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Carbon dioxide emissions are considered to be one of the main culprits in global warming and the Kyoto Protocol specifically targets reductions in carbon dioxide to reduce global warming. Because the fossil burning electric utility plants are the primary industrial source of carbon dioxide emissions, we examine how effective the U.S. electric utility companies have been in reducing carbon dioxide emissions. We evaluate 1998 carbon dioxide emissions in relation to the emissions of the base year of 1990 set by the Kyoto Protocol. We also examine whether adequate disclosures are being made by the utilities to reflect their pollution performance. The findings show that the total amount of carbon dioxide emissions increased by 35% in 1998 compared to 1990, but on a relative basis, they decreased from 205 to 204lbs/MMBTU. Though we detect some support for a positive association between pollution disclosures and pollution emissions, the electric utilities in general do not disclose much about global warming or carbon dioxide.

This study examines whether the 38 electric utility firms owning the 110 plants targeted by the 1990 Clean Air Act (CAA) made adequate pollution disclosures to inform the stakeholders whether they met the pollution emission requirements of the Act by the start of its first phase. First, it evaluates pollution emissions of the targeted plans at the start of the first phase of the Act, i.e. 1995. Then, it evaluates whether pollution disclosures of these firms improved leading up to the first phase of the Act. This evaluation is done by comparing pollution disclosures for the start of the first phase, i.e. 1995, with the year the CAA was enacted, i.e. 1990. Pollution emission data are obtained from the Department of Energy and from the Environmental Protection Agency (EPA), and pollution disclosure data for 1989, 1990 and 1995 are obtained from the annual reports and 10Ks. A specifically designed content analysis technique is used to categorize pollution disclosures.

The pollution emissions results indicate that 1995 emissions are significantly lower than 1990 emissions. On an individual plant basis, the results, however, indicated that some plants reduced emissions while others used the permit system. The pollution disclosures results indicate that the 1995 pollution disclosure are comparatively lower than 1990 disclosures. The reason for high disclosures for 1990 could have been to protect the firms against potential legal cases if the requirements were not met. Once the fears of legal actions subsided, pollution disclosures were probably reduced. Lack of consistency and adequacy in pollution disclosures, however, make it difficult for stakeholders to properly evaluate their future risks.

This study develops the economic rationale for the inclusion of new environmental financial assets, tradable pollution rights, in a well‐diversified portfolio. These new assets are generated and their valuation determined in the market‐incentive environmental regulatory approach called emissions trading, especially the cap‐and‐trade variant. This approach has been gaining wide acceptance and approval. A leading example is the sulfur dioxide market where tradable allowances are assets that may be held by private investors. Transactions in this market have reached volumes indicative of a high degree of liquidity. Comparable tradable rights in other pollutants are under active development. We explain the design and workings of these markets and demonstrate empirically, on the basis of time series data, that sulfur dioxide allowances have rates of return and yield distributions that make them candidates for inclusion in asset portfolios. We conjecture that other tradable pollution rights will exhibit similar properties when sufficient data are available. Financial analysts and accountants are likely to play an increasing role in advising investors about the role of these assets in a well‐diversified portfolio.

The paper seeks to evaluate the changes in efficiency and productivity of coal‐fired electricity generation of 30 Chinese administrative regions from 1999 to 2007.

The paper incorporates data envelopment analysis with the Malmquist index to study the progress made in this sector. The model considers both economic and environmental factors by including the variables fuel consumption, labor, capital, sulfur dioxide emissions and electricity generated. A second model is constructed without the variable sulfur dioxide emissions to evaluate economic performances without taking environmental measures into consideration.

By comparing the two models, the paper identified provinces that favored economic performance over environmental performance, or vice versa. Also, it showed that the more efficient provinces tend to manage both economic and environmental efficiencies equally well, while the reverse is true for the least efficient provinces. The average total factor productivity growth in coal‐fired electricity generation of all provinces was 3.96 per cent for 1999‐2007, and this growth is mainly attributed to technological change. In addition, it found that the Eastern provinces are the most efficient and productive of the group.

In the absence of provincial coal quality data, a key efficiency factor is missing from the analysis.

Efficiency improvement efforts in the Chinese generation sector should target the least efficient provinces identified in this paper. Practices in the most efficient provinces should be further investigated to be replicated when possible.

The paper provides a contemporary overview of Chinese provincial efficiency and productivity measures for policy makers and investors to improve China's coal‐fired electricity generation sector.

Emissions produced by oceangoing vessels not only negatively affect the environment but also may deteriorate health of living organisms. Several regulations were released by the International Maritime Organization (IMO) to alleviate negative externalities from maritime transportation. Certain polluted areas were designated as “Emission Control Areas” (ECAs). However, IMO did not enforce any restrictions on the actual quantity of emissions that could be produced within ECAs. This paper aims to perform a comprehensive assessment of advantages and disadvantages from introducing restrictions on the emissions produced within ECAs. Two mixed-integer non-linear mathematical programs are presented to model the existing IMO regulations and an alternative policy, which along with the established IMO requirements also enforces restrictions on the quantity of emissions produced within ECAs. A set of linearization techniques are applied to linearize both models, which are further solved using the dynamic secant approximation procedure. Numerical experiments demonstrate that introduction of emission restrictions within ECAs can significantly reduce pollution levels but may incur increasing route service cost for the liner shipping company.

Two mixed-integer non-linear mathematical programs are presented to model the existing IMO regulations and an alternative policy, which along with the established IMO requirements also enforces restrictions on the quantity of emissions produced within ECAs. A set of linearization techniques are applied to linearize both models, which are further solved using the dynamic secant approximation procedure.

Numerical experiments were conducted for the French Asia Line 3 route, served by CMA CGM liner shipping company and passing through ECAs with sulfur oxide control. It was found that introduction of emission restrictions reduced the quantity of sulfur dioxide emissions produced by 40.4 per cent. In the meantime, emission restrictions required the liner shipping company to decrease the vessel sailing speed not only at voyage legs within ECAs but also at the adjacent voyage legs, which increased the total vessel turnaround time and in turn increased the total route service cost by 7.8 per cent.

This study does not capture uncertainty in liner shipping operations.

The developed mathematical model can serve as an efficient practical tool for liner shipping companies in developing green vessel schedules, enhancing energy efficiency and improving environmental sustainability.

Researchers and practitioners seek for new mathematical models and environmental policies that may alleviate pollution from oceangoing vessels and improve energy efficiency. This study proposes two novel mathematical models for the green vessel scheduling problem in a liner shipping route with ECAs. The first model is based on the existing IMO regulations, whereas the second one along with the established IMO requirements enforces emission restrictions within ECAs. Extensive numerical experiments are performed to assess advantages and disadvantages from introducing emission restrictions within ECAs.

Even during these tough economic times the current administration has proposed to revive the US “Cap and Trade” initiative and to see it through to passage. Many in the public are not aware that the idea of cap and trade is not new as similar programs have been successfully used in the US and other countries to “wind down” environmentally damaging emissions. The aim of this paper is to explain cap and trade and to project what form current proposals could take.

This paper explains cap and trade and goes on to project what form current proposals could take. It also examines the alternatives and the arguments both for and against cap and trade. Projected costs and benefits are examined, along with some examination of the actual mechanics by which the system is expected to operate.

The current US mood is that proposals to reduce greenhouse gas emissions will be expensive and burdensome to businesses and consumers. In fact, this is what is preventing them from going forward. The consensus is now growing that in order to achieve the goals of cap and trade, proposals will have to be cost effective, expanded internationally, and include India, China and other emerging manufacturing economies. If this can be done, it appears that cap and trade will continue to be part of the landscape of US emission reductions, along with the use of alternative and other renewable energy resources.

The paper examines costs and benefits of cap and trade, along with some examination of the actual mechanics by which the system is expected to operate

The purpose of this paper is to overview the development of China's emission trading, which is transforming environmental policy measures from traditional command and control regulations to business‐led decision making within government initiated environmental markets, and investigates the main factors that affect China's policy making with regards to further climate changes.

This paper is based on the authors' review of the literatures on emissions trading program in China and their critical analysis.

Initially China's environmental protection policies were focused principally upon the reduction of sulfur dioxide (SO₂) emissions for improving air quality. Since the authorization of the Kyoto Protocol in 2002, project‐based activities such as Clean Development Mechanism producing carbon credit developed rapidly. However, the implementation of carbon dioxide emission trading is still under discussion and research is much inferior to that of SO₂ emission trading. The barriers of and suggestions for designing future emissions trading market are also discussed.

This review helps to raise awareness and understand possible scenarios for emission trading in China.

The purpose of this paper is to analyze the long-run as well as short-run effect of economic growth, trade openness, urbanization and technology on environmental degradation (sulfur dioxide (SO₂) emissions) in Asian emerging economies.

The study utilizes the augmented STIRPAT model and uses the panel cointegration and causality test to analyze the long-run and short-run relationships. Due to the unavailability of data for all Asian emerging economies, the study focuses on 11 countries, i.e. Bangladesh, Hong Kong, India, Indonesia, Iran, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka and Thailand, and uses balance panel from 1980 to 2014 at annual frequency.

Results showed that the inverted U-shape hypothesis of the environmental Kuznets curve holds between economic growth and SO₂ emissions. While technology and trade openness increases SO₂ emissions, urbanization reduces SO₂ emissions in Asian emerging economies in the long run. Unidirectional causality flows from urbanization to SO₂ emissions and from SO₂ emissions to economic growth in the short run.

Research and development centers and programs are required at the government and private levels to control pollution through new technologies as well as to encourage the use of disposed-off waste as a source of energy which results in lower dependency on fossil fuels and leads to reduce emissions.

This study contributes to the existing literature by analyzing the effects of urbanization, economic growth, technology and trade openness on environmental pollution (measured by SO₂ emissions) in Asian emerging economies. This study provides the essential evidence, information and better understanding to key stakeholders of environment. The findings of this study are useful for individuals, corporate bodies, environmentalist, researchers and government agencies at large.

Purpose – Emissions trading is often heralded as an efficient approach to environmental regulation. In the mid-90s Communities for a Better Environment (CBE), a Los Angeles-based advocacy organization, raised concerns that emissions trading in the South Coast Air Basin, the most polluted region in Southern California, would result in environmental injustice. The organizations concerns received mixed responses from regulators. Historical analysis is used to assess the clash between emissions trading and environmental justice (EJ).

Methodology/approach – Emissions trading and EJ arose side by side between the 1960s and the 1990s, yet they disagree on how to clean the air. Historical analysis of legal documents, presidential addresses, letters, working papers, reports, and the like offers a better understanding of the development of emissions trading and EJ, and their intersection in environmental policy.

Findings – Emissions trading was grafted onto Clean Air Act policies not inherently designed for their incorporation. As a result, emissions trading came into direct philosophical opposition with EJ as political pressures calling for both economically efficient antiregulatory-ism and environmental equity forced their intersection. Formally, regional and national government accepted EJ as part of law. However, in principle, emissions trading undermined this acceptance. As a result, CBE could not easily win or explicitly lose its battle against emissions trading.

Originality/value of paper – Previous work on the relationship between emissions trading and EJ tend to focus on legal analysis and normative implications of emissions trading. Putting emissions trading and environment justice into historical perspective helps to illuminate larger questions about EJ activism and policy. Also, as California, the United States, and Europe turn to emissions trading to combat not only air pollution but also climate change, important lessons can be learned from the histories and collision of emissions trading and EJ.