Corporate adoption and implementation of innovative environmental policy measures in China

Abstract

Since the 1970s, the governments in many countries including China have begun to implement systematic environmental policies aimed at curtailing industrial pollution. During the past three decades, the traditional environmental policies have evolved from simple directives regarding emission limitations into comprehensive packages using various market-based economic instruments, such as taxes and emissions trading. However, with the environmental degradation becoming more and more serious, these traditional approaches have become inadequate. Several innovative measures, including voluntary action, collaborations between stakeholders, and dissemination of information regarding industry behavior, have emerged in recent years in many countries. This study explores how these three innovative measures have been implemented in China. The thesis focuses on how these measures have encouraged private corporations in China to improve their environmental practices. Three case studies are conducted to show how these three policies work to overcome the inefficiencies of the traditional policy approaches.

(cont.) This study also examines the limitations inherent in these measures. Corporate collaborations with environmental non-governmental organizations, the International Standards Organization 14000-an environmental management systems certificate program- and the China Environmental Labeling Program, are studied in detail to provide examples of the limitations and what they imply for the future. This study finds that the inherent demands have motivated these enterprises to adopt the innovative measures are different. At the same time, these measures have various levels of effectiveness, challenges and social benefits.