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In this study, we investigate whether outbound foreign direct investment (OFDI) either augments or impedes domestic public and private investment, incorporating the role of institutional quality into the context of developed and emerging countries. To this end, we apply a cross-sectional-autoregressive-distributed lag (CS-ARDL) approach to analyze panel data from the period 1996–2017. Our empirical findings suggest that OFDI augments private capital formation for developed countries. Institutional quality (IQ) is found to be a driving factor that promotes private capital formation in the established economies of developed countries. However, OFDI has a negative association with the public capital formation in the established economies of developed countries, while IQ has a positive association with it. In the context of emerging economies, OFDI is found to be too insignificant to have an effect on private and public capital formation. Interestingly, IQ has a detrimental effect on both private and public capital formation in emerging economies. Our findings are robust. The empirical findings of this study imply that institutional quality should continue to be improved in developed countries, while it should surpass a certain threshold for emerging economies to promote domestic capital formation.

To study the economic and environmental effects of human capital, previous studies measure human capital based on education; however, this approach has many shortcomings because not all educated people are innovative human capital. Hence, this study introduces the concept of innovative human capital by developing a new index that measures human capital based on the number of patents every one million R&D staff full-time equivalent. After this, this paper studies the impact of innovative human capital on CO2 emissions in China. The provincial panel data of 30 Chinese provinces from 2003 to 2017 is analyzed using the fixed effect, ordinary least squares, and the system generalized method of moments (SYS-GMM). The analysis revealed that innovative human capital alleviates environmental deterioration in China. The findings unfold the existence of the environmental Kuznets curve (EKC) considering innovative human capital in the model. It implies that Chinese economic development will eventually support environmental sustainability if China continues to develop its innovative human capital. Among the control variables, economic structure, population density, and energy intensity stimulate environmental degradation by increasing CO2 emissions. However, FDI has a negative relationship with CO2 emissions. Lastly, the study proposes comprehensive policies to increase innovative human capital for environmental sustainability.

Analyzing the efficiency of the water, energy, and food (WEF) nexus is critical for effective governance strategies. Therefore, three-stage data envelopment analysis (DEA) was used to measure the efficiency level of WEF in the 36 districts of Punjab, Pakistan, for the period from 2015 to 2021. Furthermore, the stochastic frontier was used to analyze the effect of external environmental factors on these efficiency scores of the WEF nexus. The results of the DEA showed that the number of frontier efficiency districts decreased, and most districts experienced rank change over time. Overall, the performance of 50% of the districts declined over time. The relative decline in efficiency was found to be higher in districts Bahwalnaghar and Rahim Yar Khan. The performance of districts Multan and Sheikhupura increased over time, while districts Vehari and Sargodha were the most complete and efficient in actual performance. According to the SFA’s findings, the WEF nexus efficiency of South Punjab districts was negatively impacted by external environmental factors (urbanization rate, manufactured industry output, population), leading to severe stress across WEF sectors. Districts in central and southern Punjab, however, were more likely to have lower rankings because of the positive impact of external environmental factors on the efficiency of the WEF nexus. The substantial rise of external environmental variables focused on scale expansion rather than quality improvement, which created a wide gap in WEF inputs and, hence, reduced the efficiency of the WEF nexus in the districts. The findings of this study provide valuable insights for developing governance strategies based on external environmental factors and WEF resource endowment, and they complement the efficiency calculation of WEF nexus research. Future research should focus on the Baluchistan region, the most deprived area in terms of water, energy, and food.

Local government's environmental expenditure (LGEE) is critical to ecological protection and environmental governance, and it has not played its due role. By constructing a theoretical model of the competitive effect of LGEE under the intervention of central government, this study used the spatial econometric model to analyze the competitive effect of LGEE based on the data of 30 provinces in China from 2007 to 2016. The main results show that (1) from the perspective of the national area, LGEE shows a U-shaped development model together with economic growth; (2) a significant positive spatial effect in interprovincial LGEE is observed in eastern region, indicating that local government tends to adopt the competitive strategy of mutual imitation. Local government will not reduce environmental expenditure as fiscal decentralization increases; (3) the coefficient of the spatial effect in LGEE is significantly negative in central and western regions, which is manifested as a competitive strategy of mutual substitution. The coefficient of fiscal decentralization is significantly negative, indicating that LGEE relies mainly on the transfer payments from central government, and the essence of interprovincial competition regarding environmental expenditure is the competition for the transfer payments from central government.

Highlights •Biomass resource constraints impact the effectiveness of bioeconomy policies. •Bioeconomy policies may have an important impact on the sector structure in the long run, but the sector growth remains ultimately constrained by the availability of inputs. •Solutions to reduce the biomass constraint have to be included in innovation policy for the biobased economy.

In recent years, with the rapid development of the rural economy, while the living standards of rural residents have been greatly improved, the environmental conditions in the rural areas are not optimistic, and water pollution is one of the most important ones. Therefore, in order to improve the rural ecological environment and promote the task of water pollution control, Shandong Province has issued “the Governance Action Plan of black and odor water in rural areas of Shandong Province”. This article mainly uses “ the Action Plan” as a guide to analyze the current situation of rural black water bodies in Shandong Province and the current problems and related countermeasures, and follow the “comprehensiveness, applicability, economy, long-term effectiveness and safety. According to the black and odorous water problems caused by natural, technological and human factors, we will adopt comprehensive methods such as water purification, dredging, source control and pollution interception[1]to promote the treatment of black and odorous water bodies in rural areas, solve outstanding water environment problems in rural areas, and speed up construction of beautiful and livable countryside.

The implementation plan of the National Ecological Civilization Pilot Zone (Jiangxi) is an experimental policy aimed at exploring the path of ecological value realization, optimizing industrial structure, and ultimately promoting the green economic development of cities in ecologically distressed areas based on good ecological protection and construction. Its policy objectives are as follows: (1) provide policy references for the development of other ecologically distressed areas in other Chinese territories, and (2) achieve a win–win situation for both ecological improvement and economic development and promote the harmonious development of humans and nature. This study considers China’s ecological governance pilot policy as a “quasi-natural experiment” based on a panel of 81 Chinese cities in Jiangxi Province, China, from 2014 to 2020. A DID model is constructed to study the impact of China’s ecological governance policies on the quality development of Chinese cities in four dimensions: economic development, economic structure, ecological environment, and the disposable income of residents. The following impacts are observed: (1) Ecological governance policies have insignificant effects on GDP promotion, and the above findings still hold after a series of robustness tests, such as the parallel trend test and PSM-DID and placebo tests. (2) Ecological governance policies can significantly improve the rationalization of the economic structure, promote the improvement of ecological environments, and increase the disposable income of residents in the pilot cities. (3) Due to the strong control of local governments over regional economies in China, the stronger the government intervention in the economy, the greater its effect on policy inhibition. (4) The economic structure of ecologically distressed regions is relatively homogeneous, and the primary industry makes up a high proportion of agricultural production. Since China abolished agricultural taxes in 2006, local governments are unable to obtain government tax revenues from agricultural production. The ecological management policy can not only protect land fertility but also reduce the over-exploitation of land resources. It can indirectly increase the scale of agricultural production per unit of land (i.e., the same land resources can create more output value), prompt the transfer of agricultural labor to secondary and tertiary industries, and promote the development of secondary and tertiary industries, which in turn improves the source of local government tax revenue. Moreover, the increase in government tax revenue can increase investment in ecological environments. This in turn increases the tax revenue of local governments, and the increase in government tax revenue can increase investments in ecological and environmental management; this eventually results in a green and high-quality development path with respect to the positive cycle of ecological protection and economic development. Therefore, the scale of agricultural production per unit of land and government tax revenue are important mediating variables for ecological environment improvements, and the mediating effect is obvious.

Household leverage ratio is an important factor affecting family stability. Digital finance has changed the means of payment and consumption frequency, but the relationship between digital finance and household leverage ratio is still unclear. The existence of household debt is defined as the existence of leverage. The higher the household debt, the greater the household leverage. Based on the matching data of the China Household Finance Survey (CHFS) 2019 and the China Digital Inclusive Finance Index, this paper studies the impact of digital finance on household leverage ratio and explores its mechanism theoretically and empirically. This research finds that digital finance can significantly promote the household leverage ratio and this conclusion is still valid after instrumental variable method and robustness test. The mechanism analysis shows that digital finance can promote household over-consumption and further expand household leverage ratio. Digital finance can also reduce household leverage ratio by increasing household income. The heterogeneity analysis suggests that the role of digital finance in expanding leverage ratio is stronger for urban areas and households with low educational level. For households with higher assets, digital finance helps to reduce leverage ratio. Therefore, the government should guide residents to consume rationally and give full play to the entrepreneurship-facilitating and income-increasing effect of digital finance. Meanwhile, the residents themselves should speed up the cultivation of digital financial literacy, which is of vital significance for lowering household leverage ratio and systemic financial risks. China’s development level of digital finance ranks among the top in the world. Studying the role of digital finance in China is helpful to provide experience reference for countries around the world.