Environmental Risk Regulation Research Articles

Эколого-правовые риски при добыче полезных ископаемых (на примере добычи угля)

The article discusses the problems of legal regulation of environmental risks in coal mining. Various groups of environmental risks in this area, including licensing risks and environmental risks, are analyzed. The conclusion is drawn: any environmental and legal risks, including the risk during mining, should be considered as a certain objective-subjective category. In this case, the basis for the occurrence of negative consequences for the environment can be both action and inaction, upon the occurrence of which this risk will be realized.

Multi-process regulation of novel brominated flame retardants: Environmentally friendly substitute design, screening and environmental risk regulation

Novel brominated flame retardants (NBFRs), one of the most widely used synthetic flame-retardant materials, have been considered as a new group of pollutants that potentially affect human health. To overcome the adverse effects of NBFRs, a systematic approach for molecular design, screening, and performance evaluation was developed to generate environmentally friendly NBFR derivatives with unaltered functionality. In the present study, the features of NBFRs (long-distance migration, biotoxicity, bioenrichment, and environmental persistence) were determined and characterized by the multifactor comprehensive characterization method with equal weight addition, and the similarity index analysis (CoMSIA) model was constructed. Based on the three-dimensional equipotential diagram of the target molecule 2-ethylhexyl tetrabromobenzoic acid (TBB), 23 TBB derivatives were designed. Of these, 22 derivatives with decreased environmental impact and unaltered functional properties (i.e., flame retardancy and stability) were selected using 3D-QSAR models and density functional theory methods. The health risks of these derivatives to humans were assessed by toxicokinetic analysis; the results narrowed down the number of candidates to three (Derivative-7, Derivative-10, and Derivative-15). The environmental impact of these candidates was further evaluated and regulated in the real-world environment by using molecular dynamics simulation assisted by the Taguchi experimental design method. The relationship between the binding effects and the nonbonding interaction resultant force (TBB derivatives-receptor proteins) was also studied, and it was found that the larger the modulus of the binding force, the stronger the binding ability of the two. This finding indicated that the environmental impact of the designed NBFR derivatives was decreased. The present study aimed to provide a new idea and method for designing NBFR substitutes and to provide theoretical support for restraining the potential environmental risks of NBFRs.

Comparing Environmental Risk Regulations in China and the United States

The relative stringency of risk regulation across countries may have significant implications for public health and environmental outcomes, as well as for economic and trade impacts. In this study, we build on prior literature-which has often employed qualitative case studies, and has often focused on comparing the United States and Europe-by using a quantitative evidential reasoning approach to compare the relative stringency of federal/central level written rules for 45 randomly selected environmental risks in the United States and China. We find that, on average, in this sample of 45 environmental risks, the written rules for environmental risk regulation were more stringent in the United States than in China. Within this sample, we find that relative stringency was selective, leaning in both directions, as the United States and China each regulated some risks more stringently than the other; for example, the US written rules were more stringent for risks of toxic chemicals and most air pollutants, whereas China's written rules were more stringent for risks in agriculture. We also observe nuanced differences in relative regulatory stringency within sectors and risks; even where one country regulated one risk more stringently, the other country may regulate certain aspects of that risk more stringently. We comment on possible explanations for the patterns we observe. Our methods and findings may contribute to better understanding of comparative risk regulation across the United States and China, and worldwide. We also recognize that in addition to the written rules studied here, countries may also vary in their implementation.

Towards More Effective Environmental Risk Regulation

Abstract The precautionary and prevention principles require that environmental risks should timely and adequately be regulated before potentially harmful activities are undertaken. The system of administrative environmental law provides ample instruments for such regulation. However, scientific uncertainties about environmental risks could complicate the formulation and implementation of effective environmental risk management strategies. This could lead to systemic imperfections and regulatory gaps which, in turn, undermine the system’s effectiveness and increase the need for regulatory ‘back-ups’. The system of private law is often seen as a potential back-up. In analyzing the complementary effects between both systems and using environmental risks of chemical mining activities in the (deep) subsoil as an example, this article concludes that the actual regulatory effect of tort law should not be overestimated. The complementary role of tort law in regulating environmental risks is mostly limited to the specification and on some occasions enforcement of environmental responsibilities.

Banks, climate risk and financial stability

PurposeThis paper aims to quantify the (syndicated) loan exposure to elevated environmental risk sectors of the banking system in the USA, EU, China, Japan and Switzerland at US$1.6tn and to highlight its importance, which ranges from 3.8 (USA) to 0.5 per cent (China) in terms of total national banking assets. The paper highlights the relevance of exploring prudential policy responses, including a harmonized taxonomy, statistical and reporting framework that could contribute to internalizing the negative externalities associated with climate risks by both banks and their supervisors. Among the prudential supervisory tools, credit registers facilitate the assessment of environmental risk drivers in “carbon stress tests.” This paper also presents a framework of analysis for the regulatory treatment of climate-related risks.Design/methodology/approachSimilarly to Weyzig et al. (2014), this paper uses financial databases on the banks’ role as book runners for syndicated loans; that is, as the lead arrangers who also provide a large share of the actual lending. Loans are outstanding on December 31, 2014, and the paper assumes linear amortization of loans issued before that date and with maturity after that date. This study includes the largest banks from the above-mentioned countries with financial information available in SNL Financial and EU banks with financial information available in the ECB database on December 31, 2014. By assessing the relative share of the ten largest (or total reporting if less) banks’ exposure to each high environmental risk sector in relation to their total assets, these findings can be extrapolated across sectors in the respective country.FindingsThis paper quantifies the loan exposure to elevated environmental risk sectors of the banking system in the USA, EU, China, Japan and Switzerland in US$1.6tn, broadly in line with the findings of Battiston et al. (2017) and Weyzig et al. (2014). This paper also explores prudential policy approaches and tools. In addition to the lack of taxonomy of “brown” vs “green,” the paper identifies the limitations to assess the risks involved in the transition to a low-carbon economy: supervisory reports that do not make full use of the existing international statistical framework (e.g. EU COREP and FINREP); lack of harmonized reporting requirements of environmental risks; lack of credit registers as tools to perform carbon stress-testing; and supervisors’ governance framework that do not internalize environmental risks (e.g. proposed revision of the Basel Core Principles of Banking Supervision). As per the stress-testing, the paper presents two examples. The paper presents a framework of analysis for the regulatory treatment of climate-related risks. The author identifies two critical elements of such framework if prudential regulation of environmental risks is to be considered: the consideration or not of climate risk as credit risk and the impact of environmental risks over probabilities of default over the entire business cycle.Research limitations/implicationsNo internationally accepted “official” taxonomy of high environmental risk sectors exists. This paper uses Moody’s (2015a) classification of sectors according to their environmental risk exposure. This paper’s exposures do not reflect the real risk exposure of these institutions and the banking industry as a whole because, as explained in Page 6, these values are without regard to bilateral loans and guarantees and securitizations of loans; in the case of loans to power generation companies, renewable sources are not excluding and, similarly, for the production of electric vehicles, loans are not excluded. Furthermore, this paper does not assess banks’ exposures to sovereigns subject to high environmental risks and bonds and equity issued by corporations operating in high environmental risk sectors.Practical implicationsContribution to the present policy debate on how to regulate banks’ exposure to high environmental risk and how to manage the transition to a low-carbon economy.Social implicationsThis paper can increase awareness of the banking sector transition risks to a low-carbon economy.Originality/valueThis paper quantifies banks direct exposures to high environmental risk sectors using an ample definition of sectors exposed to environmental risk. The author suggests policy actions to assess the environmental risks. The author defines a regulatory framework for banks to internalize the negative externalities of environmental risks.

Regulatory Fracture Plugging

Debates about the desirability of widespread shale development have highlighted outstanding uncertainty about its health, safety, and environmental impacts—most prominently, its water-contamination risks—and the ability of current institutions to deal with these impacts. States, the primary regulators of oil and gas extraction, face pressure from the energy industry, local communities, and, in some cases, the federal government to strike the right balance between energy production and the health and safety of individuals and the environment—an elusive balance given the ongoing risk uncertainty. This dynamic is not especially unique to fracking, or even oil and gas extraction; instead, this dynamic, characterized by tradeoffs between environmental protection and economic development under risk uncertainty, is a common theme of environmental risk regulation. Regulators at every level of government weigh and evaluate potential interventions against this background. This Article contributes to a symposium held at Texas A&M School of Law that explores the advantages and disadvantages of various government interventions in the environmental context in an effort to identify ideal risk-management tools under various circumstances. It argues that the most important considerations for identifying risk-management tools in the environmental context are risks, incentives, and cost-benefit analysis. These cornerstone principles provide a useful framework for environmental policy in general, especially in situations that involve heterogeneous and uncertain risks. By paying attention to risk, incentives, and cost-benefit analysis, government regulators are more likely to promote optimal levels of environmental quality and avoid unintended, or even perverse, consequences. To demonstrate the usefulness of these concepts concretely, this Article applies them to the fracking context, focusing on the most prominent risks from widespread shale development, risks to water from shale gas extraction. It identifies risk-management gaps in tort litigation, insurance markets, and regulation schemes and suggests potential solutions.

Toward a framework of environmental risk management for CO2 geological storage in china: gaps and suggestions for future regulations

China encourages the demonstration of carbon capture and storage (CCS) projects. In an effort to identify gaps and provide suggestions for environmental risk management of carbon dioxide (CO2) geological storage in China, this article presents a concise overview of potential health, safety and environmental (HSE) risks and environmental management regulations for CO2 geological storage in Australia, Japan, the United States (USA), the European Union (EU), and the United Kingdom (UK). The environmental impact assessment (EIA) experience of Shenhua Ordos Coal-to-Liquid (CTL) Project and PetroChina Jilin Oil Field enhanced oil recovery (EOR) is subsequently analyzed in light of our field investigation, and gaps in current EIA guidelines that are applicable to CO2 geological storage projects are identified. It is found that there are no specific environmental risk regulations suitable for CO2 storage in China, and environmental risk management lags behind the development of CCS technology, which presents a challenge to demonstration enterprises in terms of assessing environmental risk. One major challenge is the overestimation or underestimation of this risk on the part of the enterprise, and another is a lack of applicable regulations for government sectors to supervise the risk throughout CCS projects. Therefore, there is a pressing need for China to formulate environmental management regulations that include environmental risk assessment, mandatory monitoring schemes, environmental emergency plans, and related issues.

Environmental risk regulation and the Indian Supreme Court: an exercise in de-formalization of the law?

The Supreme Court of India has become a prolific positive legislator through the interpretation of Constitutional values and principles. Environmental rights and obligations has been one area in which the Supreme Court has been actively engaging in building rights-based jurisprudence ensuring the protection of environment and health. However, environmental risks emanating from technological intervention has been an area in which the Supreme Court has only intervened reluctantly by relying on individual technical experts, who assume the role of amicus curiae. Reliance on technical experts reflects a move away from democratic legitimacy that Max Weber had underlined as intrinsic to the formal character of law. The Supreme Court’s reluctance to intervene on issues of technology regulation is not surprising given that technological development is subsumed within a strong political narrative of national development and by implication for determining policy which is the domain of the executive. Interestingly, the Court has demonstrated no such reluctance in other areas – such as in addressing environmental risks from forest degradation (Godavarman case). It has shown scant regard for executive turf. Are there then two parallel narratives that exist? A closer inspection reveals that both these are expressions of the same macro narrative, that of narrowing of forms of participation and legitimate spaces for the participation of the public in the policy discourse on environmental risk regulation. This narrative is explored through three ongoing cases in the Supreme Court (T.N. Godavarman Thirumulpad v. Union of India; Aruna Rodrigues & Ors. v. Union Of India & Ors. and G. Sundarrajan v. Union of India & Ors.).

Control of the Environmental Risk Regulations: Qualitative Changes of the Policy Instruments in Chemical Policy

Control of the Environmental Risk Regulations: Qualitative Changes of the Policy Instruments in Chemical Policy

Environmental Risk Regulation in the Environmental Protection Law of the Republic of Slovenia

The purpose of this paper is to present an overview of the regulation of environmental protection in force in administrative law in the Republic of Slovenia. The author analyses basic environmental protection principles which are contained in the EU regulation. These principles are: (1) the precautionary principle (le principe de prĂŠcaution, der Grundsatz der Vorsorge), (2) the principle of preventive action (le principe d'action prĂŠventive, der Grundsatz der Vorbeugung), (3) the principle of correction at source (le principe de correction à la source, der Grundsatz, Umweltbeeinträchtigungen mit Vorrang an ihrem Ursprung zu bekämpfen), and (4) the polluter pays principle (le principe de pollueurpayeur, das Verursacherprinzip).In order to accede to the EU, the Republic of Slovenia in Article 3a of the Constitution of the Republic of Slovenia allowed the supremacy of the primary legislation of the EU over Slovenian national regulations. The above-mentioned principles of the EC Treaty are transposed into the legal system of the Republic of Slovenia by means of its environmental legislation and implementing regulations. In this paper the author analyses the public law regulation contained primarily in the Environmental Protection Act (Official Gazette RS, Nos. 39/2006, 20/2006, and 70/2008). In addition to the general regulation implemented already by the Environmental Protection Act of 2006, the last amendment to the Environmental Protection Act transposed into the Slovenian legal order the provisions of Directive 2004/35/CE of the European Parliament and of the Council of 21 April 2004 on environmental liability with regard to the prevention and remedying of environmental damage.The paper focuses on the administrative legal regulation of the prevention and reduction of burdens on the environment, the conservation and improvement of the quality of the environment, the remedying of the consequences of burdens on the environment, as well as the improvement of the disrupted natural equilibrium and the recovery of its regenerative capacity. The paper furthermore analyses the application of the Environmental Protection Act as a general substantive law, as well as the special application of the procedures provided for in the Environmental Protection Act against subsidiary regulation of general administrative procedures in cases in which public and private interests are in collision or in potential collision.

Transboundary Risk Governance Rolf Lidskog, Linda Soneryd, and Ylva Uggla . Sterling, VA:Earthscan, 2010. 155 pp. ISBN: 978-1-84407-791-5, $96

Transboundary Risk Governance <i>Rolf Lidskog, Linda Soneryd, and Ylva Uggla</i> . Sterling, VA:Earthscan, 2010. 155 pp. ISBN: 978-1-84407-791-5, $96

A theory of environmental risk disclosure

The regulation of environmental risks increasingly emphasizes the awareness and empowerment of stakeholders. The success of this approach, however, seems to depend crucially on the quality of environmental disclosures. In this paper we investigate the amount and quality of the information that would be voluntarily delivered to some stakeholder by a potential polluter. We find that information may be hazier when the stakeholder is confident (or naive) a priori, the cost of analyzing the received reports increases little with their complexity, or a polluter's net expected payoff from undertaking an industrial activity that would turn out to be unsafe is small. A worried stakeholder and a low cost of producing more accurate figures, on the other hand, favor disclosure of high-quality information. By delivering information of very good quality, safe firms can set themselves apart more easily from dangerous ones the higher the relative ex post payoff from their current industrial activity. Implications of this framework for the scope and design of public programs of environmental disclosure are briefly examined.

Cost Perceptions and Voter Demand for Environmental Risk Regulation: The Double Effect of Hidden Costs

This paper reports the first detailed empirical examination of the effects of voter cost perceptions on demand for environmental risk regulations. Using a statewide random sample of Washington's electorate, I examine voting behavior for a proposed regulation of gasoline stations under varying cost and distributional assumptions. Results suggest normative concerns are as important in explaining support as are expected risk reduction benefits. These norms include making polluters pay, imposing larger burdens on polluters with higher ability to pay, and enforcing public property rights. In contrast, potential price increases as a result of regulation have negligible effects on voter support.

Informational Regulation of Environmental Risks

This paper examines the law and economics of informational regulation (IR) of environmental risks. Informational regulation here means regulation which provides to affected stakeholders information on the operations of regulated entities, usually with the expectation that such stakeholders will then exert pressure on these entities to comply with regulations in a manner which serves the interests of stakeholders. As such, IR reinforces and augments direct regulatory monitoring and enforcement through third‐party monitoring and incentives. The paper provides two contrasting frameworks, from law and economics, to analyze the costs and benefits likely to arise from IR and concludes with a discussion of the appropriate scope of IR as a substitute for and complement of traditional environmental regulation and law.

Regulation of Marine Contamination under Environmental Uncertainty: Shellfish Contamination in California

We develop a model of regulation of environmental risks in a heterogeneous industry when policy makers are sensitive to uncertainties about the processes generating the risks. Optimal source reduction capacity is shown to vary according to site suitability. Optimal source reduction capacity and the implicit value of risk reduction increase as risk standards become more stringent and as aversion to uncertainty grows. Taxes are more equitable than standards whenever the emissions generating the risks are all-or-nothing. These results are illustrated for a case of public health regulation of dairy wastes producing enhanced risk of acute gastroenteritis through contamination of a shellflshery. Aversion to uncertainty influences investment in pollution control substantially. The premium in pollution control costs imposed by an increase in the required margin of safety increases as aversion to uncertainty grows and as the risk standard becomes more stringent, as do the implicit value of risk reduction and optim...

A Generic View of Toxic Chemicals and Similar Risks

The following characteristics common to environmental risk problems are discussed; ignorance of mechanism; modest benefits; catastrophic costs; low probability of catastrophe; internal benefits; external costs; collective risk; latency; and irreversibility of effect. Environmental risk and classical pollution are discussed with regard to amenity versus life threat; relative costs; numbers; potency; timing; and visibility. Difficulties in the management of environmental risk are discussed with regard to worst cases, presumed low probabilities; acceptable risk; and federal legislation for regulation of environmental risks. (HLW)