Optimal tax selection under monopoly: emission tax vs carbon tax

A tripartite evolutionary game behavior analysis of the implementation strategy of the internal carbon pricing of enterprises under governments supervision

Internal Carbon Pricing (ICP) represents an innovative approach to carbon emission reduction. The implementation of the ICP involves enterprises and internal organizations, with its outcomes closely tied to government actions. In this study, a tripartite evolutionary game model comprising these subjects was constructed, and subsequent simulation analyses were conducted. The results revealed the following key findings: (1) When the combined total of carbon fees and governments' emission reduction subsidies surpasses the aggregate of carbon fees returned to internal organizations and ICP implementation costs, and when enterprises' revenues exceed governments' subsidies, all three parties will evolve towards ESS (1,1,1). This signifies that enterprises opt for the ICP, internal organizations actively reduce emissions, and governments engage in proactive regulation. (2) Reducing the cost of implementing ICP, increasing the carbon fee rebate ratio, raising governments' subsidies, and elevating the internal carbon price all contribute to promoting the attainment of the evolutionary game results ESS (1,1,1). However, it's important to note that higher governments' subsidies and carbon fee rebate ratios do not necessarily lead to a greater incentive for the three parties to reach the ESS(1,1,1). These findings provide a solid theoretical foundation for enterprises considering the implementation of the ICP in the future.

Threshold effect of technological innovation on carbon emission intensity based on multi-source heterogeneous data

It is of much importance to clarify the impact of technological innovation on carbon emission intensity for the low-carbon transformation of China's economy. This study, based on the panel data of 30 Chinese provinces and municipalities from 2010 to 2020, measures and analyzes the carbon emission intensity and the level of technological innovation, establishing a spatial econometric model to study the spatial spillover effect and a panel threshold model to analyze the nonlinear influence of technological innovation level on carbon emission intensity. The findings are as follows: First, the overall carbon emission intensity in China shows a decreasing trend from 2010 to 2020, with the average dropping from 3.09 in 2010 to 1.98 in 2020; Second, the spatial autocorrelation results reveal that the level of technological innovation and carbon emission intensity in China are obviously aggregated in the global spatial distribution pattern. Third, the regression results of the spatial econometric model show that the direct effect of technological innovation on carbon emission intensity is significantly negative at the level of 1%, that is, the improvement of the technological innovation in a certain area has a significant inhibitory effect on carbon emission intensity. Fourth, based on the level of economic development, there is a significant three-threshold effect of the level of technological innovation on carbon emission intensity in China, and the influence of the level of technological innovation on carbon emission intensity varies in the direction of existence and coefficient values within different threshold intervals. As economic development reaches the third interval, the technological innovation level has the most significant inhibition on carbon emission intensity. These findings enriches the research of the nonlinear relationship between technological innovation and carbon emission intensity, clarifies the spatial spillover effect and threshold effect between among them, and provides inspiration for better promote the low-carbon transformation of economy.

The impact of carbon tax on financial stability

Climate change will have a significant impact on the financial system, and it is crucial to evaluate the impact of climate risk on the financial system. In view of this, this paper evaluates the impact of climate transition risks on the financial system from the perspective of carbon tax. Based on the micro data of bank and enterprise loans, this paper uses a bottom-up approach to study the systemic risk of the banking sector caused by the carbon tax. Based on the actual data of China's banking sector in 2017, we find that there is an exponential relationship between the carbon tax and systemic risk, and there is a threshold for both the whole banking sector and different types of banks. When the carbon tax is higher than the threshold, systemic risk will increase significantly with the increase of the carbon tax level. At the same time, the results show that the systemic risk caused by the carbon tax has obvious sector heterogeneity and regional heterogeneity. Therefore, in the process of implementing carbon tax policies, the differences between sectors and regions should be taken into account, so as to effectively prevent and control systemic risks in the banking sector while improving the efficiency of carbon tax policies.

Carbon tax policy analysis based on distribution channel strategy

This paper establishes a theoretical model to study the carbon tax policy based on a firm's different distribution channel strategy. First, we examine the firm's optimal distribution channel strategies in the absence of government policy intervention. Then, on the assumption that the firm is owned by the society as a whole and taking into account the environmental impact of the firm's decisions, we describe the product distribution strategy that optimizes social welfare. Through the comparison of the above two situations, we find that without the intervention of government policies, the firm's decision may deviate from the decision that optimizes social welfare. Finally, on the basis of the analysis, we propose a carbon tax policy for retailers in distribution channels under different firm distribution strategies. We hope that with the intervention of carbon tax policy, firm decisions can achieve optimal social welfare.

Do Green Banking Activities Improve the Banks’ Environmental Performance? The Mediating Effect of Green Financing

The main purpose of this study is to identify the impact of green banking activities on green financing and banks’ environmental performance. It also identifies the mediating effect of green financing on the relationship between green banking activities and environmental performance of private commercial banks (PCBs) in Bangladesh. Besides, this study also examines the major challenges and benefits of green banking development in an emerging economy like Bangladesh. The convenience sampling technique was used to collect primary data from bankers of PCBs in Bangladesh, and a final sample size of 352 was recorded. To assess the relationship among the study variables, the Structural Equation Modelling (SEM) approach was employed. The empirical results revealed that green banking activities exhibit a significantly positive effect on banks’ environmental performance and sources of green financing, and that sources of green financing significantly influence banks’ environmental performance. Additionally, it was observed that green financing mediates the association between green banking activities and banks’ environmental performance. Furthermore, the study identified customers’ insufficient awareness towards green banking, high investment costs, technical obstacles, lack of capable and competent staff in appraising green credits/loans, and difficulties and complexity in assessing green projects as major challenges affecting the development of green banking in Bangladesh. Moreover, the study also discovered that increasing banks’ competitiveness, reducing long-term costs and expenses, providing online banking facilities, improving customers’ goodwill, and reducing carbon footprints are the key benefits of green banking development, as it helps in the achievement of the sustainable economic development of the country. Therefore, major theoretical and managerial policy implications are further discussed with study limitations and future research directions.