Capacity utilization loss of the Belt and Road countries incorporating carbon emission reduction and the impacts of China’s OFDI

Chen, Zhenling; Yan, Tian; Zhao, Weigang; Ni, Guohua

doi:10.1016/j.jclepro.2020.123926

Cited by 25 publications

(26 citation statements)

References 41 publications

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“…Several studies put forward suggestions for reducing overcapacity, but most of them are qualitative research (Chi et al 2021 ; Feng et al 2018 ). Some literature empirically studied the influence of factor change on resolving excess capacity, including outward foreign direct investment (OFDI) (Chen et al 2021b ), export (Dai and Zhao 2021 ), annexation, and reorganization of enterprises (Liu and He 2019 ). On the role of optimizing the promotion system for local officials in resolving excess capacity, the existing studies only analyze its impact from the qualitative perspective (Gan et al 2015 ).…”

Section: Literature Reviewmentioning

confidence: 99%

Reducing coal overcapacity in China: a new perspective of optimizing local officials’ promotion system

Zhang

Etienne

Wang

2022

Environ Sci Pollut Res

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Reducing coal overcapacity is an important strategy to achieve carbon peak and carbon neutralization in China. Determining the drivers of coal overcapacity is the first step toward this strategy. The existing literature focuses mainly on the macro determinants of coal overcapacity. Micro factors such as local officials’ intervention motivation also plays a role, but has received less attention in the literature. Using data from 25 coal-producing provinces in China, we demonstrate that local officials’ promotion pressure under the GDP-based promotion system significantly leads to coal overcapacity. Mediation effect analysis suggests that factor market distortion is one important channel through which local officials’ promotion pressure affects overcapacity in the coal sector, and the distortion in the capital market plays a more dominant role than distortion in the labor market. To alleviate the negative effect of officials’ promotion pressure on capacity utilization rate, we build a diversified promotion system incorporating environmental indicators. Results show that when the environmental pressure index accounts for at least 50% of the weights in the diversified promotion system, the negative effect of promotion pressure disappears. Our results suggest that to reduce coal overcapacity problem, policymakers may wish to weaken the GDP-based political promotion incentive by adding environmental and ecological indicators and reducing interventions on factor allocation. Results from the present paper has implications for resource-dependent countries facing similar overcapacity problems, especially in the context of the open economy and green recovery in the post-COVID-19 period.

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Section: Literature Reviewmentioning

confidence: 99%

Reducing coal overcapacity in China: a new perspective of optimizing local officials’ promotion system

Zhang

Etienne

Wang

2022

Environ Sci Pollut Res

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“…Estimations on China's new energy exports to other BRI nations and development of an input-output mechanism for export growth. [43] Institutional distance is an important factor in energy exports. Implications for the energy industry's sustainability.…”

Section: Mathematical Analyses Based On Database or Statisticsmentioning

confidence: 99%

“…Mathematical models using statistical databases provide more realistic insights. Zhenling, C. et al [43] calculated capacity use losses and their impacts on China's outward foreign direct investments. Wang L. et al [44] developed a globally and environmentally extended multiregional input-output analysis using the self-developed multiregional inputoutput model.…”

Section: Yesmentioning

confidence: 99%

“…The results obtained usually have limitations in guiding the manufacturing firms in "how and what to do" questions in their business. For example, Zhenling, C. et al [43] estimated the capacity use loss in countries along the BRI through the data envelopment analysis method. Their results were based on calculating the statistics of energy consumption/labor force and can provide a valuable reference for environmentalists.…”

Section: Achieving Sustainable Value Creation Through Effective Servitization Strategiesmentioning

confidence: 99%

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Servitization and Sustainable Value Creation Strategy for China’s Manufacturing Industry: A Multiple Case Study in the Belt and Road Initiative

et al. 2021

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Manufacturers are adding service offerings to satisfy customers’ needs in various markets. Effective strategies for servitization can improve the competitiveness of manufacturers during cooperation. The Belt and Road Initiative (BRI) established by China offers opportunities for economic cooperation and regional integration for the involved countries. Now, many manufacturing firms are expanding their businesses into Belt and Road countries, most firms are facing the “how to do” problems in improving sustainability during their cooperation. They urgently require methodical assistance on both improving competitiveness through servitization and addressing sustainability challenges. This necessitates the firms to develop successful service models for their industrial initiatives and investigate ways to produce long-term sustainable value through services. In addition to the firm’s economic worth, it also entails lowering the project’s negative environmental impact. The results provided effective strategies for manufacturers from two perspectives. The first perspective is the study discovered innovative service models at both the product and project levels. Project-service systems are critical, and manufacturing firms should use innovative service models to deliver projects. The operation method of holistic solution and localization integration project service was addressed in particular in this study. In the second perspective, there are suggestions for achieving sustainability through innovative service models. The methods for preserving sustainable value on the industrial project level were the subject of our study, which included significant criteria and detailed descriptions. The effective project service system should bring sustainable value to the lifespan of an industrial project. This study has determined four major paths to improving sustainable value creation through servitization: improving resource allocation capabilities, reduce carbon emissions through energy project service, technological outputs, and standards exportation. Useful recommendations are provided for manufacturing firms planning to develop their business overseas, especially in BRI countries.

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“…In practice, many scholars have conducted research on China’s carbon emission reduction through the Belt and Road Initiative. Chen et al ( 2021 ) pointed out that China’s OFDI has a positive impact on carbon emission reduction in countries along the Belt and Road Initiative. Rauf et al ( 2018 ) had the same view.…”

Section: Introductionmentioning

confidence: 99%

Cooperative carbon emission reduction through the Belt and Road Initiative

Mao

Wang

2021

Environ Sci Pollut Res

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Carbon emission reduction under the Belt and Road Initiative has great significance on China’s goal of carbon peak. To better promote carbon emission reduction, based on the background of the Belt and Road Initiative, this paper analyzes the collaborative carbon emission reduction through investment between Chinese enterprises and local enterprises in developing countries along the Belt and Road Initiative. Considering the efforts of enterprises in carbon reduction, low-carbon infrastructure investment, and promotion of low-carbon products, this paper constructs a differential game model of collaborative carbon reduction cooperation between Chinese enterprises and local enterprises in developing countries along the Belt and Road Initiative. By horizontally comparing Nash non-cooperative mode, Stackelberg master-slave mode, and cooperative mode, the results shows that Chinese enterprises can encourage local enterprises in developing countries along the Belt and Road Initiative to coordinate carbon emission reduction through subsidies, which is Stackelberg master-slave mode. Under the cooperative mode, with the maximum carbon emission reduction efforts of both parties, the total benefit of carbon emission reduction reaches the optimal Pareto equilibrium. In addition, this paper also discusses the influence of related factors on the benefits of carbon emission reduction.

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Capacity utilization loss of the Belt and Road countries incorporating carbon emission reduction and the impacts of China’s OFDI

Cited by 25 publications

References 41 publications

Reducing coal overcapacity in China: a new perspective of optimizing local officials’ promotion system

Reducing coal overcapacity in China: a new perspective of optimizing local officials’ promotion system

Servitization and Sustainable Value Creation Strategy for China’s Manufacturing Industry: A Multiple Case Study in the Belt and Road Initiative

Cooperative carbon emission reduction through the Belt and Road Initiative

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