Central environmental protection inspection and carbon emission reduction: A tripartite evolutionary game model from the perspective of carbon neutrality

Since the carbon neutrality target was proposed,many countries have been facing severe challenges to carbon emission reduction sustainably.This study is conducted using a tripartite evolutionary game model to explore the impact of the central environmental protection inspection(CEPI)on driving carbon emission reduction,and to study what factors influence the strategic choices of each party and how they interact with each other.The research results suggest that local governments and manufacturing enterprises would choose strategies that are beneficial to carbon reduction when CEPI increases.When the initial willingness of all parties increases 20%,50%—80%,the time spent for the whole system to achieve stability decreases from 100%,60%—30%.The evolutionary result of“thorough inspection,regulation implementation,low-carbon management”is the best strategy for the tripartite evolutionary game.Moreover,the smaller the cost and the larger the benefit,the greater the likelihood of the three-party game stability strategy appears.This study has important guiding significance for other developing countries to promote carbon emission reduction by environmental policy.

The evolution of central environmental protection inspection policy attention in China: An investigation based on inspection reports

The central environmental protection inspection (CEPI) system in China is a significant institutional innova‐tion in national environmental governance. The CEPI applies a joint supervision strategy to address salient en‐vironmental issues and strictly enforce the environmental responsibilities of local governments. This study col‐lects and organizes CEPI inspection reports covering three stages that encompass the first round, the “look back”, and the second round, applying text analysis to obtain sample data and conduct statistical quantifica‐tion of word frequency in inspection reports and identify notable changes. The study explores the allocation of CEPI attention between policy objectives and the intensity of policy instruments. We determine that in con‐junction with public opinion feedback, the CEPI conducts targeted inspections and focuses more on pollutant governance, which has high severity and can be addressed quickly. The CEPI fills the gap of normalized gover‐nance with a campaign-style governance approach. Regarding the intensity of policy measures, the CEPI pri‐marily uses economic incentive policy instruments, supplemented by command-and-control and public guid‐ance approaches, advancing the sustainability of regulatory effectiveness through economic, social, and politi‐cal activities. This study extends knowledge in the field of CEPI policy priorities and implementation, expand‐ing the literature related to outcomes of environmental policy in developing countries.

Establishing a measurement,reporting,and verification system for climate finance in post-Paris agreement period

The measurement,reporting,and verification(MRV) of climate finance was originated from discussions under the United Nations Framework Convention on Climate Change(UNFCCC).It has been one of the key issues of global climate negotiations since 2009 and will continue to be of significant importance in addressing climate change and strengthening international trust.This paper analyses the concept,the objective,and the progress of the MRV of climate finance based on reviews of the latest literature and think-tank reports regarding climate finance regime and MRV.Following the analysis,challenges faced with the MRV of climate finance are illustrated.This paper presents that the comparability of climate finance data needs to be improved due to the variety of methodologies used for disaggregating climate finance.In addition,the integrality of the MRV system of climate finance has been impaired by the lack of feedback mechanism from the recipients to the contributors in reporting system.Furthermore,although accounting system of climate finance has been developing and improving,it remains incapacity in providing accurate data on disbursed climate finance.Responding to the above challenges,this paper proposes the key tasks in establishing a comprehensive MRV system for climate finance at international level.The tasks involve developing a measurement system with consistent data basis and accounting basis,a reporting system with more detailed guidance and standardized formats,as well as a verification mechanism balancing top-down and bottom-up review processes.In the last section,this paper concludes that the establishment of an improved MRV of climate finance requires concerted cooperation and negotiations between developed and developing country Parties under the UNFCCC.As one of the few developing country donors to the Global Environmental Facility(GEF),China is suggested to clarify its propositions as a developing country in aspects such as concept,coverage,and architecture of climate finance and MRV system,and gain bargaining power in improving operating and technical rules of international climate finance regime.

Firms and climate change:a review of carbon risk in corporate finance

This paper provides an overview of financial economics-based research on carbon risk with an emphasis on corporate finance.In the corporate finance literature,carbon risk refers to the impact of society’s transition to a lowcarbon economy on firm value due to tightening regulations,changing consumer preferences,reputational damage,etc.We focus on the links between carbon risk and different firm performance factors,such as firm risk,cost of capital,financial performance,firm value,and corporate decisions.Although research on carbon risk is still emerging in the corporate finance field,the amount of literature on this topic has been increasing,especially in the last 2 years.We find that some results are robust,while others are mixed.This indicates that conflicting hypotheses still exist,leading to a need for more in-depth exploration.

Bolstering the Belt and Road Initiative through green finance

This year, the Ministry of Ecology and Environment, together with four other ministries, released the "Guidance on Promoting a Green Belt and Road". Realizing this ambition requires green finance the full range of financial services that support the transformation to an environmentally and climate-friendly economy. Green finance in China has seen strong development based on the "'Guidelines for Establishing a Green Financial System" published by the People's Bank of China and six other govemment agencies in 2016.