The emission reduction effect of daily penalty policy on firms

Can strengthening environmental justice promote carbon reduction? Evidence from environmental courts in China

Environmental justice is an important safeguard for pollution control, and this paper is interested in its ability to promote carbon emission reduction. One unique facet of reinforcing local environmental justice involves the establishment of environmental courts by Intermediate People's Courts. Taking this as the starting point, this study constructs a quasi-natural experiment to investigate the strengthening of urban environmental justice. Analyzing empirical data from 283 prefecture-level cities in China spanning 2006 to 2019, we employ multi-period and spatial difference-in-differences approaches to probe the impact of environmental justice strengthening on carbon reduction. Our results indicate a substantial contribution of strengthened environmental justice to reducing carbon emissions. Specifically, the establishment of environmental courts can curtail carbon emissions by an estimated range of 11.7 to 12.9%. Also, the mechanism analysis underscores that the carbon reduction effect primarily arises from enhanced efficiency in processing environmental cases. Moreover, this effect is notably pronounced in regions with robust governmental environmental regulations. Notably, in areas with limited public environmental concern, environmental courts effectively complement existing environmental regulations. Furthermore, a significant positive spillover effect of environmental courts on carbon emission reduction is observed in geographically adjacent economic zones.

Environmental regulation, green technology progress and haze reduction and carbon reduction

Coordinated efforts to reduce haze and carbon emissions are important in promoting global climate governance and sustainable development. In this paper, based on prefecture-level data of China from 2005 to 2019, we investigate the impact of environmental regulatory intensity on the emissions of the concentration of PM2.5 and carbon dioxide (CO2). The research indicates that environmental regulation facilitates synergistic governance for PM2.5 reduction and carbon mitigation. Green technological advancement emerges as the primary mechanism through which environmental regulation achieves haze reduction and carbon mitigation. This conclusion remains robust after a series of robustness tests. Furthermore, the results from quantile regression reveal that the haze reduction and carbon mitigation effects of environmental regulation are subject to certain conditional dependencies. Environmental regulation exhibits a significant negative impact on carbon emissions across various quantile points. However, their influence on different quantile levels of PM2.5 concentration displays an asymmetric pattern. Finally, threshold regression findings suggest that there is no significant threshold effect of environmental regulation on CO2 emissions, but there are dual threshold effects on the PM2.5 concentration. Therefore, it is recommended that local governments judiciously implement environmental regulatory intensity, establish interregional policies for haze reduction and carbon mitigation, and fully harness the driving force of green technology to promote a comprehensive green transformation of economic and social development.

Carbon reduction behavior of waste power battery recycling enterprises considering learning effects

The carbon reduction behavior of waste power battery recycling (WPBR) enterprises is essential for promoting resource conservation and environmental protection. Introducing the learning effects of carbon reduction research and development (R&D) investment, this study constructs an evolutionary game model between local governments and WPBR enterprises to study the behavior choice of carbon reduction. The paper explores the evolutionary process and factors affecting carbon reduction behavior choices of WPBR enterprises from internal R&D motivation and external regulation perspectives. The critical results reveal that the existence of learning effects significantly reduces the probability of environmental regulation by local governments while effectively increasing the probability of WPBR enterprises implementing carbon reduction. The learning rate index positively correlates with the likelihood of enterprises implementing carbon emissions reduction. In addition, carbon reduction subsidies considerably maintain considerably negative relation with the probability of enterprise carbon reduction behavior. The following conclusions are drawn: (1) The learning effect of carbon reduction R&D investment is the intrinsic driving force for WPBR enterprises' carbon reduction behavior, which can promote enterprises to proactively implement carbon reduction under fewer constraints of government environmental regulation; (2) Pollution fines and carbon trade prices in environmental regulation can promote enterprises carbon reduction, while carbon reduction subsidies inhibit their reduction behavior; (3) There exists an evolutionarily stable strategy between government-enterprise game only under the dynamic mechanism. The research provides insights for decision-making on enterprises' carbon reduction R&D investment and local government environmental regulation policy under carbon reduction targets.

Facilitate or Inhibit: Corporate Environmental Performance and Financing Costs

The proposed carbon peak and carbon neutralization goals have ushered China into an era of emissions reduction and a climate-oriented economy. With the proposed double carbon goal, China has formulated many environmental protection and green credit policies. This paper aims to assess the impact of corporate environmental performance (CEP) on financing costs, using a panel dataset of companies in China's heavily polluting industries from 2010 to 2019. We employed fixed-effect models, moderating-effect models, and panel quantile regression (PQR) to analyze the impact, underlying mechanisms, and asymmetric features of CEP on financing costs. Our results indicate that CEP has an inhibitory effect on financing costs, with political connections strengthening this effect and GEA weakening it. Moreover, the impact exhibits asymmetry at different levels of financing costs, wherein lower financing costs see a greater weakening effect from CEP. Improved CEP helps to optimize the financing performance of companies and reduce financing costs. Therefore, policy makers and regulatory authorities should work to unblock financing channels for companies, encourage environmental investment, and remain flexible in implementing environmental policies.

The impact of emission trading system on clean energy consumption of enterprises: Evidence from a quasi-natural experiment in China

Research on the ability of environmental regulations to achieve an innovation-offset effect by increasing clean energy use is required. This study aims to verify this by analysing the impact of market-incentive environmental regulation on enterprises' clean energy consumption. Using China's sulfur dioxide (SO₂) emission trading system (ETS) for 2007 as a quasi-natural experiment, the difference-in-differences model and data obtained from the Chinese Industrial Enterprises Database and Chinese Industrial Enterprises Pollution Database were used to determine whether an ETS affects enterprises' clean energy consumption. The results show that an ETS encourages enterprises to utilise clean energy and has a significantly positive impact on enterprises' clean energy consumption. Moreover, this study finds that an ETS promotes clean energy consumption by improving the production of enterprises. This study verifies the rationality of China's SO₂ ETS design.

Information infrastructure and greenhouse gas emission performance in urban China: A difference-in-differences analysis

Owing to its network spillover effect, information infrastructure performs outstandingly in promoting economic growth and technological innovation, and has received widespread attention. However, the ecological performance of information infrastructure, especially its impact on greenhouse gas (GHG) emission performance, has been less studied. To investigate this issue, using panel data for 281 prefecture-level cities in China from 2003 to 2018, we treat the Broadband China policy as a quasi-natural experiment in information infrastructure, and conduct a difference-in-differences (DID) analysis. The results show that: (1) Information infrastructure significantly improves urban GHG emission performance. This conclusion holds even after controlling for pilot selection endogeneity, sampling bias, and other policy interference. (2) Technological innovation, industrial structure upgrading, factor allocation enhancement, and tertiary agglomeration are effective channels for information infrastructure to improve GHG emission performance. (3) The treatment effect varies with city size, digital economy level, and economic status. Specifically, information infrastructure exhibits significant emission reduction performance in cities with large size, advanced digital economy, and leading economic status, while the emission reduction effect drops in other cities. This study provides insights into the transition to a carbon-neutral manner for infrastructure in China and other developing countries.

The mechanism and effects of national smart city pilots in China on environmental pollution: empirical evidence based on a DID model

The policy of the national smart city (NSC) pilots, a new type of urbanization for future development, has been implemented in China in batches. This paper investigates the mechanism and effects of the NSC pilots on the environment. Using the prefecture-level panel data during 2004-2018 period, our multi-period difference-in-differences (DID) estimation shows that the NSC pilots causally mitigate SO₂ (wastewater) pollution by 13.76% (14.36%), which is supported by a series of robustness tests. The mediating effect model indicates that green total factor productivity (GTFP) plays a partial mediating role in mitigating both SO₂ and wastewater emissions, while technological innovation plays a partial mediating role in mitigating wastewater emissions. After introducing the two mediating channels into the multi-period DID model, the reduction effect for SO₂ and wastewater emissions drops to 11.04% (1-e^- 0.117) and 12.1% (1-e^- 0.129), respectively. Comparatively, the NSC pilots contribute to the improvement of GTFP and GTFP takes the major mediating role in reducing SO₂ and wastewater pollution. The heterogeneous effects of the NSC pilots show that the mitigation effect is more pronounced in cities with strong fiscal support, cities with abundant human capital, and cities with high R&D expenditure. Based on these novel findings, this study provides some policy implications for achieving better mitigation effects.