Study Data from China University of Petroleum Update Understanding of Environmental Policy (Environmental Concerns, Environmental Policy and Green…

Study Data from China University of Petroleum Update Understanding of Environmental Policy (Environmental Concerns, Environmental Policy and Green Investment)

By a News Reporter-Staff News Editor at Health & Medicine Week -- Investigators publish new report on Environment - Environmental Policy. According to news reporting originating in Qingdao, People's Republic of China, by NewsRx journalists, research stated, "Environmental regulators often use environmental policy to induce green investment by firms. However, if an environmental policy fails to exert a long-run effect on regulating the economic agents' behavior, it may be more reasonable to think of the firm as the leader in the game, since the investment in green technology is usually a strategic decision."

The news reporters obtained a quote from the research from the China University of Petroleum, "In this paper, we consider a three-stage Stackelberg game to address the interaction between a profit-maximizing firm (Stackelberg leader) facing emission-dependent demand, and the environmental regulator (Stackelberg follower). The firm decides on the green technology level in the first stage of the game based on its understanding of the regulator's profits function, especially an environmental concern that is introduced as an exogenous variable. In the current research, we show that high levels of the regulator's environmental concerns do not necessarily lead to the choice of green technology by the firm, and green investment level depends on the combined effects of the market and operational factors for a given level of the regulator's environmental concerns."

According to the news reporters, the research concluded: "The result also shows that increasing environmental awareness amongst the consumers is an effective way to drive the firm's green investment."

For more information on this research see: Environmental Concerns, Environmental Policy and Green Investment. International Journal of Environmental Research and Public Health, 2017;14(12):1996-2008. International Journal of Environmental Research and Public Health can be contacted at: Mdpi Ag, St Alban-Anlage 66, Ch-4052 Basel, Switzerland (see also Environment - Environmental Policy).

Our news correspondents report that additional information may be obtained by contacting X.X. Gao, China Univ Petr East China, Sch Econ & Management, Qingdao 266580, People's Republic of China.

Keywords for this news article include: Qingdao, People's Republic of China, Asia, Environmental Policy, Legal Issues, Environment, Technology, China University of Petroleum.

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