Corporate governance and green innovation

We study the relationship between corporate governance and firms׳ environmental innovation. Exploiting changes in antitakeover legislation in the US, we show that worse governed firms generate fewer green patents relative to all their innovations. This negative effect is greater for firms with a smaller share of institutional ownership, with a smaller stock of green patents, and with more binding financial constraints. Investigating regulatory and industry variations, we also find more pronounced effects for firms operating in states with lower pollution abatement costs, and in sectors less dependent on energy inputs. Overall, our results suggest that ineffective corporate governance may constitute a major obstacle to environmental efficiency.     

Sustainable consumption: the effects of knowledge,cultural values,environmental advertising,and demographics

As a result of human lifestyles and unsustainable consumption patterns, the environment continues to deteriorate and thus inhibit sustainable development. In order to curb this situation and promote a sustainable economy, one of the solution is to reduce conventional products consumption and shift to green products. Over the past 20 years, marketing managers keenly seek to understand the green market; however, inadequate information on how to promote consumers’ green behavioral intentions is slowing the growth of green markets and becomes a barrier for firms when developing segments and communicating strategies for effective promotion of green products in countries like Malaysia where the trend is fairly new. Therefore, this study attempts to examine the impact of environmental knowledge, cultural values, and environmental advertising and determine the moderating effect of income level, education level, and gender on consumers’ green purchase intentions. A survey was administered, and a total of 405 valid questionnaires were obtained. Structural equation modeling technique was used to evaluate the causal model by using SmartPLS 2.0 software. The finding results suggest that cultural values and environmental advertising are the main influences in building green purchase intentions, while environmental knowledge is not significantly related. The results also indicate that education level and gender have a significant positive moderation effect while income did not. This suggests that green purchase intentions’ motivational factors are greater among highly educated individuals, with females in particular. The discussions and implications of these findings are further elaborated.     

Comparative study on the efficiency and environmental impact of two methods of utilizing polyvinyl chloride waste based on life cycle assessments

Two processes of utilizing polyvinyl chloride （PVC） waste, an incineration process and a vacuum pyrolysis process, for energy conversion were compared to determine their efficiency and environmental perfor- mance. We carried out a life cycle assessment with each of the two processes to evaluate their environmental impact and defined the goals and limits of our remit. As well, we established an inventory of PVC waste from incineration and vacuum pyrolysis based on process analysis, data collection and calculations. The results show that electrical power output per unit mass of PVC waste in the incineration process was twice as high as that of the vacuum pyrolysis process. Incineration had a larger total environmental impact potential than vacuum pyrolysis. The total environmental impact potential of PVC waste from incineration was three times higher than that from vacuum pyrolysis. Incineration of PVC disposed 300 ng. 100 kgI of dioxins and vacuum pyrolysis 98.19 ng- 100 kgI of dioxins. As well, we analyzed the data for their uncertainty with results quantified in terms of three uncertainties： basic uncertainty, additional uncertainty, and computational uncertainty. The coefficients of variation of the data were less than 25% and the quality of the inventory data was acceptable with low uncertainty. Both PVC waste disposal processes were of similar quality and their results comparable. The results of our life cycle impact assessment （LCIA） showed considerable reliability of our methodology. Overall, the vacuum pyrolysis process has a number advantages and greater potential for development of PVC disposal than the incineration process.     

Household Location Choices: Implications for Biodiversity Conservation

Abstract: Successful conservation efforts require understanding human behaviors that directly affect biodiversity. Choice of household location represents an observable behavior that has direct effects on biodiversity conservation, but no one has examined the sociocultural predictors of this choice relative to its environmental impacts. We conducted a case study of the Teton Valley of Idaho and Wyoming (U.S.A.) that (1) explored relationships between sociodemographic variables, environmental attitudes, and the environmental impact of household location choices, (2) assessed the potential for small household sizes in natural areas to multiply the environmental impacts of household location decisions, and (3) evaluated how length of residency predicted the environmental attitudes of people living in natural areas. We collected sociodemographic data, spatial coordinates, and land‐cover information in a survey of 416 households drawn from a random sample of Teton Valley residents (95% compliance rate). Immigrants (respondents not born in the study area) with the lowest education levels and least environmentally oriented attitudes lived in previously established residential areas in disproportionately high numbers, and older and more educated immigrants with the most environmentally oriented attitudes lived in natural areas in disproportionately high numbers. Income was not a significant predictor of household location decisions. Those living in natural areas had more environmental impact per person because of the location and because small households (<3 people/household) were 4 times as likely in natural areas as large households. Longer residency in natural areas predicted less environmentally oriented attitudes, suggesting that living in natural areas does not foster more concern for nature. Because populaces are rapidly aging, growing more educated, and potentially growing more environmentally oriented, these patterns are troubling for biodiversity conservation. Our results demonstrate a need for environmentalists to make household location decisions that reflect their environmental attitudes and future research to address how interactions between education level, environmental attitudes, population aging, and household location choices influence biodiversity conservation.     

Central-place foraging in honey bees: the effect of travel time and nectar flow on crop filling

Summary Crop-filling by honeybees foraging at sources of variable nectar flow at a fixed distance from the hive has been shown to maximize energetic efficiency, defined as ratio of energy gained to energy spent. Predictions based on maximisation of rate of energy gain, defined as net energy gained per unit time foraging, are significantly different from observed behaviour (Schmid-Hempel et al. 1985). In this paper we consider the effect of varying travel times in addition to flow rate. The predictions of an extended version of our theoretical model are confronted with experimental results obtained by Núñez (1982). Núñez found that bees filled their crops more fully for higher flows and longer travel times. We show that when the cost of carrying a load is considered, this trend can be predicted by maximising either energetic efficiency or net rate of gain. Figure 1 shows, however, that maximisation of net rate of gain can only produce an acceptable quantitative fit if unreasonably high costs are assumed to result from carrying the load. Energetic efficiency instead generates a good quantitative fit for acceptable assumptions about this cost (Fig. 2).     

Multiple receptor ambient monitoring and firm compliance with environmental taxes under budget and target driven regulatory missions

We analyze the potential for an environmental monitoring agency under different regulatory missions to use multiple measures of ambient pollution levels to induce firm compliance via endogenously determined probabilistic firm-level inspections of polluting activities. Departing from previous analyses, we consider a framework where the regulator has multiple, rather than a single, measures of ambient pollution in a setting where many firms are subject to a self-reported emissions tax that is not perfectly enforceable. Under a budget-driven mission, we show that a regulator can fruitfully utilize the added information from multiple ambient monitoring receptors to induce improved environmental compliance through the creation of strategic interactions among firms. Additionally, our results provide new evidence on the relative efficiency of budget- vs. target-driven environmental enforcement missions.     

The endowment effect,discounting and the environment

There is a considerable body of evidence showing that our preferences exhibit both reference dependence and loss aversion, a.k.a. the endowment effect. In this paper, we consider the implications of the endowment effect for discounting, with a special focus on discounting future improvements in the environment. We show that the endowment effect modifies the discount rate via (i) an instantaneous endowment effect and (ii) a reference-updating effect. Moreover we show that these two effects often combine to dampen the preference to smooth consumption over time. What this implies for discounting future environmental benefits may then depend critically on whether environmental quality is merely a factor of production of material consumption, or whether it is an amenity. On an increasing path of material consumption, dampened consumption smoothing implies a lower discount rate. But on a declining path of environmental quality and where we derive utility directly from environmental quality, it implies a higher discount rate. On non-monotonic paths, loss aversion specifically can give rise to substantial discontinuities in the discount rate.     

Tourism effects on the environment and economic sustainability of sub-Saharan Africa

This paper integrates tourism, economic growth, and environmental issues in a multivariate format. Unlike recent research on this topic, a panel data of selected sample nations of sub-Saharan Africa is adopted by using cointegration and panel regression models. The current research discovers both long-run equilibrium and short-run dynamics between economic growth, tourism, energy use, and carbon emissions in sub-Saharan Africa. Furthermore, tourism and energy use show a highly significant direct impact on economic growth. In addition, tourism, energy use, and economic growth yield a highly significant positive effect on carbon emissions. Dissecting the region into oil producers and non-oil producers further suggests that the economic growth of sub-Saharan Africa has been accomplished by strong growth in tourism and energy use. However, there is highly significant evidence that in oil producing countries, CO₂ emissions are directly affected by energy use and economic growth and not by tourism. For non-oil producing countries, tourism and energy use but not economic growth incur a highly significant positive impact on carbon emissions.     

Resilienz vs. Effizienz – ein kritischer Blick auf die Umweltökonomie

Background, aim, and scope Economists assess politics (also concerning energy supply) due to the efficiency criterion. Thus, economic instruments for environmental protection shall contribute to achieve ecological goals in an (cost-)efficient way. We show that the overemphasis of efficiency is an alien in the way (ecological) systems are working. Mostly, ecological systems are not high-grade efficient. Hence, economic instruments of environmental protection introduce an inappropriate logic to ecological systems that may have severe impacts on their resilience. We illustrate this with the example of emission trading. Time efficiency is considered to be a powerful criterion due to the interest yield requirements of investors, also for ecological investments. We show how the concentration on time efficiency destroys diversity and has negative impacts on the resilience of (eco-)systems. Main features The economic system is embedded in society and natural environment (as self-organizing, living systems). The economy as an ‘instrumental system’ should serve these systems. The guiding value approach (a system theory approach) gives indication that overemphasizing certain guiding values (such as efficiency, as the economic science does) may weaken the functional capability of systems and finally may lead to a collapse of the systems. Results and discussion The article tries to change the focus of the discussion. An altered focus probably has to be implemented by scientists of other subject areas. Contemporary environmental economics (with its focus on efficiency) is unable to give satisfying answers on the pestering problems. Conclusions Criticising the primacy of efficiency is not the same as generally to disclaim considering efficiency needs. Instead, based on the guiding value theory, we want to be contrary to the one-sided and dominating stressing of the of the efficiency criterion. Perspectives Not following the efficiency guide any more means to think over some ‘sacred cows’ such as emission trading or shareholder value. Instead we have to think over alternative designs to reach the ecological targets.     

Uniformity versus differentiation in regulating externalities

In the regulation of pollutant emissions, a regulator may treat different sources (with different costs and environmental damage) as though they were the same—for institutional, informational, or transaction cost reasons. This may occur despite the efficiency gains from regulatory differentiation of sources. This issue has been a source of much controversy in the environmental economics literature and is examined here from a theoretical perspective. Using a two pollutant economy, emissions and net social benefits are compared for the case of efficient, differentiated regulation and the case of uniform, undifferentiated regulation of the aggregate of the two pollutants. We show when aggregate emissions will be greater than, equal to, or less than efficient emissions and we derive conditions for each of these three possibilities. Further, we show that when marginal costs and benefits become more steeply sloped, the inefficiency associated with undifferentiated regulation increases.     

Green chemistry with process intensification for sustainable biodiesel production

Biodiesel as a renewable fuel has the potential to replace non-renewable fossil fuels and associated environmental pollution. The most commonly used method in biodiesel production is transesterification of virgin and used oil feedstock. However, the chemical reaction (transesterification) does not proceed spontaneously, which means excess reactants are required to move the reaction to completion. The biodiesel reaction efficiency can be improved by incorporating green chemistry principles and process intensification effects. Green chemistry principles can be used to design chemical products and processes that reduce or eliminate the use and generation of hazardous substances. Microwave- and ultrasound-enhanced biodiesel synthesis can improve the reaction efficiency due to higher product recovery, low by-product formation, and reduced energy consumption. In addition, utilization of green metrics such as E-factor, atom economy (utilization), mass intensity or mass productivity, and reaction mass efficiency can help design safer and highly efficient biodiesel synthesis. Green chemistry principles have been analyzed for other processes in greater details, but they are rarely discussed in the context of biodiesel production. Process intensification by microwave- and ultrasound-mediated biodiesel production was never discussed from the perspective of green chemistry and sustainable process development. This research review article discusses the role of green chemistry and process intensification in biodiesel production followed by specific examples and illustrations on green metrics of microwave- and ultrasound-enhanced biodiesel synthesis and the effect of catalysts and solvents including discussions on reaction kinetics and activation energy in detail for the first time in the literature.     

Bayesian nonlinear meta regression for benefit transfer

In recent years numerous meta-regression models for benefit transfer in the context of environmental quality changes have been proposed by the academic literature and used by government agencies for policy making. We examine a set of popular specifications in terms of consistency with some basic utility-theoretic considerations, including the adding-up condition that is currently under much scrutiny by benefit transfer practitioners. We also compare these models based on econometric fit with underlying data, and ability to generate meaningful and efficient benefit transfer distributions. We find that our preferred Bayesian Nonlinear Meta-Regression Model (BNL-MRM) satisfies all theoretical requirements. Using a built-in nonlinear model search algorithm we show that it produces benefit estimates that are comparable or superior in efficiency to those flowing from better fitting, but theoretically flawed linear models that do not satisfy adding-up.     

Determining the drivers of population structure in a highly urbanized landscape to inform conservation planning

Understanding the environmental contributors to population structure is of paramount importance for conservation in urbanized environments. We used spatially explicit models to determine genetic population structure under current and future environmental conditions across a highly fragmented, human‐dominated environment in Southern California to assess the effects of natural ecological variation and urbanization. We focused on 7 common species with diverse habitat requirements, home‐range sizes, and dispersal abilities. We quantified the relative roles of potential barriers, including natural environmental characteristics and an anthropogenic barrier created by a major highway, in shaping genetic variation. The ability to predict genetic variation in our models differed among species: 11–81% of intraspecific genetic variation was explained by environmental variables. Although an anthropogenically induced barrier (a major highway) severely restricted gene flow and movement at broad scales for some species, genetic variation seemed to be primarily driven by natural environmental heterogeneity at a local level. Our results show how assessing environmentally associated variation for multiple species under current and future climate conditions can help identify priority regions for maximizing population persistence under environmental change in urbanized regions.     

Environmental policies,competition and innovation in renewable energy

We investigate the effect of environmental policies on innovation under different levels of competition. Using information regarding renewable energy policies, competition and green patents for OECD countries since the late 1970s, we develop a pre-sample mean count-data econometric specification that accounts for the endogeneity of policies. We find that renewable energy policies are more effective in fostering green innovation in countries with liberalized energy markets. We also find that environmental policies are crucial only in the generation of high-quality green patents, whereas competition enhances the generation of low-quality green patents.     

Resource identity modifies the influence of predation risk on ecosystem function

It is well established that predators can scare as well as consume their prey. In many systems, the fear of being eaten causes trait-mediated cascades whose strength can rival or exceed that of more widely recognized density-mediated cascades transmitted by predators that consume their prey. Despite this progress it is only beginning to be understood how the influence of predation risk is shaped by environmental context and whether it can exert an important influence on ecosystem-level processes. This study used a factorial mesocosm experiment that manipulated basal-resource identity (either barnacles, Semibalanus balanoides, or mussels, Mytilus edulis) to determine how resources modify the influence of predation risk, cascade strength, and the efficiency of energy transfer in two, tritrophic, rocky-shore food chains containing the predatory green crab (Carcinus maenas) and an intermediate consumer (the snail, Nucella lapillus). The effect of predation risk and the strength of trait-mediated cascades (both in absolute and relative terms) were much stronger in the barnacle than in the mussel food chain. Moreover, predation risk strongly diminished the efficiency of energy transfer in the barnacle food chain but had no significant effect in the mussel food chain. The influence of resource identity on indirect-effect strength and energy transfer was likely caused by differences in how each resource shapes the degree of risk perceived by prey. We suggest that our understanding of the connection between trophic dynamics and ecosystem functioning will improve considerably once the effects of predation risk on individual behavior and physiology are considered.     

Sexual Predators,Energy Development,and Conservation in Greater Yellowstone

Abstract: In the United States, as elsewhere, a growing debate pits national energy policy and homeland security against biological conservation. In rural communities the extraction of fossil fuels is often encouraged because of the employment opportunities it offers, although the concomitant itinerant workforce is often associated with increased wildlife poaching. We explored possible positive and negative factors associated with energy extraction in the Greater Yellowstone Ecosystem (GYE), an area known for its national parks, intact biological diversity, and some of the New World's longest terrestrial migrations. Specifically, we asked whether counties with different economies—recreation (ski), agrarian (ranching or farming), and energy extractive (petroleum)—differed in healthcare (gauged by the abundance of hospital beds) and in the frequency of sexual predators. The absolute and relative frequency of registered sex offenders grew approximately two to three times faster in areas reliant on energy extraction. Healthcare among counties did not differ. The strong conflation of community dishevel, as reflected by in‐migrant sexual predators, and ecological decay in Greater Yellowstone is consistent with patterns seen in similar systems from Ecuador to northern Canada, where social and environmental disarray exist around energy boomtowns. In our case, that groups (albeit with different aims) mobilized campaigns to help maintain the quality of rural livelihoods by protecting open space is a positive sign that conservation can matter, especially in the face of rampant and poorly executed energy extraction projects. Our findings further suggest that the public and industry need stronger regulatory action to instill greater vigilance when and where social factors and land conversion impact biological systems.     

The costs of avoiding environmental impacts from shale‐gas surface infrastructure

Growing energy demand has increased the need to manage conflicts between energy production and the environment. As an example, shale‐gas extraction requires substantial surface infrastructure, which fragments habitats, erodes soils, degrades freshwater systems, and displaces rare species. Strategic planning of shale‐gas infrastructure can reduce trade‐offs between economic and environmental objectives, but the specific nature of these trade‐offs is not known. We estimated the cost of avoiding impacts from land‐use change on forests, wetlands, rare species, and streams from shale‐energy development within leaseholds. We created software for optimally siting shale‐gas surface infrastructure to minimize its environmental impacts at reasonable construction cost. We visually assessed sites before infrastructure optimization to test whether such inspection could be used to predict whether impacts could be avoided at the site. On average, up to 38% of aggregate environmental impacts of infrastructure could be avoided for 20% greater development costs by spatially optimizing infrastructure. However, we found trade‐offs between environmental impacts and costs among sites. In visual inspections, we often distinguished between sites that could be developed to avoid impacts at relatively low cost (29%) and those that could not (20%). Reductions in a metric of aggregate environmental impact could be largely attributed to potential displacement of rare species, sedimentation, and forest fragmentation. Planners and regulators can estimate and use heterogeneous trade‐offs among development sites to create industry‐wide improvements in environmental performance and do so at reasonable costs by, for example, leveraging low‐cost avoidance of impacts at some sites to offset others. This could require substantial effort, but the results and software we provide can facilitate the process.     

Do renewable energy policies reduce carbon emissions? On caps and inter-industry leakage

In a parsimonious two-sector general equilibrium model, we challenge the widely-held tenet that within a cap-and-trade system renewable energy policies have no effect on carbon emissions. If the cap does not capture all sectors, we demonstrate that variations of a renewable energy subsidy change aggregate carbon emissions through an inter-industry leakage effect. We decompose this effect into intuitively intelligible components that depend in natural ways on measurable elasticity parameters. Raising the subsidy always reduces emissions if funded by a lump-sum tax, reinforcing recent findings that tightening environmental regulation can cause negative leakage. However, if the subsidy is funded by a levy on electricity, it can increase emissions. These results provide a valuable basis for an informed design of renewable energy policies and an accurate assessment of their effectiveness. We highlight how a state-of-the-art statistic used by governments to gauge such effectiveness, “virtual emission reductions”, is biased, because inter-industrial leakage effects are not captured.     

Offspring size effects mediate competitive interactions in a colonial marine invertebrate

Over the past 30 years, numerous attempts to understand the relationship between offspring size and fitness have been made, and it has become clear that this critical relationship is strongly affected by environmental heterogeneity. For marine invertebrates, there has been a long-standing interest in the evolution of offspring size, but there have been very few empirical and theoretical examinations of post-metamorphic offspring size effects, and almost none have considered the effect of environmental heterogeneity on the offspring size/fitness relationship. We investigated the post-metamorphic effects of offspring size in the field for the colonial marine invertebrate Botrylloides violaceus. We also examined how the relationship between offspring size and performance was affected by three different types of intraspecific competition. We found strong and persistent effects of offspring size on survival and growth, but these effects depended on the level and type of intraspecific competition. Generally, competition strengthened the advantages of increasing maternal investment. Interestingly, we found that offspring size determined the outcome of competitive interaction: juveniles that had more maternal investment were more likely to encroach on another juvenile's territory. This suggests that mothers have the previously unrecognized potential to influence the outcome of competitive interactions in benthic marine invertebrates. We created a simple optimality model, which utilized the data generated from our field experiments, and found that increasing intraspecific competition resulted in an increase in predicted optimal size. Our results suggest that the relationship between offspring size and fitness is highly variable in the marine environment and strongly dependent on the density of conspecifics.     

Behavioral repeatability and personality in pit-building antlion larvae under differing environmental contexts

Over the last decades, there has been growing interest among behavioral ecologists in exploring animal personalities. However, while the foraging behavior of active foragers has been extensively studied, only little is known about that of sit-and-wait predators within the personality framework. We investigated the existence of repeatability and personality in pit-building antlion larvae in the context of foraging (pit construction) and habitat selection (relocation distance and direction) over time and under three environmental contexts: thermal conditions, sand depth, and soil type. Over time, repeatability was much stronger for relocation distance than for movement directionality. Additionally, we observed positive correlations across the two levels of sand depth and soil type but not between thermal conditions. Change in substrate type may induce faster decision-making in these sand-dwelling insects or could be perceived by such insects as a more drastic alteration in their habitat. We suggest that different individuals indeed possess distinct personalities. We also suggest that repeatability should be measured at two levels: the amount of energy expenditure (distances and pit construction) and the pattern of energy expenditure (directionality). Finally, our study illustrates how differing environmental conditions can result in differing levels of plasticity, while largely preserving individual personalities.