ABSTRACT The Korean government has promoted regulatory policies for carbon neutrality by 2050. As an export-driven country with a high reliance on the manufacturing industry, Korea faces significant challenges in achieving its national reduction targets. This study examines the total factor carbon efficiency (TFCE) of the Korean manufacturing industry to develop feasible solutions. We employed the metafrontier sequential slack-based model (M-SSBM) to reflect the group heterogeneity arising from industrial characteristics. Data from 35 subsectors were collected from 2012 to 2019, and these subsectors were classified into three groups: technology, capital, and labor-intensive. The average TFCE of all industries shows a downtrend. Meanwhile, the TFCE of the three groups commonly showed good performance in the group-frontier, while it resulted in different group rankings in the metafrontier. A panel Tobit regression was conducted in the second stage, and the result shows that exports are significantly related to enhancing TFCE.

Like many countries, China’s airports faced severe operational challenges after the COVID-19 outbreak. However, this predicament has been better mitigated by the Chinese government’s strong support for the aviation industry. However, whether this supportive policy can ensure the sustainable development of the industry needs to be further evaluated. In order to better understand the role of government promotional policies, this paper attempts to explore the driving mechanisms behind the sustainable development performance of Chinese airports. Using the bootstrap Data Envelopment Analysis (DEA) methodology, this study evaluates the operational efficiency of 43 major airports over the period from 2015 to 2022. The efficiency scores are compared with the regional distributions of supply and demand factors, as well as the different sizes based on their annual passenger throughput. The overall operational efficiency showed a fluctuating trend of an initial increase followed by a decline due to COVID-19, with significant regional disparities in airport efficiency. Regional differences are evident, with the eastern region having the highest efficiency value of 0.719, while the central region has the lowest efficiency of 0.594. The findings show that airports in the eastern region perform the best due to the proactive market support with rapidly increasing logistics demand, while airports in the west and northeast regions supported by the strong promotional policies follow closely in terms of operational efficiency. In contrast, airports in the central region are much less efficient due to the lack of market or policy support. To analyze more precisely this conflict on the governance, further analyses show that airport size also has a significant impact on the operational efficiency. Larger airports are typically more efficient, while smaller airports are less efficient, implying the market demand is slightly better to promote the airport operational efficiency than the promotional policies. These findings help us to gain a deeper understanding of the mechanism in the sustainable governance behind the operational efficiency of airports and suggest that more market-oriented appropriate policy direction is required to enhance the competitiveness of the aviation industry. These findings offer valuable insights for policymakers and stakeholders of the developing countries as well, underlining the necessity not for supply-driven policies, but for the demand–pull efforts to optimize resource allocation and adapt to evolving market dynamics.

The Swedish Paradox is a well-known phenomenon related to high research and development (R&D) investment with supposedly low aggregate economic performance owing to economic saturation. The Korean economy has not yet become an advanced economy; however, its R&D performance is negligible. Recently, also the R&D share of the GNP has become much higher, and its contribution to the economic growth rate is rapidly decreasing, implying a negative relationship between R&D activities and economic performance. This study uses slacks-based data envelopment analysis to investigate investment performance at the local government level in Korea. Our findings reveal that the average score for R&D investment performance in Korea is 64%, indicating huge potential for an efficiency enhancement of 36%. Notably, among the 16 local governments examined, Seoul and its surrounding metropolitan areas showed the lowest R&D efficiency, while Gangwon and Gwangju exhibited superior performance. Since these two regions have promoted specific missions, such as the medical hub in Gangwon and the optical fiber strategic platform in Gwangju, precise and accurate differentiation appears necessary to avoid a lack of governance. To determine the workable mechanism of R&D support policies, we further divided R&D productivity into three categories by incorporating the Malmquist Index (MI). The paper productivity of R&D shows an increasing trend over the experimental period from 2016 to 2021. However, overall, the MI shows slightly deteriorating productivity with 0.978, owing to the aggravating effect of patents and commercialization of R&D. The success in the paper comes from the harmonized partnership between the strong push factor of the government and voluntary pull factor of the R&D support receiving universities. Thus, we suggest that the Korean government should not depend on the superficial effectiveness of R&D in the term but on public–private partnerships with stronger performance-oriented responsibility.

For a sustainable landscape of local economies, many researchers have emphasized the importance of field-oriented differentiation in government policies. In particular, the Paris Agreement, based on the bottom-up approach, aims to maximize the participation of all economic agents, in contrast to the top-down approach of the Tokyo Protocol. In response to these global paradigm shifts in the local landscape, local governments in Korea have made significant efforts to adapt to sustainable development during the pilot phase of emission trading scheme (ETS), during the period from 2015 to 2020. This study evaluates the performance of these local government policies in the transition to a carbon-zero economy. Using the general non-radial directional distance function (GNDDF), we found that Gyeongsang Province demonstrated enhanced environmental total factor productivity (TFP) during the pilot project, whereas the Seoul metropolitan area lagged behind due to a lack of governance. As the economic center of Korea, Seoul showed poor environmental performance because of the arbitrary elimination of green belt areas and unchecked land development, resulting in environmental degradation, a trend common in many developing countries facing climate adaptation challenges. To address these urbanization issues, this study concludes that a balanced approach combining stricter regulations with market-oriented promotional incentives is essential for optimizing the transition of local economies to a sustainable landscape.

A carbon emissions trading scheme (ETS) should theoretically increase investment in sustainable energy and utilities, promoting energy efficiency in line with sustainable development and energy transition goals. However, whether Korea's ETS improves or impairs energy efficiency for sustainable energy and utilities is disputed. This study addresses this debate, using panel data from 16 sectors in Korea from 2011 to 2020 and employing a dynamic difference-in-differences (DID) method to estimate the effect of Korea's ETS on total factor energy efficiency and its influencing mechanisms. The main findings are as follows. First, while the effect appeared statistically insignificant in the analyses of the industry as a whole, improving energy efficiency demonstrated a moderate effect for the agriculture industry in terms of research and development investment, fixed assets, and operating income when performing heterogeneity and moderation effect analyses. Second, a company's production dependence on labour is unfavourable to improving energy efficiency through ETS. Lastly, the adverse impact of labour dependence is more prominently observed in light industries, particularly in durable goods and agricultural sub-sectors. Therefore, this reaffirms that the key to increasing energy efficiency is to adjust Korea's ETS flexibly, considering the characteristics of each industry.

The Belt and Road Initiative (BRI) proposed by China in in 2013 prioritizes environmental sustainability and regional economic development from a global perspective. Although the BRI has achieved considerable economic progress in many cities and regions, research on its environmental impacts is still insufficient, with limited attention paid to domestic urban areas in particular. Existing studies have focused primarily on carbon emissions, ignoring the broader environmental impacts of industrial emissions, such as those from smart transportation. To address this gap, this study adopts four major pollutant emissions—carbon dioxide (CO2), industrial particulate matter, industrial sulfur dioxide (SO2), and industrial wastewater emissions—as indicators to assess pollution levels in urban environments. Adopting panel data from 281 Chinese cities from 2003 to 2021, this study employs the difference-in-differences (DID) method to estimate the effect of the BRI on urban environmental pollution. This study is based on the following hypotheses: Hypothesis 1. BRI implementation has reduced urban pollution emissions. Hypothesis 2. Advancements in science and technology will drive the implementation of the BRI. Hypothesis 3. A proactive government response can significantly reduce urban environmental pollution. The main findings of this study are as follows. First, BRI implementation significantly reduces urban environmental pollution by 1.05%. Second, the policy effects of the BRI are more pronounced in the eastern and western regions and in larger cities, implying that geopolitical- and market-oriented strategies are important for regional performance. Third, scientific and technological progress positively affects pollution reduction in urban environments. Fourth, the BRI contributes to strengthening government intervention, which subsequently improves sustainable governance, reduces urban environmental pollution, and promotes regional economic cooperation. Our findings will serve as a crucial reference for future policymaking endeavors toward eco-friendly logistics cooperation in the region.

We propose the non-radial meta-frontier global Luenberger productivity index, which addresses the issues of technology heterogeneity, slack variable, and linear programming infeasibility, and decompose it based on the technology perspective and factor perspective. With the dataset of China’s power plants from 2005 to 2015, we identify the effects of the multi-targets, including energy-saving targets and [Formula: see text] reduction targets, in the 12th Five-Year Plan on green productivity encompassing all channels of effects. A [Formula: see text] increase in the average energy-saving target cumulatively increases green productivity by [Formula: see text], while a [Formula: see text] increase in the average [Formula: see text] reduction target cumulatively decreases that by [Formula: see text]. In all channels, the technology leadership effect and generation efficiency exhibit sensitivity. Differential effects of the multi-targets on state-owned versus non-stateowned plants imply significant differences in observed production technology.

This study explores the nexus between digital financial inclusion and household participation in commercial insurance, utilizing data from the Peking University Digital Financial Inclusion Index and the 2018 CFPS database. Using Probit and Logit models, our research uncovers significant regional and risk -preference variations, emphasizing the influence of governance mechanisms. The study underscores the pivotal role of digital participation in a sustainable governance mechanism in shaping financial behavior, as well as the importance of advocating for regulatory interventions, enhanced financial literacy, and infrastructure development to foster equitable insurance access. Moreover, positive determinants, such as education level and social insurance participation, are identified, while discretionary spending emerges as a barrier. This study advocates for expedited digital financial inclusion initiatives to increase financial literacy with strengthened regulatory oversight and governance mechanisms which would ensure sustainable regional development and insurance market resilience.

RESUMO O governo coreano promoveu políticas regulatórias para alcançar a neutralidade na emissão de carbono até 2050. Sendo um país orientado para as exportações e altamente dependente da indústria transformadora, a Coreia enfrenta desafios significativos para alcançar as suas metas nacionais de redução. Este estudo examina o fator total de eficiência de carbono (FTEC) da indústria manufatureira coreana para desenvolver soluções viáveis. Para tanto, empregamos o modelo baseado em folga sequencial metafronteira (M-SSBM) para refletir a heterogeneidade do grupo decorrente das características industriais. Dados de 35 subsetores foram coletados de 2012 a 2019, e esses subsetores foram classificados em três grupos: tecnologia, capital e trabalho intensivo. O FTEC médio de todas as indústrias mostra uma tendência de baixa. Enquanto isso, o FTEC dos três grupos em conjunto mostrou bom desempenho na fronteira de grupo, ao mesmo tempo que resultou em diferentes classificações de grupo na metafronteira. Para obter implicações, foi realizada uma regressão Tobit em painel na segunda fase, e o resultado mostra que as exportações estão significativamente relacionadas com o aumento do FTEC.

This paper examines the impact of extreme precipitation on Chinese industrial output and its total factor productivity (TFP) using data from the annual survey of industrial firms (ASIF) and daily weather data. The findings demonstrate a significant reduction in industrial firm output as a result of precipitation, with extreme daily precipitation decreasing output by approximately 1.22%. We provide an explanation for this precipitation-industrial output relationship from four perspectives: per capita wages, labor productivity, inventory, and depreciation. The effects of extreme precipitation are more pronounced in high-income and high-precipitation regions, as well as among foreign firms and low-technology firms. Our research suggests that extreme daily precipitation poses a serious obstacle to the development of the manufacturing industry. These results are crucial for understanding the economic impact and concealed costs of climate change, highlighting that extreme precipitation should be recognized as one of the primary sources of damage associated with climate change in the future.

Energy and environmental studies (E&E) have faced a significant turning point due to the lack of reliability of the existing models, as well as the lack of policy governance. Most papers in E&E have adapted data envelope analysis due to its popularity, which is a result of its structure of having multiple inputs and outputs. However, due to its crucial weakness in statistical reliability, diverse new methodologies to gain better reliability have been developed, such as difference-in-difference and computational general equilibrium models, but they are still do not popular because the world has not shown significant progress in the abatement of carbon emissions. This comes not only from the lack of appropriate, precise research models, but also from a worldwide lack of governance. Most countries advocate for the necessity of E&E policies, yet their policies alone are not enough for sustainable performance, due to the lack of reliability and/or weakness of public–private partnerships. This Special Issue shall examine all of these new challenges to the methodologies, as well as the implications and suggestions arising from their empirical results.

Quantifying the shadow price (SP) of CO2 emissions is the key to achieving China's "double carbon" targets. Considering technology heterogeneity, this study applies stochastic frontier analysis combined with meta-frontier technology to estimate the environmental technical efficiency (ETE) and SP of CO2 emissions for China's fossil fuel power plants from 2005 to 2015. This approach overcomes the lack of statistical inference and consistency of traditional methods and improves the reliability of results. The main results are as follows: (a) the average ETE of China's power plants is 0.9444, indicating that inefficient production accounts for 5.66%. The difference in efficiency between the central and local groups is significant. (b) The national average SP of CO2 is 266.8 US dollars per ton, which is much higher than the carbon price in the emission trading system. This result implies the need to design a carbon trading price mechanism. (c) The distribution of SP shows obvious corporation and geographical characteristics that are closely related to the level of regional economic development. Finally, the findings provide policy implications for the improvement of the efficiency and abatement of costs of power plants and the determination of carbon prices.

Many developing countries have been experiencing the problems of urbanization, particularly regarding carbon emission and polluted air emission mitigation. Is it possible to simultaneously achieve these two different clean and green economic strategies? This study analyzes this paradoxical issue of air pollution in terms of PM2.5 efficiency. To evaluate the performance of regulatory policies on air pollution and to find out the governance factors, this paper adopts the stepwise approach. In the first stage, we evaluate the cross-sectional PM2.5 efficiency of 16 Korean municipalities for the period between 2012 and 2017 and determine whether this performance is sustainable using the Malmquist Productivity Index (MPI). We concluded that most local governments lack sustainable governance on regulation policies for clean air. Using the Tobit model in the second stage, this study showed that regional economic development (GRDP) and an patent for clean air technology innovation are the most important strategic factors that promote sustainability in regulation policy performance.

Regulatory policies are indispensable to efficiently curbing anthropogenic CO 2 emissions and sustainably producing emission-intensive goods. Though previous modelling practice has studied the cost and benefit of different regulatory policies, such as command-and-control (CAC) and emission trading scheme (ETS), little is known about that for overlapped emission regulation policies. Here, we built up a Data Envelopment Analysis model to study the losses and gains from the overlapped implementation of CAC and ETS for Korean coal-fired power plants during 2011–2015. We showed that the initial phase of CAC in 2012 caused a sudden loss in power plants’ output, but that the loss was gradually eliminated in 2013 and 2014. Upon promulgation in 2015, ETS is expected to increase only 0.990% of output compared to CAC, yet it largely failed to deliver the potential benefit in its first year. The overlapped implementation of CAC and ETS contributes to a small share (5.567%) of the unrealized benefit. Nonetheless, we showed that implementing CAC and ETS in parallel tends to disproportionately affect less efficient power plants by restricting their strategies to meet regulatory measures. Therefore, we suggest that the integration of CAC and ETS can be a transitory measure as ETS provides only marginal welfare benefits, but ETS must be fully adopted and strengthened in the near future to economically and equitably mitigate CO 2 emissions.

Under the 'dual carbon' goal, the key to environmental-friendly economic development is to increase total factor productivity (TFP) in a greener way. However, as a key market-based emission reduction mechanism, the exploration related to whether the emission trading system (ETS) promotes green TFP (GTFP) is not deep enough, especially for secondary decomposition of this technical index and for specific industrial subsectors. In this study, combining biennial Malmquist-Luenberger productivity index with multi-period difference in differences model, we assess the technological progress of China's pilot ETS dynamically. The results show that the pilot ETS promoted GTFP significantly in the industrial subsectors, by 8.5%. The technology change index increased by 17.5%, which is the key action path to increasing GTFP. Furtherly, the mechanism test confirms that the policy works mainly through innovation channel. This study implied that the governance toward carbon-zero economies could be accelerated much more effectively by technological innovation of green.

With efficient and effective access to information technology, exports could be the best solution for businesses to tackle climate change through “learning by exporting” for sustainable development. With this context as reference, this study uses the directional distance function and the Malmquist–Luenberger Productivity Index (MLPI) to analyze the “green” total factor productivity (GTFP) growth of exporting firms in India by comparing them with non-exporting firms from 2012 to 2020. The finding reveals that, on average, GTFP growth is higher for the exporting firms (7.9%) as compared to non-exporting firms (-0.7%)—the “learning by exporting” effect exists in India, and exports could help Indian firms tackle climate change. Moreover, the decomposition of the MLPI shows that technical change (TC) is the main driver of GTFP in both exporting and non-exporting groups—IT or technological innovation leads to an increase in environmental productivity. Furthermore, the Tobit model is used to analyze the main drivers of TC that promote the GTFP in both groups. The results show that the product innovation (0.61%) has exerted a remarkable positive effect on promoting the GTFP of exporting firms and the human capital quality (0.57%) in non-exporting firms. Based on these findings, we propose that Indian policymakers “prudently” implement more field-oriented or performance-oriented policies for firms through promotional policies, such as tax incentives, while also encouraging the adoption of innovative technology for more effective mitigation of climate change for sustainable development.

It is undeniable that our environment is constantly evolving and citizens are facing new issues and challenges related to the environment around the world. Green governance is essential to achieve the goals agreed upon by local and global governments. The concept of green governance makes it possible to understand the integration of the actors of each governance form during decision-making. In this article, we identify the research gap and propose a taxonomy of green governance for sustainable development. We used factor analysis to construct the taxonomy of green governance. We also proposed the critical influencing factors of green governance to build sustainable development. To evaluate the importance of green governance for reducing CO2 emissions and other energy-related consumption, this study conducted two case studies with empirical analysis on the OECD Indian dataset of green growth indicators. The Indian green growth indicators are predicted using a machine learning technique that employs linear digression, support vector machine (SVM), and Gaussian process. The analysis shows that the taxonomy of green governance—global governance, adaptive governance, climate governance, ecological governance, self-governance, energy governance, and information technology (IT) governance—are related to each other and can work on the same objective by pursuing different activities. In addition, the case study analysis shows that the SVM is the superior technique in terms of predicting the time series data in this study. Based on the analysis, this study suggest that green governance is vital for achieving global sustainable goals for future growth, and policy-makers should keep this in mind when making environmental policy decisions.

Addressing emissions released from coal-fired power plants (CFPPs) is vital to mitigate climate change. China aims to replace 240 TWh CFPPs with fuel cell (FC) technologies by 2050 to achieve carbon-neutrality goals. However, FCs are not emission-free throughout their technology life cycle, and FC effectiveness will vary depending on the CFPP configuration. Despite these uncertainties, a comprehensive evaluation of on-site CFPP-to-FC mitigation potential throughout the entire life cycle remains underexplored. Here, we use a prospective life cycle assessment to evaluate the inclusive mitigation potential of retrofitting 240 TWh CFPPs via four FCs that use wind power/natural gas as feedstocks. We find CO2, PM2.5, and SO2 emissions decrease by 72.0%–97.0%, 55.5%–92.6%, and 23.1%–86.1%, respectively, by 2050. Wind-electrolysis hydrogen FCs enable the largest life cycle CO2 reduction, but mining metals for wind turbines reduces PM2.5 and SO2 savings. Prioritizing FC deployment in northern China could double the mitigation potential. Our study provides insights for designing carbon-neutrality CFPP-to-FC roadmaps in China.

Internet consumer finance platforms (ICFPs), as a new Internet financial model, have emerged and been widely adopted by Chinese as well as global online shoppers following the rapid growth of e-commerce. This emerging financial tool is, however, luring younger generations deep into debt. It jeopardizes the Sustainable Development Goal (SDG) 1—No poverty, bringing the sustainability of this consumer financial model into question. To aid the sustainable development of ICFP industry, this paper distinguishes two antecedents of continuous use intention for ICFP users: (1) satisfaction, as a sustainable determinant; and (2) impulsive buying, as a non-sustainable determinant. We found satisfaction (b = 0.452) has a larger positive effect on continuous use intention compared to impulsive buying (b = 0.229). Therefore, ICFPs should weigh heavier on technology innovation instead of seducing consumers’ impulsive buying behavior. We also found that credit limit misconception poses the largest impact (b = 0.483) on impulsive buying. In the near term, governments and ICFPs may initiate public programs to improve ICFP users’ financial literacy in order to restrain their unsustainable impulsive buying behavior and cultivate their sustainable satisfaction on ICFP technology and service. Market regulators may build up institutional frameworks to tighten the abuse of financial platforms on credit issuing power and better foster sustainable entrepreneurship in this new financial platform business.