IDEAS home Printed from https://ideas.repec.org/a/sae/envirc/v33y2015i1p118-135.html
   My bibliography  Save this article

Regulatory Uncertainty and Corporate Pollution Control Strategies: An Empirical Study of the ‘Pay for Permit’ Policy in the Tai Lake Basin

Author

Listed:
  • Bing Zhang
  • Hanxun Fei
  • Yongjing Zhang

    (Graduate School of Public and International Affairs, University of Ottawa, Ottawa, ON K1N 6N5, Canada)

  • Beibei Liu

    (State Key Laboratory of Pollution Control and Resource Reuse, School of Environment, Nanjing University, Nanjing 210093, PR China)

Abstract

Frequent adjustments of environmental regulations usually cause business and investment risks, resulting in significant challenges for policy effectiveness. This paper examines how regulatory uncertainty affects decision making through an empirical study of the ‘Pay for Permit’ policy in the Tai Lake Basin in China. The results show that firms' willingness to decrease pollution is positively influenced by their perceived attitudes, social pressure, and perceived behavioural control. In addition, perceived regulatory uncertainty has significant impacts on social pressure and attitudes toward pollution control. Firms that perceive less regulatory uncertainty are more inclined to adopt antipollution strategies under the Pay for Permit policy. To reduce regulatory uncertainty, China's policy makers should maintain a consistent level of environmental regulations, set clear and reliable long-term policy targets, and strengthen policy enforcement.

Suggested Citation

  • Bing Zhang & Hanxun Fei & Yongjing Zhang & Beibei Liu, 2015. "Regulatory Uncertainty and Corporate Pollution Control Strategies: An Empirical Study of the ‘Pay for Permit’ Policy in the Tai Lake Basin," Environment and Planning C, , vol. 33(1), pages 118-135, February.
    • Handle: RePEc:sae:envirc:v:33:y:2015:i:1:p:118-135
    DOI: 10.1068/c12101
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/c12101
    Download Restriction: no
    File URL: https://libkey.io/10.1068/c12101?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dieter Helm & Cameron Hepburn & Richard Mash, 2003. "Credible Carbon Policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(3), pages 438-450.
    2. Magali Delmas & Yesim Tokat, 2005. "Deregulation, governance structures, and efficiency: the U.S. electric utility sector," Strategic Management Journal, Wiley Blackwell, vol. 26(5), pages 441-460, May.
    3. Schiantarelli, Fabio, 2005. "Product Market Regulation and Macroeconomic Performance: A Review of Cross Country Evidence," IZA Discussion Papers 1791, Institute of Labor Economics (IZA).
    4. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    5. Fredrik Paulsson & Fredrik von Malmborg, 2004. "Carbon dioxide emission trading, or not? An institutional analysis of company behaviour in Sweden," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 11(4), pages 211-221, December.
    6. Earnhart, Dietrich, 2004. "Regulatory factors shaping environmental performance at publicly-owned treatment plants," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 655-681, July.
    7. Rivera-Camino, Jaime, 2012. "Corporate environmental market responsiveness: A model of individual and organizational drivers," Journal of Business Research, Elsevier, vol. 65(3), pages 402-411.
    8. Han, Heesup & Hsu, Li-Tzang (Jane) & Sheu, Chwen, 2010. "Application of the Theory of Planned Behavior to green hotel choice: Testing the effect of environmental friendly activities," Tourism Management, Elsevier, vol. 31(3), pages 325-334.
    9. Jo Crotty & Mark Smith, 2006. "Strategic Responses to Environmental Regulation in the U.K. Automotive Sector: The European Union End‐of‐Life Vehicle Directive and the Porter Hypothesis," Journal of Industrial Ecology, Yale University, vol. 10(4), pages 95-111, October.
    10. Sonja Studer & Richard Welford & Peter Hills, 2006. "Engaging Hong Kong businesses in environmental change: drivers and barriers," Business Strategy and the Environment, Wiley Blackwell, vol. 15(6), pages 416-431, November.
    11. Christian Engau & Volker Hoffmann, 2011. "Corporate response strategies to regulatory uncertainty: evidence from uncertainty about post-Kyoto regulation," Policy Sciences, Springer;Society of Policy Sciences, vol. 44(1), pages 53-80, March.
    12. Bruce Clemens & Charles E. Bamford & Thomas J. Douglas, 2008. "Choosing strategic responses to address emerging environmental regulations: size, perceived influence and uncertainty," Business Strategy and the Environment, Wiley Blackwell, vol. 17(8), pages 493-511, December.
    13. Fan, Lin & Hobbs, Benjamin F. & Norman, Catherine S., 2010. "Risk aversion and CO2 regulatory uncertainty in power generation investment: Policy and modeling implications," Journal of Environmental Economics and Management, Elsevier, vol. 60(3), pages 193-208, November.
    14. Roland Ismer & Karsten Neuhoff, 2009. "Commitments through financial options: an alternative for delivering climate change obligations," Climate Policy, Taylor & Francis Journals, vol. 9(1), pages 9-21, January.
    15. Yuan Xu, 2011. "The use of a goal for SO2 mitigation planning and management in China's 11th Five-Year Plan," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(6), pages 769-783.
    16. Nicole Darnall & Joann Carmin, 2005. "Greener and cleaner? The signaling accuracy of U.S. voluntary environmental programs," Policy Sciences, Springer;Society of Policy Sciences, vol. 38(2), pages 71-90, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Weike & Luo, Qian & Liu, Shiyuan, 2022. "Is government regulation a push for corporate environmental performance? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 105-121.
    2. Liang Wu & Heng Liu, 2022. "How bricolage influences green management in high‐polluting manufacturing firms: The role of stakeholder engagement," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3616-3634, November.
    3. Wang, Yuze & Eriksson, Tor & Luo, Nengsheng, 2023. "The health impacts of two policies regulating SO2 air pollution: Evidence from China," China Economic Review, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ming-Yeu Wang & Shih-Mao Lin, 2020. "Intervention Strategies on the Wastewater Treatment Behavior of Swine Farmers: An Extended Model of the Theory of Planned Behavior," Sustainability, MDPI, vol. 12(17), pages 1-20, August.
    2. Fankhauser, Samuel & Hepburn, Cameron, 2010. "Designing carbon markets. Part I: Carbon markets in time," Energy Policy, Elsevier, vol. 38(8), pages 4363-4370, August.
    3. Nketiah, Emmanuel & Song, Huaming & Cai, Xiang & Adjei, Mavis & Adu-Gyamfi, Gibbson & Obuobi, Bright, 2022. "Citizens’ intention to invest in municipal solid waste to energy projects in Ghana: The impact of direct and indirect effects," Energy, Elsevier, vol. 254(PC).
    4. Heesup Han & Myong Jae Lee & Wansoo Kim, 2018. "Antecedents of Green Loyalty in the Cruise Industry: Sustainable Development and Environmental Management," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 323-335, March.
    5. Bo-Kyeong Kim & Kyoung-Ok Kim, 2020. "Relationship between Viewing Motivation, Presence, Viewing Satisfaction, and Attitude toward Tourism Destinations Based on TV Travel Reality Variety Programs," Sustainability, MDPI, vol. 12(11), pages 1-13, June.
    6. Chen, Shih-Chih & Hung, Chung-Wen, 2016. "Elucidating the factors influencing the acceptance of green products: An extension of theory of planned behavior," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 155-163.
    7. Hsu, Chia-Lin & Chang, Chi-Ya & Yansritakul, Chutinart, 2017. "Exploring purchase intention of green skincare products using the theory of planned behavior: Testing the moderating effects of country of origin and price sensitivity," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 145-152.
    8. Han, Heesup & Hyun, Sunghyup Sean, 2018. "What influences water conservation and towel reuse practices of hotel guests?," Tourism Management, Elsevier, vol. 64(C), pages 87-97.
    9. Winitra Leelapattana & Shih-Yun Hsu & Weerapon Thongma & Chun Chen & Fu-Mei Chiang, 2019. "Understanding the Impact of Environmental Education on Tourists’ Future Visit Intentions to Leisure Farms in Mountain Regions," Sustainability, MDPI, vol. 11(6), pages 1-13, March.
    10. Yu Hao & Yingting Wang & Qiuwei Wu & Shiwei Sun & Weilu Wang & Menglin Cui, 2020. "What affects residents' participation in the circular economy for sustainable development? Evidence from China," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1251-1268, September.
    11. Bireswar Dutta & Hsin-Ginn Hwang, 2021. "Consumers Purchase Intentions of Green Electric Vehicles: The Influence of Consumers Technological and Environmental Considerations," Sustainability, MDPI, vol. 13(21), pages 1-23, October.
    12. Abu Elnasr E. Sobaih & Ahmed Sh. Abdelaziz, 2022. "The Impact of Nutrition Labelling on Customer Buying Intention and Behaviours in Fast Food Operations: Some Implications for Public Health," IJERPH, MDPI, vol. 19(12), pages 1-15, June.
    13. Waris, Idrees & Hameed, Irfan, 2019. "Using Extended Model of Theory of Planned Behavior to Predict Purchase Intention of Energy Efficient Home Appliances in Pakistan," MPRA Paper 109612, University Library of Munich, Germany.
    14. Jonas Gamso, 2018. "Trade-based adoption of voluntary environmental programs in the developing world: Racing to the top or stuck in the mud?," Policy Sciences, Springer;Society of Policy Sciences, vol. 51(4), pages 515-543, December.
    15. Jun Hwan Kim & Hyun Cheol Lee, 2019. "Understanding the Repurchase Intention of Premium Economy Passengers Using an Extended Theory of Planned Behavior," Sustainability, MDPI, vol. 11(11), pages 1-19, June.
    16. Chung-Te Ting & Chi-Ming Hsieh & Hsiao-Ping Chang & Han-Shen Chen, 2019. "Environmental Consciousness and Green Customer Behavior: The Moderating Roles of Incentive Mechanisms," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    17. Dionysis Skarmeas & Constantinos N. Leonidou & Charalampos Saridakis & Giuseppe Musarra, 2020. "Pathways to Civic Engagement with Big Social Issues: An Integrated Approach," Journal of Business Ethics, Springer, vol. 164(2), pages 261-285, June.
    18. Jinsoo Hwang & Jinkyung-Jenny Kim, 2021. "Edible Insects: How to Increase the Sustainable Consumption Behavior among Restaurant Consumers," IJERPH, MDPI, vol. 18(12), pages 1-16, June.
    19. Tae-Im Han, 2018. "Determinants of Organic Cotton Apparel Purchase: A Comparison of Young Consumers in the U.S.A. and South Korea," Sustainability, MDPI, vol. 10(6), pages 1-13, June.
    20. Atefeh Dadvar & Krushna Mahapatra & Jörgen Forss, 2021. "Water Use Behavior in a Multicultural Urban Area in Sweden," Sustainability, MDPI, vol. 13(15), pages 1-15, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envirc:v:33:y:2015:i:1:p:118-135. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.