IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v14y2025i4p669-d1617821.html
   My bibliography  Save this article

Assessing Environmental, Social, and Governance Risks in the Water, Energy, Land, and Food Nexus, Towards a Just Transition to Sustainable Energy in China

Author

Listed:
  • Hongyu Chen

    (School of Mathematics, Statistics and Mechanics, Beijing University of Technology, Beijing 100124, China)

  • Chen Wang

    (Institute of Food and Strategic Reserves, Nanjing University of Finance & Economics, Nanjing 210003, China)

Abstract

The transition to sustainable energy in China is closely intertwined with environmental, social, and governance (ESG) risks within the water–energy–land–food (WELF) nexus. This study examines the complex interdependencies among these resources and evaluates the ESG challenges that may hinder or accelerate the energy transition. By integrating policy analysis and quantitative risk assessment, this research identifies key ESG risks, such as water scarcity, land-use conflicts, food security concerns, and social equity issues. The findings highlight the need for holistic governance frameworks and cross-sectoral strategies to mitigate ESG risks while ensuring a resilient and just energy transition. This study provides policy recommendations for aligning energy development with sustainable resource management, contributing to China’s long-term climate and economic goals.

Suggested Citation

  • Hongyu Chen & Chen Wang, 2025. "Assessing Environmental, Social, and Governance Risks in the Water, Energy, Land, and Food Nexus, Towards a Just Transition to Sustainable Energy in China," Land, MDPI, vol. 14(4), pages 1-24, March.
    • Handle: RePEc:gam:jlands:v:14:y:2025:i:4:p:669-:d:1617821
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/14/4/669/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/14/4/669/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tamas Barko & Martijn Cremers & Luc Renneboog, 2022. "Shareholder Engagement on Environmental, Social, and Governance Performance," Journal of Business Ethics, Springer, vol. 180(2), pages 777-812, October.
    2. Bi, Gong-Bing & Song, Wen & Zhou, P. & Liang, Liang, 2014. "Does environmental regulation affect energy efficiency in China's thermal power generation? Empirical evidence from a slacks-based DEA model," Energy Policy, Elsevier, vol. 66(C), pages 537-546.
    3. Zhao, Xiaoli & Yin, Haitao & Zhao, Yue, 2015. "Impact of environmental regulations on the efficiency and CO2 emissions of power plants in China," Applied Energy, Elsevier, vol. 149(C), pages 238-247.
    4. Wu, Haitao & Xu, Lina & Ren, Siyu & Hao, Yu & Yan, Guoyao, 2020. "How do energy consumption and environmental regulation affect carbon emissions in China? New evidence from a dynamic threshold panel model," Resources Policy, Elsevier, vol. 67(C).
    5. Zhang, Yixiang & Xiong, Yali & Li, Feng & Cheng, Jinhua & Yue, Xiaochen, 2020. "Environmental regulation, capital output and energy efficiency in China: An empirical research based on integrated energy prices," Energy Policy, Elsevier, vol. 146(C).
    6. Wu, Haitao & Hao, Yu & Ren, Siyu, 2020. "How do environmental regulation and environmental decentralization affect green total factor energy efficiency: Evidence from China," Energy Economics, Elsevier, vol. 91(C).
    7. Long, Han & Feng, Genfu, 2024. "Does national ESG performance curb greenhouse gas emissions?," Innovation and Green Development, Elsevier, vol. 3(3).
    8. Mandal, Sabuj Kumar, 2010. "Do undesirable output and environmental regulation matter in energy efficiency analysis? Evidence from Indian Cement Industry," Energy Policy, Elsevier, vol. 38(10), pages 6076-6083, October.
    9. Muhammad Sadiq & Thanh Quang Ngo & Adamu Abdurrahman Pantamee & Khurshid Khudoykulov & Truong Thi Ngan & Luc Phan Tan, 2023. "The role of environmental social and governance in achieving sustainable development goals: evidence from ASEAN countries," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 36(1), pages 170-190, January.
    10. Wang, Ying & Deng, Xiangzheng & Zhang, Hongwei & Liu, Yujie & Yue, Tianxiang & Liu, Gang, 2022. "Energy endowment, environmental regulation, and energy efficiency: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    11. Catalin Popescu & Eglantina Hysa & Alba Kruja & Egla Mansi, 2022. "Social Innovation, Circularity and Energy Transition for Environmental, Social and Governance (ESG) Practices—A Comprehensive Review," Energies, MDPI, vol. 15(23), pages 1-28, November.
    12. Yin, Jianhua & Zheng, Mingzheng & Chen, Jian, 2015. "The effects of environmental regulation and technical progress on CO2 Kuznets curve: An evidence from China," Energy Policy, Elsevier, vol. 77(C), pages 97-108.
    13. Guo, Ran & Yuan, Yijun, 2020. "Different types of environmental regulations and heterogeneous influence on energy efficiency in the industrial sector: Evidence from Chinese provincial data," Energy Policy, Elsevier, vol. 145(C).
    14. Pan, Xiongfeng & Ai, Bowei & Li, Changyu & Pan, Xianyou & Yan, Yaobo, 2019. "Dynamic relationship among environmental regulation, technological innovation and energy efficiency based on large scale provincial panel data in China," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 428-435.
    15. Chitra Sriyani De Silva Lokuwaduge & Kumudini Heenetigala, 2017. "Integrating Environmental, Social and Governance (ESG) Disclosure for a Sustainable Development: An Australian Study," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 438-450, May.
    16. Zhao, Xin & Mahendru, Mandeep & Ma, Xiaowei & Rao, Amar & Shang, Yuping, 2022. "Impacts of environmental regulations on green economic growth in China: New guidelines regarding renewable energy and energy efficiency," Renewable Energy, Elsevier, vol. 187(C), pages 728-742.
    17. Chen, Yongtai & Ren, Yi-Shuai & Narayan, Seema & Huynh, Ngoc Quang Anh, 2024. "Does climate risk impact firms' ESG performance? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 683-695.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bu, Caiqi & Zhang, Kaixia & Shi, Daqian & Wang, Shuyu, 2022. "Does environmental information disclosure improve energy efficiency?," Energy Policy, Elsevier, vol. 164(C).
    2. Chen, Zhe & Song, Pei & Wang, Baolu, 2021. "Carbon emissions trading scheme, energy efficiency and rebound effect – Evidence from China's provincial data," Energy Policy, Elsevier, vol. 157(C).
    3. Zhang, Yixiang & Xiong, Yali & Li, Feng & Cheng, Jinhua & Yue, Xiaochen, 2020. "Environmental regulation, capital output and energy efficiency in China: An empirical research based on integrated energy prices," Energy Policy, Elsevier, vol. 146(C).
    4. Liu, Xiaoguang & Ji, Qiang & Yu, Jian, 2021. "Sustainable development goals and firm carbon emissions: Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 103(C).
    5. Wang, Ying & Deng, Xiangzheng & Zhang, Hongwei & Liu, Yujie & Yue, Tianxiang & Liu, Gang, 2022. "Energy endowment, environmental regulation, and energy efficiency: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    6. Kai Hu & Dandan Li & Daqian Shi & Wenli Xu, 2023. "Environmental regulation and energy efficiency: evidence from daily penalty policy in China," Journal of Regulatory Economics, Springer, vol. 63(1), pages 1-29, April.
    7. Jian Song & Jing Wang & Zhe Chen, 2022. "How Low-Carbon Pilots Affect Chinese Urban Energy Efficiency: An Explanation from Technological Progress," IJERPH, MDPI, vol. 19(23), pages 1-30, November.
    8. Lyu, Chaofeng & Xie, Zhe & Li, Zhi, 2022. "Market supervision, innovation offsets and energy efficiency: Evidence from environmental pollution liability insurance in China," Energy Policy, Elsevier, vol. 171(C).
    9. Zhang, Ning & Zhao, Yu & Wang, Na, 2022. "Is China's energy policy effective for power plants? Evidence from the 12th Five-Year Plan energy saving targets," Energy Economics, Elsevier, vol. 112(C).
    10. Li, Ge & Wang, Xiaoyu, 2024. "Energy quota trading policy and energy efficiency: The role of government supervision and public participation," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    11. Liu, Yunqiang & Ye, Deping & Liu, Sha & Wang, Fang & Zeng, Hui & Tang, Hong, 2024. "Whether the agricultural energy rebound offsets the governance effectiveness of the China's natural resource audit policy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    12. Cao, Hongjian & Wang, Bizhe & Li, Ke, 2021. "Regulatory policy and misallocation: A new perspective based on the productivity effect of cleaner production standards in China's energy firms," Energy Policy, Elsevier, vol. 152(C).
    13. Guimei Wang & Muhammad Salman, 2023. "The impacts of heterogeneous environmental regulations on green economic efficiency from the perspective of urbanization: a dynamic threshold analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 9485-9516, September.
    14. Guanyu LU & Kenta TANAKA & Toshi H. ARIMURA, 2023. "The Impacts of the Tokyo and Saitama ETSs on the Energy Efficiency Performance of Manufacturing Facilities," Discussion papers 23007, Research Institute of Economy, Trade and Industry (RIETI).
    15. Fangyu Ju & Mengfan Ke, 2022. "The Spatial Spillover Effects of Environmental Regulation and Regional Energy Efficiency and Their Interactions under Local Government Competition in China," Sustainability, MDPI, vol. 14(14), pages 1-27, July.
    16. Zhao, Congyu & Dong, Kangyin & Wang, Kun & Dong, Xiucheng, 2022. "How does energy trilemma eradication reduce carbon emissions? The role of dual environmental regulation for China," Energy Economics, Elsevier, vol. 116(C).
    17. Liu, Duan & Yu, Nizhou & Wan, Hong, 2022. "Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels," Economic Modelling, Elsevier, vol. 117(C).
    18. Xu, Hao & Xu, Jingxuan & Wang, Jie & Hou, Xiang, 2023. "Reduce production or increase efficiency? Hazardous air pollutants regulation, energy use, and the synergistic effect on industrial enterprises' carbon emission," Energy Economics, Elsevier, vol. 126(C).
    19. Li, Jiaman & Dong, Kangyin & Wang, Kun & Dong, Xiucheng, 2023. "How does natural resource dependence influence carbon emissions? The role of environmental regulation," Resources Policy, Elsevier, vol. 80(C).
    20. Zhou, Chaobo & Qi, Shaozhou, 2022. "Has the pilot carbon trading policy improved China's green total factor energy efficiency?," Energy Economics, Elsevier, vol. 114(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlands:v:14:y:2025:i:4:p:669-:d:1617821. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.