Green policies and green businesses

The business environment becomes increasingly competitive. More and more companies are cautious about their environmental performance and willing to fulfill their social responsibilities. In this paper, we propose taxonomy of green policies that are particularly relevant and explicitly targeted at corporate greenhouse gases emissions reduction. The taxonomy includes environmental taxes, tradable emissions permits, conventional taxes, and voluntary approaches. We identified environmental labels as good ways for companies to reveal how green their products are. And we developed an analytical model to explore the relationship between environmental label and company profit.