Policy Tools Research Articles

Interregional Environmental Policy Coordination, Natural Resource Endowment, and Green Economic Development: A Quantitative Analysis of China’s Policy Tests

Revealing the linkage between interregional coordination and a green economy is crucial to economic resilience and high-quality development capabilities. Although local governments in China are increasingly emphasizing environmental policy coordination, academics have not fully investigated whether it can advance green economic development. This research aims to quantify interregional environmental policy coordination from the perspectives of policy actor coordination and policy tool coordination and further investigates its green development effects, particularly when considering the mediating role of natural resource endowment. The analysis is based on environmental policies and related data issued by 284 cities in China from 2003 to 2022. The results indicate that (1) interregional environmental policy coordination contributes to green economic development, in which policy actor coordination and policy tool coordination are complementary and indispensable. (2) It exhibits heterogeneity characteristics that have a stronger promoting effect in resource-rich areas, as well as spillover characteristics that gradually weaken with increasing distance. (3) Interregional environmental policy coordination promotes green economic development by reducing natural resource abundance and natural resource dependence; however, both policy actor coordination and policy tool coordination mainly play a role in lowering natural resource abundance. This study offers useful insights for policymakers seeking to maximize economic benefits while utilizing limited resources and protecting the environment.

Can monetary and fiscal policy reduce CO2 emissions? Analysis of regional country groups

PurposeThis study examines the impact of monetary and fiscal policy on carbon dioxide (CO2) emissions from fossil fuel energy consumption. The study extends the literature by linking monetary and fiscal policy to climate action for achieving the net zero emissions goal.Design/methodology/approachIn the empirical analysis, the monetary policy indicator is the lending interest rate, the fiscal policy indicator is the tax revenue to GDP ratio while CO2 emissions from fossil fuel energy consumption is the CO2 emissions indicator.FindingsContractionary monetary and fiscal policy jointly reduce CO2 emissions in the regions of the Americas and Africa. Contractionary monetary and fiscal policy combined with higher renewable energy consumption jointly reduce CO2 emissions in the regions of the Americas, Asia and Europe. Also, contractionary monetary and fiscal policy combined with higher institutional quality jointly reduce CO2 emissions in African countries. Higher renewable energy consumption reduces CO2 emissions in Africa, Asia, Europe and Americas regions while strong institutional quality consistently reduce CO2 emissions in Europe and the Americas.Practical implicationsMonetary and fiscal authorities should strengthen existing institutions, increase renewable energy consumption, and increase interest rate and taxes on the fossil fuel economy in a coordinated manner to reduce CO2 emissions from fossil fuel energy consumption.Originality/valueThere are calls for monetary and fiscal authorities to use policy tools to support ongoing efforts to achieve the net zero emissions goal. However, limited attention has been paid to the regional differences in the relationship between monetary-fiscal policy and CO2 emissions.

The Efficacy of Monetary and Fiscal Policies on Economic Growth: Evidence from Thailand

This study empirically explores the dynamic effect of MP and FP on the economic growth of Thailand from Q1:2003 to Q2:2024. In this study, data analysis was conducted using an advanced sequence of the econometric modeling approach to guarantee that the estimated results were more consistent and reliable. First, we used Bayesian additive regression trees (BART) and Bayesian variable selection (BASAD) methods to determine macro factors with the highest probabilities influencing growth, in addition to monetary and fiscal policy tools during the studied periods. Second, we used the time-varying coefficients seemingly unrelated equation (TVSURE) model to examine the economic impact of MP and FP. Last, we also employed the Markov switching regression (MSR) model not only to support the findings from the TVSURE model but also to propose policy recommendations based on regime durations and transitions tempted by MP and FP. The main results from both TVSURE and MSR reveal the following: (1) MP is more consistent with expected growth outcomes while FP is stronger when localized, (2) MP is more effective in sustaining long periods of high growth, (3) FP is significantly stronger in recovering from recessions, and (4) the coordination of MP and FP has a similar performance to MP alone but with shorter transition periods. This study makes an empirical contribution to the ongoing debate on the effectiveness of MP and FP in boosting growth and aiding in the recovery from recessions in the case of Thailand. In addition, this study not only acknowledged certain limitations but also recommended policies to sustain the Thai economy.

Re-discover student engagement from the perspective of definition and influencing factors

In recent, the topic of student engagement has received a great deal of academic attention. However, there are numerous definitions of student engagement. Will this lead to inaccuracies and ambiguities in future definitions of student engagement? Therefore, it is important to have a common understanding of student engagement. In this paper, I present three definitions of student engagement that have the potential to be widely accepted. Additionally, in order to study student engagement in more depth, it is crucial to focus factors that influence student engagement. In this paper, 30 articles from three databases, Google Scholar, Taylor & Francis Online, and SAGE, were screened for data analysis based on the inclusion criteria. Three influences were extracted from the included articles, namely student self-control, teacher empathy, and learning environment, which were analyzed as possible indirect influences. An interesting finding is that the learning environment may act as a direct influence. Meanwhile, in order to improve student engagement, this paper draws on Schneider and Ingram’s categorization of policy tools, e.g., authority, incentive, and capacity tools, then formulates a causal model of the influences on student engagement, as well as provides a number of interventions, and finally offers some insights.

The utility of the Living Planet Index as a policy tool and for measuring nature recovery.

The Living Planet Index (LPI) is a leading global biodiversity indicator based on vertebrate population time series. Since it was first developed over 25 years ago, the LPI has been widely used to indicate trends in biodiversity globally, primarily reported every two years in the Living Planet Report. Based on relative abundance, a sensitive metric of biodiversity change, the LPI has also been applied as a tool for informing policy and used in assessments for several multilateral conventions and agreements, including the Convention on Biological Diversity 2010 Biodiversity Target and Aichi targets. Here, we outline all current and some potential uses of the LPI as a policy tool and explore the use of the LPI in policy documents to assess the reach of the LPI geographically and over time. We present limitations to the use of this indicator in policy, primarily relating to the development of the index at the national level, and suggest clear pathways to broaden the utility of the LPI and the underlying database for temporal and spatial predictions of biodiversity change. We also provide evidence that the LPI can detect recoveries in biodiversity and suggest its suitability for measuring progress towards the goal of biodiversity recovery by 2050.This article is part of the discussion meeting issue 'Bending the curve towards nature recovery: building on Georgina Mace's legacy for a biodiverse future'.

Analysis of the Impact of the "Rural Teacher Support Program" Policy on Educational Equity in China

In China, educational equity is a significant public concern. To address the urban-rural educational gap, the government launched the "Rural Teacher Support Programme." This paper analyzes the policy's impact on educational equity, detailing its background, objectives, and implementation measures. It assesses the programme's effectiveness in enhancing rural education quality, narrowing the educational divide, and boosting rural students' learning engagement. The research also identifies challenges in implementation, including teacher training, career development, cultural differences, and teacher composition disparities. Recommendations include promoting digitalization, increasing joint funding, and optimizing teacher incentives. Findings reveal notable improvements in the rural teaching workforce, including increased teacher numbers, quality, and living conditions, alongside enhanced stability and professional development opportunities. However, disparities in policy effectiveness persist across provinces, with local governments showing bias in policy tool application, particularly in recruiting and training arts educators. Overall, the programme has successfully diversified policy tools to improve rural teacher retention.

Research on quantitative evaluation of medical insurance fraud supervision policy based on ‘Antecedents-Process-Outcomes’ framework

Fraud in medical insurance is a serious problem that threatens the safety and sustainability of medical insurance funds. The process of reducing or even eliminating the impact of fraud is related to maintaining the balance of payments for medical insurance funds and reforming the payment system based on total amount control. As a result of reviewing the policy background of medical insurance fraud in China, combined with the policy evaluation model in the area of public management, this paper develops a conceptual framework of ’Antecedents-Process-Outcomes’ that emphasizes the fraud and governance of medical insurance funds. This paper uses grounded theory to look at 180 cases of medical insurance fraud and then uses the PMC index model to rate 18 policies. It then looks at the joint progressive analysis framework of medical insurance fraud and fraud supervision. In this paper, we analyze the policy similarities and differences of medical insurance fraud supervision in China from three perspectives: policy attributes, policy contents, and policy effects. The average PMC index of the 18 policies is 4.98, which is generally acceptable; however, there are some deficiencies in the policy field, policy supervision chain, policy orientation, and policy tools. Then, it puts forward suggestions for improving the four policy shortcomings in order to provide theoretical and practical enlightenment for the high-quality development of the medical security system and realize the new medical security in the process of Chinese-style modernization.

The effect of collateral-based monetary policy on green finance: Evidence from China

Research background: Green finance is crucial to accelerating China’s green transition, and its growth depends largely on the corresponding monetary policy. To increase financial institutions’ support for the green economy, China’s central bank has recognized green bonds as eligible collateral for monetary policy tools since June 1, 2018. Purpose of the article: In this context, we investigate the effect of collateral-based monetary policy (CBMP) on green finance (GF) in China by utilizing a quasi-natural experiment approach. Methods: Using the Propensity Score Matching-Difference in Difference (PSM-DID) method and daily bond trading data, we investigated the impact of CBMP on the cost and availability of green finance. In further analysis, we employed bond issuance data and listed company data to examine the spillover effects of CBMP and its influence on the real economy. Findings & value added: Our results suggest that CBMP, in the secondary market, actively stimulated the growth of GF by reducing green bond spreads and expanding their financing scale. Furthermore, this beneficial outcome is particularly obvious for low-grade green bonds, bonds issued by state-owned enterprises (SOEs), and in regions with stringent environmental regulations and high government green attention. Particularly, we have also found that there exists a spillover effect across markets, i.e., endowing collateral eligibility to green bonds in the secondary market, can reduce bonds’ spreads and increase bonds’ financing scale in the primary market. Finally, we have found that CBMP effectively incentivizes corporate green behavior rather than “greenwashing”. Our findings suggest that China should further optimize CBMP, focus more on non-SOEs green finance difficulties, and strengthen local governments’ green attention and implementation capacity.

Threats and ambivalence in land formalization: The case of settler-colonial land regime in East Jerusalem/al-Quds

Urban land formalization, i.e., land titling and registration, is commonly viewed as a primary policy tool for addressing urban poverty and fostering socioeconomic and spatial development, especially in the urban informalities of the Global Southeast. While critical perspectives on urban land formalization highlight the threats and risks associated with the market-driven logic of land formalization, in this paper, we examine the perils of displacement and property rights erosion in the context of settler colonial land regime. Through the analysis of Israel’s initiative to formalize Palestinian land in East Jerusalem, we contend that risks and benefits of land formalization programs are contingent upon the land regime whithin which they are implemented. We demonstrate how potential benefits of land formalization, alongside its potential threats, produce ambivalence among target communities. This ambiguity becomes ingrained in settler colonial land practices of land formalisation and translates into noncooperation by Palestinians with the Israeli land formalization initiative. Thus, we emphasize the significance of analyzing local land regimes and politics to better understand the specific threats and opportunities and their impact on target communities.

The Forward Guidance Puzzle and Anchored Inflation Expectations

In recent years, central banks have turned to forward guidance as a key tool of monetary policy. However, standard DSGE models overestimate the impact of forward guidance on the economy, a phenomenon known as the “forward guidance puzzle.” In the model employed, the reaction of firms to a central bank’s announcements depends on the degree of anchoring of inflation expectations. When firms do not revise their forecasts much in response to inflation surprises, the effects of forward guidance shocks are attenuated. Furthermore, an increase in the Taylor rule coefficients implies a faster reversion of inflation and output to their steady state levels, thus resulting in more anchored inflation expectations and dampened effects of forward guidance announcements. However, the central bank's exclusive focus on price stability eliminates forward guidance effects. This paper also studies the dependence of forward guidance on fiscal policy, which arises in a nonRicardian economy. We show that the initial effects of the central bank’s announcements become considerably stronger when steady state debt is positive, whereas a stronger reaction of fiscal policy to debt fluctuations attenuates the power of forward guidance.

Carbon Tax Policy, Stranded Assets and "Double Pillar" Regulation

The risk of a transition from climate policy has drawn widespread attention from central banks. By constructing a new Keynes dynamic stochastic general equilibrium model (NK-DSGE) including climate policy, asset quality and "two-pillar" policy, this paper studies the possible transition risk caused by carbon tax policy and analyzes the transition risk from the perspective of stranded assets. On this basis, the effect of the "dual-pillar" policy to deal with the transformation risk is further evaluated and the optimal policy combination is found through the comparative analysis of social welfare. Research shows that:(1)carbon tax policy has a significant emission reduction effect, but it may cause "stagflation" and lead to the "grounding" of carbon-intensive assets, causing a certain risk of transformation.(2)When the central bank deals with the risk of transformation, it should not only focus on the inflation target. At the same time, we should actively stimulate output, promote the development of the low-carbon sector, solve the mismatch between energy supply and demand, and address the root cause of inflation. When the central bank operates the price monetary policy, the central bank can reduce the risk of transformation and improve the operation efficiency through interest rate smoothing.(3)The macro-prudential policy of "brown punishment" can effectively alleviate the risk of transformation and improve social welfare. The macro-prudential policy of "green support" will not only promote the economic recovery, but also lead to the rising leverage ratio of banks in the short term, aggravating the financial risks faced by banks and causing the loss of social welfare.(4)An effective "two-pillar" policy mix is better to the single use of monetary policy tools in mitigating transition risks and improving social welfare.

Политические функции Банка России

This paper examines the political role that the Bank of Russia plays in its activities and its impact on the economy of the country and the welfare of the population. The purpose of the paper is to analyze the political functions of the Bank of Russia with a focus on its key rate, both domestically and externally, and to consider domestic and foreign policy cases related to this issue. An analytical and empirical approach is used to achieve this goal. Academic research, theoretical models and practical examples related to the policy of the Bank of Russia and its impact on the economy are analyzed. The experience of other countries, especially those that apply key rate instruments in their policies, is also considered. The study reveals that the Bank of Russia key rate has an important political importance both inside and outside the country. As a domestic policy instrument, the rate is used as a tool to achieve domestic policy goals, such as controlling inflation, stimulating economic growth, and supporting financial stability. As a foreign policy tool, the rate is a means of soft power and political influence, especially in the context of global financial markets, where global actors are guided by the actions of the Bank of Russia. The results of the study emphasize the importance of understanding the Bank of Russia's political functions and its impact on the economy and public welfare. This is essential for developing effective economic policy and making informed monetary policy decisions. Thus, this article contributes to the expansion of knowledge about the Bank of Russia's political functions and its role in economic development. It offers an analytical view of the key rate and explores domestic and foreign policy cases in order to cover more fully the issues related to the policy of the Bank of Russia and its impact on various aspects of public life.

Социально-экономическое развитие города Магадана в условиях плановой и рыночной экономики (1960–2020 гг.)

The development of Russian northern cities and their unique transformation during the post-Soviet period present a compelling subject for research in terms of identifying both general trends and differences. Although northern cities are relatively younger than their central and southern counterparts, they serve as strategic hubs for the development of critical territories, including the Arctic. One such city is Magadan, located in the Russian Far East. This research provides a comprehensive analysis of the key economic sectors in Magadan, evaluating management practices and the effectiveness of government support under distinct economic systems from 1960 to 2020. The study aims to assess the socio-economic development of Magadan and identify the main factors influencing its trajectory under both planned and market economies. A combination of historical, economic, statistical, and comparative analyses was employed, alongside visualization and elements of systems analysis. Archival data from 1960–1990, characterizing the city's socio-economic development, were examined and are now introduced into scientific discourse for the first time. The findings reveal that during the planned economy era, Magadan experienced major growth, with integrated development across industries, population increase, and economic appeal driven by northern benefits provided by the government. In contrast, the market economy era saw economic contraction, reduced living standards compared to the national average, and migration shifts, including a population decline both regionally and within the city itself. Magadan transitioned from a dynamically growing city under the planned economy to a declining one under market conditions. The primary drivers of these changes were shifts in management principles and the diminishing effectiveness of northern benefits as a policy tool. The results of this study have implications for developing socio-economic strategies and government programs supporting northern and northeastern cities. Future research will focus on identifying a viable “smart shrinking” model to address these challenges.

THE IMPACT OF ECONOMIC SANCTIONS ON INDUSTRIAL DEVELOPMENT

Economic sanctions, as tools of foreign policy, have a significant impact on the industrial development of affected nations, influencing financial transactions, trade, and technology access. The goal of the article is to show how economic sanctions, on the one hand, create challenges, such as production disruptions and reduced investments, on the other hand, opportunities, such as encouraging innovation, self-reliance, and economic resilience. Through case studies, it seeks to uncover the specific ways in which sanctions impact different industrial sectors, and how countries can transform these challenges into opportunities for growth. By combining economic, legal, and policy perspectives, supported by both qualitative and quantitative analysis, the implemented study offers insights for policymakers and industries on how to reduce the negative effects of sanctions while identifying pathways for sustainable growth and industrial development. The findings emphasize the importance of adaptive policies and strategic legal approaches in achieving industrial resilience under challenging conditions.

Development of the russian sphere of small, medium-sized enterprises and self-employed and its state support at the federal and regional levels in emergency conditions

Support for small, medium-sized enterprises and self-employed is an essential tool of the state policy of countering crisis phenomena, ensuring socio-economic development. The article discusses the results of the impact of the accelerated expansion of the system of state support for small, medium-sized enterprises and self-employed in Russia in recent years under emergency conditions on the dynamics of the development of their constituent groups: small, medium, individual entrepreneurship, as well as the self-employed. The latter are officially, by law - not entrepreneurs. But they, their numbers, are usually considered in official Russian documents, including statistical materials, as a common whole with small and medium-sized enterprises. The object of the study is both these groups (small and medium-sized enterprises plus self-employed) and the system of their support in its current form. The accelerated growth of employment in the group of small and medium entrepreneurship, in the group of self-employed people observed in our country is due to significant improvements in the system of their state support. The breakthrough in the formation and expansion of this system of support is due to the increased attention of the state to these spheres as effective means of counteracting crisis processes, damping economic and social failures. This increased attention is due to the extremely difficult situation in the economy of the country and its regions. It is noteworthy that the system of state support for small and medium-sized enterprises, as well as the self-employed, takes into account the specifics of each of the country's regional economies.

Economic Sanctions: How to Make International Trade a Legal Right Instead of a Privilege

The wave of new economic trade sanctions in the world needs the comprehension of the grounds and potential consequences of this phenomenon. The author summarizes the annual reports of the UN Special Rapporteur on the negative impact of the unilateral coercive measurers for 2015–2022. Also, the paper explains why the “broken windows theory” is relevant to unilateral economic sanctions imposed by developed countries against developing countries. Analyzing the results of voting in the UN for non-specific country sanction issue resolutions, the author proves that the developed countries and European developing countries except Russia usually support economic sanctions as a policy tool which is unlikely for non-European developing countries. The increase in multi-regionalism facilitated by imposed or potential economic sanctions is a factor which could lead to the collapse of the unilateral system of international trade regulations under the WTO scope. Finally, the paper offers to unblock the Doha Round of WTO negotiations through a switch from multilateral agreement ideology to plurilateral agreement ideology, starting from signing an in-depth and comprehensive anti-economic sanctions agreement initiated by the BRICS member states.

Tripartite Evolutionary Game Analysis of Green Coal Mining: Insights from Central Environmental Protection Inspection

This paper constructs an evolutionary game model involving the “central government–local government–coal enterprises” to explore the impact mechanism of central environmental protection inspection on green coal mining. By analyzing the strategic behaviors of the key actors, this study identifies critical factors that influence their decisions. System simulations are conducted to assess the effects of key parameters on system stability and convergence. The findings indicate the following: (1) Increasing inspection costs weaken the central government’s support for green mining, with excessive costs potentially causing regulatory fatigue. Moderating inspection investments is key to sustaining long-term effectiveness. (2) Higher penalties for local governments improve the enforcement of green mining policies, particularly in the mid-term, showing that stringent penalties are an effective regulatory tool. (3) Lower technical costs and greater economic incentives encourage coal enterprises to adopt green mining practices, highlighting the role of innovation and profitability in driving green transitions. (4) Central government subsidies enhance local governments’ short-term enforcement but may lead to dependence if overused. Balanced subsidy policies are essential for sustained policy implementation at the local level. Based on these findings, the paper proposes policy recommendations to improve inspection mechanisms, optimize policy tools, and establish a collaborative regulatory system to ensure the long-term effectiveness of green coal mining.

FINANCIAL SECTOR DEVELOPMENT AND AGRICULTURAL OUTPUT IN NIGERIA

This paper investigated the impact of financial sector development on agricultural output from 1981 to 2023 both in the short and the long run. The descriptive statistics and stationarity tests were conducted prior to the long run test using the Johansen co-integration and the Vector Error Correction Model (VECM). The Johansen test showed evidence of long run causality among the variables in the model. The serial correlation and the heteroscedasticity tests were conducted in addition. The result revealed the presence of linkage between lending rate, exchange rate and agricultural output. Loan to private sector and loan to agricultural sector as a proxy of financial sector development positively affected agricultural output in the short run. In the long run, lending rate and loans to private sector were negatively related to agricultural output while loan to agricultural sector had positive effect on output. The positive effect was, however, insignificant in the long run. This implies that in addition to finance and credits, peripheral factors such as insecurity, poor infrastructure, supply chain disruptions and low productivity are pervasive in their influence on agricultural performance to agriculture in Nigeria over the long term. The study recommended that the Central Bank of Nigeria through its monetary policy tools should ensure loans through the deposit banks are made accessible to genuine and credit worthy farmers at the lowest possible cost while addressing the insecurity issue. Keywords: Agricultural output, Exchange rate, Financial sector development, Lending rate, Loan to agricultural sector, Loan to private sector, Vector Error correction model

EFFECTIVENESS OF MONETARY POLICY TOOLS ON NIGERIA'S ECONOMIC GROWTH AND THE MODERATING IMPACT OF FINANCIAL SECTOR DEVELOPMENT

This study investigated effectiveness of monetary policy tools on Nigeria’s economic growth and assessed the moderating impact of financial sector development. Annual time series data on Gross Domestic Product (GDP), Exchange Rate, and Inflation are obtained from Nigerian Central Bank's statistical and Monetary Policy and Credit Availability were obtained from World Bank Development Indicators covering 31 observations from 1991 to 2022 were used in the study. Data were analyzed using the Autoregressive Distributed Lag (ARDL) model. Research results show that, there exists a positive significant relationship between exchange and Inflation rates with economic growth over the long term; also, positive significant relationships can be detected in the growth of money and volume of credit with economic growth in the long term. On the other hand, the monetary policy rate and credit availability significantly negatively affect economic growth in the long term. These consequences explain that inefficiency exists in the financial environment or monetary policy instruments in isolated applications without considering the context of the financial sector, which needs to be more durable and realistic enough to be effective. In addition, the analysis with the Autoregressive Distributed Lag (ARDL) model for both levels and the first difference, confirm the existence of a long-run cointegration among monetary policy measures and economic growth. Therefore, the negative coefficients on both the monetary policy rate and the availability of credit indicate that monetary policy, if adjusted effectively, can serve as a powerful tool to initiate the desired economic expansion. This finding instills hope and optimism for the future of Nigeria's economy.

Vocational training and employment as a tool for professional adaptation of war veterans

Practice has proven that professional training of war veterans is one of the tools of war veterans adaptation policy, formation of adaptation skills and return of ex-servicemen to peaceful life. The authors, raising this current topic, consider the problem of resocialization of veterans and their return to the labor market as a component of the policy of forming an inclusive labor market. With the goal of the research being the development of specific proposals and algorithms for improving the mechanisms of professional training of war veterans and their further employment, the authors analyzed the available foreign experience and bases of sociological surveys. The article examines theoretical aspects and approaches to the professional adaptation of war veterans to civilian life in modern conditions. The theoretical constructions of the study are considered, the characteristics of war veterans and combatants who are persons with disabilities are determined. The possibilities of their adaptation to civilian life in the absence of general demobilization are summarized. It has been proven that the main tool of professional adaptation of war veterans is professional training, but the effectiveness of such training is determined by further employment after its completion. Taking into account the analysis of the situation regarding the professional training of war veterans, which is conducted by the state employment service, the authors highlight the main problems of such training and further employment of this population category. Ignoring the problems of organization, legal regulation of professional training of war veterans and their further employment will have a negative impact on the veterans themselves, their families and society as a whole, which is confirmed by the experience of other countries that dealt with issues of adaptation of war veterans to civilian life. Ways to eliminate the problems and obstacles of professional training of war veterans and their employment for their effective adaptation to civilian life are proposed, including: on the basis of conducting a questionnaire of war veterans, determine their needs in rehabilitation, educational, social, medical services, employment services and professional training; conducting professional training of war veterans taking into account modern military and individual needs of war veterans and others.