Search Results (189)

Green innovation is a critical driver of sustainable development, yet it often faces efficiency challenges in rapidly industrializing economies. This study investigates the effect of China’s Circular Economy Demonstration Policy (CEDP) on urban green innovation efficiency (GIE) using city-level panel data from 2010 to 2021. Employing a difference-in-differences (DID) approach, we find that CEDP significantly enhances GIE, with the policy effect becoming statistically significant after a three-year lag and accumulating over time. Robustness tests, including placebo analyses, alternative dependent variables, and propensity score matching, confirm the validity of the results. Mechanism analysis reveals that the policy improves green innovation primarily by reducing capital distortion, promoting market integration, and enhancing resource allocation efficiency. Further heterogeneity analyses show that the positive effects are stronger in central cities, capital cities, and eastern regions, reflecting the role of local economic and institutional conditions. The study concludes with policy implications emphasizing regionally tailored implementation, capacity building, and long-term commitment to maximize green innovation outcomes. Full article

Traditional seed supply chains face several hidden risks. Certain regulatory departments tend to focus primarily on entity circulation while neglecting the origin and accuracy of data in seed quality supervision, resulting in limited precision and low credibility of traceability information related to quality and safety. Blockchain technology offers a systematic solution to key issues such as data source distortion and insufficient regulatory penetration in the seed supply chain by enabling data rights confirmation, tamper-proof traceability, smart contract execution, and multi-node consensus mechanisms. In this study, we developed a system that integrates blockchain and neural networks to provide seed traceability services. When uploading seed traceability information, the neural network models are employed to verify the authenticity of information provided by humans and save the tags on the blockchain. Various neural network architectures, such as Multilayer Perceptron, Recurrent Neural Network, Fully Convolutional Neural Network, and Long Short-term Memory model architectures, have been tested to determine the authenticity of seed traceability information. Among these, the Long Short-term Memory model architecture demonstrated the highest accuracy, with an accuracy rate of 90.65%. The results demonstrated that neural networks have significant research value and potential to assess the authenticity of information in a blockchain. In the application scenario of seed quality traceability, using blockchain and neural networks to determine the authenticity of seed traceability information provides a new solution for seed traceability. This system empowers farmers by providing trustworthy seed quality information, enabling better purchasing decisions and reducing risks from counterfeit or substandard seeds. Furthermore, this mechanism fosters market circulation of certified high-quality seeds, elevates crop yields, and contributes to the sustainable growth of agricultural systems. Full article

This study investigates the evaluation of housing policies for migrants in China, focusing on the interplay between rental and purchase decisions under the rent-and-purchase policy (RPP) framework. Employing a system dynamics model, we simulate migrant housing choices from 2001 to 2023 and forecast market trends from 2024 to 2030. The results indicate that RPPs significantly improve housing quality and reduce costs for migrants by mitigating institutional disparities and market distortions. Scenario analyses demonstrate that a coordinated approach combining supply-side interventions (e.g., affordable housing expansion) with rights-based policies (e.g., equalizing renter and buyer rights) effectively balances affordability and demand stability. The findings emphasize the critical role of addressing rights inequalities and advocate for a holistic policy framework to tackle migrant housing challenges, offering actionable insights for policymakers in system science and urban planning. Full article

The electricity market can optimize the resource allocation in power systems by calculating the market clearing problem. However, in the market clearing process, various market operation requirements must be considered. These requirements might cause the obtained power system dispatch instructions to deviate from the optimal solutions of original market clearing problems, thereby compromising the economic properties of locational marginal price (LMP). To mitigate the adverse effects of such optimality limitations, this paper proposes a pricing method for improving economic properties under the optimality limitation of power system dispatch instructions. Firstly, the underlying mechanism through which optimality limitations lead to economic property distortions in the electricity market is analyzed. Secondly, an analytical framework is developed to characterize economic properties under optimality limitations. Subsequently, an optimization-based electricity market pricing model is formulated, where price serves as the decision variable and economic properties, such as competitive equilibrium, are incorporated as optimization objectives. Case studies show that the proposed electricity market pricing method effectively mitigates the economic property distortions induced by optimality limitations and can be adapted to satisfy different economic properties based on market preferences. Full article

Green finance is widely promoted as a tool for supporting low-carbon development, but its effects on innovation efficiency remain unclear. This study examines the impact of China’s Green Finance Reform and Innovation Pilot Zones (GFRIPZ) on green innovation efficiency at the city level. Using the GFRIPZ policy as a quasi-natural experiment, we employ a difference-in-differences approach to identify the causal effects of the policy and explore the underlying mechanisms and contextual moderators. The results indicate that the policy significantly reduces green innovation efficiency in pilot cities, with the negative impact being more pronounced in non-central cities, provincial capitals, and cities in western China. Mechanism analysis reveals two key pathways: increased environmental costs contribute to resource lock-in, and strategic shifts toward quantity-focused innovation reduce overall efficiency. Furthermore, we find that the institutional environment plays a critical role—market integration mitigates the policy’s adverse effects by improving resource allocation, while administrative environmental pressure intensifies distortions. These findings suggest that rigid green finance regulations may unintentionally suppress innovation performance. We propose that more flexible policy design, better cross-regional coordination, and refined local governance incentives are essential for aligning green finance tools with innovation-driven sustainability goals in emerging economies. Full article

This study investigates the relationship between overconfidence and meme stock valuation, drawing on panel data from 28 meme stocks listed from 2019 to 2024. The analysis incorporates key financial indicators, including Tobin’s Q ratio, market capitalization, return on assets, leverage, and volatility. A range of overconfidence proxies is employed, including changes in trading volume, turnover rate, changes in outstanding shares, and alternative measures of excessive trading. We observe a significant positive relationship between overconfidence (as measured by changes in trading volume) and firm valuation, suggesting that investor biases contribute to notable pricing distortions. Leverage has a significant negative relationship with firm valuation. In contrast, market capitalization has a significant positive relationship with firm valuation, implying that meme stock investors respond to both speculative sentiment and traditional firm fundamentals. Robustness checks using alternative proxies reveal that turnover rate and changes in the number of shares are negatively related to valuation. This shows the complex dynamics of meme stocks, where psychological factors intersect with firm-specific indicators. However, results from a dynamic panel model estimated using the Dynamic System Generalized Method of Moments (GMM) show that the turnover rate has a significantly positive relationship with firm valuation. These results offer valuable insights into the pricing behavior of meme stocks, revealing how investor sentiment impacts periodic valuation adjustments in speculative markets. Full article

The distortion of energy prices has become an important obstacle to the high-quality development of China’s economy. Moreover, energy price distortions are not merely a domestic issue. They may trigger carbon leakage by diverting emissions-intensive production to countries with cheaper energy. Although the existing literature has extensively examined the effects of energy price distortions, two significant research gaps remain. First, most studies treat energy price distortions merely as an influencing factor, lacking a systematic analysis that places it at the core. Second, the spatial correlation characteristics of energy price distortions are often overlooked. This study measures the degree of energy price distortions across Chinese provinces from 2000 to 2022 and employs methods such as the Global Moran’s I, Local Moran’s I, and kernel density estimation to systematically analyze the spatial correlation, spatial distribution of coordination indices, and dynamic evolution patterns of these distortions. The results reveal that: (1) the overall degree of energy price distortions in China exhibited a trend of rising first and then declining, with significant regional disparities; (2) the regional gap followed an “expansion-contraction” trajectory; (3) there is notable spatial autocorrelation, with high-distortion areas concentrated in Northeast China, the middle reaches of the Yellow River, and Northwest China; and (4) the dynamic evolution suggests that distortion levels in high- and medium-value regions may continue to decline, while those in low-value regions may increase. This study fills a critical gap in the systematic spatial analysis of energy price distortions and provides new empirical evidence and policy insights for advancing market-oriented reforms in energy markets. Full article

This study explores how carbon pricing and electricity market liberalization jointly contribute to China’s sustainable energy transition. Using a dynamic computable general equilibrium (CGE) model (CEEEA2.0), we simulate three policy scenarios—business as usual, emissions trading scheme (ETS) with regulated electricity prices, and ETS with market-based pricing—under a unified emissions cap. The results demonstrate that electricity market liberalization enhances carbon pricing efficiency by eliminating price distortions, leading to a 0.06% increase in GDP and a 12% reduction in emission abatement costs. However, liberalization also raises electricity and consumer prices, disproportionately affecting rural and low-income households. These findings underscore the need to balance economic efficiency and social equity in sustainability-oriented energy reforms. Our analysis emphasizes the importance of designing inclusive and just transition policies to ensure that carbon mitigation efforts support long-term environmental, economic, and social sustainability goals. Full article

The Greek islands have been blessed with excellent wind potential, with hundreds of sites featuring annual average wind velocity higher than 8–10 m/s. Due to specific regulations in the legal framework, some GWs of wind parks have been submitted since the late 2000s by a small number of large investors in the Greek islands, favoring the creation of energy monopolies and imposing serious impacts on natural ecosystems and existing human activities. These projects have caused serious public reactions against renewables, considerably decelerating the energy transition. This article aims to summarize the legal points in the Greek framework that caused this distorted approach and present the imposed potential social and environmental impacts. Energy monopolies distort the electricity wholesale market and lead to energy poverty and a low standard of living by imposing higher electricity procurement prices on the final users. The occupation of entire insular geographical territories by large wind park projects causes important deterioration of the natural environment, which, in turn, leads to loss of local occupations, urbanization, and migration by affecting negatively the countryside life. Serious concerns from the local population are clearly revealed through an accomplished statistical survey as well as a clear intention to be engaged in future wind park projects initiated by local stakeholders. The article is integrated with specific proposed measures and actions toward the rational development of renewable energy projects. These refer mainly on the formulation of a truly supportive and just legal framework aiming at remedying the currently formulated situation and the strengthening of the energy communities’ role, such as through licensing priorities, funding mechanisms, and tools, as well as additional initiatives such as capacity-building activities, pilot projects, and extensive activation of local citizens. Energy communities and local stakeholders should be involved in the overall process, from the planning to the construction and operation phase. Full article

Background/Objectives: Drug shortages are a serious issue affecting health systems worldwide, determined by multiple causes including supply issues, regulatory limitations, and market distortions. The possible repercussions on patients may impair therapeutic efficacy. Despite numerous actions being implemented by regulatory authorities, including market monitoring, export restrictions, and temporary regulation mitigations, few instruments have been made available to help health operators find marketed alternatives to unavailable products. The aim of this work was to create an algorithm to find equivalent or alternative medicinal products available in a certain pharmaceutical market. Algorithm development and validation were performed using the medicinal products marketed in Italy. Methods: First, a newly assembled code, describing the active pharmaceutical ingredient by its Anatomical Therapeutical Chemical (ATC) code, and its dosage form by the European Directorate for the Quality of Medicines & HealthCare (EDQM) Standard Terms, was attributed to each marketed medicinal product. Then, the algorithm was set up to identify its possible equivalents or alternatives by assigning a score quantifying differences in Defined Daily Dose (DDD) per presentation unit and in characterizing Standard Terms. Results: The algorithm was validated on a randomized sample of medicinal products, proving to be able to identify appropriate equivalents or alternatives; moreover, it was tested in real conditions by submitting a survey to health professionals, who found this product to be reliable and useful. Conclusions: The developed algorithm may be employed as a rational tool to help health operators find solutions to drug shortages. This work highlighted some limits of the current ATC attribution that should be addressed by the competent authorities. Full article

Developing countries face a disproportionate degree of threat from climate change. As such, they require and receive significant financial support to address the menace. However, little is known about the potential externalities of this form of external liquidity for the business sector. This paper evaluates the impact of climate finance on the ease of doing business (EODB). On the one hand, climate finance might lead to an improved business environment as the funds facilitate infrastructure provision, technological innovation, and international collaboration for recipient countries. On the other hand, however, the business environment might be negatively impacted by complex new regulations, disruptive technological transitions, market distortions, and resource diversions. Countries receiving climate funds may also introduce new environmental and business regulations, implement new technologies, and divert resources to new programs to justify the receipt of aid or demonstrate a commitment to balancing economic development with environmental objectives. We theorize that given the expected disruptions to business, climate finance should negatively impact the EODB. We also argue that this negative impact will be more severe for resource-rich countries than for their resource-poor peers. Countries rich in natural resources might experience higher disruptions to business operations as they attempt to balance resource-dependent economic operations with environmental objectives mandated by climate finance. Utilizing panel data for 86 recipient countries for the 2002–2021 period, we test our hypotheses using the Generalized Methods of Moments (GMM) technique. The baseline results suggest that climate finance has a weak positive impact on the EODB. However, as argued, resource-dependence heterogeneity analysis reveals that climate finance significantly negatively disrupts the EODB in resource-rich countries. Furthermore, a sectoral comparative analysis shows that while climate finance has a significant positive impact on the growth of the service sector, it significantly slows the growth of the resource sector, affirming the argument that climate finance might attract higher disruptions to resource-dependent business operations. By implication, lowly diversified economies might realize more negative than positive effects of climate finance, and investors should consider providing support to ease the pains of transitioning from resource-intensive growth to clean energy-driven development strategies. Full article

With the advancement of economic globalization, market integration has become a critical contributing factor for sustainable economic development. However, the persistence of zombie firms continues to undermine fiscal sustainability, creating a critical policy challenge. The core purpose of this article is to propose novel policy directions for emerging economies to foster domestic market integration (DMI) and sustainable development. Based on panel data from 297 cities in China from 2008 to 2020, this paper employs a two-way fixed effects model to empirically test the impact of subsidies allocated to zombie firms on DMI. The results indicate that targeted subsidies provided by local governments to zombie firms exacerbate regional market segmentation and hinder the process of DMI. The analysis reveals several key mechanisms underlying this phenomenon: on the one hand, local governments may shift expenditure burdens to enterprises located outside their jurisdiction, leading to higher institutional trade costs and lower fiscal sustainability; on the other hand, the persistence of zombie firms crowds out the resources available to healthy enterprises and distorts the allocation of factor resources, thereby impeding the ability of local products to compete effectively in intercity markets. However, enhancing the business environment and upgrading the industrial structure can effectively mitigate the market fragmentation induced by such inefficient subsidies. This research offers a novel perspective for quantifying local protectionism and provides important implications to improve DMI as well as sustainable economic development. Full article

This paper examines the financial health risks that private sector water, sanitation, and hygiene (WASH) businesses in rural Vietnam face. It investigates the challenges faced by water operators and sanitation suppliers involved in donor-funded development projects aimed at supporting poor and vulnerable households. Through surveys and focus group discussions with 15 suppliers who worked in public–private partnerships, this research examines the financial risk factors affecting water and sanitation suppliers and their impact on financial viability through two case studies. For water operators, the risks primarily involve infrastructure management, operational costs, and revenue instability. In the sanitation sector, risks center around fluctuating material prices, limited business expansion capital, and household affordability. This study highlights the dual role of government and donor subsidies, which enhance service accessibility but potentially distort market dynamics. It also underscores the need for targeted financial and policy interventions, including better access to microfinance, regulatory improvements, and human resource development. The findings aim to inform strategies for government, donors, and private sector actors in similar WASH development contexts to enhance financial sustainability, ensuring inclusive WASH services in underserved areas. This paper contributes to policy discussions by proposing mechanisms to balance public–private collaboration while fostering market resilience and equitable access to WASH services in emerging economies similar to that of Vietnam. Full article

Firms frequently face a tradeoff between the advantages of upholding sustainability and ESG performance and the expenses associated with participating in ESG initiatives. This tension leads to an increase in greenwashing practices, which ultimately undermines genuine sustainability efforts and misleads stakeholders. Motivated by this trend, our study examines the influence of a macro-level factor, specifically local city-level governments’ GDP manipulation, on the extent of firms’ greenwashing, highlighting how government behavior can distort sustainable business practices. Using the data of the publicly traded Chinese manufacturing companies during the period of 2007–2019, we find a positive and significant relationship between the extent to which firms engage in greenwashing and the extent of local city-level governments’ GDP manipulation. Additional analysis reveals that firms’ financial constraints and external monitoring are the channels through which governments influence firms’ greenwashing. In addition, the finding of a positive association between firm greenwashing and government GDP manipulation is more pronounced in regions with a less developed marketization index, in periods before China’s anti-corruption campaign, in state-owned firms, and in firms at the business life cycle of the mature stage. Our study addresses a gap in the literature by demonstrating how government economic interventions influence firms’ sustainability performance. Full article

Our research analyzes the design of an auction model for railway transportation on the South-East Railway of Peru, managed by Ferrocarril Transandino S.A. (Fetransa) and operated by PeruRail. Initially, the regulatory framework aimed to promote competition in railway transportation through timetable auctions and infrastructure access. However, the concession has resulted in a vertically integrated structure that favors PeruRail, which faces minimal direct competition, controls high-demand time slots, and hinders the entry of other operators due to strategic and structural access barriers. To address these distortions, we propose reforming the auction mechanism to neutralize these advantages and enhance competition. In this revised framework, the track usage fee will serve as the competitive factor, with the highest bid above a minimum base rate securing the allocation. Additionally, we propose the implementation of asymmetric tariffs to compensate for the higher costs faced by operators with fewer economies of scale, technological optimizations to facilitate equitable access to time slots, and stricter oversight mechanisms to ensure transparency in timetable allocation. These measures aim to balance the market and safeguard competition through a more equitable and efficient auction design. Full article