Making Clean Firms Cleaner: Targeting Environmental Regulation to Maximize Returns

2021 ◽  
Vol 111 ◽  
pp. 436-439
Author(s):  
Paige Weber
Keyword(s):  
Environmental Regulation ◽  
Decision Rule ◽  
Market Share ◽  
Environmental Regulations ◽  
Cost Effective ◽  
Electricity Sector ◽  
Pollution Reduction ◽  
Investment Behavior ◽  
Trade Off ◽  
Pollution Intensity

Many environmental regulations are designed to clean up the dirtiest firms. However, if pollution intensity is negatively correlated with market share, this approach may not be the most cost-effective way to reduce pollution. This paper illustrates the theoretical conditions under which it is more cost effective to incentivize pollution intensity improvements among relatively cleaner firms. I provide a decision rule for regulators designing pollution reduction policy, and I show that the California wholesale electricity sector exhibits investment behavior consistent with the trade-off implied by this rule.

scholarly journals The Effects of Environmental Regulation on the Singapore Stock Market

2019 ◽  
Vol 12 (4) ◽  
pp. 175
Author(s):  
Pham ◽  
Nguyen ◽  
Ramiah ◽  
Mudalige ◽  
Moosa
Keyword(s):  
Stock Market ◽  
Environmental Regulation ◽  
Alternative Energy ◽  
Carbon Tax ◽  
Environmental Regulations ◽  
Five Factor Model ◽  
Abnormal Returns ◽  
Electricity Sector ◽  
The Impact ◽  
Non Parametric

This study examines the impact of environmental regulation on the Singapore stock market using the event study methodology. Several asset pricing models are used to estimate sectoral abnormal returns. Additionally, we estimate the change in systematic risk after the introduction of the carbon tax and related regulation. We conduct various robustness tests, including the Corrado non-parametric ranking test, the Chesney non-parametric conditional distribution approach, a representation of market integration, and Fama–French five-factor model. We find evidence showing that the environmental regulations tend to achieve their desired effects in Singapore in which several big polluters (including industrial metals and mining, forestry and papers, and electrical equipment and services) were negatively affected by the announcements of environmental regulations and carbon tax. In addition, our results indicate that the electricity sector, one of the biggest polluters, was negatively affected by the announcement of environmental regulations and carbon tax. We also find that environmental regulations seem to boost the performance of environmentally-friendly sectors whereby we find the alternative energy industry (focusing on new renewable energy technologies) experienced a sizeable positive reaction following the announcements of these regulations.

Do Environmental Regulations Cost Jobs? An Industry-Level Analysis of the UK

2007 ◽  
Vol 7 (1) ◽  
Author(s):  
Matthew A Cole ◽  
Rob J Elliott
Keyword(s):  
Environmental Regulation ◽  
Environmental Regulations ◽  
Trade Off ◽  
Industry Level ◽  
The Us ◽  
The Uk ◽  
The Impact ◽  
First Time ◽  
Regulation Costs ◽  
Level Analysis

Abstract This paper revisits the 'jobs versus the environment' debate and provides the first analysis for a country other than the US. We firstly examine the impact of environmental regulations on employment assuming such regulations are exogenous. However, for the first time in a study of this nature, we then allow environmental regulation costs and employment to be endogenously determined. Environmental regulation costs are not found to have a statistically significant effect on employment whether such costs are treated as being exogenous or endogenous. We therefore find no evidence of a trade-off between jobs and the environment.

Impacts of Environmental Regulation on Sustainable Economic Growth

2018 ◽  
Vol 9 (9) ◽  
pp. 749-773
Author(s):  
Jonathan Fisher
Keyword(s):  
Economic Growth ◽  
Environmental Regulation ◽  
Technical Change ◽  
Best Practice ◽  
Environmental Regulations ◽  
The European Union ◽  
Porter Hypothesis ◽  
The United Kingdom ◽  
Environment Agency ◽  
Sustainable Economic Growth

There is considerable concern and debate about the economic impacts of environmental regulations. Jonathan Fisher, former Economics Manager at the Environment Agency in England and Wales, reviews the available evidence on this subject. Section 2 presents estimates of the costs and benefits of environmental regulations. Section 3 examines the impacts of environmental regulations on economic growth, innovation and technical change as well as impacts on competitiveness and any movement of businesses to less pollution havens. He questions call for greater certainty regarding future environmental regulations, whereas in fact there should be calls for less uncertainty. This section then suggests how this could be achieved. This section then finishes with an overview of the available evidence. This includes an examination of the Porter Hypothesis that environmental regulations can trigger greater innovation that may partially or more than fully offset the compliance costs. Section 4 then sets out principles for how better environmental regulation can improve its impacts on sustainable economic growth and illustrates how the European Union (EU) Water Framework Directive is a good example of the application of these principles in practice. Section 5 reviews current and recent political perspectives regarding developments in environmental regulations across the EU and shows how the United Kingdom (UK) has successfully positively managed to influence such developments so that EU environmental regulations now incorporate many of these principles to improve their impacts on economic growth. Section 5.1 then examines the implications of Brexit for UK environmental regulations. Finally, Section 6 sets out some best practice principles to improve the impacts of environmental regulation on sustainable economic growth, innovation and technical change.

The Formability and Elongation of Aluminum Alloys AA5083 and AA3003 for Micro-Truss Sandwiches Manufacturing

2020 ◽  
Vol 38 (9A) ◽  
pp. 1396-1405
Author(s):  
Arwa F. Tawfeeq ◽  
Matthew R. Barnett
Keyword(s):  
Aluminum Alloy ◽  
Strain Rate ◽  
Cost Effective ◽  
Tensile Tests ◽  
Truss Structures ◽  
High Quality ◽  
Trade Off ◽  
Clad Layer ◽  
Higher Temperature ◽  
Different Shapes

The development in the manufacturing of micro-truss structures has demonstrated the effectiveness of brazing for assembling these sandwiches, which opens new opportunities for cost-effective and high-quality truss manufacturing. An evolving idea in micro-truss manufacturing is the possibility of forming these structures in different shapes with the aid of elevated temperature. This work investigates the formability and elongation of aluminum alloy sheets typically used for micro-truss manufacturing, namely AA5083 and AA3003. Tensile tests were performed at a temperature in the range of 25-500 ○C and strain rate in the range of 2x10-4 -10-2 s-1. The results showed that the clad layer in AA3003 exhibited an insignificant effect on the formability and elongation of AA3003. The formability of the two alloys was improved significantly with values of m as high as 0.4 and 0.13 for AA5083 and AA3003 at 500 °C. While the elongation of both AA5083 and AA3003 was improved at a higher temperature, the elongation of AA5083 was inversely related to strain rate. It was concluded that the higher the temperature is the better the formability and elongation of the two alloys but at the expense of work hardening. This suggests a trade-off situation between formability and strength. 

scholarly journals How Promotion Incentives and Environmental Regulations Affect China’s Environmental Pollution?

2021 ◽  
Vol 13 (5) ◽  
pp. 2907
Author(s):  
Shiwen Liu ◽  
Zhong Zhang ◽  
Guangyao Xu ◽  
Zhen Zhang ◽  
Hongyuan Li
Keyword(s):  
Environmental Pollution ◽  
Performance Appraisal ◽  
Environmental Regulation ◽  
Environmental Regulations ◽  
Synergistic Effects ◽  
Appraisal System ◽  
Interaction Terms ◽  
Cooperation Mechanism ◽  
Local Officials ◽  
The Government

As for the academics and policymakers, more attention has been given to the issue on how to reduce environmental pollution through the cooperation of environmental regulation and local officials’ promotion incentives. With the use of a city-level panel data of 266 Chinese cities from 2005 to 2016, this study preliminary explores the impacts of environmental regulations, local officials’ promotion incentives, and their interaction terms on urban environmental pollution at national and regional levels by using the spatial Durbin model. The results indicate that the impacts of environmental regulations and local officials’ promotion incentives on urban environmental pollution have achieved the desired goal with the other’s cooperation, and their interaction term’s coefficients on urban environmental pollution are significantly negative. Moreover, spatial heterogeneity is established, and the uneven development of urban environmental pollution among different regions deserves more attention. In order to effectively reduce the level of urban environmental pollution in China, the government should focus on such solutions as enhancing the implementation and supervision efficiency of environmental regulation, optimizing the performance appraisal system of local officials, improving the synergistic effects of environmental regulations and local officials’ promotion incentives, and establishing a multi-scale spatial cooperation mechanism based on both geographical and economic correlations.

Independent Environmental Regulation in India: Less an Authority and more a Process from Below

2018 ◽  
Vol 64 (4) ◽  
pp. 614-626
Author(s):  
Tishyarakshit Chatterjee
Keyword(s):  
Decision Making ◽  
Environmental Regulation ◽  
Regulatory Authority ◽  
Environmental Regulations ◽  
Political Support ◽  
Environmental Data ◽  
Primary Field ◽  
Environmental Laws ◽  
Field Level ◽  
Set Up

With India’s well-intentioned environmental laws and legal interpretations in place, there is still a perceptible weakness in the enforcement of her environmental regulations. This is ascribed to the centralised departmental structure and process of implementation, which prioritise clearances of developmental projects over monitoring and cleaning up of already polluted environments. Although in a democratic set-up, a lack of transparency and participation of knowledgeable stakeholders in decision-making are other process weaknesses noticed. Establishing an Independent Environmental Regulatory Authority has been tried repeatedly but given up mainly because its effectiveness depends on the same resources support as at present, on reliable primary field-level environmental data, not gathered regularly now and on sustained political support. Technically analysing the issues involved, this article suggests a process shift towards a locally relevant, transparent, decentralised, participative and area-science–value-based approach that can strengthen environmental regulation from below.

World Oil Prices Flat to Declining

1994 ◽  
Vol 12 (2-3) ◽  
pp. 159-165
Author(s):  
M.A. Adelman
Keyword(s):  
Natural Gas ◽  
Market Share ◽  
Oil Prices ◽  
Trade Off ◽  
Natural Gas Market ◽  
Demand Growth ◽  
Gas Market

The OPEC cartel failed to keep prices above the competitive level because, among other reasons their market sharing mechanism failed. Their best future seems to indicate a trade-off-by relinquishing some market share for a higher price. Slow demand growth and expansion of the natural gas market should restrict OPEC sales. Non-OPEC is likely to expand but the price will be under downward pressures.

scholarly journals Environmental Regulation, Trade Comparative Advantage, and the Manufacturing Industry’s Green Transformation and Upgrading

2020 ◽  
Vol 17 (8) ◽  
pp. 2823 ◽  
Author(s):  
Mengqi Gong ◽  
Zhe You ◽  
Linting Wang ◽  
Jinhua Cheng
Keyword(s):  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Comparative Advantage ◽  
Manufacturing Industry ◽  
Environmental Regulations ◽  
Manufacturing Industries ◽  
Productivity Index ◽  
Chinese Government ◽  
Factor Productivity ◽  
Trade Patterns

This paper is the first to systematically review the theoretical mechanisms of environmental regulation and trade comparative advantage that affect the green transformation and upgrading of the manufacturing industry. On this basis, corresponding hypotheses are put forward. The non-radial and non-angle SBM (slacks-based measure) efficiency measurement model with undesirable outputs was used, combined with the use of the ML (green total factor productivity index) productivity index to measure green total factor productivity. Finally, the theoretical hypothesis was empirically tested using data from 27 manufacturing industries in China from 2005 to 2017. The results show the following: (1) There is a significant inverted U-shaped curve relationship between environmental regulation and the transformation of the manufacturing industry. In other words, as environmental regulation increases, its impact on the transformation and upgrading of the manufacturing industry is first promoted and then suppressed. (2) When there are no environmental regulations, the trade comparative advantage of the manufacturing industry is not conducive to industrial transformation. However, under the constraints of environmental regulations, the comparative advantage of trade will significantly promote the green transformation and upgrading of manufacturing. Therefore, in order to effectively promote transformation and upgrading of the manufacturing, this paper proposes the following policy recommendations: (1) The Chinese government should pay more attention to the impact of environmental regulation intensity on the transformation of manufacturing industries, further increase the intensity of environmental regulation within the reasonable range, and fully exert the positive effects of environmental regulation on the trade patterns and manufacturing industry transformation. (2) We should further optimize the structure of trade, realize the diversification of manufacturing import and export, and promote its transformation into high-end manufacturing. On this basis, green production technology in the manufacturing industry can be improved through the technology spillover effect. (3) Efforts should be made to improve the level of collaborative development between environmental regulation and trade patterns and to explore the transformation path of the manufacturing industry with the integration of environmental regulation and trade patterns.

scholarly journals On the Use of Market-Based Instruments to Reduce Air Pollution in Asia

2019 ◽  
Vol 11 (18) ◽  
pp. 4895
Author(s):  
Jessica Coria ◽  
Gunnar Köhlin ◽  
Jintao Xu
Keyword(s):  
Air Pollution ◽  
Environmental Degradation ◽  
Economic Activity ◽  
Policy Instruments ◽  
Cost Effective ◽  
Institutional Capacity ◽  
Pollution Reduction ◽  
Environmental Policy Instruments ◽  
Pollution Emissions ◽  
Air Pollution Emissions

The high rates of economic activity and environmental degradation in Asia demand the implementation of creative and cost-effective environmental policy instruments that provide polluters with more flexibility to find least-cost solutions to pollution reduction. Despite their many theoretical advantages, the use of market-based instruments (MBIs) is a relatively recent phenomenon in Asia, partly due to policymakers being unfamiliar with MBIs and countries lacking the institutional capacity to implement and enforce them. This paper reviews the Asian experience with MBIs intended to reduce air pollution emissions and synthetizes lessons to be drawn and areas for improvement.

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