Nowadays, listed companies around the world are shifting from short-term goals of maximizing profits to long-term sustainable environmental, social, and governance (ESG) goals. People have come to realize that ESG has become an important source of the corporate risk and may affect the company’s financial performance and profitability. Recent research shows that good ESG performance could improve the financial performance in some countries. Yet, the question of “how does ESG affect financial performance” has not been thoroughly discussed and studied in China. In this article, we study China’s listed power generation groups to explore the relationship between ESG performance and financial indicators in the energy power market based on the panel regression model. The results show that good ESG performance can indeed improve financial performance, which has significant meanings for investors, company management, decisionmakers, and industry regulators.

Humans currently face a problematic ecological dilemma regarding economic growth. It is difficult to meet human needs by only studying economic growth created by artificial costs, and all countries need to pay attention to the task of improving the level of human welfare under the constraints of an ecological environment from the perspective of sustainable development. The focus of ecological wellbeing performance (EWP) is how to achieve the maximum welfare level output or achieve higher welfare level improvement with the fewest conversions of natural and ecological inputs. In this paper, we use the super-efficiency SBM model to measure the EWP of Chinese provinces and cities, traditional and spatial Markov probability transfer matrices are established based on time series analysis and spatial correlation analysis of the global Moran’s index, and the characteristics of the spatiotemporal variations of EWP are analyzed by comparing the matrices. The evolution trend for a certain future period is predicted, and the influences of geographical spatial patterns on the spatiotemporal evolution of EWP are discussed. On this basis, according to the calculation and analysis of the characteristics of China’s EWP, provinces and cities in China need to focus on improving their own resource utilization efficiency and strengthen environmental supervision to improve EWP. Finally, policy recommendations are put forward. First, special laws and regulations need to be introduced for resource utilization and ecological protection. The second recommendation is to promote and improve the mechanism of public participation in the rational utilization of resources and protection of the ecological environment. The third recommendation is to establish a dynamic monitoring system for resource utilization and ecological environmental protection. The fourth recommendation is to strengthen structural adjustment and accomplish high-quality economic development.

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Abstract:The development of China's coal power industry is accompanied by various environmental risks. In this paper, typical coal power enterprises are taken as examples to establish a tool for environmental cost internalization and environmental risk analysis under the risk constraints of energy efficiency standards, environmental protection tax, national carbon market, water resources tax, overcapacity and renewable energy substitution. The study considered the impact on the value of coal power companies under different stress scenarios and constructed a stress testing framework for environmental risks that affect financial costs. The results show that the impacts of overcapacity and carbon market on enterprise value for individual risks are the main risk drivers that most regions face in different scenarios. In the comprehensive risk stress test, the enterprise value of the 1000 MW ultra-supercritical units in each region was found to have a small difference from the corporate value of the reasonable return in the optimistic and pessimistic scenarios, while the 300 MW and 600 MW sub critical units were more likely to deviate from the reasonable return due to low energy efficiency and high operating costs. With continuous increase in the severity of environmental risks, the environmental stress test helps coal power companies and financial institutions understand the impact of environmental risks on the financial status of the company and thus influence investment decisions.

In an attempt to resolve the increasingly severe grassland degradation, China has implemented a series of grassland protection policies. Herders are one of the key stakeholders in these policies, and their willingness to participate in grassland protection directly affects the effective implementation of these policies. We conducted a field survey of herders in Qinghai and Gansu Provinces to identify the factors that impact the willingness of herders to adopt these policies and then incorporated a number of these factors in the extension framework of the Institutional Analysis and Design (IAD) model. First, we analyzed the willingness of herders to adopt grassland protection policies using binary logistic regression. After dividing the herders into two categories based on whether or not they had participated in grassland protection, we repeated the binary regression analysis for both categories of herders. The results indicate that their willingness to adopt protection measures was influenced by their household characteristics, procedures and rules, the market environment, and cognitive reform. Herders who had not participated were mainly concerned about the impact of protection policies on household livelihoods and whether they would receive adequate subsidies. Based on this analysis, we understand that problems still exist with China’s grassland governance policies and have proposed strategies to improve these.