The impact of corporate climate risk perception on green outward foreign direct investment.

How to address climate risks and achieve green transformation has become a critical issue that businesses urgently need to consider. We apply growth option theory and prospect theory to examine the impact of corporate climate risk perceptions on green outward foreign direct investment (GFDI) using a research sample of heavily polluting listed companies in China from 2009 to 2022. Our findings reveal that companies with higher perceived climate risks tend to increase their inclination towards GFDI, and the informal hierarchy of boards reinforces the positive effect of both. Supplementary analyses indicate that through GFDI, corporations can exert positive effects on their own environmental performance and future green innovations. The positive impact is notably more visible in nonstate-owned companies and sample units from provinces along the Belt and Road. These findings extend the economic consequences of climate risk at the firm level from the perspective of international business research and provide empirical references for firms to promote their own green transformation from a practical perspective.

Materials Challenges in the Electric Vehicle Transition.

The ongoing transition toward electric vehicles (EVs) is changing materials used for vehicle production, of which the consequences for the environmental performance of EVs are not well understood and managed. We demonstrate that electrification coupled with lightweighting of automobiles will lead to significant changes in the industry's demand not only for battery materials but also for other materials used throughout the entire vehicle. Given the automotive industry's substantial consumption of raw materials, changes in its material demands are expected to trigger volatilities in material prices, consequently impacting the material composition and attractiveness of EVs. In addition, the materials recovered during end-of-life recycling of EVs as the vehicle fleet turns over will impact recycled material supplies both positively and negatively, impacting material availabilities and the economic incentive to engage in recycling. These supply chain impacts will influence material usage and the associated environmental performance of not only the automotive sector but also other metal-heavy industries such as construction. In light of these challenges, we propose the need for new research to understand the dynamic materials impacts of the EV transition that encompasses its implications on EV adoption and fleet life cycle environmental performance. Effectively coordinating the coevolution of material supply chains is crucial for making the sustainable transition to EVs a reality.

Modeling green energy and innovation for ecological risk management using second generation dynamic quantile panel data model.

Ecological risk management has emerged as a critical research and policy development area in energy and environmental economics. Sustained ecology is crucial for the standard of living and food security. As the adverse impacts of environmental degradation and climate change become increasingly apparent it is imperative to understand ecological risk and its interconnectedness with environmental pressure, clean energy, economic activity, globalization, and green technology. Ecological risk is assessed using the environmental performance index which is a holistic indicator of climate change, environmental pressures and human actions in which most of these indicators have spatial effects. This paper explores the multifaceted relationship between identified anthropogenic critical factors and their role in effectively managing ecological risk globally. This study has developed the second-generation dynamic panel quantile regression considering spatial effects of economic activities on ecology across borders of 55 countries between 1995 and 2022. This innovative hybrid estimation scheme that integrated theoretical and econometric aspects makes the model robust to major regression issues. Several implications ranked in decreasing order of its effectiveness are reducing environmental pressure, expediting energy transition, and embracing economic integration while there is a need to work on rejuvenating green technology and green growth.

The synergistic impact of incentive and regulatory environmental policies on firms' environmental performance.

The imperative to enhance corporate environmental performance is not only pivotal for a company's growth but also crucial for fulfilling societal responsibilities and protecting global environmental interests. Recognizing the inadequacies of standalone environmental policies, our study delves into the synergistic effects of incentive-based and regulatory approaches on the environmental performance of listed firms in China. We meticulously examine the interplay between environmental punishment and subsidies over the period of 2015-2019. Our analysis reveals that a strategic combination of punishment and subsidies can substantially improve firms' environmental performance. This effect intensifies with the increasing amounts of fines and subsidies. Additionally, we explore the dynamic effects of policy implementation. Our results indicate that subsidies implemented either a year before or after the imposition of punishment might diminish the effectiveness of standalone environmental penalty policies. Furthermore, our findings suggest that diverse regulatory policies enhance firm environmental performance by promoting investments in environmental protection and fostering green innovation. This discovery highlights the need for a nuanced understanding of policy mixes and their implications for corporate environmental strategies.

Geopolitical risk and firm-level environmental, social and governance (ESG) performance.

This study investigates the impact of geopolitical risk on firm-level environmental, social, and governance (ESG) performance. Using a news-based indicator of geopolitical risk across 41 countries and a comprehensive dataset spanning from 2002 to 2021 with 65,354 firm-year observations, we uncover that geopolitical risk is negatively associated with ESG performance. Our findings remain robust even when considering alternative measures of geopolitical risk, ESG components, and sub-samples. Moreover, we address potential endogeneity concerns through two-stage least squares, propensity score matching and entropy balancing approaches. Interestingly, we find that the effect of geopolitical risk is positive for countries with lower geopolitical risk and high peace, indicating that relatively stable environments can incentivize firms to enhance their sustainability practices. We also examine the potential channel effects of cash holding, corporate investment, and cost of capital, and found significant effects. Overall, this paper underscores the significance of geopolitical risk as a macro-level shock that significantly influences ESG performance.

Assessment of the environmental performance of sugarcane companies based on waste disposed of on the soil.

Purpose: This study aimed to present an index (IEP) to evaluate the environmental performance of the sugar-energy industrial process based on the waste generated in manufacturing operations. The residues considered in this study were: vinasse, filter cake, ash and soot, residual waters, and sewage sludge. Methods: The index created was developed to take into account, and to be directly proportional to the environmental impact of each residue generated by the sugar-energy production, to the relative spatial dispersion that each waste can reach, and to the environmental fragility of the hydrographic basin where the plant under evaluation is inserted and works. The lower IEP, the better the company valuation. Results: The index was tested in a real company and exhibited an IEP Total = 1,4.1013 km2.p/yr, which shows weak waste management by the enterprise. Vinasse was responsible for 50% of the IEP Total, while filter cake contributed 45% to it. Ash and soot, residual waters, and sewage sludge were together responsible for 5% of the IEP Total. Conclusion: The theoretical conception used in this study is inspiring for the development of new studies on environmental assessment measurement. The study showed that vinasse is the most problematic waste in environmental terms, a conclusion that is in line with academic studies. Nevertheless, the waste with the greatest potential impact on the environment is filter cake. Despite this, filter cake presented a lower IEP(i) than vinasse, given that its negative impact on the basin is smaller. Both wastes contributed 95% of the IEP Total, which places them among the residues to be managed with greater attention.

Regulatory distance and corporate environmental performance: From the perspective of rent-seeking distance.

This paper investigates the impact of regulatory distance on corporate environmental performance using data from Chinese A-share listed companies. The results demonstrate that staying away from regulatory agencies significantly improves corporate environmental performance. The potential impact mechanism is that the increase in regulatory distance significantly suppresses rent-seeking activities. The above impacts are particularly pronounced in companies with weak CEO political and financial connections, state-owned enterprises, and firms in regions with low levels of marketization, owing to the fact that these company characteristics influence firms' ability or inclination to participate in rent-seeking. Further evidence indicates that the effect of regulatory distance on environmental performance will be significantly enhanced by strengthening media regulation and anti-corruption efforts.

Sustainability-oriented management in the SMEs. A multilevel analysis in the European Union.

This research focuses on SMEs in the EU and their acceptance of circular economy practices, with a special attention to the structural characteristics that might be significant drivers. Eight indicators of environmentally friendly practices are studied: water saving, energy saving, renewable energy, material saving, waste reduction, sale of waste materials, waste recycling, and eco-designed products. A sample of European SMEs from EU-28 data (countries at the time of the survey) is used to test hypotheses through eight multilevel probit regression models. Company- and country-level covariates are added to the multilevel models. The results showed that the number of employees, the business sector and the type of products/services sold have an impact on environmentally friendly practices. On the other hand, at the national level, per capita GDP and greenhouse gas emissions are the most relevant factors in the eight models. These findings are relevant for the implementation of the European Green Deal, which aims to increase resource efficiency through the transition to a cleaner EU and circular economy.

Measuring urban environmental performance in China: A Euclidean distance function approach.

Air pollution has been one of the biggest environmental challenges for cities in their pursuit of sustainability. The removal of air pollutants usually entails a cost that can negatively impact economic activities. Assessing urban environmental performance can offer valuable insights for cities to balance their economic production and environmental protection. This paper develops a novel approach to measuring environmental performance by using the Euclidean distance function. An appealing feature of this approach is its ability in endogenously allocating the optimization pathway to each emitter, thereby avoiding arbitrary estimation results and distorted managerial implications. We apply this approach to study the environmental performance of Chinese key environmental protection cities. We find the heterogeneity in performance estimates and endogenous optimization pathways. Prioritizing the reduction of a specific type of emissions while simultaneously increasing industrial output value seems to be the most appropriate objective for the majority of cities. Our study can serve as a basis for urban governments to pinpoint the underlying factors contributing to low urban environmental performance and establish diverse objectives for enhancing environmental performance.

Mitigating the environmental concerns through total quality management and green manufacturing practices.

This study seeks to explore the intricate relationship between total quality management (TQM) and environmental performance (EP), incorporating the mediating role of green manufacturing practices (GMPs). Additionally, the study examines the moderating impact of environmental strategy on the connections between GMPs and EP. Data were collected through a questionnaire distributed to managers of manufacturing small and medium-sized enterprises (SMEs) and were subjected to analysis using structural equation modeling. The results reveal a positive and significant impact of TQM on EP. Furthermore, the findings suggest that GMPs partially mediate the association between TQM and EP, while the anticipated moderating effect of environmental strategy between GMPs and EP is also supported in this study. These outcomes hold valuable implications for enhancing the environmental performance of SMEs through the integration of TQM and GMPs. It is important to note that this research exclusively focuses on manufacturing SMEs; therefore, future studies should extend their examination of this concept to other industries. Additionally, the study's findings provide a valuable roadmap for SME administrators aiming to elevate their environmental performance.

Assessing the impact of environmental regulations on environmental performance in Chinese cities: A spatial Stochastic Frontier Model with endogeneity analysis.

The Chinese government has implemented environmental regulations to address the deterioration of air quality associated with rapid industrialization. However, there is no consensus on whether environmental regulations are beneficial to environmental performance. The technical challenges related to endogeneity and spatial correlation may bias the estimation of the emission reduction effect of regulations. In this study, we comprehensively evaluate the environmental performance of sulfur dioxide regulations in Chinese cities using a novel stochastic frontier model that introduces the single control function to correct estimation errors caused by spatial spillovers and endogeneity. Our analysis emphasizes that insufficient resolution of endogeneity or spatial spillovers may lead to underestimation or neglect of the environmental performance improvements achieved by these regulations. On the contrary, our revised research results indicate that regulations aimed at reducing sulfur dioxide emissions not only successfully control sulfur dioxide emissions, but also have a positive impact on reducing carbon emissions. In addition, we conduct in-depth research on the mechanisms by which environmental regulations improve performance by stimulating green technology innovation and promoting industrial structure upgrading. Based on our research findings, we propose policy recommendations to establish a city cooperation mechanism of technology exchange to achieve synergistic emission reduction and strengthen regional factor circulation.

Growing success with sustainability: The influence of green HRM, innovation, and competitive advantage on environmental performance in the manufacturing industry.

President Xi set a long-term mitigation target of carbon neutrality by 2060 in September 2020 to cut carbon emissions and improve environmental performance. As a result, the current study aims to investigate how green human resource management and green innovation affect environmental performance in pursuit of the ultimate objective of carbon neutrality. Furthermore, the research considers the potential mediating effect of a green competitive advantage to clarify the mechanisms by which GHRM and green innovation impact environmental performance. Data from 278 employees in the manufacturing industry of Heilongjiang Province were collected through a questionnaire, for which we used a quantitative random sampling technique. The study employed the Smart PLS-4 structural equation modeling technique and revealed that all three factors significantly influenced environmental performance: green HRM, innovation, and competitive advantage. Resource-based view (RBV) theory served as the theoretical foundation for the study. The study uniquely contributes to the literature on GHRM, green innovation, competitive advantage, and environmental performance.

A comprehensive analysis of key factors' impact on environmental performance: Evidence from Globe by novel super learner algorithm.

This study aims to analyze comprehensively the impact of different economic and demographic factors, which affect economic development, on environmental performance. In this context, the study considers the Environmental Performance Index as the response variable, uses GDP per capita, tariff rate, tax burden, government expenditure, inflation, unemployment, population, income tax rate, public debt, FDI inflow, and corporate tax rate as the explanatory variables, examines 181 countries, performs a novel Super Learner (SL) algorithm, which includes a total of six machine learning (ML) algorithms, and uses data for the years 2018, 2020, and 2022. The results demonstrate that (i) the SL algorithm has a superior capacity with regard to other ML algorithms; (ii) gross domestic product per capita is the most crucial factor in the environmental performance followed by tariff rates, tax burden, government expenditure, and inflation, in order; (iii) among all, the corporate tax rate has the lowest importance on the environmental performance followed by also foreign direct investment, public debt, income tax rate, population, and unemployment; (iv) there are some critical thresholds, which imply that the impact of the factors on the environmental performance change according to these barriers. Overall, the study reveals the nonlinear impact of the variables on environmental performance as well as their relative importance and critical threshold. Thus, the study provides policymakers valuable insights in re-formulating their environmental policies to increase environmental performance. Accordingly, various policy options are discussed.

The impact of the energy-consuming right trading system on corporate environmental performance: Based on empirical evidence from panel data of industrial enterprises listed in pilot regions.

The energy-consuming right trading system (ECRTS) is a significant institutional innovation in China to address the increasingly severe energy crisis and environmental issues. Identifying the policy effects of energy consumption rights on corporate environmental performance (CEP) is conducive to achieving a win-win situation for China's economic growth and carbon neutrality. This study aims to analyze the impact of energy-consuming right trading system on corporate environmental performance and provide empirical evidence and policy implications for the full implementation of future policies. Using data from Chinese listed industrial enterprises from 2012 to 2019 and adopting the difference-in-differences method and mediation analysis, we empirically analyze the policy effects of energy-consuming right trading system. We find that the energy-consuming right trading system significantly promotes the improvement of corporate environmental performance, and the conclusion remains valid after a series of robustness tests. Further mechanism examinations indicate that the system mainly enhances environmental performance by affecting corporate green technological innovation. Heterogeneity tests suggest that the energy-consuming right trading system has a stronger impact on companies in economically developed regions, non-state-owned enterprises, and those with higher asset flexibility. Our research results can aid in the green transformation of enterprises and provide practical evidence for China to accelerate the comprehensive construction of the energy consumption rights trading market.

The synergetic impact of digital campaigns and economic incentives on environmental performance: the mediating role of household indoor and outdoor activities.

The primary goal of this research is to look into the impact of digital campaigns for environmental and economic incentives on environmental performance, with indoor and outdoor activities of households taken as mediating variables. PLS-SEM was used to evaluate and quantify the novel and complex model to meet the study's goals. Furthermore, data were gathered from 1542 Pakistani households using convenient sampling techniques. The study's findings show that digital campaigns and economic incentives significantly increase household's participation in indoor and outdoor activities, which improves environmental performance. This study contributes to the literature on environmental performance by examining digital campaigns and economic incentives as resilient influencers. Furthermore, this study assists authorities in developing an effective and efficient policy that promotes environmental savaging information while providing economic incentives to encourage the activities. At the same time, it emphasizes environmental concerns and how they can be addressed.

Employees' behavioural action towards corporate environmental performance: The moderating effect of moral reflectiveness.

The evolution of the hotel industry's corporate environmental performance cannot be realized without employees acting in an environmentally friendly manner, such as low carbon behaviour. However, a thorough analysis of the factors influencing employees' low-carbon behaviour and hotels' corporate environmental performance has not yet been done. To overcome this literature gap and envision the social identity theory, this study evaluated how employees' green self-efficacy, environmental awareness, and perceived corporate environmental responsibility facilitate staff low carbon behaviour. Also, the study explored the moderation role of employees' moral reflectiveness. Through a purposive sampling technique, data was collected from 455 employees in the hotel industry in South Africa. The partial least squares structural equation model method examined the proposed hypothesis. The empirical findings revealed that: (1) employees' green self-efficacy, environmental awareness, and perceived corporate environmental responsibility positively influence their low carbon behaviour. (2) Employees' low carbon behaviour directly and positively affected hotels' corporate environmental performance. (3) The outcome supported the moderation effect of employees' moral reflectiveness on the linkage between green self-efficacy and low-carbon behaviour. The practical and theoretical implications are discussed. The limitations and areas of future research are further outlined.

Integrating climate resilience with sports, exercise, and public health expenditures on sustainable environment: Evidence from coastal regions of China.

The adoption of environmentally-friendly habits has become more crucial in the present period as a means to mitigate the rate of environmental degradation and its detrimental consequences. The augmentation of sports, exercise and physical activities has been associated with favourable health outcomes, in addition to the ability to mitigate carbon emissions resulting from vehicular transportation. Consequently, the objective of this study is to examine the influence of sports, exercise, and physical activities, along with public health expenditure, on the environmental performance of China's coastal regions throughout the period spanning from 2010 to 2019. The proposed study employs the Feasible Generalized Least Squares (F.G.L.S) and the Generalized Method of Moments (G.M.M) methodologies. Results show that participation in sports and other forms of physical activity significantly improves environmental performance in China's coastal areas. Likewise, a robust negative correlation exists between air pollution and healthcare expenses, hence favouring enhanced environmental outcomes. Nevertheless, it is important to acknowledge that economic expansion has a direct correlation with increased emissions, hence harming environmental performance. There exists compelling evidence indicating a significant impact on environmental quality resulting from the combined influence of heightened health expenditures and increased engagement in sports. This is demonstrated by the presence of an interaction term between health expenses and sports activities. The findings of this study suggest that there is a requirement to re-evaluate healthcare spending initiatives and sporting activities in order to effectively pursue carbon neutrality goals and improve environmental sustainability.

Measuring the carbon shadow price of agricultural production: a regional-level nonparametric approach.

Climate change poses an urgent threat, necessitating the implementation of measures to actively reduce carbon emissions. The development of effective carbon emission reduction policies requires accurate estimation of the costs involved. In situations where actual prices of commodities are not available in the market, shadow pricing provides a useful method to calculate relative prices between commodities with and without price information. However, most studies focus on the industry, with few contributions on agricultural sector. This paper estimates the shadow price of carbon emissions in the agricultural sector from a provincial perspective, incorporating the impact of livestock into the calculation of carbon emissions and shadow pricing. Our findings indicate that ignoring livestock may overestimate CSP values. On the whole, the level of carbon shadow price is rising, indicating good green development in China's agricultural sector. The two types of convergence results show that there is sigma convergence and beta convergence in the western and central regions, demonstrating a significant improvement in environmental performance.

Schrödinger's Range-Shifting Cat: How Skewed Temperature Dependence Impacts Persistence with Climate Change.

AbstractThe majority of species display strongly asymmetric responses to climatic variables, yet most analytic models used to investigate how species will respond to climate change assume symmetric responses, with largely unknown consequences. Applying a known mapping of population dynamical equations onto corresponding well-studied problems from quantum mechanics, we extend analytical results to incorporate this asymmetry. We derive expressions in terms of parameters representing climate velocity, dispersal rate, maximum growth rate, niche width, high-frequency climate variability, and environmental performance curve skew for three key responses: (1) population persistence, (2) lag between range displacement and climate displacement, and (3) location of maximum population sensitivity. We find that asymmetry impacts these climate change responses, but surprisingly, under our model assumptions, the direction (i.e., warm skewed or cool skewed) of performance curve asymmetry does not strongly contribute to either persistence or lags. Conservation measures to support range-shifting populations may have most benefit near their environmental optimum or where the environmental dependence is shallow, irrespective of whether this is the leading or trailing edge. A metapopulation simulation corroborates our results. Our results shed fresh light on how key features of a species' environmental performance curve can impact its response to climate change.

Financing sources, green investment, and environmental performance: Cross-country evidence.

This article investigates the influence of financing sources and financial constraints on green investment, based on a study conducted with a sample of Eastern European SMEs from 2018 to 2020. We constructed a green investment proxy using principal component analysis, revealing two principal pillars: pure green investment and mixed green investment. Employing two-stage least squares regression analysis (2SLS) and instrumental probit (IV Probit), our results demonstrate that internal finance positively impacts green investment. Conversely, we find that leverage and financial constraints negatively correlate with green investment and environmental performance. The findings of this study provide compelling evidence that SMEs operating in the Eastern European region face significant financial constraints, impeding their ability to adopt responsible investments aimed at reducing their considerable environmental footprints. These results hold valuable implications for both managers and policymakers, emphasizing the importance of facilitating increased access to debt and devising green financial incentives to promote environmentally responsible investments among Eastern European SMEs, particularly during periods of conflicts.