Policy uncertainty and corporate performance in government-sponsored voluntary environmental programs.

This study combines insights from the policy uncertainty literature and neo-institutional theory to examine corporate performance in implementing a government-sponsored voluntary environmental program (VEP) during 2004-2012 in Guangzhou, China. In this regulatory context, characterized by rapid policy changes, corporate performance in VEPs is affected by government surveillance, policy uncertainty, and peer pressures. Specifically, if VEP participants have experienced more government surveillance, they tend to perform better in program implementation. Such positive influence of government surveillance is particularly evident among those joining under high and low, rather than moderate uncertainty. Participants also perform better if they belong to an industry with more certified VEP firms, but worse if they are located in a regulatory jurisdiction with more certified VEP firms. At a moderate level of policy uncertainty, within-industry imitation is most likely to occur but within-jurisdiction imitation is least likely to occur.

Stakeholder demands and corporate environmental coping strategies in China.

This paper examines how stakeholder demand and compliance capacity jointly shape corporate environmental coping strategies and subsequently environmental protection practices. A four-dimensional classification of coping strategies-formalism, accommodation, referencing, and self-determination-is conceptualized. Drawing on survey and interview data collected from manufacturing enterprises in China between 2010 and 2012, the paper shows that compared with formalism and accommodation, coping strategies of referencing and self-determination are associated with stronger environmental protection practices. Enterprises adjust their coping strategies by taking into account the constraints defined by both their internal and external environments. The results also demonstrate the potential synergetic effects of state and non-state stakeholders working together in promoting better corporate environmental coping strategies and environmental practices in China.

Enterprise-Level Motivations, Regulatory Pressures, and Corporate Environmental Management in Guangzhou, China.

This study examines the effects of internal motivations and external pressures on the integration of environmental management (EM) practices within manufacturing operations in China. The moderating role of perceptions toward the regulatory process is also considered along with comparisons between wholly Chinese-owned and foreign-owned enterprises. From a sample of 131 manufacturing companies in the Guangzhou area, it was found that the salience of fees and fines has a strong positive influence on perceptions toward the regulator (the local Environmental Protection Bureau, EPB). This also has a positive effect on perceptions toward regulations themselves for foreign-owned enterprises. Business-case motivations for EM positively shape enterprise perceptions toward regulations, whereas risk-reduction motivations have a negative effect on perceptions toward regulations in foreign-owned enterprises. Enterprise perceptions toward the regulatory process have direct effects on the integration of EM practices in wholly Chinese-owned enterprises, but in opposite directions. While positive perceptions toward regulations have positive influence, positive perceptions toward regulators (i.e., the EPB) negatively affect it. Overall, these results indicated that promoting the adoption of EM practices depends on convincing business leaders that EM practices contribute to profit making. The regulatory process can potentially promote these practices, but measures need to be taken to ensure that the regulator is not co-opted by the regulated, especially in wholly Chinese-owned enterprises.

Explaining the enforcement gap in China: local government support and internal agency obstacles as predictors of enforcement actions in Guangzhou.

This study investigates how local government support for enforcement and internal agency obstacles explain the enforcement gap in Guangzhou, China. It was found that agency obstacles associated with insufficient resources and job ambiguity, in particular, affect enforcement officials' perceptions of enforcement difficulty. Somewhat more surprisingly, however, local government support was not found to be a significant predictor of these perceptions. In addition, this study identified four significant relationships associated with specific enforcement actions. First and second, perceptions of enforcement difficulty appear to lead to fewer inspections, but also have a weak positive effect on the frequency of fines levied. Third, poor coordination within the bureau was found to be associated with fewer violations being processed. Fourth, and contrary to expectations, local government support was found to suppress the frequency of inspections while having no significant effect on violations or fines. Overall, these findings suggest that increased local government support for the enforcement of environmental regulation in China may not necessarily lead to more rigorous enforcement, at least if enforcement rigor is measured in terms of inspections, citations and fines.

Governance reform, external support, and environmental regulation enforcement in rural China: the case of Guangdong province.

This paper examines how configurations of external support factors have evolved alongside governance reform in recent years and how these evolving configurations have affected regulatory enforcement in four counties in Guangdong Province in China. Based on in-depth interviews with leading officials in the local environmental protection bureaus (EPBs), we show that there have been increases in government and societal support for local EPBs in their regulatory work, thanks partly to a number of recent governance reform efforts, but many problems have remained. Based on a questionnaire survey of enforcement officials, we examine how the perceptions of government and societal support are related to EPB officials' self-perception of effectiveness. It is found that both local government support and societal support have an influence on enforcement officials' self-assessment of effectiveness, but the relationships varied considerably depending on various dimensions of effectiveness and the patterns of interactions between government and societal support.

Effective regulations with little effect? The antecedents of the perceptions of environmental officials on enforcement effectiveness in China.

Enforcement gaps are an especially vexing problem in China due to pervasive "pro-growth" local government priorities, the weak administrative capacity of environmental agencies themselves, and relatively weak levels of societal support for a cleaner environment. This study seeks to examine this problem from the perspective of the local enforcement officials by empirically examining the relationships between these and other influences on their perceptions of enforcement effectiveness. Using samples of enforcement officials from the fast-growing cities of Chengdu, Dalian, and Guangzhou, this study finds that many of the more commonly cited problems related to regulatory enforcement were not as influential in accounting for variations in perceptions of enforcement effectiveness than the current literature might suggest. Moreover, this study also finds that the pattern of influences varies greatly across jurisdictions, with only the officials' belief in the legitimacy of the governments' policies being significant in all three samples. Strong influences on perceptions of enforcement effectiveness in two of the three samples include the environmental values of enforcement officials, their perceptions of organizational capacity for enforcement, and their assessment of government support for environmental protection. Although government support was found to be a strong predictor of enforcement effectiveness in two of the three samples, the influence of societal support had a somewhat mixed and more complicated effect. In addition, this study suggests that further improvements in enforcement effectiveness may be possible by cultivating or selecting enforcement officials with strong environmental values and beliefs in the legitimacy of the government's environmental policy to take charge of enforcement. Because it is generally accepted that local environmental protection bureaus are generally upgrading their organizational capacity for improvement as the result of increasing central government support for environmental protection and institutional restructuring, and because environmental awareness in China is growing, this study suggests that some incremental progress is likely in China's efforts to close the enforcement gap. Unfortunately, such improvements are likely to be masked by the steep trajectory of economic growth, the narrow scope of regulatory control (i.e., with scant attention paid to nonindustrial sources), and the migration of industrial pollution to rural areas.

Influence of motivations for seeking ISO 14001 certification on perceptions of EMS effectiveness in China.

This study examines the motivations of mainland Chinese facilities in seeking ISO 14001 certification and examines the linkages between these motivations and self-reports of the effectiveness of major environmental management system (EMS) components. In a sample of 128 facilities in Beijing, Shanghai, and Guangzhou, the main drivers for certification were reported to be to ensure regulatory compliance, to enhance the firm's reputation, and to improve environmental performance, in that order. Although motivation to achieve cost reductions were least emphasized, a broad range of motivations appears to be considered in the decision to seek certification to ISO 14001. Regression models linking these motivations to the EMS components suggests that internal motivations have an influence on most EMS components. One interesting exception to this, however, is that no significant relationship was observed between internal motivations and the promulgation of environmental objectives and targets. The relationships associated with external motivations for certification (i.e., those in response to customer and other stakeholder pressures) and EMS components, on the other hand, are weaker and tend to occur earlier in the process cycle. No significant relationships were found between motivations to reduce costs and perceptions of the effectiveness of EMS components. Overall, these findings suggest that ISO 14001, as currently being implemented in mainland China, may have a modestly useful role when used in combination with other policy mechanisms to move the Chinese economy toward more sustainable practices. It is asserted that the ISO standard could provide even greater benefits if Chinese registrars were more proactive in developing EMS in conjunction with even more rigorous third-party audits.