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Economic Policies for the Sustainability Transition

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A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (30 October 2023) | Viewed by 24404

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Special Issue Editors

Prof. Roberto Zoboli

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Guest Editor

DISEIS - Department of International Economics, Institutions and Development, Catholic University, 20123 Milano, Italy
Interests: environmental economics and policies; economics of eco-innovation; sustainable development

Prof. Massimiliano Mazzanti

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Guest Editor

Department of Economics and Management, University of Ferrara, 44121 Ferrara FE, Italy
Interests: environmental economics and policies; economics of eco-innovation; sustainable development
Special Issues, Collections and Topics in MDPI journals

Dr. Simone Tagliapietra

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Guest Editor

1. Faculty of Political and Social Sciences, Catholic University, 20123 Milano, Italy
2. Energy and Climate, Bruegel, 1210 Brussels, Belgium
Interests: climate and energy policy; political economy of decarbonisation; sustainable development

Special Issue Information

Dear Colleagues,

Sustainability transition calls for a deep transformation of the economy, the society and the technological system, leading to a better life in a prosperous planet. The transition is largely triggered and accompanied by a wide range of public policies that intentionally introduce sustainability strategies, e.g., the European Union’s Green Deal, legislation and regulations, fiscal and market-based instruments, selection and conditionality criteria to drive companies (production) and people (consumption) towards sustainability. Dynamically, markets are expected to converge towards a paradigm of green economy and green growth in which sustainability can be economically self-sustained while becoming the new dominant culture. In this dynamic process, the conventional boundaries of environmental and energy policies are weakening and broadening, as is the case with waste policies and industrial strategies jointly leading to the circular economy, or the overwhelming role of climate change policies in energy and technology policies, as well as for international cooperation for development. The process is one of convergence in which economic and social objectives are increasingly important within environmental and energy policies, while all public policies embody a sustainability dimension, to the point where sustainability is seen as the leading objective of macroeconomic and growth/development policies.

This Special Issue aims at collecting original contributions on the changing landscape of sustainability policies and their economic and social impacts. A desired feature of the proposed papers is the specific consideration of the role of policies at different levels. All policy domains and areas of sustainability can be considered even beyond the core areas of decarbonisation, circular economy, pollution, and biodiversity. All the different steps of the policy cycle can be addressed, from the principles and objectives informing policy design, to multilevel policy implementation, policy effectiveness, the impact of policies on the real world in terms of environmental, social and well-being outcomes, and the interplay between policies and markets. The focus of the papers can be macroeconomic sustainability transition, meso-level and value chain transition, sustainability in specific industries, and local production systems. The papers can be original research articles, including quantitative and empirical analyses, or comprehensive review articles. While the perspective of the Special Issue is a socio-economic one, multidisciplinary and cross-disciplinary approaches are welcome, and it will possibly be preferred if co-authors are from very different disciplinary domains. There is no preferred geographical scope for the proposed papers.

An indicative, but not exhaustive, list of topics is as follows (EESP: environmental, energy and sustainability policies):

Industrial dynamics and innovations induced by EESP;
Effectiveness of market-based instruments and innovative regulatory approaches in EESP;
Cross-sectoral economic implications of EESP;
Research and innovation in support of EPPS;
EEPS and consumer behaviour;
EES implications of non-EES policies;
Trade policies, international technology transfer and EEPS;
Sustainability and green economy as a recovery strategies after macroeconomic shocks;
Public spending and investments for the sustainability transition;
Financial strategies and innovative financial instruments for sustainability;
Local redevelopment processes based on sustainability strategies;
Social equity and well-being effects of EESP;

Prof. Roberto Zoboli
Prof. Massimiliano Mazzanti
Dr. Simone Tagliapietra
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

sustainability transition
public policies
induced innovation
sustainable finance
international technology transfer
circular economy
industrial and innovation policy
emission trading and environmental taxes
environmental regulation
private-public partnerships
cooperation for sustainable development
decarbonisation
bioeconomy

Published Papers (11 papers)

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Research

22 pages, 691 KiB

Open AccessArticle

The Role of Strategic Autonomy in the EU Green Transition

by Susanna Paleari

Sustainability 2024, 16(6), 2597; https://0-doi-org.brum.beds.ac.uk/10.3390/su16062597 - 21 Mar 2024

Viewed by 838

Abstract

The European Green Deal (EGD) is the cornerstone of a strategic package (EGD Strategic Framework; EGDSF), which aims to make the EU a climate-neutral and competitive economy by 2050. The green transition planned by the EGD has been affected by relevant external shocks, which have highlighted Europe’s vulnerabilities in key strategic sectors. In this context, EU strategic autonomy (SA) has increasingly become a recurring element of the EGDSF. This article aims to provide a better understanding of the role of SA within the EGDSF and investigate whether it supports the EGD’s environmental ambitions. Based on an in-depth qualitative analysis of the EGDSF, it examines the specific purposes that, via SA, the EU wants to achieve and provides a categorisation of the related implementation measures. It emerges that SA objectives embedded into the EGDSF have been shaped in support of EGD goals but that some trade-offs may arise depending on the implementation measures selected to meet the former. In particular, current measures that promote self-sufficiency and the extension of environmental requirements to foreign businesses/products accessing the EU market raise some environmental, economic, and social concerns, which can be partly addressed through a stronger and more comprehensive EGD external dimension. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

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18 pages, 702 KiB

Open AccessArticle

Institutional Quality, Trust in Institutions, and Waste Recycling Performance in the EU27

by Andrea Pronti and Roberto Zoboli

Sustainability 2024, 16(2), 892; https://0-doi-org.brum.beds.ac.uk/10.3390/su16020892 - 20 Jan 2024

Viewed by 942

Abstract

This paper addresses the role of institutional quality and trust in institutions for the performance in waste recycling of the EU27 countries. While survey-based works have highlighted the role of these factors for waste recycling attitudes and performance at the micro level, econometric analyses of recycling in Europe at country and regional levels have mostly looked into the role of waste policies, and not the role of institutional factors, in driving progresses in waste recycling. This paper tries to fill this gap through a panel econometrics analysis of recycling rates of municipal solid waste at the national level for the EU27 countries for the period 2005–2020. The proxies for institutional quality and trust in institutions, as the variables of interest, are introduced into a model that includes controls on a set of socio-economic variables, and on a set of EU waste policy variables, in particular the Waste Framework Directive (WFD) and its revision, and the first Circular Economy Action Plan of 2015 (CEAP 2015). Our results support the hypothesis that the quality of institutions can influence waste recycling performance. Moreover, our results provide evidence on the negative role of institutional trust on recycling rate at country level. Similarly, we find that the EU WFD and CEAP 2015 have been significant in driving recycling performances; the latter finding, however, is a necessary condition in appropriate institutional and socio-economic environments at the national level. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

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19 pages, 644 KiB

Open AccessArticle

Does Regional Integration Improve Carbon Emission Performance?—A Quasi-Natural Experiment on Regional Integration in the Yangtze River Economic Belt

by Kunpeng Ai and Ning Xu

Sustainability 2023, 15(20), 15154; https://0-doi-org.brum.beds.ac.uk/10.3390/su152015154 - 23 Oct 2023

Cited by 2 | Viewed by 750

Abstract

Carbon emission performance (CEP) comprehensively considers the four-dimensional factors of “carbon reduction, pollution reduction, green expansion, and growth” and constitutes a key indicator for low-carbon and high-quality development. Although some studies have previously explored the relationship between regional integration and carbon emissions from different perspectives, it remains unclear how regional integration affects carbon emission performance. This article regards the regional integration construction of the Yangtze River Economic Belt as a quasi-natural experiment and uses the difference-in-difference (DID) model to empirically examine the mechanisms behind regional integration and their impact on carbon emission performance. The results show that regional integration significantly promotes improvements in carbon emission performance, primarily through three transmission mechanisms: resource factor allocation, economies of scale, and green innovation. It can also promote improvements in carbon emission performance in high-level carbon emission performance cities, middle- and downstream cities, non-natural-resource-oriented cities, and non-riverside cities. This article provides theoretical and empirical evidence that can be utilized to promote China’s high-quality, low-carbon transformation through regional integration construction in the Yangtze River Economic Belt. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

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18 pages, 973 KiB

Open AccessArticle

Can Low-Carbon Pilot City Policies Effectively Promote High-Quality Urban Economic Development?—Quasi-Natural Experiments Based on 227 Cities

by Qiansheng Gong, Xi Tang and Xiangyu Wang

Sustainability 2022, 14(22), 15173; https://0-doi-org.brum.beds.ac.uk/10.3390/su142215173 - 16 Nov 2022

Cited by 2 | Viewed by 1140

Abstract

To explore the relationship between low-carbon pilot city policies (LCC) and the high-quality development of urban economy, this paper calculates the high-quality development index based on five dimensions to construct a double-difference model for empirical research, taking the data of 227 cities in China from 2004 to 2019 and the second batch of low-carbon pilot cities as the main research object. The research conclusions are as follows: (1) The LCC has promoted the high-quality economic development of the pilot cities, and has long-term effects, which are mainly reflected in three dimensions: Innovative development, residents’ life, and urban public services. (2) The promotion effect is mainly reflected in the big cities, as well as the eastern and central regions. (3) The intermediary function is embodied in three aspects: Industrial upgrading, urban technological innovation, and urban investment. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

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14 pages, 282 KiB

Open AccessArticle

How Environmental Regulation Affects Industrial Green Total Factor Productivity in China: The Role of Internal and External Channels

by Guihuan Yan, Liming Jiang and Chongqing Xu

Sustainability 2022, 14(20), 13500; https://0-doi-org.brum.beds.ac.uk/10.3390/su142013500 - 19 Oct 2022

Cited by 7 | Viewed by 1403

Abstract

Many nations have enacted diverse environmental control regulations to address environmental and climate concerns. Analyzing how environmental regulation affects industrial green total factor productivity can aid in creating appropriate environmental regulation laws and realizing peaceful coexistence between man and nature. Based on the panel data of various provinces in China from 2011 to 2019, this paper used the data envelopment analysis method to measure the industrial green total factor productivity and then used the system generalized method of moments model to empirically study the differential effect of heterogeneous environmental regulation on China’s industrial green total factor productivity. In addition, this paper also conducted a test of internal and external mechanisms. The statistics show that environmental regulation can boost the growth of industrial green total factor productivity and pass the robustness test. Innovation ability is the external mechanism variable of environmental regulation acting on industrial green total factor productivity. Regulation can improve industrial productivity and significantly suppress industrial pollution emissions, but market-based environmental regulations do not have an effective impact on carbon emissions. Environmental regulations in economically developed regions can promote the growth of industrial green total factor productivity, but for financially backward areas, market-based environmental regulation inhibits the promotion of industrial green total factor productivity, while command-and-control environmental regulation is not helpful for industrial green total factor productivity. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

26 pages, 3659 KiB

Open AccessArticle

Does the Environmental Information Disclosure Promote the High-Quality Development of China’s Resource-Based Cities?

by Chunhua Xin and Xiufeng Lai

Sustainability 2022, 14(11), 6518; https://0-doi-org.brum.beds.ac.uk/10.3390/su14116518 - 26 May 2022

Cited by 3 | Viewed by 1753

Abstract

The high-quality development (HQD) of resource-based cities (RBCs) is the premise on which to ensure the healthy, stable, and sustainable development of China’s economy. In this study, we use the global Malmquist–Luenberger index based on the slacks-based measure of directional distance function (SBM-DDF-GML index), which is an improved data envelopment analysis (DEA) model of the non-radial and non-oriented, to calculate the HQD level of 102 RBCs in China from 2003 to 2019. Then, we empirically evaluate the effect of environmental information disclosure (EID) on HQD improvement in RBCs by adopting the method of time-varying difference-in-difference with propensity score matching (PSM-DID) and investigate the heterogeneous effects of EID. Additionally, the mediating effect model is employed to explore the impact mechanisms of EID on the HQD. The results show that: (1) EID has a significant and positive effect on the HQD of RBCs, and this conclusion is still valid after a series of robustness tests. (2) EID plays a more effective role in the promotion of HQD in central RBCs, resource strong-dependent RBCs, growth RBCs, and regenerative RBCs than in other types of cities. (3) EID promotes the HQD of RBCs through the environmental pollution reduction effect and the industrial structure upgrading effect. These findings enrich the content of the relationship between EID and the HQD and present a feasible path for RBCs in China to achieve the HQD through environmental governance. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

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14 pages, 841 KiB

Open AccessArticle

The Global Quest for Green Growth: An Economic Policy Perspective

by Klaas Lenaerts, Simone Tagliapietra and Guntram B. Wolff

Sustainability 2022, 14(9), 5555; https://0-doi-org.brum.beds.ac.uk/10.3390/su14095555 - 05 May 2022

Cited by 4 | Viewed by 4998

Abstract

Economic growth has historically been the main driver of rising greenhouse gas (GHG) emissions. To achieve steep emission reductions, the world would have to either decouple global GHG emissions from gross domestic product (GDP) at an unprecedented pace or face deep cuts to GDP. The so-called ‘green growth’ literature is optimistic that suitable policies and technology can enable such fast decoupling, while ‘degrowth’ proponents dismiss this and argue that the global economy must be scaled down, and that systemic change and redistribution is necessary to accomplish this. We use the so-called Kaya identity to offer a simple quantitative assessment of the gap between the historic performance in reducing the emission intensity of GDP and what is required for green growth, i.e., the basis of ongoing disagreement. We then review the literature on both degrowth and green growth and discuss their most important arguments and proposals. Degrowth authors are right to point out the considerable gap between current climate mitigation efforts and what is needed, as well as the various technological uncertainties and risks such as rebound effects. However, the often radical degrowth proposals also suffer from many uncertainties and risks. Most importantly, it is very unlikely that alternative welfare conceptions can convince a critical mass of countries to go along with a degrowth agenda. Governments should therefore instead focus on mobilizing the necessary investments, pricing carbon emissions, and encouraging innovation and behavioral change. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

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23 pages, 4444 KiB

Open AccessArticle

Research on the Impact of Environmental Regulations on Industrial Green Total Factor Productivity: Perspectives on the Changes in the Allocation Ratio of Factors among Different Industries

by Jiaqi Yuan and Deyuan Zhang

Sustainability 2021, 13(23), 12947; https://0-doi-org.brum.beds.ac.uk/10.3390/su132312947 - 23 Nov 2021

Cited by 10 | Viewed by 1605

Abstract

This paper constructs a two-sector manufacturer model of endogenous technological progress. We analyze the impact of environmental regulations on the factor input and output of different industries. Then, we reveal the intermediary role of inter-industry factor allocation in the impact of environmental regulations on industrial green total factor productivity (GTFP). Finally, the paper uses panel data from 30 provinces in China’s industry from 2000 to 2017 to conduct empirical tests. We can draw the following conclusions: (1) The relative magnitude of the output compensation of the production department and the innovation compensation of the R&D department could change the impact of environmental regulations on the input and output of inter-industry factors, and the comprehensive effects of both input and output will affect the level of GTFP. (2) The curve of the direct impact of environmental regulations on GTFP is in an inverted “U” shape. However, the production factor allocation ratio can “reverse” the inhibitory effect of high-intensity regulations on GTFP. (3) The capital factor has a greater impact on the regulatory effect, but the labor factor has a more lasting impact on the regulatory effect. High-strength environmental regulations can enhance manufacturers’ preference for human capital. Therefore, formulating environmental regulatory policies oriented to improve the ratio of factor allocation, mixing different types of regulatory policies, and increasing investment in human capital are all conducive to accelerating the transformation and upgrading of China’s industrial structure and achieving high-quality development of the industrial economy. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

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18 pages, 617 KiB

Open AccessArticle

Policies as Drivers for Circular Economy in the Construction Sector in the Nordics

by Malin zu Castell-Rüdenhausen, Margareta Wahlström, Thilde Fruergaard Astrup, Carl Jensen, Anke Oberender, Pernilla Johansson and Eirik Rudi Waerner

Sustainability 2021, 13(16), 9350; https://0-doi-org.brum.beds.ac.uk/10.3390/su13169350 - 20 Aug 2021

Cited by 10 | Viewed by 3444

Abstract

A circular economy (CE) represents the key alternative to the linear ‘take-make-consume-dispose’ economic model, that still predominates in the construction sector. This study investigates how policies support CE-focused businesses in the construction sector in the Nordics. A literature review, the creation of a database, a review of Nordic actors with a CE focus, and targeted interviews with actors across the value chain of the construction sector in Denmark, Finland, Norway, and Sweden enabled us to benchmark the CE policy landscape and assess how CE policies at different levels support CE business models in the construction sector. The results show that the construction sector is well represented in the CE policy frameworks and that many business opportunities are created when national and local policies are put into practice. The implementation of policies is mainly done via three key concepts, i.e., planning, requirements for sustainable constructions, and requirements for public procurement. It can be concluded that policies are drivers for the implementation of a CE and support CE business models in the Nordics. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

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24 pages, 4233 KiB

Open AccessArticle

Modelling the European Union Sustainability Transition: A Soft-Linking Approach

by Andrea M. Bassi, Valeria Costantini and Elena Paglialunga

Sustainability 2021, 13(11), 6303; https://0-doi-org.brum.beds.ac.uk/10.3390/su13116303 - 02 Jun 2021

Cited by 7 | Viewed by 3026

Abstract

The European Green Deal (EGD) is the most ambitious decarbonisation strategy currently envisaged, with a complex mix of different instruments aiming at improving the sustainability of the development patterns of the European Union in the next 30 years. The intrinsic complexity brings key open questions on the cost and effectiveness of the strategy. In this paper we propose a novel methodological approach to soft-linking two modelling tools, a systems thinking (ST) and a computable general equilibrium (CGE) model, in order to provide a broader ex-ante policy evaluation process. We use ST to highlight the main economic feedback loops the EGD strategy might trigger. We then quantify these loops with a scenario analysis developed in a dynamic CGE framework. Our main finding is that such a soft-linking approach allows discovery of multiple channels and spillover effects across policy instruments that might help improve the policy mix design. Specifically, positive spillovers arise from the adoption of a revenue recycling mechanism that ensures strong support for the development and diffusion of clean energy technologies. Such spillover effects benefit not only the European Union (EU) market but also non-EU countries via trade-based technology transfer, with a net positive effect in terms of global emissions reduction. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

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18 pages, 266 KiB

Open AccessArticle

Impact of Regional Environmental Regulations on Taiwanese Investment in Mainland China

by Fang Yang and Qinfan Gan

Sustainability 2021, 13(8), 4134; https://0-doi-org.brum.beds.ac.uk/10.3390/su13084134 - 08 Apr 2021

Cited by 1 | Viewed by 2129

Abstract

Based on the perspective of regional differences and decentralization, this article investigated the impact of environmental regulations on Taiwanese investment in mainland China from theoretical and empirical perspectives, and analyzed whether local governments are competing to lower environmental standards to attract Taiwanese investment so as to maintain their comparative advantages. This paper constructed a theoretical model through a two-stage game model. With the panel data of each province in Mainland China from 2006 to 2016, the theoretical propositions were empirically tested through the system GMM estimation method. The results show that the environmental regulation policies adopted by the local governments in the mainland have a significant inhibitory effect on the investment volume of Taiwan-funded enterprises, and the interaction between environmental regulations and local tax burden levels also has a negative effect on Taiwanese investment. Local governments have the motive to reduce environmental regulations to attract investment. Full article

(This article belongs to the Special Issue Economic Policies for the Sustainability Transition)

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