Search results

Property often forms the biggest component of household wealth and assets. Irrespective of landowners’ willingness, the act of compulsory acquisition abruptly ceases the security that this ownership carries. This often induces dissatisfaction among affected landowners over the: loss of “property rights”; loss of commodity, or property; and loss of future opportunities associated with the property. Though there have been attempts in various land acquisition laws and a practice to compensate acquirees for their loss, the dissatisfaction of acquirees has persisted. The persisting resistance of landowners compels deeper insight into the process of compulsory purchase and the compensation mechanism to understand underlying causes for resistance. The purpose of this paper is to investigate the extent of involvement of these different stakeholders, at various stages in the compulsory purchase process, using stakeholder interaction analysis. Results obtained from this research will be helpful in identifying the gaps in the process of compulsory purchase of land for public projects in Australia.

A survey of ten different stakeholder groups has been conducted to inquire the level of interaction of different stakeholders at various stages of compulsory purchase process. A comparative study was then performed to identify the gaps between the advocated process (suggested in the literature) and the process adopted by stakeholders.

The results illustrate that: affected landowners seek involvement at the initial stage when the project plan is under preparation and compulsory purchase declaration are not finalised; objectors (from the public) seek opportunities to convey, to the public agency, their views even though the accountability of public agencies towards this stakeholder is nil; and strong interactions are established during negotiation over the compensation amount thus signifying the urge of acquirer and acquirees to avoid monetary losses and time delays.

This research will be useful in identification of pain points in the compulsory purchase process for public projects. This shall help in evolution of fairer mechanism of land acquisition.

The purpose of this paper is to review the economic theories that lie behind the assessment of compulsory purchase compensation and the issues that arise from them.

The method has been to review the literature about the theories and the critiques of them and to examine the extent to which they provide guidance in specific cases.

The Hicks-Kaldor compensation test was developed as a way around certain problems in welfare economics but attempts to use it to determine whether projects involving compulsory purchase increase welfare are subject to a number of problems. Ultimately, there are issues of equity as well as efficiency so that a test that just looks at efficiency issues is problematic.

Understanding the weaknesses in the theoretical models behind compulsory purchase compensation can help policy makers devise alternative approaches in situations in which land has to be assembled for regeneration or infrastructure projects and fairer systems of compensation.

The use of the Hicks-Kaldor test has been challenged in environmental economics but the validity of these criticisms for compulsory purchase has not been recognised to the same extent. The use of some original case studies helps to identify some of the issues and alternatives.

The purpose of this paper is to provide an update on the work of the Scottish Government in modernising the Scottish compulsory purchase system by publishing two fresh circulars to guide acquiring authorities and a number of other measures short of legislation. It is anticipated that this will be the first stage in a programme which will be followed by an examination of primary legislation by the Scottish Law Commission in its eighth programme of law reform.

The paper explains the current Scottish system with a brief historical review, comments on the new circulars and the intentions and aspirations that lie behind them.

The Scottish compulsory purchase system has not had the revisions of 1965 and 2004 implemented by its English neighbour. It still relies on the original 1845 legislation and circulars issued in 1976 and 1992. The new circulars are helpful to acquiring authorities, particularly those who use the system infrequently and are a useful updating and reference source for professional practitioners.

This is a professional paper designed to draw attention to two new circulars and the policy thinking and aspirations underpinning them.

Compulsory purchase processes strike the delicate balance between the private property rights of individuals and corporations, and the needs of the community to obtain and use land that may lie in private ownership. The paper introduces two circulars that affect that balance.

The paper introduces the new compulsory purchase circulars to practitioners undertaking compulsory purchase work and to those academics involved in this discipline.

The purpose of this paper is to consider the powers under which compulsory purchase orders (CPOs) are made, including the “well‐being powers” of local authorities, the procedural and policy requirements which must be met for a CPO to be confirmed and how all of those fare in terms of meeting democratic and human rights.

The paper outlines the key CPO policy tests and process formalities and discusses what the acquiring authority needs to show to be successful, where the balance of power lies and how aspects of the process may be fair or unfair for landowners, particularly those without significant fighting funds. The research moves on to look at the wider issues of how democracy and human rights are represented and held up in the CPO process, concluding that while there are rights to property and a home, the qualifications to these mean that the public interest can often quite easily override these “basic” rights.

After briefly looking at the related issue of the “privatisation” of city centre road networks, such as in Liverpool, the paper finishes by comparing CPOs under the new nationally significant infrastructure projects regime, suggesting the concept of a new “national well‐being” test in which the national interest in the scheme will be weighed against local impacts. The paper concludes that the lack of clarity around procedure for that regime raises the risk for all involved of delay and further uncertainty from legal challenges.

The paper contains an analysis of the place of democracy in the compulsory purchase of land for well‐being purposes, including a consideration of the balance between national well being and democracy in the Planning Act 2008.

The purpose of this paper is to summarise and analyse reforms to the compulsory purchase compensation code which have been published for consultation by the Department for Communities and Local Government.

To explain each of the proposals and provide a critical assessment of each of them.

The proposed changes comprise a further small step towards the comprehensive reform of the compensation code which is required.

The proposed reforms are to be welcomed but there are a number of areas in which they need refinement following the consultation process.

As the proposed reforms were published only in March 2016 there will be few other commentaries available.

This paper aims to assess all compulsory land acquisition court decisions in Australia over 1985‐2009 to provide a risk assessment and compensation analysis involved in proceeding to court for compulsory land acquisition cases.

Using the AustLII legal database, every publicly available compulsory land acquisition court case decision in Australia over 1985‐2009 is assessed. These 58 court cases are assessed for claim, offer and judgment value.

A total of 91.4 percent of compulsory land acquisition court cases over 1985‐2009 were found to be successful in achieving a judgment value of at least that of the offer. The median judgment value for successful cases was 60 percent higher than the offer value, while for unsuccessful cases it was 68 percent lower than the offer value. Successful smaller judgments (<$2 million) generated more upside compensation (median of 66 percent) than larger judgments (>$2 million) (median 41 percent upside compensation). Appealed cases were found to be only 28.6 percent successful, with only a maximum of 5.6 percent additional compensation achieved.

This paper provides a rigorous empirical risk assessment and compensation analysis for compulsory land acquisition court cases in Australia over the last 25 years. This provides an effective tool for dispossessed property owners, statutory acquirers and their professional legal and valuation advisors for more informed compulsory land acquisition court case decision making.

Using all compulsory land acquisition court decisions in Australia over the last 25 years, this paper is the first attempt internationally to rigorously and empirically conduct a risk assessment and compensation analysis involved with proceeding to court for compulsory land acquisition cases. Given the significance of the compulsory land acquisition process, this empirically validated research enables a more informed and critical understanding of the risk factors and compensation outcomes attached to the compulsory land acquisition court case judgment process.

The purpose of this paper is to assess how regret affects consumer satisfaction levels, extent of rumination, and brand‐switching intention. The paper also seeks to examine any mediating effects between regret and rumination that can be found due to consumers' negative emotions.

A purchase‐decision scenario was presented to 125 undergraduate students. A between‐subjects experimental design was conducted and structural equation modelling was utilized to evaluate the model fit.

The results indicate that regret decreases consumer satisfaction level and increases brand‐switching intention. Negative emotion was found to demonstrate an indirect effect between regret and extent of rumination. The findings also suggest that negative emotion acts as a partially mediating variable between the effect of satisfaction levels on extent of rumination and the effect of regret on satisfaction levels.

This study emphasizes the importance of post‐purchase consumer satisfaction. Marketers must pay particular attention to both regret and negative emotion toward purchase decisions. By understanding how specific recourse can be taken to mitigate regret, negative emotions, and ruminative thinking, firms can potentially enhance a brand's image and instil brand loyalty.

This research further validates existing research regarding regret and consumption, while introducing the concept of rumination into the marketing literature. Marketers will have a better understanding of how regret, negative emotions, and rumination can play a role in post‐purchase consumption behaviours.

Considers the recent changes in the law and practice of the preservation of listed buildings, particularly revised legislation which allows increased protection measures, greater willingness to take action against owners, and the division of responsibilities in government between the Department of Environment and the Department of National Heritage. Concludes that the powers to prevent unauthorised work and neglect to listed buildings are now much strengthened.

There is in West Germany an impressive array of statutory measures available to ensure that the planning aims are achieved. This joint paper deals with one of these — Umlegung, the enforced land transfer system of the Bundesbaugesetz (The Federal Building Act).

The purpose of the study is to propose a normative approach for market segmentation, profile and monitoring using computing and information technology to analyze User-Generated Content (UGC).

The specific steps include performing a structural analysis of the UGC and extracting the base variables and values from it, generating a consumer characteristics matrix for segmenting process, and finally describing the segments' preferences, regional and dynamic characteristics. The authors verify the feasibility of the method with publicly available data. The external validity of the method is also tested through questionnaires and product regional sales data.

The authors apply the proposed methodology to analyze 53,526 UGCs in the New Energy Vehicle (NEV) market and classify consumers into four segments: Brand-Value Suitors (32%), Rational Consumers (21%), High-Quality Fanciers (26%) and Utility-driven Consumers (21%). The authors describe four segments' preferences, dynamic changes over the past six years and regional characteristics among China's top five sales cities. Then, the authors verify the external validity of the methodology through a questionnaire survey and actual NEV sales in China.

The proposed method enables companies to utilize computing and information technology to understand the market structure and grasp the dynamic trends of market segments, which assists them in developing R&D and marketing plans.

This study contributes to the research on UGC-based universal market segmentation methods. In addition, the proposed UGC structural analysis algorithm implements a more fine-grained data analysis.

The compulsory purchase of land forms the subject of much legal and urban regeneration research. However, there has been little examination of the contractual arrangements between local authorities and private sector property developers that often underpin the compulsory purchase process. This paper aims to examine local authority/private developer contractual behaviour in this context.

An empirical examination of property development contracts made for the “Silver Hill” project in Winchester, a small city in southern England, and the Brent Cross shopping centre extension in north London. Drawing on Macneil’s (1983) relational contract theory, the paper analyses key contract terms and reviews local authority documentation related to the implementation of those terms.

The contracts had two purposes as follows: to provide a development and investment opportunity through the compulsory purchase and redistribution of private land; and to grant the private developers participating in the projects freedom to choose if they wished to take up that opportunity. While the contracts look highly “relational”, the scope for flexibility and reciprocity is both carefully planned and tightly controlled. This exposes an asymmetric power imbalance that emerges in and is rearticulated by this type of contractual arrangement.

The empirical analysis of contract terms and contractual behaviour provides a rare opportunity to scrutinise the local authority-private developer relationship underpinning both property development practice and compulsory purchase.

Compulsory purchase is a subject which, over the past decade, has received much attention, particularly with major infrastructure schemes such as the Channel Tunnel and the associated rail link. Examines an area of compulsory acquisition which has received scant attention; that of acquisitions by agreement. Outlines the research focusing mainly on public sector organizations. Outlines the legal and statutory background to acquisitions by agreement; and more importantly the reasons why an authority will choose to pursue the route of acquiring by agreement, as opposed to acquiring by compulsory purchase, particularly when both options are available. Also considers the advantages, and disadvantages, to both the acquiring authority and vendor in acquisitions by agreement.

Examines the purpose of compensation for compulsory acquisition using the distinction drawn by Denyer‐Green between pretium and compensatio. Reports on the findings of a study by the authors of compensation settlements for business loss following a city centre redevelopment. Finds that the majority of the claimants in the study were dissatisfied with their settlement and all were dissatisfied with the process leading to the settlement. Concludes that the settlements tend towards compensatio rather than pretium. Suggests that a number of changes to the compensation arrangement should be considered to alleviate hardship for claimants.

Reports the case of R v. Northumbrian Water Ltd ex parte Able Uk Ltd which highlights the issues of withdrawal of notice to treat after possession of land has been taken and whether an advance payment of compensation should be repaid. Suggests that the state of the law raises questions about the compulsory purchase powers of privatized companies, and the rights of owners, in relation to the Land Compensation Acts of 1961 and 1973 as amended.

One of the major impediments to urban renewal in Hong Kong is the acquisition of land from different owners in order to form adequate parcels for development. Compulsory purchase powers are not available to the private sector as only public authorities can properly exercise powers over individuals in the public interest. In the case of urban renewal, when the Land Development Corporation (LDC) exercises compulsory purchase powers, it has to go through long and rigorous procedures to demonstrate that there is no undue detriment to the interests of landowners. In this paper the practice of the LDC in this respect is examined in detail and the problems and issues of land assembly in the urban renewal process highlighted. Finally, new policies for land assembly are suggested as means of dealing with the difficulties identified.

The purpose of this paper is to articulate the inherent unfairness in compensation outcomes between landowners whose land is physically taken versus those whose land is regulated. Using Rawlsian theory as the normative standard of “fairness as justice”, the paper argues that both physical and regulatory takings should be compensated.

Most jurisdictions invariably provide market price compensation when land is physically acquired. When land is not physically taken but merely subject to regulation, however, there is no corresponding need to compensate, even where the economic loss suffered by the landowner is the same. Adopting Rawlsian theory, this paper explains why justice and fairness in land use planning require both physical takings and regulatory takings to be equally compensable.

Applying Rawlsian theory to compare compensable compulsory purchase with non-compensable regulatory takings of land show that the latter is not compatible with an ethical planning praxis.

While Rawlsian theory has been applied in urban planning research before, this would be its first application in highlighting the apparent justice paradox which now distinguishes a physical and regulatory taking of land.

The purpose of this paper is to provide a summary and analysis of recent legal decisions relating to compensation for compulsory purchase.

The paper summarises three important decisions and provide a critical assessment of each of them.

These decisions provide clarification of some of the most complex aspects: the compulsory purchase compensation code.

Case law is specific to the facts of each individual case and con provide only “in principle” guidance for future compensation disputes.

The analysis of these decisions will assist surveyors and lawyers working in the compensation field to advice clients in future compensation disputes.

As these legal decisions have been published relatively recently there will be few other similar commentaries available.

In the UK over the last 20 years there has been a proliferation in the statutory provisions for wayleaves. The utilities requiring wayleaves such as the water, gas and electricity companies have now been joined by cable TV and a host of telecommunications providers. All have access to compulsory powers. However, there are variations between these powers and between the compensation arrangements. The main objective of this article is to examine whether the compensation arrangements are now appropriate, following the privatisation of the gas, electricity, water and telecommunication companies. The article considers the results of a six‐month study of wayleaves funded by the RICS, which was completed in 2000, and recommends that, in order to strike a fair balance between the interests of the utilities and the landowners, legislative change is required. Claimants should not merely be entitled to the financial equivalent of their loss, but instead a consideration should be paid reflecting, in effect, a rental for the wayleave.

The purpose of this paper is to examine issues of compulsory acquisition, evaluating the quantum of compensation paid to natives of communities whose farmlands are acquired and issues that must be dealt with to provide adequate compensation to claimants.

Using an oil well acquisition base in Boboroku, Jesse in Ethiope-West local government area of Delta State as a case study, various compensation claims were examined vis-à-vis market value claims in compulsory acquisition.

It was found that many claimants received N1,000.00 (naira) or less as full compensation claims for their crops while families lucky to own lands received more reasonable payments. It was also found that 40 of the 142 claimants in Boboroku community received only N4,146,120.00 as opposed to N8,802,750.00 they should have received under market values. Similarly, 39 claimants in Okuno should have received a market value of N3,195,920.00 as against N1,370,609.00 that was actually paid by the acquiring authority confirming that the rates applied were grossly inadequate.

It was established that there was no statutory provision for disturbance losses from revocation of land interests. Also, the productivity of economic crops and trees was not considered nor was the computation of claims based on market values. The paper further established that claims should be compensated on the basis of productivity value and life span of interests being acquired and not on arbitrary rates supplied by the acquiring authorities.

The case study methodology used in this paper enabled contribution to the body of studies which hitherto highlighted the issues of compulsory acquisition and quantum of compensation. It, therefore, adds to the problem-solving framework on compulsory purchase matters in Nigeria.

Annual update on caselaw relating to compulsory purchase and compensation. This paper aims to discuss these issues.

Research of decisions made by the Court of Appeal and lands tribunal in the filed of compensation. Commentary on the legal and valuation implications of a selection of those decisions.

In the last year there have been a number of interesting cases concerning whether losses based on the value of land can be claimed under the head of disturbance.

The research is naturally limited by the caselaw available in the last 12 months but this has been a relatively busy year.

The commentary should assist practitioners to formulate claims for compensation having regard to recent developments in case law.

It is originality and value relies on the fact that it is based on new legal decisions which have not yet been widely reported.

This paper aims to analyse how Dutch Compulsory Purchase (CP) compensation is decided on and to explore to what extent the valuation of the CP compensation is assessed by professionals within a range of 10 per cent (higher or lower) difference.

The authors study CP compensation using the Dutch Legal Intelligence database, assessing every publicly available court decision and comparing the compensation that is offered in the voluntary negotiations and during the CP procedure in court.

The results show that there are many uncertainties in the valuation process of CP that lead to a broad range of valuation outcomes. In 94 legal CP cases from the Netherlands, the final offer of compensation in court was on average 56.7 per cent higher than the last compensation offer from the expropriator. The differences in valuation were related to several aspects including different systems of valuation and different interpretations of the CP legislation.

A central issue in the CP procedure is the amount of compensation that the landowner receives. There are few researchers who have studied how accurate CP compensation is appraised in practise. This is one of the first attempts internationally to empirically conduct an analysis of CP compensation values.

This paper aims to explore the psychological, emotional and equity implications of compulsory acquisition, evaluate the adequacy of compensation in mitigating those consequences and assess the sustainability of cash compensation for future generations.

A case study approach was operationalised to investigate the experiences of 40 project-affected persons (PAPs) four years after a compulsory acquisition project in Ghana’s New Akrade-Mpakadan region for the construction of a railway line. These perspectives were analysed through descriptive statistics and thematic analyses using the NVivo software. Figures and a holistic framework were adopted to report the identified issues.

Overall, only 25% of PAPs received formal communication prior to the acquisition, and only 10.3% have been fully compensated four years later. Despite the acquiring body initiating the marking of properties and compensation assessment in 2019, no payments were made until 2021. This induced emotional responses of distress, loss, uncertainty, stress and sadness, which was further exacerbated by feelings of hopelessness because there was no platform to voice concerns or pursue arbitration. Although PAPs were only offered compensation in the form of single monetary payments, a third would have preferred re-settlement.

By exploring the emotional and psychological effects of compulsory land acquisition, the study adds a new dimension to understanding its consequences. This may spark more interest, debate and discourse amongst researchers and policymakers and lead to the creation or enhancement of existing policy and legal measures to address the needs of PAPs in compulsory acquisition projects in developing countries.

The financial consequences of eminent domain are well documented, but this study explored the psychological, emotional and equity implications of the practice under conditions of weak regulatory frameworks. The adequacy of single lump-sum compensations was also explored to highlight preferred alternatives to ensure fairness for generations unborn.

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.

The purpose of this paper is to summarise and analyse the new compensation provisions brought in by the government for Phase 1 of the HS2 high-speed train line.

To summarise each of the proposals and provide a critical assessment of each of them.

For the most part, and the Homeowner Payment Scheme (HPS) is a marked exception, the new HS2 compensation provisions set out a logical approach to reducing the impact of the scheme on the people most directly affected by its blighting affect. There are, however, a number of concerns as to whether there are more urgent reforms that have not been considered.

The proposals were announced in April and in respect of some of them, particularly the HPS, very little information is available as yet.

The paper should provide factual information on a very new set of compensation provisions and a critical appraisal of their value.

As the compensation provisions have been published only recently there will be few other similar commentaries available.

The paper aims to analyse and compare how UK and Singapore deal with compensation with respect to regulation of land (short of a physical taking). The purpose is to determine whether the non-compensation in each jurisdiction is justified.

A comparative method using case law, statutes and secondary material across both jurisdictions (as well as some US case law) is adopted.

Both the UK and Singapore do not provide compensation when land is affected by regulation, so long as a physical taking has not occurred. Partly because of the abolition of development rights in the UK since 1947, this position may be justified. Conversely, Singapore’s Master Plan seeks a great deal of public reliance and advertises development potential, and non-compensation is not defensible.

There is very limited analysis on regulatory effects of land in the UK, and virtually none in Singapore. This would also be the first attempt to compare this aspect of the UK and Singapore’s planning regime.

Following the provisions of the Planning and Compensations Act, 1991 we have a planning system under which, in principle, no compensation is paid for the refusal of planning permission. One way remains by which compensation can still be obtained – it is by way of a purchase notice under section 137 of the Town and Country Planning Act or section 32 of the Listed Building Act, 1990. Examines the legal rules governing purchase notices and then goes on to analyse the valuation and compensation implications.

This paper aims to articulate the emerging and non‐descript purposes “referred to as public purposes” for which land and property may be acquired within Australia and internationally using compulsory acquisition laws.

In demonstration the emergence of non‐descript purposes for which land is being acquired, a reflective case study in the USA, has been used to both highlight the broad nature of public purposes as well as the emerging trend of land acquired for site assembly and on‐sale to private developers.

The main findings of this paper are threefold. The first finding is the extent of public resistance and backlash to what is seen as a threat to the tenure of land and property rights. The second finding is the perceived abuse of land acquisition powers by government for site assembly and on‐sale of land for purposes beyond the provision of traditional public infrastructure. The final finding is the lack of adequate compensation or framework for the provision of compensation in the form of reinstatement for parties dispossessed of their property.

A “just term parity value” framework and model has been developed to evoke and provide a way forward in the provision of compensation which includes the provision of re‐instatement for property owners dispossessed of their property.

The Equal Pay Act 1970 (which came into operation on 29 December 1975) provides for an “equality clause” to be written into all contracts of employment. S.1(2) (a) of the 1970 Act (which has been amended by the Sex Discrimination Act 1975) provides:

The purpose of this paper is to provide an annual update on case law relating to compulsory purchase and compensation.

Researching decisions made by the Court of Appeal and Upper Tribunal (Lands Chamber) in the field of compensation. Commentary on the legal and valuation implications of a selection of those cases is provided.

In the last year, there have been a number of interesting cases concerning residual valuations, blight caused by HS2, and Tree Preservation Orders.

The research is limited by the case law available in the last 12 months and this has been a relatively quiet year.

The commentary should assist practitioners to formulate claims for compensation having regard to recent developments in case law.

Its originality and value lies in the fact that it is based on recent legal decisions which have not yet been widely reported.

Many developing countries have encountered frequent pollution accidents during their rapid development, while the previously weak environmental insurance systems could seriously undermine the progress of sustainable development. Some developing countries like China has initiated and strengthened environmental pollution liability insurance, so how effective this system would be in resolving enterprises environmental risks need to be further revealed.

This research identifies the possible consequence that compulsory environmental pollution liability insurance pilot (CEPLIP) policy would bring to the risk-taking capacity of heavy-polluting corporations of China by the Differences-in-Differences (DID) approach.

The result supports the implementation of CEPLIP policy in increasing corporate risk-taking capacity. Furthermore, the CEPLIP policy can promote the corporate’s risk-taking capacity by reducing financial distress constraints and enhancing trade credit, supporting its dual role of “fallback effect” as well as “external supervision effect” of environmental insurance. As a result of heterogeneity test, the policy is more pronounced in enterprise samples with mature life cycle stage or lower industrial concentration degree. Similarly, it is more significant in enterprise samples owned better environmental management capabilities or greater strategic deviance.

This paper verifies the effectiveness of the CEPLIP policy by strengthening its supervision mechanism and restraining opportunistic behavior tendency and provides implications for alleviating increasing environmental risk pressure and building more sustainable environmental protection management systems.