From Covid-19 to conflict: Does environmental regulation and green innovation improve industrial sector decarbonization efforts and environmental management?

During the COVID-19 period, industrial production was slowed or halted due to COVID restrictions and lockdowns, followed by global tensions and conflicts, which created uncertainties for industrial production. Similarly, during this period, the growth in carbon emissions was seen shrinking. However, it is greatly important to explore whether this shrinking trend will continue or whether a new growth pattern could emerge. Considering this, the research was carried out to investigate the relationship between green innovation initiatives and environmental regulations in the process of environmental management and environmental performance in the industrial sector. To do so, the survey-based research methodology using PLS-SEM was adopted, and data was gathered from 279 managers working in the equipment manufacturing industry. Our empirical findings revealed that environmental regulation and green innovation efforts strengthen decarbonization efforts, which further improve environmental management and environmental performance. The mediating role of decarbonization efforts was found to be prominent among green process innovation, environmental management and environmental performance. Moreover, decarbonization serves as a mediator between green product innovation and environmental management. In contrast, we could not verify that decarbonization mediates the relationship between green product innovation and environmental performance. The key findings are greatly important and provide a fresh roadmap for environmental management in the post-COVID era.

Can urban spatial structure adjustment mitigate air pollution effect of economic agglomeration? New evidence from the Yangtze River Delta region, China.

With rapid urbanization, the economic agglomeration within cities is associated with severe air pollution. Urban spatial structure adjustment has been recognized as an effective strategy for improving air quality. However, the research on how to mitigate air pollution originating from economic agglomeration through urban spatial structure adjustment is unclear. Therefore, based on panel data for municipal cities in the Yangtze River Delta (YRD) region during 2008-2018, this study empirically tests the transmission mechanisms among economic agglomeration, urban spatial structure, and air pollution. We use the combination of the social network analysis (SNA) and two-stage least squares (2SLS) methods to verify the effect of economic agglomeration on air pollution. Economic agglomeration's indirect effect on air pollution through urban spatial structure is further tested using mediating effect model and cross-section comparisons. When exploiting an exogenous order rank of node city importance for instrument variable (IV), our finding shows that increasing economic agglomeration by 10% increases air pollution by 12%. In addition, in market forces, monocentricity brings about economic agglomeration's pollution effect, while polycentricity leads to agglomeration's environmental benefits improvement. However, a government-led exogenous polycentricity greatly mitigates economic agglomeration's pollution effect, while in cities with monocentricity, agglomeration slightly increases air pollution. Compared with market power, our paper stresses government intervention in promoting urban spatial structure in terms of polycentric development could be more helpful for improving agglomeration's environmental benefits in China's YRD region.

Exploring a pathway to carbon neutrality via reinforcing environmental performance through green process innovation, environmental orientation and green competitive advantage.

In the light of The Paris Agreement (COP 21), global leaders reached a consensus to curtail the increase in global temperature up to 2.0 °C ideally 1.5 °C pre-industrial level. Likewise, it has become a pathway to accomplish long-term goals of achieving carbon neutrality. In this regard, this paper aims to explore the role of green process innovation and environmental orientation toward environmental performance for achieving the long-term goal of carbon neutrality. In addition, this paper also discovers a mediating role of green competitive advantage in said context. Using data from a survey among managers of equipment manufacturing sector, the study employed structural equation modeling technique and found that green process innovation, environmental orientation and green competitive advantage significantly influence environmental performance. Subsequently, mediation analysis indicated that green competitive advantage partially mediates the relation from green process innovation and environmental orientation to environmental performance. In light of the carbon neutrality targets, the study highlight that improving environmental performance through green process innovation and environmental orientation can be a way-forward for manufacturing sector to play its role to achieve carbon neutrality. The study concludes with theoretical and practical implications.

Structural characteristics and evolution of the "international trade-carbon emissions" network in equipment manufacturing industry: international evidence in the perspective of global value chains.

The objective of this paper is to analyze structural characteristics and the evolution of "international trade-carbon emissions" network in the equipment manufacturing industry. To do so, we construct four kinds of networks, namely export trade network (E network), export implied carbon emission network (EC network), foreign value-added network (FVA network), and foreign value-added implied carbon emission network (FVAC network) for the said industry. The data obtained from world-input-output table and social network analysis method was used for empirical analysis. The results indicate that (1) the four types of networks show a trend of denseness, which also has the characteristics of trade clustering effect and small-world network. As the equipment manufacturing industry in various countries is increasingly embedded in the global value chain, the value chain is extended globally, which leads to the complexity of the international carbon transfer network. (2) The four types of networks' pattern are basically stable. Germany plays an important intermediary role. Whereas China is deeply involved in the division of global value chain and has achieved the shift from the edge to the core in all four types of networks, but there is still a big gap compared with Germany. (3) The E network and EC network have the obvious core-edge feature, and the two kinds of networks can be divided into developed countries block represented by Germany, Japan, the USA; developing countries block represented by China and India; and European Union block represented by Spain and France. The developing world receives carbon emission transfer from the developed world. Finally, (4) the division of FVA network and FVAC network segment shows that the global value chain under the current international division of labor is characterized by multi-regionalization. Therefore, actively embedding in the regional value chain has become an important way for China's equipment manufacturing industry to upgrade to low carbon.

Exploring the impact of technological innovation, environmental regulations and urbanization on ecological efficiency of China in the context of COP21.

The objective of this study was to explore the roles of technological innovation, environmental regulations, and urbanization in ecological efficiency within the context of the 2015 Paris agreement. Initially, the study employed the super-efficiency DEA model to estimate the ecological efficiencies of 30 regions in China. Following this, the system GMM method was used to explore the impacts of technological innovation, environmental regulations, and urbanization on ecological efficiency. We used annual data from 2008 to 2018. The results indicate that, in terms of ecological efficiency, the eastern region was the highest ranked, followed by central and western regions, respectively. The urbanization index has a negative impact on ecological efficiency at a national level. However, in the context of regions, it is positively significant in the eastern region, while the results in the central and western regions are insignificant. The influence of technological innovation on ecological efficiency is found to be significantly positive at both national and regional levels. It is generally perceived that environmental regulations are pivotal for sustainability. Our results verify this argument and indicate that environmental regulations have a positive impact on ecological efficiency in the central and eastern regions. However, their impact is found to be negative in the western region. Policy suggestions are discussed, in order to further strengthen environmental laws and sustainability.

Analyzing the association between innovation, economic growth, and environment: divulging the importance of FDI and trade openness in India.

The objective of this paper is to explore the nexus of innovation-environment and economic growth in the context of the Indian economy. To achieve the study objective, we explored the role of technological innovation, FDI, trade openness, energy use, and economic growth toward carbon emissions. Using the data of 1985-2017, the study employed ARDL bound testing and vector error correction model (VECM) methods to capture the effects of technological innovation, trade openness, FDI, energy use, and economic growth on CO2 emissions. Empirical estimation has confirmed the existence of long-run cointegration. Similarly, in the long run, it is found that trade openness, energy use, and economic growth positively reinforce CO2 emissions. In contrast, technological innovation and FDI negatively reinforce CO2 emissions in the long run. Furthermore, VECM indicates that the relationship among innovation, trade openness, and energy use is bidirectional in the long run. Whereas, unidirectional relation has been found that is coming from GDP to carbon emissions, FDI, innovation, trade, and energy use. In the short run, unidirectional link found which is coming from FDI, innovation, and energy use to carbon emission. However, the association between emissions and trade openness is bidirectional. The conclusions put forward policy implications that innovation is a way to reduce environmental degradation.

Decomposing factors affecting CO2 emissions in Pakistan: insights from LMDI decomposition approach.

Carbon emissions have turned out to be one of the key alarming and complex issues which drive a long-lasting debate over climate change. The increasing trend in the usage of fossil fuels for the curse of economic development and at the same time reducing carbon emissions has become a significant phenomenon worldwide. In this study, we evaluate carbon emissions (CO2) during 1972-2016 by employing logarithmic mean Divisia index (LMDI) method. The results from decomposition using LMDI method indicate that the economic development factor is the main driving force for the increase of per capita carbon emissions in the country; the energy structure and energy efficiency are the restraining factor for per capita carbon emissions. Therefore, Pakistan should continue to upgrade energy structure from traditional sources to renewable energy sources to curb the increase of carbon emissions, and also, improve the efficiency of energy use and save energy to cope with environmental challenges. Finally, the study concludes with some policy suggestions.

Evaluating renewable energy sources for implementing the hydrogen economy in Pakistan: a two-stage fuzzy MCDM approach.

Hydrogen can play a crucial role in increasing energy security and reducing greenhouse gases in Pakistan. Hydrogen can only be a clean and sustainable fuel if it is generated from renewable energy sources (RES). Thus, it is important to evaluate viability of RES for hydrogen production. This study developed a two-stage fuzzy MCDM (Multi-criteria decision-making) approach to select the most efficient RES. In the first stage, fuzzy analytical hierarchy process (AHP) obtained the relative weights of four criteria for the selection of best RES. These criteria included commercial potential, environmental impacts, economic benefits, and social acceptance. In the second stage, data envelopment analysis (DEA) measured the relative efficiency of RES using weights of criteria as outputs, and the cost of RES-based electricity generation as input. The results indicated that wind and solar are the most efficient sources of hydrogen production in Pakistan. Municipal solid waste (MSW) and biomass can also be considered a feedstock for the hydrogen economy. Geothermal reported to be the less efficient source and thus is not recommended at present. Sensitivity analysis confirmed the robustness of results obtained using the developed framework.

Does foreign ownership affect corporate sustainability disclosure in Pakistan? A sequential mixed methods approach.

The objective of this study is to investigate the potential impacts of foreign ownership on the corporate sustainability disclosure of leading non-financial companies in the context of an emerging economy of Pakistan. The study employed data from the year 2006 to 2018 gathered from the Pakistan stock exchange. Further, the data on foreign ownership and corporate sustainability disclosure obtained from the firm's annual reports and the global reporting initiatives (GRI) database. This study employed a sequential mixed methods technique. The empirical results indicate that foreign ownership has a significant impact on total sustainability disclosure (TCSRI). Whereas having an individual assessment, we found that foreign ownership is positively associated with each component (economic, social, and environmental) disclosure respectively. Moreover, our findings prove that firm size and growth are positively related to foreign ownership, TCSRI, and its aspects. In contrast, the study reveals a negative relationship among financial leverage, TCSRI, and economic, social, and environmental sustainability exposure. Summing up, the study indicates that foreign ownership effectively improves sustainability governance mechanism, and at the same time, it is also found that higher financial leverage restricts the sustainability disclosure capacity of firms. Results from this study have technical, theoretical, and policy implications for regulatory institutions, corporate management, and investors in emerging economies. Hence, we put forward the policy implications that the regulatory institutions need to reconsider the policy guidelines subject to diversification of ownership and activism of foreign shareholders in both small/large size firms to enhance the sustainability disclosure practices. Also, reduce the increasing level of financial leverage, which is curbing the firm's economic, social, and environmental reporting activities.

Assessing the solar PV power project site selection in Pakistan: based on AHP-fuzzy VIKOR approach.

Pakistan has an abundant solar power potential which can be effectively utilized for the electricity generation. There are various sites across the country which have sufficient solar irradiation across the year, and thus, suitable for the installation of solar photovoltaic (PV) power projects. This study, therefore, aims to undertake research on the establishment of solar power project site selection in Pakistan. In this context, 14 promising cities of Pakistan are considered as alternatives and studied in terms of economic, environmental, social, location, climate, and orography criteria and further supplemented with 20 sub-criteria. Initially, the analytical hierarchy process (AHP) method has been used to prioritize each of the main criteria and sub-criteria. Later, fuzzy VlseKriterijuska Optimizacija I Komoromisno Resenje (F-VIKOR) method has been employed to prioritize the 14 alternatives. The present investigation reveals that Khuzdar (C2), Badin (C3), and Mastung (C7) are the most suitable cities for the installation of solar PV power projects in Pakistan. Finally, the outcome of the sensitivity analysis revealed that obtained results are reliable and robust for the installation of solar PV power projects in Pakistan. This study shall assist government, energy planners, and policymakers in making cities sustainable by establishing solar power projects in Pakistan.