Strategic Environmental Policy Research Articles

Study on rapid policy-based strategic environmental assessment-taking China's regional development policy of Zhejiang Pilot Free Trade Zone as an example

Strategic Environmental Assessment(SEA) is acknowledged to be an important decision support tool. SEA concerns potential environmental impacts of decisions made by policy, plan and programs. At present, policy-based SEA is still in the exploratory stage in China. The development of policy-based SEA is extremely slow due to institutional and technical difficulties. In practice, the time from policy proposals to policy implementation is relatively short. So the corresponding policy-based SEA should reflect the characteristics of rapidity, centre on the seriously negative impact that may be caused policy implementation, and provide early and initial warnings.A simple and rapid framework was designed for policy-based SEA in this study. The framework includes four parts, namely, policy analysis, eco-environmental impact identification, eco-environmental sensitivity assessment, policy recommendations. Following this framework, regional development policy of Zhejiang Pilot Free Trade Zone (FTZ) was assessed. Results reveal that: 1)seriously negative environment impacts may arise from petroleum refining and chemical industry, oil and gas storage and transportation, iron ore transportation, liquid bulk commodities transportation. 2) Central Daishan area, Shengsi archipelago, Taohua Island, Liuheng island in Zhejiang FTZ is relatively of high eco-sensitivity, thus the fore-mentioned activities should be environmentally friendly or restricted in these areas. 3)In the future, continuous efforts should be made to promote sealing and automation of petroleum refining, chemical industry. Green petrochemical manufacturing technology utilization is recommended to reduce pollution from the source. Further, accelerating the construction of transportation pipelines is suggested in order to reduce air pollutants emissions caused by vehicle transportation activities. Fishery stock enhancement and releasing is recommended to counteract negative impact on fishery caused by iron and liquid bulk commodity marine transportation.

Monitoring and Assessing (PM10 & PM2.5) Particulate Matters within Federal University Otuoke amidst Seasonal Variation of Relative Humidity

This study examines the seasonal variation of particulate matter (PM10; PM2.5) concentrations within Federal University Otuoke, Nigeria. The study is premised on monitoring and assessing PM10 and PM2.5 in the environment of the university. Dustmate and Kane 100-1 and 3.5.1 RS-1361C-Humidity/Temperature meter were used in sampling between the hours of 8am to 5pm per day in five day per week for a period of 6month which covers both the rainy and dry season. The sampled concentration of PM10 and PM 2.5 obtained was compared with the guidelines of “The National Ambient Air Quality Standard” established by U.S. Environmental Protection Agency (EPA) for compliance and regulation. Descriptive statistically methods were used in data analysis. The Results revealed that the averages PM10 are 116.71 µg/m3 and 107.25 µg/m3, while PM 2.5 records as 27.52 µg/m3 and 32.21 µg/m3 respectively. Relative humidity was also recorded 55.53 µg/m3 and 73.74 µg/m3. Similarly the results in both seasons shows the total average of PM10 as 100.19 µg/m3 and 110.07 µg/m3, PM 2.5 records 23.88 µg/m3 and 23.37 µg/m3 while relative humidity records 55.78 µg/m3 and 68.18 µg/m3 respectively. These were significantly influenced by the relative humidity of the environment of Federal University Otuoke. The study concludes that the seasonal variation of the relative humidity has an effect on the PM10 and PM2.5 concentrations and consequently the air quality of the university, hence further research into methods that will reduce particulate matter, as well as strategic environmental management policies within the university and beyond is recommended.

Defining Strategic Environmental Goals and Objectives for the Management of Deep-sea Mining Operations in the Seabed Beyond National Jurisdiction

After the inconclusive second part of the 28th Annual Session of the International Seabed Authority (ISA) in July 2023, there were concerns that the ISA would start accepting exploitation applications for deep-sea mining in the seabed beyond national jurisdiction (the Area) with neither a full regulatory framework in place nor a general policy related to the conservation of our marine environment. Currently, the environmental management of deep-sea mining by the ISA is cursory and lacks strategic aims regarding the preservation of deep-sea ecosystems. This makes the ISA unable to fulfill its environmental stewardship mandate as defined in the United Nations Convention on the Law of the Sea. To overcome this inability, we propose that the ISA defines Strategic Environmental Goals and Objectives by carrying out a Strategic Environmental Assessment of deep-sea mining in the Area, with broader stakeholder engagement and considerations for cumulative and long-term effects. This will allow the ISA to develop the first strategic environmental policy for the Area under its jurisdiction to protect deep-sea ecosystems.

The impact of sustainable consumption behaviour on natural resource conservation in China: A cross-sectional analysis

This investigation assesses the impact of sustainable consumption behaviour (SCB) on natural resource conservation (NRC) in China, exploring the moderating roles of government environmental policy (GEP), environmental consciousness, and alignment with the Sustainable Development Goals (SDGs). Through a cross-sectional analysis, data were collected via random sampling from the Chinese populace between 2020 and 2021. A novel analytical model was utilized, enriching the NRC discourse by empirically substantiating the hypothesized relationships. Findings reveal a substantial positive influence of SCB on NRC, with GEP, environmental consciousness, and SDGs acting as critical moderators. The outcomes suggest imperative policy implications for the Chinese authorities to enhance environmental policies in harmony with the SDGs and to elevate environmental consciousness among citizens. By amalgamating SCB, GEP, environmental consciousness, and SDGs into an integrated framework, this examination contributes a novel perspective on their collective impact on NRC within China's dynamic environmental milieu. It highlights the pressing need for policy reform and practice modification to align with both national and global environmental sustainability imperatives. This study serves as a call to action for the implementation of strategic environmental policies that not only safeguard natural resources but also foster a sustainable relationship between consumers and the environment.

Technology spillovers, strategic environmental policy, and foreign direct investment

Empirical studies have so far failed to find conclusive evidence that a tightening of environmental regulation will shift foreign direct investment (FDI) to less regulated countries. In this paper, we provide an alternative explanation for the mixed results in the empirical literature and highlight the role of technological spillovers in explaining why FDI is not always attracted to low-regulation countries. In a Cournot duopoly with a foreign firm and a domestic firm, we show that the presence of technological spillovers may induce the foreign firm to relocate to the domestic country with stricter environmental regulation. This result holds for a wide range of values of technological spillovers. We also find that the domestic (foreign) country’s welfare is always higher (lower) with FDI.

Environmental Management Control Systems and Environmental Performance: Direct and Indirect Effect

Purpose: This study aims to examine the effect of environmental management control systems on environmental performance. Testing is carried out directly or through the environmental strategy mediation role. Theoretical framework: In contrast to previous studies, this research focuses on managerial activity processes that enable, encourage, ensure how a company and facilitate practices that achieve environmental performance and strategies to achieve it. The research model is built on the basis of stakeholder theory and contingency theory. Design/methodology/approach: The research was conducted through an online survey of hotel managers in Makassar City, Indonesia. Data analysis was performed by regression, path analysis and Sobel test. Findings: The results of the study prove that the environmental management control system has a positive and significant effect on environmental strategy and environmental performance. The Sobel test also proves that environmental strategy mediates the influence of environmental management control systems on environmental performance. Research, Practical & Social implications: This research covers hotels in Makassar, not all of them in Indonesia; therefore, generalizing the findings of this study should be exercised with caution. Secondly, this study assumes hotel homogeneity and does not consider hotel type. The findings of this study also provide recommendations on public policy and business practices to integrate environmental issues into managerial processes and decision-making as well as corporate control. Further research can expand this research by considering contextual and other contingency aspects. In addition, future research may use a larger sample and longitudinal data which allows to investigate changes in strategic environmental management control system policies over time. Originality/value: Improvements in research on environmental management control systems have become a very important issue in supporting the themes of sustainability in business practices globally. The originality of this research focuses on managerial processes to support sustainability practices in business, especially business practices in hotels.

Strategic Environmental Policies: Electric vehicles vs Internal Combustion Engine Vehicles

Strategic Environmental Policies: Electric vehicles vs Internal Combustion Engine Vehicles

Market size asymmetry and strategic environmental policy in a Cournot model

The achievement of Sustainable Development Goals (SDG) related to the environment requires identifying new sources of environmental degradation. This paper analyzes how market size asymmetry affects government decisions on environmental policy in the context of bilateral international trade and imperfect competition. We model an international duopoly with market size asymmetry and product heterogeneity. Each firm produces two different products, one for the domestic and one for the foreign markets, where the firms' production generates local emissions. When planning policies, the government in each country must choose between two options: an emission tax or a production subsidy. The findings of our paper underline the crucial role of market size asymmetry in determining the non-cooperative equilibrium policy in a setting where both firms and governments act strategically. We find that an increase in market size asymmetry between countries encourages governments to shift from emission taxes to production subsidies. Therefore, the environmental policy must consider these aspects to achieve greater effectiveness of regulation in favor of the environment. Actions to mitigate increased pollution should regulate production subsidies and improve the practices of governments and companies.

Evolving alliance between corporate environmental performance and financial performance: A bibliometric analysis and systematic literature review

AbstractThis study aims to overview the existing literature, knowledge framework, and intellectual structure mapping in the field of corporate environmental performance (CEP) and corporate financial performance (CFP) by employing a bibliometric analysis approach to selected 311 papers sourced from the Scopus database between 1994 and 2022. It presents the publication growth, influential sources, productive authors, and collaboration index of countries using Biblioshiny software. Stringent regulatory regime and stakeholders' pressure followed by a growing trend of publication motivated us to comprehend the evolving facets of the relationship using co‐citation analysis followed by a systematic literature review using coupling analysis which identified five research themes as CEP–CFP relationships—facets, strategies and dimensions, and methodological choices during the initial phase of 1994–2014; and green innovation and corporate sustainability practices, environmental disclosure and environmental responsibility, and green development behavior and practices during 2015–2022. From the insights congregated from research themes, the study discusses prominent developments and provides future research directions to further enrich the field of CEP and CFP. Our findings provide various global regulatory frameworks, government, policymakers, and firm managers the need to explore the dynamic factors while formulating the strategic environmental policy and how it contributes to the financial performance of the firms.

DOES CARBON EMISSION, ENERGY CONSUMPTION AND INCOME MATTER? INVESTIGATING FACTORS AFFECTING HEALTHCARE EXPENDITURE AMONG 61 NATIONS

Empirical studies on the effects of carbon emissions on population health are still in their infancy and its true implications have not yet been fully understood. The purpose of this study is to conduct a comparative analysis on the relationship between carbon emissions, energy consumption, income and public healthcare expenditure in Organisation for Economic Co-operation and Development (OECD) and non-OECD countries. The empirical research employs the dynamic common correlated effects of mean group (DCCEMG) and two-stage least square estimators. The findings indicate that carbon emissions increase healthcare spending only in non-OECD countries. The relationship between energy consumption and health expenditure varies significantly between OECD and non-OECD countries. Income increases health expenditure; however, the correlation is more robust in the OECD than in non-OECD countries. As a result, the findings recommend that non-OECD governments implement strategic environmental management policies that prioritize clean and healthy air to reduce healthcare costs.

Modeling the Linkage between Vertical Contracts and Strategic Environmental Policy: Energy Price Marketization Level and Strategic Choice for China

The lower price of energy leads to higher coal consumption in China. The idea of an “environment-for-trade policy” could be used to achieve an international competitive advantage, which, in turn, has important implications. To address the issue, we develop properties to examine the link between the low price of energy and strategic environmental policy in China and investigate the choice of policy instruments in a strategic environmental policy model with vertical contracts. In addition, to contribute to the literature on strategic environmental policy, this paper also develops properties to investigate different choices of instruments for the environmental policy and includes the degree of energy marketization for the wholesale price in the study. To do so, we assume that the wholesale price of the polluting input increases with the market price. By using this assumption, this paper analyzes the effects of two instruments of the environmental policy on social welfare and concludes that there is no reason to expect both downstream and upstream firms to establish a high wholesale price. Due to the low level of marketization, when the government selects an emission tax as the policy instrument, the optimal tax rates should be higher than the marginal damage of emissions. However, the optimal resource tax is uncertain when its effect on environmental damage is taken into account. In other words, the resource tax is ineffective as a policy instrument. Our results can be used to draw some practical policies for countries to use their energy effectively. To promote energy sustainability, governments should liberate resource prices and reform the system to get efficient environmental policies.

Strategic environmental policy in a differentiated duopoly with overlapping ownership: a welfare analysis

Strategic environmental policy in a differentiated duopoly with overlapping ownership: a welfare analysis

Does Carbon Emissions, and Economic Expansion Induce Health Expenditure in China: Evidence for Sustainability Perspective

The current paper assesses the drivers of health care expenditure such as urbanization, natural resources, economic expansion, and CO2 utilizing quarterly data from 2000Q1 to 2018Q4. The research applied the novel dual adjustment approach to identify the long run association between healthcare expenditure and urbanization, economic growth, natural resource and CO2 emissions. The main novelty of the dual adjustment approach is that the approach offers another way to cointegration analysis by relaxing the implicit assumption of the singular adjustment in cointegration analysis. The outcome of the dual adjustment approach affirmed cointegration among the variables in the long run. Furthermore, we applied fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS) and canonical cointegrating regression (CCR) estimators and their results disclosed that economic growth, urbanization, and CO2 emissions increase health care expenditure while natural resource rent mitigates healthcare expenditure in China. Moreover, the spectral causality test uncovered that urbanization, economic growth, natural resource, and CO2 emissions can predict healthcare expenditure at various frequencies. Based on these findings, China’s policymakers should establish strategic environmental management policies that improve healthy and clean air to reduce healthcare costs. In addition, policymakers in China should reevaluate their urban development strategies to avoid negative externalities associated with fast urbanization.

Emission Markets Linkage and Strategic Environmental Policy

Emission Markets Linkage and Strategic Environmental Policy

Environmental regulations and international trade: A quantitative economic analysis of world pollution emissions

We develop and quantitatively evaluate a general equilibrium trade model with pollution as a byproduct of production to study the interactions between international trade, the environment, and environmental regulations. Our analysis suggests that environmental regulations provide a source of comparative advantage, but we fail to find evidence that reducing trade barriers causes pollution-intensive industries to concentrate in countries with weak environmental regulation stringency. The reason is that as a crucial determinant of pollution emissions and abatement, environmental regulations are weak in determining international specializations. By comparing environmental regulation stringency with other determinants of international trade, we identify productivity and trade costs as being the major forces that suppress the influence of environmental regulations on deciding international production and trade. Furthermore, we incorporate endogenous environmental policy into our framework and explore how environmental policy responds to trade liberalization. We allow for strategic environmental policy, but find its use as a substitute for tariffs to be quite limited. We also evaluate various forces that determine the overall impacts of international trade on worldwide pollution emissions.

Strategic Environmental Policy and the Mobility of Firms

The loss of international competitiveness of domestic industries remains a key obstacle to the implementation of effective carbon prices in a world without harmonized climate policies. We analyze countries’ noncooperative choices of emissions taxes under imperfect competition and mobile polluting firms. In our general equilibrium setup with trade, wage effects prevent all firms from locating in the same country. While under local or no pollution countries achieve the first-best, under transboundary pollution taxes are inefficiently low and lower than under autarky where only the “standard” free-riding incentive distorts emissions taxes. This effect is more pronounced when polluting firms are mobile.

Strategic environmental policy and international market share rivalry under differentiated Bertrand oligopoly

Abstract We analyse strategic environmental policies under international Bertrand oligopoly when firms in different industries, located in different countries, produce differentiated products. Under cooperation, emission prices always exceed the joint marginal damage from pollution. Under non-cooperation, internationally nontradable and tradable emission permit prices are always higher than the domestic marginal damage from emissions (the Pigovian tax); emission taxes can also exceed the Pigovian tax. The non-cooperative emission prices under all instruments can exceed the joint pollution damage. Internationally tradable permits generate outcomes closest to cooperation — they result in the lowest pollution and the highest welfare among all instruments under non-cooperation. Pollution is the highest and welfare the lowest with taxes. Our results provide support for allowing international trade in emission permits even when governments choose their permit levels non-cooperatively.

Environmental policy, innovation and transformation: affirmative or disruptive?

ABSTRACT The paper firstly summarizes the approach and findings to evaluate the effectiveness of environmental policies around the globe as it was undertaken in the Sixth Global Environment Outlook (GEO-6; 2019). The data gathered in GEO-6 reveals (1) a high level of institutional innovation, increasingly from the global south, (2) a lack of environmental policy integration (3) spatial and temporal dynamics and (4) the importance of the policy design. Current environmental policies are, however, not sufficient to effectively preserve natural resources and limit emissions to a sustainable level. This has led to a general recognition of the need for a transformative change that goes beyond mere improvements of efficiency. The second part of the paper analyses how environmental policies could contribute in shaping such transformations to sustainability. Transformative policies can be built on social innovations and experimentation with institutional innovation. This is compatible with incremental and sectoral policy making. However, given the complexity and stability of social systems, the outcomes of such policies are uncertain. This is why we argue for strengthening conventional, strategic environmental policies and complementing rather than replacing them with transformative policies.

International R&D formations and strategic environmental policy

AbstractWe examine relations between strategic environmental policy, international R&D cartels and research joint ventures (RJVs), using a third-country model with Cournot duopoly. We indicate that forming an R&D/RJV cartel reduces governments' incentives to extract rent from consumers in the third country. Contrary to conventional wisdom, we find that social welfare under R&D cartels with full information sharing, i.e., RJV cartels, cannot surpass that under R&D/RJV competition, whereas forming an R&D/RJV cartel works well for environmental investment. Among the policy implications, we show that governments can maximize global welfare by collectively determining whether to allow R&D/RJV cartels.

On the Strategic Effect of International Permits Trading on Local Pollution

We introduce a model of strategic environmental policy where two firms compete à la Cournot in a third market in the presence of multiple pollutants. Two types of pollutants are introduced: a local and a transboundary one. The regulator can only control local pollution as transboundary pollution is regulated internationally. We illustrate that when transboundary pollution is regulated through the use of tradable emission permits instead of non-tradable ones then a new strategic effect appears which has not been identified thus far. In this case, local pollution increases further. We caution that linking permit markets across regions may be welfare detrimental. We also provide evidence from the implementation of EU ETS over the pollution of particulate matters (PM_{10} and PM_{2.5}).