Q58 - Environmental Economics: Government PolicyReturn

This study examines the environmental impact of foreign direct investment (FDI) in E7 and G7 countries from 2005 to 2020 using the ecological footprint as a comprehensive indicator. Employing both linear and nonlinear dynamic panel models, the findings reveal that the environmental effects of FDI depend on the stringency and type of environmental regulation. In E7 countries, FDI tends to worsen environmental degradation under weak regulatory frameworks, providing partial support for the pollution haven hypothesis (PHV). In contrast, in G7 countries, FDI contributes to environmental improvement when market-based and technology-oriented policies surpass certain thresholds, aligning with the pollution halo hypothesis (PHL). The study disaggregates the OECD Environmental Policy Stringency Index (EPS) and identifies regime-dependent effects of FDI across different policy types. It is asserted that while non-market-based policies are more effective in E7 countries, market-based instruments have a larger influence on the environment in G7 economies. Our paper also acknowledges theoretical limitations of the PHV and the PHL, including assumptions of industry mobility, and suggests alternative mechanisms such as technology spillovers. Overall, the results emphasize the importance of context-sensitive policy design to ensure that FDI supports environmental sustainability goals.

This study aims to examine the role of green enterprises and their corporate activities in circular economy practices, particularly in the context of developing economies. The modern world is facing enormous environmental concerns, e.g., climate change and pollution, and corporate activities that degrade the environment are primarily responsible for these concerns. Therefore, green entrepreneurship has the potential to reverse the trend and create an eco-friendly environment through circular economy activities. To further strengthen this perspective, the present study proposes a framework for AI-driven environmental policies that can support and enhance these eco-friendly efforts. To achieve the aforementioned objectives, this study uses firm-level data collected from the most recent (2023) World Bank Enterprise Surveys. Moreover, based on the nature of the dataset, diverse econometric models are constructed and multiple proxies for both green enterprises and circular economy practices are used. The empirical results suggest that all the indicators of green enterprises show positive coefficient values together with statistically significant p-values. These findings are aligned with prior studies and confirm that green enterprises play a vital role in enhancing circular economy practices, which are integral components of the proposed framework for AI-driven environmental policies. The policy implications of this study highlight the importance of green enterprises and the role of circular economy practices within a framework for AI-driven environmental policies for making effective environmental policies and achieving sustainable development goals for a better future.

There is a growing recognition of the importance of sustainable development. Political economy factors and natural resources are considered important sources of economic prosperity. These are the fundamental primary resources utilized in the production process, which subsequently drives economic activities and results in sustained growth. Nevertheless, resource-rich countries often experience sustainability challenges. This study examines the impact of mineral resource rents on sustainable development in selected developed countries from a political economy perspective. Moreover, we include renewable energy deployment and fiscal decentralization as additional determinants of sustainable development. The study uses random-effects and fixed-effects estimation methods to estimate the model. The study also uses quantile regression econometric techniques. A sustainable development index (SDI), integrating economic, social and environmental dimensions, is constructed as the dependent variable. The results reveal that mineral resource rents and renewable energy electricity output negatively affect sustainable development. Nevertheless, environment-related taxes and fiscal decentralization positively affect sustainable development. These results provide valuable insights for academia, researchers and policy makers aiming to achieve environmental sustainability through institutional and fiscal reforms.

Currently, nations worldwide are actively promoting various environmental movements to address the ecological crisis. Among these, the most prominent is the Green New Deal (GND). However, during the development of the GND, some scholars have identified that its advancement may lead to more severe environmental problems. Therefore, this study constructs indicators for green economic development and the GND. Utilizing an Ordinary Least Squares (OLS) regression model and a Spatial Durbin Model (SDM) and based on panel data from 30 Chinese provinces spanning 2008 to 2021, it specifically analyzes the impact of the GND on green economic development. The study further examines the spatial effects and externality impacts of the GND. Additionally, green finance is selected as a mediating variable to further explore the relationship between the GND, green finance and green economic development, analyzing the mediating role that green finance plays between them.

The main objective of this study is to analyse the impact of environmental poverty (EP), environmental regulation (ENVR), financial constraints (FNC) and political instability (PIST) on carbon dioxide emissions (abbr. CO₂e), with other variables including international collaboration in green technology development (ICGTD), hybrid electric vehicle technology (HEVT) and gross domestic product per capita (GDPPC). The augmented mean group estimator approach is chosen to gauge the long-term coefficients. The findings indicate that strengthening ENVR in Asian countries can reduce CO₂e effectively, highlighting the importance of policy-driven ecological interventions. In contrast, EP, PIST and FNC might worsen CO₂e, emphasizing the significance of political and economic stability for the region's environmental sustainability. The results also show that an increased ICGTD and HEVT contribute directly to the reduction of CO₂e in Asian countries. Even though economic growth is a sign of development, rising GDPPC in these economies is linked to higher CO₂e, demonstrating that the current association between economic growth and achieving carbon neutrality could be better.

The urgent need to address climate change and the depletion of natural resources has led governments worldwide to allocate significant resources towards research and development in clean energy technologies and energy efficiency. This study evaluates the effectiveness of renewable energy and energy efficiency initiatives in reducing CO₂ emissions, taking into account the influences of natural resource availability and political risk. Using data from France spanning from 1985 to 2021, we employ the kernel-based regularized least squares (KRLS) methodology, complemented by quantile regression (QR), to analyse these relationships. Our findings indicate that policies promoting energy efficiency and green energy have a positive impact on reducing CO₂ emissions. However, the availability of natural resources and political risk exacerbate environmental challenges by increasing CO₂ emissions. Thus, our study underscores the importance of continued support from policymakers for renewable energy development and energy efficiency research to effectively pursue Sustainable Development Goals (SDGs). Additionally, as the world prepares for COP28, our findings emphasize the urgency of these initiatives in meeting global climate targets.

The submitted paper is focused on the evaluation of the Common Agriculture Policy impact on economic results of Czech organic farmers. The aim of the paper is a complex evaluation of the influence of subsidy on production, costs, profit and technical efficiency of organic farms. The partial aim is to evaluate different methods of subsidy rate calculation. The main methodological tool for achieving mentioned aims is an analysis using a production and a stochastic frontier production function. This approach has not been used in the Czech Republic yet. The previous studies, analyzed subsidy of organic farming, were based on a comparison of especially family farm income, profit or costs of organic and conventional farming. The analysis was conducted on the basis of unbalanced panel data from 143 organic and 388 conventional enterprises - legal entities, obtained over the time period 2004 - 2008. The sample of organic farms represents 58 % of the entire population of organic legal entities. Results of the analysis indicate negative impact of subsidies on production, profit and technical efficiency of organic farmers and refer to the reality that actual level of subsidy discourages organic farmers from rational behavior and implicates their dependence on state support.

The authors' approach to the ethical and political aspects of inter-temporal interactions is the following: 1) Two representative agents Ra and Râ are analyzed and asymmetries in their wealth and voting powers are dealt with by a the text-book tool of a welfare function - its intra and inter-temporal application. 2) A generalized concept of a distance (measured in miles and years, respectively) is to indicate to what extend similarities and differences can be reasonably expected between Ra and Râ - their interests and values. With respect to a given distance, a discount factor then represents the weight that Ra ascribes to the well-being of his counter-party Râ. 3) In the intra-temporal case, the intuitive appeal of the concepts of solidarity, justice and discrimination is accepted, as well as the resultant transfers of wealth from the richer Ra" to his relatively poorer contemporary fellow Râ. 4) Contrariwise, the very concepts easily loose sense in the inter-temporal case. The arguments for this difference are that: (a) the same person may act as both Ra and Râ; the future Râ may be but a new sample of a given man, household, firm, nation … or even mankind itself, (b) wealth is likely to grow with the time-distance between the future Râ and the present decision maker Ra, (c) unlike the geographical distance, a time horizon is infinite; the future Râ may exist whenever - 10 days, 20 months or 17 000 years from now, (d) an interest rate or investment possibilities affect the present Ra's wealth or budget constraint. 5) With the level of aggregation of Ra and Râ, the analytical problems become still more eminent. Should then the two agents represent a mankind as a whole, it appears impossible to identify at what point of the future Râ lives - even if we managed to interpret the interests and preferences of us all today as Ra. A message is passed to natural scientists that they cross over to social analyses whenever they add valuations to their data - in a form of warnings not to mention regulatory proposals - and that as visitors they should respect the state of art of the contemporary social science, including its genuine advisory capacity, namely to globally established policy-makers. Hence, any regulatory constraint on our liberties and freedoms must be always viewed as an outcome of a political struggle - never then as a victory of a modern science, as the currently prevailing rhetoric may suggest.