Economics
- ISSN: 2155-7950
- Journal of Business and Economics
A Study Examining Early Warning of the Legal Risk of Environmental
Legislation in China
Mei Sun1, Yong-chao Sun1,2, Minghong Wei1, Chun-xiao Li3, Zhi-yu Wang1
(1. Sichuan University, China;
2. State Grid Sichuan Electric Power Research Institute, China;
3. Yangzhou University, China)
Abstract: New environmental laws or policies bear risks for enterprises. However, this type of risk is often ignored by an enterprise. This paper analyzes the current status and characteristics of Chinese environmental laws and develops a method, known as the Risk Assessment Matrix of Environmental Legislation for possible laws, to provide early warning of the legal risk caused by new environmental laws and policies. The case study demonstrates that this method has results. This method has a good fit in countries where environmental laws are stricter day by day, and new environmental laws are enacted rapidly. An enterprise or industries can discover potential legal risk and the level of external environmental legislation.
Key words: legal risk; environmental law; risk assessment code; early warning
JEL code: M1