Reverse logistics in the Chinese auto-parts firms: implementation framework development through multiple case studies

In recent years, the implementation of reverse logistics (RL) in automobile manufacturing has drawn extensive interest from the Chinese government that has launched relevant take-back and environmental regulations and pilot projects. This study focuses on RL implementation issues in Chinese auto-parts manufacturing sector. Based on comprehensive literature review and multiple case studies in the Chinese auto-parts firms, this paper proposes a conceptual RL framework and highlights the major implementation issues. The purpose of this paper is to draw an overall picture of RL in the Chinese context, highlighting implementation issues in the auto-parts sector. Our study suggests that Chinese RL implementation requires close government monitoring mechanism and incentives, top management commitment within firms, technology and human capabilities support.     

Capacity of Management Plans for Aquatic Invasive Species to Integrate Climate Change

Abstract:  The consequences of climate change will affect aquatic ecosystems, including aquatic invasive species (AIS) that are already affecting these ecosystems. Effects on AIS include range shifts and more frequent overwintering of species. These effects may create new challenges for AIS management. We examined available U.S. state AIS management plans to assess each program's capacity to adapt to climate-change effects. We scored the adaptive capacity of AIS management plans on the basis of whether they addressed potential impacts resulting from climate change; demonstrated a capacity to adapt to changing conditions; provided for monitoring strategies; provided for plan revisions; and described funding for implementation. Most plans did not mention climate change specifically, but some did acknowledge climatic boundaries of species and ecosystem sensitivities to changing conditions. Just under half the plans mentioned changing environmental conditions as a factor, most frequently as part of research activities. Activities associated with monitoring showed the highest capacity to include information on changing conditions, and future revisions to management plans are likely to be the easiest avenue through which to address climate-change effects on AIS management activities. Our results show that programs have the capacity to incorporate information about climate-change effects and that the adaptive-management framework may be an appropriate approach.     

Pollution havens and industrial agglomeration

This paper examines the pollution haven hypothesis using a spatial-economy model of two countries and two sectors. The manufacturing sector generates cross-border pollution which reduces cross-sectoral productivity of agricultural goods, and lowers local income. We derive a demand-reducing effect that discourages firms to move to the country with laxer environmental regulations, in the absence of any comparative advantage. Our analysis also demonstrates that manufacturing agglomeration forces can alleviate the pollution-haven effect: a pollution haven may not arise if environmental regulation is slightly more stringent in the larger country.     

Strategic environmental disclosure: Evidence from the DOE's voluntary greenhouse gas registry

Although mandatory disclosure programs have been studied extensively, strategic voluntary environmental disclosures by firms are not well understood. We study the motivations for and impacts of firms' strategic disclosure of greenhouse gas reductions to the US government. We first model firms' joint abatement and disclosure decisions, incorporating both economic and political incentives. We then use data from the Department of Energy's Voluntary Greenhouse Gas Registry to compare reported reductions to actual emissions. We find that participants in the program engage in highly selective reporting: in the aggregate, they increase emissions over time but report reductions. In contrast, non-participants decrease emissions over time. Participants tend to be large firms facing strong regulatory pressure; pressure from environmental groups reduces the likelihood of participation, suggesting such groups viewed the program as a form of greenwash. Participating in the 1605(b) program had no significant effect on a firm's changes in carbon intensity over time.     

Environmental policy with upstream pollution abatement technology firms

This paper examines how the existence of an upstream abatement technology sector affects optimal environmental policy. We explore whether the policy should be especially stringent in order to spur a successful export industry based on abatement technology. Furthermore, we investigate if a stringent policy can be used to increase competition in the upstream sector. Our point of departure is a three-stage game between a government in a country with a polluting downstream industry, and a limited number of upstream firms supplying abatement technologies. The government moves first, and may use its environmental policy strategically to influence the behavior of the upstream technology firms. We find that an especially stringent environmental policy towards the polluting downstream sector may be well founded, as it increases competition between the technology suppliers, leading to lower abatement costs. However, to our surprise, an especially stringent environmental policy is not a particularly good industrial policy with respect to developing successful new export sectors based on abatement technology.     

Environmental Conflicts and the SLAPP

A citizen has the right to challenge a firm's actions regarding development plans or violations of environmental laws. Firms have responded with the SLAPP—Strategic Lawsuit Against Public Participation. Fearing the loss of the Constitutional Right to Petition, several U.S. states have or are considering explicitly restricting the SLAPP. For a class of environmental conflict models with one-sided asymmetric information, our results suggest that restricting the SLAPP does not increase the efficiency of the dispute.     

Influence of eco-innovation on Indian manufacturing sector sustainable performance

Manufacturing firms are striving to improve their sustainable performance in order to satisfy multiple stakeholders. Eco-innovation is a promising approach that decreases environmental impact and helps firms to increase their business value. There are several antecedents which help the firms to innovate and improve their triple bottom line performance. Among the antecedents, management and innovative practices are directly related to eco-innovation. It is not well known what practices and innovations help the firms to eco-innovate as well as to improve sustainable performance. Hence, the research objective of this paper is to identify the suitable combination of management and innovative practices that help firms to eco-innovate as well as to achieve overall sustainable performance. The paper develops an eco-innovation conceptual model which relates the management and innovative practices (antecedents) and overall sustainable performance (consequences) of eco-innovation using institutional theory. Using Indian manufacturing sector’s empirical data and Structural Equation Modelling (SEM) approach, this paper determines the effect of eco-innovation’s antecedents and consequences. In the Indian context, this study suggests that the role of management practice is more significant towards eco-innovation than innovative practices. The results reflect practitioners’ view on how to increase innovation rate and to focus more on social aspects. The finding suggests that training on environmental related practices could tackle innovation and social aspects in the Indian manufacturing sector context.     

An Experiment in Voluntary Environmental Regulation: Participation in EPA′s 33/50 Program

The U.S. EPA has initiated the 33/50 program to encourage firms to voluntarily reduce releases and transfers of 17 toxic chemicals. This paper evaluates the factors leading to participation in this program to assess its potential to augment more traditional command and control regulation. The results show that large firms with substantial toxic releases in unconcentrated industries are the most likely participants. The results also indicate that public information and awareness plays an important role and that EPA and other regulators can improve environmental performance by encouraging competition in environmental quality.     

中小城镇环境规划中循环经济理念的拓展

我国小城镇环境规划作为社会经济发展计划的有机组成部分，是促进城镇的环境管理和可持续发展的重要手段。循环经济是生态型经济，在小城镇环境规划中引入循环经济理念并对其指标和内容进行拓展，目的是实现资源的高效利用和不断循环，使城镇经济发展更适应环境保护和生态循环的需要，是未来重要的发展趋势之一。     

Environmental,social, morphological,and behavioral constraints on opportunistic multiple paternity

Multiple mating and multiple paternity in polytocous species have been mostly studied from an adaptive (i.e., cost–benefit) perspective. Disease, time, energy, and the risk of injuries are well-known costs of multiple mating, yet from both male and female perspectives, a number of genetic and non-genetic benefits have also been identified. The effects of environmental conditions and individual-specific behavior, however, are much less well understood. Using a long-term study on yellow-bellied marmots (Marmota flaviventris), we evaluated the impacts of environmental variation, social structure, female body mass, and female docility (a personality trait) on the occurrence of multiple paternity. Multiple paternity was influenced by environmental constraints, social constraints, a female’s personality, and her body mass at emergence from hibernation. Personality and mass effects were detected only when environmental or social conditions were favorable. Our results suggest that multiple paternity is mainly limited by the opportunity to have access to multiple mates and is influenced by costs or mate choice because heavier females were more likely to have litters with multiple sires than smaller ones. Future studies in other species might benefit from considering environmental constraints when studying multiple paternity.     

Heterogeneous firms and the environment: a cap-and-trade program

Currently, cap-and-trade programs are a cornerstone of many countries' climate change policies and proposals. This paper investigates the economic and environmental effects of different climate change policy designs in a general equilibrium setting with heterogeneous firms and monopolistic competition. The analysis predicts that the cap on emissions perfectly defines the environmental quality but has no effect on firms' profits, or decisions to enter or exit the market. In contrast, increasing the share of free allocations of emission allowances, as opposed to auctions, has no effect on environmental quality but reallocates resources among firms toward the most productive ones which has an impact on firms' entry and exit decisions, the mass of firms, and the composition of the market. Firm heterogeneity magnifies these economic effects of changes in the initial allocation of allowances. The paper provides a decomposition of the change in aggregate emissions which takes account of the changes at sector level, across the firms within a sector, and at the firm level.     

Improving the prevention of environmental risks with convertible bonds

This paper considers a limited liability firm that needs external funds in order to invest in an activity that presents an environmental risk for the Society. When the firm's risk-reducing activities cannot be observed by the lenders, we show that the issue of convertible bonds can create incentives to improve prevention. Convertible bonds allow the holder to exchange his bonds for a fixed number of the firm's shares. The use of such hybrid securities could either complement or be an alternative to the American CERCLA legislation about lender extended liability. We define an optimal convertible bond contract that induces unchanged economic profits for the bank, more prevention and higher expected net revenues for the firm and a higher expected social welfare than with standard debt. Our results hold true both with and without extended liability.     

Scenario-based assessment and multi-objective optimization of urban development plan with carrying capacity of water system

• Impact of urban development on water system is assessed with carrying capacity. • Impacts on both water resource quantity and environmental quality are involved. • Multi-objective optimization revealing system trade-off facilitate the regulation. • Efficiency, scale and structure of urban development are regulated in two stages. • A roadmap approaching more sustainable development is provided for the case city. Environmental impact assessments and subsequent regulation measures of urban development plans are critical to human progress toward sustainability, since these plans set the scale and structure targets of future socioeconomic development. A three-step methodology for assessing and optimizing an urban development plan focusing on its impacts on the water system was developed. The methodology first predicted the pressure on the water system caused by implementation of the plan under distinct scenarios, then compared the pressure with the carrying capacity threshold to verify the system status; finally, a multi-objective optimization method was used to propose regulation solutions. The methodology enabled evaluation of the water system carrying state, taking socioeconomic development uncertainties into account, and multiple sets of improvement measures under different decisionmaker preferences were generated. The methodology was applied in the case of Zhoushan city in South-east China. The assessment results showed that overloading problems occurred in 11 out of the 13 zones in Zhoushan, with the potential pressure varying from 1.1 to 18.3 times the carrying capacity. As a basic regulation measure, an environmental efficiency upgrade could relieve the overloading in 4 zones and reduce 9%‒63% of the pressure. The optimization of industrial development showed that the pressure could be controlled under the carrying capacity threshold if the planned scale was reduced by 24% and the industrial structure was transformed. Various regulation schemes including a more suitable scale and structure with necessary efficiency standards are provided for decisionmakers that can help the case city approach a more sustainable development pattern.     

Voluntary corporate environmental initiatives and shareholder wealth

Researchers debate whether environmental investments reduce firm value or actually improve financial performance. We provide some compelling evidence on shareholder wealth effects of membership in voluntary environmental programs (VEPs). Companies announcing membership in EPA's Climate Leaders, a program targeting reductions in greenhouse gas emissions, experience significantly negative abnormal stock returns. The price decline is larger in firms with poor corporate governance structures, and for high market-to-book (i.e., high growth) firms. However, firms joining Ceres, a program involving more general environmental commitments, have insignificant announcement returns, as do portfolios of industry rivals. Overall, corporate commitments to reduce greenhouse gas emissions appear to conflict with firm value maximization. This has important implications for policies that rely on voluntary initiatives to address climate change. Further, we find that firms facing climate-related shareholder resolutions or firms with weak corporate governance standards – giving managers the discretion to make such voluntary environmentally responsible investment decisions – are more likely to join Climate Leaders; decisions that may result in lower firm value.     

Voluntary corporate environmental initiatives and shareholder wealth

Researchers debate whether environmental investments reduce firm value or actually improve financial performance. We provide some compelling evidence on shareholder wealth effects of membership in voluntary environmental programs (VEPs). Companies announcing membership in EPA's Climate Leaders, a program targeting reductions in greenhouse gas emissions, experience significantly negative abnormal stock returns. The price decline is larger in firms with poor corporate governance structures, and for high market-to-book (i.e., high growth) firms. However, firms joining Ceres, a program involving more general environmental commitments, have insignificant announcement returns, as do portfolios of industry rivals. Overall, corporate commitments to reduce greenhouse gas emissions appear to conflict with firm value maximization. This has important implications for policies that rely on voluntary initiatives to address climate change. Further, we find that firms facing climate-related shareholder resolutions or firms with weak corporate governance standards – giving managers the discretion to make such voluntary environmentally responsible investment decisions – are more likely to join Climate Leaders; decisions that may result in lower firm value.     

Meeting report

SUMMARY

In many developing countries, the determination of a ranking of investments designed to improve and extend the road system is a commonplace prerequisite of planning for the transport sector as a whole and the road sub-sector within it. A major objective of determining investment priorities is to secure the greatest efficiency in the use of resources allocated to the sector and, for this reason, any system of assigning priorities must rely upon conventional investment appraisal techniques producing quantifiable measures of worth. Exercises of this kind, in which road investments are identified and ranked, are usually undertaken to produce a road sector investment plan. The implementation of such plans is, however, often compromised because of perceived deficiencies with a methodology which places undue reliance on investment appraisal and fails to properly address the issue of public interest and sustainability. This paper attempts to produce a pragmatic set of ground rules which, while mindful of the need to promote economic efficiency, allow for other factors to be embraced in a more holistic methodology.     

An overview of the environmental finance policies in China: retrofitting an integrated mechanism for environmental management

Considering the significant roles of the policies in developing environmental finance, an overview is conducted on the environmental finance policies （EFPs） in China. This paper analyzed the definition, scope, evolution and main instruments of EFPs. The implementation progress of financial activities on each instrument are investigated respectively. Then the experiences learned from and failures discovered in the development of the EFPs are discussed well recommendations for further improvement of the EFPs and their implementation are provided. Our study found that the EFPs have been established in China after a four-phase evolution since the early 1980s. The policies have played a critical role in leading to a rapid development in environmental finance by involving more financial instruments to accomplish the objective-led environmental plans. Driven by the policies, the new green credit （GC）, green security （GS）, and green insurance （GI） instruments have been phased in as supplements to the conventional command and control approaches to improve the environmental governance of financial activities and pollution sources. However, the market mechanism of financial institution is limited due to their defensive and incapable performance on implementation some of EFP instruments. To further strengthen the effectiveness of EFPs in facilitating environmental man- agement, recommendations are made mainly on the aspects including developing more specific policy guidelines, enhancing information sharing and disclosure, providing sufficient economic incentives, establishing environmental liabilities with financial activities, and involving issues related to climate change, and biodiversity and ecosystem service.     

Controversial sectors in banks’ sustainability reporting

Albeit indirectly, through its lending and investing, the financial sector can contribute substantially to achieve sustainable development. One of such practices concerns investment on or financing of entities that deal with environmentally or socially sensitive transactions (gambling, tobacco, alcohol, arms, etc.). Although there is a wealth of literature on banks’ CSR and its reporting, one can count on the fingers of one hand the studies mentioning explicitly these issue. What is more, this CSR practice gets treated only cursorily in these few studies. This study focuses on the communication of information on investment and financing of firms from controversial sectors in banks’ sustainability reports. We begin by examining whether financial institutions in our sample report having such policies or not. Then, we investigate what kind of policies are reported. In addition, this study seeks to capture the influence of national culture and firm-specific characteristics (type of property, listing status and multinationality) on the reporting of such issues. Ordinal regression analysis is used to analyse the relation of these factors with such reporting. Our findings suggest that the disclosure of information on policies regarding investment on and financing of firms from controversial sectors is not widespread, and the organizations reporting policies of total exclusion of some sectors or projects on ethical grounds are few. This study may encourage more detailed analyses of the type of CSR policies examined and of their impacts. It also may be of utility to banks by raising awareness about the need to consider these issues.     

Building robust conservation plans

Systematic conservation planning optimizes trade‐offs between biodiversity conservation and human activities by accounting for socioeconomic costs while aiming to achieve prescribed conservation objectives. However, the most cost‐efficient conservation plan can be very dissimilar to any other plan achieving the set of conservation objectives. This is problematic under conditions of implementation uncertainty (e.g., if all or part of the plan becomes unattainable). We determined through simulations of parallel implementation of conservation plans and habitat loss the conditions under which optimal plans have limited chances of implementation and where implementation attempts would fail to meet objectives. We then devised a new, flexible method for identifying conservation priorities and scheduling conservation actions. This method entails generating a number of alternative plans, calculating the similarity in site composition among all plans, and selecting the plan with the highest density of neighboring plans in similarity space. We compared our method with the classic method that maximizes cost efficiency with synthetic and real data sets. When implementation was uncertain—a common reality—our method provided higher likelihood of achieving conservation targets. We found that χ, a measure of the shortfall in objectives achieved by a conservation plan if the plan could not be implemented entirely, was the main factor determining the relative performance of a flexibility enhanced approach to conservation prioritization. Our findings should help planning authorities prioritize conservation efforts in the face of uncertainty about future condition and availability of sites.     

Stock market and deterrence effect: A mid-run analysis of major environmental and non-environmental accidents

We analyze the stock market reaction to 161 major environmental and non-environmental accidents, reported on the front page of the New York Times for half a century. To determine if the market induces a real deterrence effect, we extend the event windows up to one year. On average, the market reacts negatively and enduringly to the announcement of an accident. However, this average effect is largely driven by the airline industry and by government interventions. The estimated average compounded abnormal return following environmental accidents does not differ from zero after one year. This does not exclude, in severe events affecting large firms, huge losses in equity value, but the significant negative cumulative abnormal returns estimated immediately after an environmental accident in previous studies do not persist. Our results suggest that in a market driven by institutional investors, the deterrence effect is likely to be weak.