraction Note: Measuring technical efficiency associated with environmental investment: does market competition and risk matters in banking sector.

The Effectiveness of The Agricultural Investment Environment in Supporting the Production of Strategic Crops in Iraq for The Period From 2003-2021

Maximizing the effectiveness of the agricultural investment environment for all its basic inputs from the economic and human resources available in Iraq represents a qualitative breakthrough in the production of strategic crops, therefore, the research problem came from the weak production of strategic agricultural crops in Iraq in quantity and quality, due to the ineffectiveness of the agricultural investment environment, as a result of the lack of government support, the deterioration of the infrastructure of the agricultural sector, and a shortage of monetary capital, Finally, the scarcity of water resources, the problem was treated using the analytical method, thus, the research aims to demonstrate the importance of developing the agricultural investment environment and increasing government support and its impact on the production of strategic agricultural crops, the research concluded that Iraq possesses most of the basic inputs to the agricultural investment environment, but it lacks efficient management and optimal use, in addition to climate change, which has helped increase drought and desertification, the research also concluded that agricultural policy in Iraq includes obliging the investor to an agricultural plan in which the cultivated area is determined under the pretext of limited the capacity of the stores and the amount of strategic water storage despite Iraq’s need for strategic crops and thus the state’s attempt to meet the increasing demand for strategic crops t-hrough imports, which makes Iraq subject to the fluctuations of the global market and the depletion of hard currency, the researcher recommends efficient and optimal exploitation of natural, financial and human resources and keeping pace with scientific and technological progress in the production of strategic crops. In conclusion, the research included the deductive approach through the method of analytical description to advance the agricultural investment environment in Iraq. Paper type: Research paper.

Long-run Relationship between Power Consumption and Manufacturing Sector Output in Nigeria

Power remains the engine of growth of every economy while the manufacturing sector remains the key driver of a transformed modern economy. Despite several power sector reforms, Nigeria’s manufacturing sector continued to underperform. This study focused on examining the long-run relationship between power consumption and manufacturing sector output in Nigeria. We estimated an ARDL model based on the bounds-testing approach to cointegration. Our results indicate that manufacturing sector output and electricity consumption are cointegrated and that short-run deviations from equilibrium are corrected up to 83 per cent annually. The result showed that power consumption is positively related to manufacturing sector output. This implies that improved power sector will stimulate manufacturing sector growth. Our result also showed that capital formation, labour force and private sector credit are positively related to the manufacturing sector while the monetary policy rate is negatively related to the manufacturing sector. Given our findings, we recommend that the government should implement a sustainable power sector reform that prioritizes the manufacturing sector. This will stimulate growth, reduce the cost of energy and indirectly reduce price of manufactured products. We equally recommend creating a conducive environment for investment in the manufacturing sector through favourable monetary policy rates to allow manufacturers access to credit.

Artificial intelligence innovation and corporate environmental investment: A contingent view

Existing research has begun to focus on the negative impacts caused by artificial intelligence (AI), but few studies have examined the influence of AI on corporate environmental activities. This study, using 15,779 observations from 3,097 Chinese listed firms from 2008 to 2022, finds that corporate AI innovation has a significant negative impact on CEI. Additionally, we discover that firm size strengthens the negative relationship between AI innovation and CEI, while foreign direct investment (FDI) intensity weakens this negative relationship. This study extends the research on AI in the field of corporate environmentally friendly behavior.

Why do we argue about risk? The invisibility of worldviews in marine decision-making

The paper asks “why are we always arguing about risk?” It explores what drives risk perception in decision-making processes in Aotearoa New Zealand’s marine environment. The research’s holistic framing shows that the prevailing concern with risk and uncertainty (RU) issues in government and managerial settings deflects attention from and hides the background influences of worldviews. After introducing the invisibilities around RU and outlining worldview-based perceptions of risk, the paper turns to an empirical investigation focusing on deep-seabed mining investment in the context of Aotearoa’s Exclusive Economic Zone and Continental Shelf Act (Environmental Effects) 2012. Enacted as part of neoliberal reforms, the Act seeks to reduce environmental degradation in tandem with economic growth. A situated methodology examines a consenting process within this Act as a strategic site to establish expressions of RU and shaping invisibilities. Three key influences are revealed: the positionality of decision-makers, their disciplinary training, and the largely unknown filtering of environmental and economic options that come from 3 worldviews held in Aotearoa (dominant social paradigm, new environmental paradigm, Te Ao Māori). We contend hidden worldviews impact on economy–environment relations and ensuing economic and environmental practices and outcomes. This arises because they underpin and fuel debates around what RU are acceptable and how benefits should be distributed (public vs. private benefits investment decisions, and economy vs. environment). Unless we recognize and understand these hidden influences, we simply cannot work with them. This insight has major implications for how RU ideas might be framed and navigated in emerging policy settings.

Exploring the factors of enabling environments for business investment projects in rural communities: stakeholders’ perspectives

In recent years, the local economic development (LED) planning paradigm has gained widespread acceptance worldwide as a locality-based response to the challenges posed by globalization, devolution, and local-level opportunities and challenges. Noticeably, governments in the Global South are seen to be supporting linkage policies that directly couple profitable growth and investment with redistribution and community development in rural-based localities. To attract potential investors to circulate more resources within the local rural communities, local governments must ensure that the local investment climate (LIC) is functional for business investment. Unlike in urban areas, rural localities, by their nature of periphery location from economic development nodes, prospective business investment projects (BIPs) are often faced with delays and uncertainty. This is mainly because the factors underlying the enabling environments for business investment in rural localities are poorly understood and based on speculation. Against this backdrop, this study therefore set out to explore and unveil the key factors that are fundamental for ensuring a conducive and functional local investment climate (LIC) in rural communities. Through a qualitative case study approach with the application of a conventional content analysis method, performed with coding methods, the study unveiled five key factors presented in a thematic approach. Namely, market and customer needs; government and regulatory support; access to infrastructure and services; land availability and zoning; and participatory community engagement. Understanding these fundamental factors that underpin conducive and operational investment environments is important for viable business decision-making in the feasibility study of investment projects toward LED in rural communities.

The State, Climate Change and Energy Transition in Zimbabwe, 1992–2022

This article examines the legislative, investment and policy environment that the Zimbabwean state is spearheading to transition the country from an overreliance on fossil fuels in response to the drawbacks of climate change. The need for this energy transition has become even more urgent due to decreasing water levels that can no longer sustain the country’s hydroelectric power outputs. A transition to other renewable energy sources and biofuels will lower the country’s carbon emissions. The article observes that while a lack of capital in large part hinders the country’s energy transition to invest in big renewable energy projects, the few small-scale projects underway are very opaque, (occasionally) transient and indistinct to the point of obscuring many potential benefits for the country’s citizens. This article relies on a review of primary material and sources from various repositories and a thorough review of secondary literature. This article was published open access under a CC BY licence: https://creativecommons.org/licences/by/4.0 .

Predictability in Oil and Gas Investment Agreements: Balancing Interests for a Stable Investment Environment, Stanislava Nedeva. 1st Edition. Cheltenham, UK:Edward Elgar publishing. (2024)

Predictability in Oil and Gas Investment Agreements: Balancing Interests for a Stable Investment Environment, Stanislava Nedeva. 1st Edition. Cheltenham, UK:Edward Elgar publishing. (2024)

Responding to green finance with emission reduction and value-added: The role of enterprise environmental investment

Responding to China’s green finance policy with enterprise environmental investment (EEI) constitutes a crucial link in achieving environmental governance objectives, exerting crucial influence on the nation’s green transformation and high-quality development. Taking the pilot policy of China’s Green Finance Reform and Innovation Experimental Zone (GFRP) in 2017 as a quasi-natural experiment, this study systematically evaluates the effect of GFRP policy on the decisions of EEI and further explore whether the investments are used for passive end-of-pipe treatment (EOP) or positive source prevention (SP) by using firm-level data. The results indicate that GFRP policy can significantly promote EEI, and mainly reflected in SP, rather than EOP. Through potential mechanism analysis, it can be concluded that GFRP policy facilitates EEI by alleviating financial constraint, reducing agency cost, and enhancing environmental information disclosure. Heterogeneity analysis suggests that there exists asymmetry in policy effects, with greater impacts in high green finance development areas, low concentration industries and large-scale enterprises. Furthermore, micro-level performance consequences examination reveals that the enterprises’ decision to increase EEI under GFRP policy not only effectively realizes energy conservation and emission reduction but also contribute to facilitating enterprise value, to achieve green transformation. This study holds significant policy implications, providing empirical evidence to policymakers for the refinement and dissemination of green finance policy, and offering valuable insights for enterprise investment and management decisions.

Conceptual model for strengthening international commercial arbitration in promoting cross-border trade and investment in developing economies

International commercial arbitration plays a crucial role in promoting cross-border trade and investment, particularly in developing economies where legal and institutional frameworks may be underdeveloped. This paper proposes a conceptual model aimed at strengthening international commercial arbitration to enhance its effectiveness in supporting cross-border trade and investment in these regions. The model addresses the unique challenges faced by developing economies, such as inadequate legal infrastructure, limited access to expertise, and the reluctance of foreign investors due to perceived risks. It emphasizes the need for capacity building, the harmonization of arbitration laws with international standards, and the creation of supportive legal environments that foster investor confidence. The model proposes the establishment of regional arbitration centers with a focus on developing economies, staffed by experts familiar with local contexts and international best practices. Additionally, it suggests the integration of digital technologies to streamline arbitration processes, reduce costs, and enhance accessibility. Collaboration between international arbitration bodies, governments, and private sectors is also highlighted as a critical component for the success of this model. Furthermore, the model advocates for the development of specialized training programs to build local expertise in arbitration and dispute resolution. By fostering a robust arbitration culture, developing economies can attract and retain foreign investment, thereby contributing to sustainable economic growth. This conceptual model seeks to bridge the gap between global arbitration standards and the specific needs of developing economies. By doing so, it aims to create a more conducive environment for cross-border trade and investment, ultimately contributing to the economic development of these regions. The paper concludes by outlining the potential impact of the model on improving investor confidence, reducing trade barriers, and enhancing the overall attractiveness of developing economies as investment destinations.

AN ANALYSIS OF BEHAVIOURAL FINANCE AND ITS INFLUENCE ON INVESTMENT DECISION

This research delves into the fascinating realm of Behavioural Finance, exploring its significant influence on investment decision-making among residents in India's National Capital Region (NCR). By drawing on insights from relevant studies, this work seeks to uncover the intricate link between human behaviour and financial decision-making within this demographic. The study begins by examining the unique financial behaviours of investors in the region, aiming to identify the key investor profiles that shape the investment environment. As a multidisciplinary field combining elements of psychology, sociology, and finance, Behavioural Finance provides the primary framework for this exploration. The research distinguishes between its micro and macro perspectives: the detailed analysis of individual behavioural traits of investors and the broader identification of inefficiencies in the market. Recognizing the pervasive impact of behavioural biases on investment behaviours and decisions, this study offers an in-depth review of diverse research within the Behavioural Finance domain. It sheds light on how human psychology and social dynamics interact with financial decision-making, highlighting the crucial role of Behavioural Finance in contemporary financial practices. In an era where financial markets are not merely governed by rationality but are also shaped by complex human behaviours, this research offers valuable insights into the dynamics of Behavioural Finance. By illuminating the distinct investment choices, the study aims to deepen our understanding of the factors influencing these decisions, ultimately equipping investors and financial professionals with more informed decision-making strategies.

Fiscal decentralization's impact on carbon emissions and its interactions with environmental regulations, economic development, and industrialization: Evidence from 288 cities in China

Given the global focus on climate change and sustainable development, understanding the impact of China's fiscal decentralization on carbon emissions is essential for supporting green transformation and achieving carbon peaking and neutrality targets. This study examines data from 288 Chinese cities between 2003 and 2021, using fixed effects, moderation effects, and threshold effects models to assess the relationship between fiscal decentralization and carbon emissions, alongside its interaction with environmental regulation, economic development, industrialization, and city hierarchy. The results show that fiscal decentralization significantly aids carbon reduction, but stronger environmental regulations have not effectively slowed emission growth, creating a "green paradox." Relaxed regulations prioritize short-term economic gains, leading to underinvestment and fragmented regulatory efforts, which weaken emissions control. As economic development advances, fiscal decentralization's impact on carbon emissions shifts from positive to negative. Additionally, with increasing industrialization, the negative influence of fiscal decentralization on emission intensity becomes more pronounced. In non-first-tier cities, weak regulatory enforcement and limited autonomy hinder effective carbon reduction policies. To address these issues, the central government should enhance guidance and oversight of local environmental policies, ensure strict enforcement, optimize fiscal resources for environmental investment, and promote green economic transformation. A tailored approach to fiscal decentralization is needed to balance economic growth with environmental protection, achieving mutually beneficial outcomes.

Optimal environmental investment strategies for enterprise green technology innovation: An empirical study based on multiple drive models

Enterprise green technology innovation (GTI) is vital for global sustainable development. However, the optimal strategies are needed to understand how environmental investments (EIs) impact enterprise GTI. This study adopts multiple drive models to explore the impact of EIs on the GTI of A-share listed enterprises in China from 2008 to 2022. Our results show that EIs significantly promote enterprise GTI, and these findings are robust. Heterogeneity analysis reveals that non-state-owned enterprises (non-SOEs) and enterprises in the eastern and western regions benefit more from EIs in promoting GTI. Labor-intensive combinations of EIs contribute to the growth of enterprise GTI quantity, while technology-intensive combinations of EIs are detrimental to the growth of enterprise GTI quality. Specifically, the intermediary conduction mechanism identifies that EIs substantially enhance enterprise GTI through financial constraints, research and development (R&D) investment, and environmental awareness. The threshold test mechanism demonstrates that EIs inhibit enterprise GTI when the price-to-book (P/B) ratio crosses a certain threshold; however, EIs promote enterprise GTI once the book-to-market (B/M) ratio crosses the threshold. Our findings can provide valuable references for governments and enterprises, helping to promote environmentally sustainable development and economic growth.

A trust-building model for financial advisory services in Nigeria’s investment sector

The financial advisory sector in Nigeria, while pivotal for guiding investors and enhancing market efficiency, faces significant challenges related to trust. This paper presents a comprehensive trust-building model aimed at addressing the trust deficit within Nigeria’s investment sector. The model proposes a multifaceted approach to enhance trust through improved transparency, accountability, regulatory reforms, and client education. Trust is a crucial element in financial advisory services, influencing investor confidence and market stability. In Nigeria, historical issues such as regulatory inconsistencies, information asymmetry, and instances of financial misconduct have eroded trust between advisors and clients. The proposed trust-building model emphasizes four key areas: enhancing transparency and accountability, implementing regulatory reforms, improving financial literacy among investors, and leveraging technology. Transparency can be achieved through open disclosure of fees, commissions, and potential conflicts of interest, alongside standardized reporting mechanisms. Regulatory reforms are essential for strengthening oversight and enforcing ethical standards. Improving financial literacy involves educating clients about investment options and risks, empowering them to make informed decisions. Technology plays a critical role by offering real-time updates and personalized advice through fintech platforms and AI-driven tools. Case studies from both developed and developing markets highlight successful trust-building strategies, providing valuable insights for the Nigerian context. For instance, countries with robust regulatory frameworks and advanced technological integration offer practical examples of how transparency and accountability can be effectively implemented. Nigerian case studies demonstrate instances where trust-building initiatives have led to increased investor confidence and market stability. Despite the promising aspects of the model, challenges such as institutional resistance, economic instability, and entrenched industry practices may hinder implementation. Overcoming these barriers requires a collaborative effort from regulators, financial advisors, and investors. The model's anticipated impact includes greater investor confidence, market growth, and a more stable investment environment. By addressing the core issues affecting trust and fostering a culture of transparency and accountability, the proposed model aims to transform Nigeria’s financial advisory sector, ultimately contributing to its long-term development and stability. Keywords: Trust-Building, Financial Advisory, Nigeria, Investment Sector

The Impact of Environmental Social Responsibility on Total Factor Productivity: Evidence from Listed Companies in China

In recent years, China’s environmental policies have continued to promote sustainable development, and listed companies have increased their environmental investment and strengthened their environmental social responsibility. Although there has been much research on the relationship between environmental performance and total factor productivity of listed companies, the impact of environmental social responsibility on total factor productivity has not yet been fully examined. In this paper, we use panel data regression to investigate the linear and non-linear relationships between environmental social responsibility and total factor productivity. These relationships are tested for robustness, analyzed for between-group differences, and validated by a machine learning model. Firstly, we find that environmental social responsibility can significantly contribute to companies’ total factor productivity within a certain range, but it varies across different categories of firms. Secondly, there is an inverted U-shape relationship between environmental social responsibility and total factor productivity, where total factor productivity initially increases with environmental social responsibility but decreases after reaching a certain threshold. Finally, we conclude that environmental social responsibility promotes total factor productivity in the early stages, but when environmental social responsibility reaches a certain threshold, it begins to exert an inhibitory effect on the development of total factor productivity.