Stringent Environmental Regulations Research Articles

Net‐Zero Transition Pathways in Belt and Road Economies: Insights From Threshold Effects and Heterogeneous Analysis

ABSTRACTGiven the pressing need for economies to mitigate climate change and champion carbon neutrality, this study investigates the threshold effects of financial development and foreign direct investment (FDI) on carbon dioxide (CO₂) emissions in Sub‐Saharan Africa (SSA) within the Belt and Road Initiative (BRI) bloc, taking into account the moderating role of the regulatory environment. Drawing on the environmental Kuznets curve and the pollution haven hypothesis, the study utilizes the dynamic generalized method of moments (GMM) modeling, proposed by Arellano and Bover, to analyze panel data from 37 SSA countries spanning 1990–2022. The findings reveal that financial development in the banking, financial, and private sectors, along with FDI outflows, is associated with a reduction in CO₂ emissions. Conversely, FDI inflows are linked to increased CO₂ emissions. A curvilinear relationship is observed, where initial increases in financial development and FDI correlate with higher emissions, which decline beyond a certain threshold. Stronger regulations enhance the positive impact of financial development on reducing CO₂ emissions. Finally, the findings show a significant heterogeneous effect across the SSA regional blocs. These findings underscore the critical need for implementing stringent environmental regulations and promoting sustainable financial practices to mitigate negative environmental impact. This research provides both theoretical and practical insights into fostering a carbon neutrality agenda and advancing Sustainable Development Goal 13.

Evaluating the influence of environmental regulations on green economic growth in China: A focus on renewable energy and energy efficiency guidelines

China's status as the world's largest energy consumer highlights its pivotal role in global energy consumption and the urgency of enhancing its energy efficiency and renewable energy development. This study evaluates the influence of environmental regulations on green economic growth in China, with a focus on renewable energy and energy efficiency, from 2000 to 2023 across 30 provinces. Using the Metafrontier-Global-SBM super-efficient DEA model, the research measures green economic development through the lens of energy efficiency. An enhanced fuzzy comprehensive assessment gauges the stringency of environmental regulations. To explore non-linear impacts, regional spillover, and feedback effects, a spatial econometric model was applied. The results reveal a U-shaped non-linear relationship between environmental regulations and green economic growth, with significant spatial feedback and regional spillover effects. Environmental regulations are also shown to have a substantial positive influence on the development of renewable energy, a critical driver of green economic growth. Policy implications suggest that strengthening environmental regulations could accelerate renewable energy adoption and foster sustainable economic growth across regions in China.

Boosting low-temperature NH3-SCR performance via mixed-valence cobalt dual active sites

Nitrogen oxides (NOx) have become a critical environmental concern, necessitating the development of highly efficient catalysts for temperature which is lower than 300 °C. Selective catalytic reduction with NH3 (NH3-SCR) is a process where ammonia is the reducing agent for selective catalytic reduction of nitrogen oxides in exhaust gases. The mechanism-property relationship between catalytic active sites and low-temperature denitrification efficiency, however, remains unclear. In this study, we synthesized a series of cobalt-modified nanoparticle catalysts using a scalable citric acid sol-gel method and conducted comprehensive characterizations. Our findings indicate that an optimal cobalt doping rate significantly enhances catalytic activity due to the synergistic effects of reduced nanoparticle size and the dual active sites of Co0/Co2+. Specifically, at a cobalt doping ratio of 1.0, the catalyst demonstrates peak SCR activity, achieving 85.5% NOₓ conversion at 120 °C and complete conversion at 150 °C. These cobalt-modified nanoparticle catalysts feature high deposition of doped Co ions on their surfaces, predominantly as metallic cobalt and CoOx nanoclusters. Compared to undoped samples, the cobalt-doped nanoparticle catalysts exhibit a greater specific surface area, increased acidity, enhanced chemisorbed oxygen, and improved redox properties, all contributing to superior denitrification efficacy. Additionally, Density Functional Theory (DFT) calculations provide assertive evidence into the reaction mechanism, showing that Co2+ sites effectively adsorb and activate NH₃, while Co0 sites are crucial for NO adsorption and activation. The synergistic interaction between Co2+ and Co0 facilitates NN coupling, enhancing overall reaction efficiency. These findings underscore the potential of cobalt-modified catalysts for practical industrial applications, offering robust performance over a wide temperature range and meeting stringent environmental regulations.

How Top-Down Water Regulation Affects the Financial Performance of Enterprises: The River Chief System in China as an Example

As a top-down type of water regulation, the River Chief System (RCS) in China has effectively enhanced urban water quality. Simultaneously, environmental control significantly impacts the financial performance of enterprises. In recent years, the tension between environmental protection and economic development has escalated, underscoring the undeniable economic ramifications of stringent water regulations. Enterprises are the fundamental agents of economic activities and environmental impact, thus becoming the primary targets of water environment regulatory policies. This study adopts the differences-in-differences (DID) method and uses a sample of listed enterprises in the Yangtze River Economic Belt region from 2010 to 2021 to study the impact of the RCS on the financial performance of enterprises. The results show that the RCS harms the financial performance of enterprises. This impact primarily manifests through increased environmental protection investments. Conversely, the RCS does not have a positive influence on enterprises’ technological innovation. This indicates the challenge of stringent top-down environmental regulations in stimulating short-term technological advancements and enhancing enterprise performance. Moreover, the adverse effects of the RCS on financial performance are notably pronounced for non-state-owned enterprises and those located in the upper Yangtze River Economic Belt. This suggests that private enterprises and those in less-developed regions exhibit lower resilience to top-down environmental regulations.

Climate transition risk, environmental news coverage, and stock price crash risk

Sudden shifts in climate policy, technological innovation, and market preference can negatively impact a firm's asset value, leading to potential climate transition risk. While numerous studies have examined the economic implications of climate transition risk, few have explored its impact on stock price crash risk. This study addresses this gap by introducing a novel quantitative method for assessing climate transition risk and analyzing its effect on stock price crash risk. Our findings indicate a significantly positive relationship between climate transition risk and stock price crash risk. This relationship can be mitigated by environmental news coverage. It is also found that the positive impact of climate transition risk on stock price crash risk is mainly realized through the paths of managers' hoarding of bad news and investors' divergence of opinion. The heterogeneity analysis further suggests that the positive effect of climate transition risk on stock price crash risk is weaker for firms with higher ESG performance, whereas this effect is more pronounced for firms with greater exposure to natural disasters and those operating in regions with stringent environmental regulation. Overall, our study provides novel empirical evidence on the relationship between climate risk and financial stability.

Strategies for Green Supply Chain for Agriculture Equipment Manufacturing Industries: Perspective of Blockchain- IoT Integrated Architecture

In order to protect the environment, manufacturing sectors have begun implementing a green supply chain (GSC) strategy. Governments are enacting increasingly stringent environmental regulations; consequently, industries must reduce the environmental impact of their supply chains. Our research investigates the barriers to implementing a GSC in the agriculture equipment manufacturing industries (AEMI). This research aims to discover and prioritize the barriers that impede the implementation of sustainable supply chain strategies in the AEMI. Through an in-depth literature review, contributions from experts, and empirical analysis, seventy-one barriers are identified across ten categories. The top barrier in each category is determined using the Delphi approach. The Fuzzy Technique for Order of Preference by Similarity to the Ideal Solution (F-TOPSIS) method creates an exhaustive framework that evaluates and ranks these barriers. The top five barriers are the lack of an environmental partnership with buyers and suppliers, the design complexity when reusing or recycling old goods or products, carbon emissions, paint shop emissions, lack of environmental education and training professionals that lack the necessary skills and less manpower available for the greening supply chain. This framework facilitates decision-makers to organize resources and create effective strategies for overcoming identified barriers. In addition, we proposed a blockchain IoT integrated architecture and strategies. This integrated architecture and strategies will help to mitigate all GSC barriers. It also increases the supply chain's transparency, traceability and effectiveness, fostering sustainability practices and reducing environmental impacts. Blockchain and IoT facilitate real-time data collaboration, computerized transactions and the implementation of smart contracts, thereby enhancing cooperation, trust and collaboration among stakeholders. Implementing GSC practices enables manufacturers to reduce waste and increase productivity, thereby saving funds. In addition, adopting sustainable practices improves these industries' reputation and brand image among environmentally conscious customers, investors and other stakeholders.

The impact of green public procurement on corporate green innovation: evidence from machine learning and text analysis

Based on a database of over 650,000 green public procurement (GPP) contracts, we apply machine learning and text analysis methods to identify GPP. Our study examines the impact of GPP on green innovation using Chinese companies listed on the A-share market. The study has the following findings. (1) GPP significantly promotes green innovation by alleviating financing constraints and incentivizing green practices. (2) Enterprises in the maturity or growth stage, non-heavily polluting firms, and companies in regions with stringent environmental regulations are more likely to benefit from GPP. Additionally, GPP initiatives from local governments, centralized procurement, and university-based programs provide stronger incentives for green innovation. (3) Demand-side GPP and supply-side subsidies for green innovation have coordination effects. Corporate green innovation is positively influenced by the “Demand-side procurement First, Supply-side subsidies Later (DFSL)” and the “Demand-side procurement and Supply-side subsidies Simultaneously (DSS)” policies.

Expanding European fossil-based plastic production in a time of socio-ecological crisis: A neo-Gramscian perspective

The global plastics industry is undergoing significant expansion, driven by record-scale infrastructure investments that are increasing fossil fuel demand. However, this growth has largely bypassed Europe, where mature markets, limited feedstock availability, and stringent environmental regulations prevail. Despite these constraints, in 2019 the petrochemical conglomerate INEOS announced plans for a new ethane cracker in Antwerp, the single largest project in the European chemical industry for decades. This unexpected development raises questions about how fossil-based plastic production can expand in a region purportedly transitioning away from fossil fuels. Here, we employ a neo-Gramscian perspective on transitions to analyse the INEOS investment as a case study using both documents and interview data. We trace the processes that facilitated this project, examining developments in the broader fossil fuel economy and INEOS's strategies for accommodating local and global transition pressures. Our analysis demonstrates that the investment represents a case of trasformismo, where limited socio-technical reconfiguration enables the expansion of fossil-based plastic production despite ongoing socio-ecological crises linked to plastics. We conclude that the expansion of plastics production in Europe exemplifies broader efforts to maintain fossil fuel hegemony beyond energy production. This finding highlights the need for strategic approaches that address fossil fuels as feedstock to effectively transition towards post-fossil forms of production.

Foreign direct investment, environmental regulation, and energy transition—An empirical study based on data from 38 OECD countries worldwide

AbstractThis study formulates a theoretical hypothesis regarding the intricate interplay among foreign direct investment (FDI), environmental regulation, and energy transition. To empirically validate this hypothesis, a comprehensive analysis is carried out on 38 member nations of the Organization for Economic Cooperation and Development (OECD) over the span of 2003 to 2020, utilizing a panel fixed effects model, a panel quantile model, and a panel threshold regression model. The findings of the research indicate that (1) FDI exhibits an inhibitory impact on energy transition and, according to the heterogeneity analysis, FDI significantly inhibits energy transition in developed nations. However, the inhibitory influence on energy transition in developing nations is not as pronounced. (2) A considerable amount of dampening influence is exerted by FDI on energy transition at various stages of the transition and is most apparent when the transition is in the growth phase. (3) A threshold effect is evident in FDI and environmental regulation in relation to energy transition owing to the mismatch between the two developments. Notably, the influence of FDI on energy transition significantly varies based on the stringency of environmental regulation. As formal environmental regulation surpasses a designated threshold, FDI shifted from facilitating to inhibiting the energy transition. The same conclusions were reached when informal environmental regulation was considered as the threshold variable. Drawing from the conclusions of this paper, the countries of the OECD can develop a theoretical framework to formulate foreign investment introduction policies and regulate environmental regulation efforts to promote the energy transition.

The impact of intelligent investment on corporate green innovation: Moderating effects of executive green perception and environmental regulation

As firms increasingly invest in intelligent technologies while facing environmental pressures, it is crucial to understand the relationship between these investments and green innovation. This study aims to investigate how intelligent investment influences corporate green innovation, as well as the moderating roles of executive green perception and environmental regulation. Multiple regression analyses are employed to test our hypotheses through the use of panel data from Chinese A-share listed companies (2007–2022). According to the research findings, intelligent investment has a significant positive impact on green innovation, and this effect is further amplified by stronger executive green perception and more stringent environmental regulations. It is noteworthy that various types of firms are affected differently by this effect. State-owned enterprises and pollution-intensive industries exhibit stronger positive relationships, while non-high-tech sectors show more pronounced impacts. These findings enhance our understanding of how firms leverage technology to drive sustainable innovation, offering valuable insights for managers seeking to align tech investments with their goals of sustainability, and for legislators and administrators designing effective environmental regulations. It is recommended that policymakers take into account the establishment of regulatory frameworks that are conducive to intelligent investments, thereby fostering green innovation across various industries.

Effect of smart city construction on an urban transition to a low-carbon economy: evidence from China.

China is currently in a new era of an urban transition to a low-carbon economy and digital economic development. Smart cities, as an advanced form of information-based urban development, may be the key to the urban transition to low-carbon emissions. This paper examined the effect of smart city construction (SCC) on urban low-carbon transitions and its transmission mechanisms in China from the dual perspectives of reducing urban total carbon emissions (TCE) and improving urban total-factor carbon emission efficiency (TFCEE). Utilizing a multi-period difference in differences (DID) method, this study was conducted based on panel data of 245 Chinese prefecture-level cities from 2003 to 2021. The results demonstrated that SCC both reduced TCE and enhanced TFCEE. The effects of SCC were stronger in cities with more stringent environmental regulations. SCC achieved the dual effect of reducing TCE and enhancing urban TFCEE by promoting green technological progress and a low-carbon transformation of city residents' lifestyles. Moreover, optimization of the industrial structure was also a transmission mechanism for SCC to improve TFCEE. These conclusions provide an empirical basis for the SCC to empower low-carbon transitions of cities and help countries in different regions to transform the extensive urban development mode and promote urban low-carbon economic development.

Optimization of cleaning process in semiconductor gas delivery system by computational fluid dynamics simulation

Purging specialty gas delivery systems in semiconductor industries are essential for ensuring worker safety and complying with stringent environmental regulations. The cleaning process impacts production costs due to the required resources and time. This study introduced and evaluated various purging methods, combining vacuum, vacuum with purge, pressurization, and pressure-gradient purge steps. Considering the density and viscosity of various specialty gases used in semiconductor manufacturing, such as gaseous NH3, HCl, WF6, and SiCl4, were selected as the representative specialty gases for the system. Considering the utilization of the semiconductor industries, ultra-high purity nitrogen was selected to clean all components of the gas delivery system, including gas channels, filters, pressure regulator and diaphragm valves. Efficiency was measured by monitoring residual gas concentration changes during different purge-step configurations, the number of purge configuration, and step durations. The dynamic behavior of specialty gases was analyzed based on geometric factors and chemical properties. Findings indicated that cleaning dead-end zones was particularly challenging and impacting overall system efficiency. Frequent purge with a short step time proved more effective in removing residual chemicals than the present conventional vacuum purge process with a continuous N2 supply. Employing a pressure gradient between the inlet and outlet enhanced cleaning efficiency. These insights provide valuable guidelines for optimizing purging processes to reduce cleaning time and resource consumption in semiconductor manufacturing.

Innovation-driven development and corporate green innovation

This study investigates the impact of innovation-driven development on corporate green innovation. Leveraging China's national innovation-driven pilot policy as a quasi-natural experiment, we employ a difference-in-differences (DID) approach to demonstrate that this policy significantly boosts corporate green innovation. Our findings reveal three key mechanisms through which innovation-driven development fosters green innovation: stimulating R&D investment, enhancing green innovation efficiency, and promoting corporate social responsibility. Heterogeneity analysis indicates that the policy's effects are more pronounced for firms with higher analyst attention, stricter financing constraints, and more stringent environmental regulations.

Green finance and environmental pollution: Evidence from China

Green finance has emerged as a vital tool in addressing the dual imperatives of environmental protection and economic growth. This study investigates the relationship between green finance initiatives and environmental pollution in China. Drawing on urban data spanning from 2006 to 2021, we employ a comprehensive analysis to discern the impact of green finance policies on mitigating environmental degradation. Our findings highlight the pivotal role of green finance in reducing pollution through channels such as industrial structure optimization, energy mix transformation, and the promotion of green technology. Moreover, we identify specific conditions under which green finance interventions prove most effective, including regions characterized by robust digital economy development, competitive commercial banking, and stringent government environmental regulations. By shedding light on the nuanced interplay between green finance and environmental outcomes, this research underscores the importance of targeted policy measures in fostering ecological sustainability within China's evolving economic landscape.

How do governance indicators, trade openness, industrialization, and population growth affect environmental degradation in BRICS Nations?

Against the backdrop of the dismal performance of BRICS nations in terms of governance, this study examines the relationship between governance indicators and carbon emissions. By employing DOLS and FMOLS cointegration techniques from 1996 to 2022, we find that effective governance helps in reducing environmental pollution. Specifically, indicators namely government effectiveness, political stability, the rule of law, voice and accountability, regulatory quality, and control of corruption show a favourable impact in mitigating carbon emissions. Additionally, our findings reveal that both foreign direct investments and trade openness contribute positively in lowering carbon emissions by introducing advanced technologies and sustainable practices. Conversely, rapid industrialization and population growth exacerbate carbon emissions due to increased reliance on fossil fuels and higher energy demand. Our study underscores the need for enhanced governance, green investments, and stringent environmental regulations to balance economic growth with environmental sustainability in BRICS nations.

Extended Producer Responsibility and Trade Flows in Waste: The Case of Batteries

AbstractIn the debate on international waste trade, the focus on resource efficiency and recycling has gradually begun to accompany the focus on negative environmental externalities. In this context, we examine the impact of extended producer responsibility (EPR) on the export of waste batteries (WB). EPR is considered as a key policy for the “marketization of waste”. WB are a hazardous waste that also contain a high concentration of critical raw materials. As such, they are of strategic importance for the recovery of critical resources, while at the same time requiring proper environmental management. Therefore, it is crucial to understand where WB are treated and how this is affected by related policies. Our results, based on difference-in-difference models in a gravity framework, show a consistent increase in WB exports after EPR implementation compared to the trend for other wastes. This result is likely to be an indirect consequence of the ability of EPR to support growth in waste collection rates, more accurate tracking of transboundary waste flows, and specialization of national waste management systems. In particular, WB exports appear to be directed to countries with more advanced waste management systems, more stringent environmental regulations, and limited endowments of the mineral resources typically contained in batteries.

An XAI Framework for Predicting Wind Turbine Power under Rainy Conditions Developed Using CFD Simulations

Renewable energy sources are essential to address climate change, fossil fuel depletion, and stringent environmental regulations in the subsequent decades. Horizontal-axis wind turbines (HAWTs) are particularly suited to meet this demand. However, their efficiency is affected by environmental factors because they operate in open areas. Adverse weather conditions like rain reduce their aerodynamic performance. This study investigates wind turbine power prediction under rainy conditions by integrating Blade Element Momentum (BEM) theory with explainable artificial intelligence (XAI). The S809 airfoil’s aerodynamic characteristics, used in NREL wind turbines, were analyzed using ANSYS FLUENT and symbolic regression under varying rain intensities. Simulations at a Reynolds number (Re) of 1 × 106 were performed using the Discrete Phase Model (DPM) and k–ω SST turbulence model, with liquid water content (LWC) values of 0 (dry), 10, 25, and 39 g/m3. The lift and drag coefficients were calculated at various angles of attack for all the conditions. The results indicated that rain led to reduced lift and increased drag. The innovative aspect of this research is the development of machine learning models predicting changes in the airfoil coefficients under rain with an R2 value of 0.97. The proposed XAI framework models rain effects at a lower computational time, enabling efficient wind farm performance assessment in rainy conditions compared to conventional CFD simulations. It was found that a heavy rain LWC of 39 g/m3 could reduce power output by 5.7% to 7%. These findings highlight the impact of rain on aerodynamic performance and the importance of advanced predictive models for optimizing renewable energy generation.

Green Credit Policy and asset-debt maturity mismatch in highly polluting enterprises: Evidence from China

China’s Green Credit Policy (GCP) promotes environmentally sustainable practices, which are crucial for ecological responsibility. Despite its importance, the policy’s impact on asset-debt maturity mismatches—a key determinant of financial stability—has not been systematically examined. This research scrutinizes the consequences of the Green Credit Guidelines on asset-debt maturity mismatches in China’s heavily polluting enterprises, employing a difference-in-differences (DID) methodology. An analysis of data from Chinese-listed companies from 2009 to 2017 reveals that the implementation of the guidelines has precipitated a marked shift towards short-term debt as a financing mechanism for long-term assets, particularly noticeable in state-owned and large-scale enterprises. The effects intensify in regions with stringent environmental regulations and companies possessing significant collateral. Moreover, the guidelines amplify financial constraints and decrease long-term debts, prompting firms to strategically embrace greater asset-debt maturity mismatches in response to more rigorous financial conditions. Our findings indicate that although the GCP is designed to promote eco-friendly practices, it inadvertently affects corporate financial decisions, underscoring the complex relationship between environmental policy and financial strategy. This study enhances the understanding of the financial repercussions of environmental policies on corporate actions, offering valuable perspectives to regulators and financial institutions.

Green finance pilot policy and corporate environmental social responsibility: empirical evidence from China's green finance reform and innovation pilot zones.

The establishment of green finance reform and innovation pilot zone (GFRIPZ) is a pivotal strategy for harmonizing the twin goals of economic prosperity and environmental preservation. By applying panel data on Chinese A-share listed firms from 2011 to 2022, this study examines the influence of China's green finance pilot policy on corporate environmental social responsibility (ESR) using a difference-in-differences (DID) model. The study's findings indicate that the green finance pilot policy promotes corporate environmental social responsibility. The results remain robust after a series of robustness tests. Moreover, mechanism analysis reveals that the pilot policy promotes firms' ESR through three key channels: financing constraints, green innovation, and corporate governance mechanisms. Additionally, analyst attention can positively moderate the promotional effect of the green finance pilot policy on corporate ESR. Furthermore, this study reveals that the green finance pilot policy's impact on corporate ESR is more pronounced among large-scale firms and firms operating in regions characterized by stringent environmental regulations and greater marketization. The empirical findings present evidence for enhancing ESR through the implementation of the green finance pilot policy in China and offer insights for refining the green finance system.

“Carbon” suppresses “energy” - How does carbon emission right trading policy alleviate the energy trilemma?

Against the backdrop of addressing the dual challenges of tightening energy constraints and carbon emission reduction, this paper, building upon the construction of an urban-level Energy Trilemma Index, employs a Difference-in-Differences (DID) model to assess the impact of carbon emission right trading policy (CERTP) on the energy trilemma (ET). Key findings include: Firstly, compared to non-pilot areas, the ET in CERTP pilot areas decreased by 1.86 %; the policy's impact persists and is even greater in the long term, reaching 2.84 %. Secondly, CERTP stimulates green technological innovation, improves energy consumption structures, and alleviates ET levels. Furthermore, the study shows that CERTP, as a market-driven energy-environmental strategy, is further enhanced by the regulatory effects of marketization and government intervention. Lastly, the policy's impact is more pronounced in eastern China, resource-based cities, regions with stringent environmental regulations, and areas with high carbon prices. Based on these findings, the paper proposes a series of policy insights, not only aiding in understanding the causal relationship between CERTP and ET but also providing valuable references for designing carbon trading mechanisms to address ET. Importantly, the conclusions offer beneficial guidance for China's energy structure optimization, ensuring energy security and sustainable development goals.