Innovative competence has been argued to be a critical source of sustainable competitive advantage (Roberts, 1999; Geroski et al., 1993). By continuously introducing new products, firms can create new markets, overcome market barriers, and outperform their rivals (Schumpeter, 1934). Despite the...

This thesis investigates several selected environmental issues in China from an economic perspective. It consists of four self-contained papers. Chapters 2-4 address the issues related to water shortage, while Chapter 5 focuses on the cost of air pollution. Chapter 2 analyses the potential...