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1 – 10 of over 1000
Article
Publication date: 12 March 2024

Yimin Yang, Xuhui Deng, Zilong Wang and Lulu Yang

This paper aims to analyze the role and advantages of knowledge resources in the carbon emission reduction of the industrial chain, and how it can be used to promote the carbon…

Abstract

Purpose

This paper aims to analyze the role and advantages of knowledge resources in the carbon emission reduction of the industrial chain, and how it can be used to promote the carbon emission reduction of the industrial chain, so that the industry can better achieve the saving of energy and the reduction of emission.

Design/methodology/approach

This paper argues that the traditional resource-plundering industrial chain production method can no longer meet the needs of sustainable development of the green and low-carbon industrial chain, and builds the coupling and coordination of knowledge technology innovation drive and industrial chain carbon emission reduction mechanism, in the four dimensions of industrial chain organization, government support, internet support and staff brainstorming, put forward suggestions for knowledge resources to drive carbon emission reduction in the industrial chain.

Findings

This paper holds that the use of knowledge resource advantages can better help industrial chain enterprises to carry out technological innovation, knowledge resource digital platform construction, knowledge resource overflow and transfer, application and management of network information technology, so as to reduce carbon emission in industrial chain.

Originality/value

This paper contributes to the discussion about the high-quality implementation of the revitalization strategy of the industrial chain and also deepens research on the knowledge resource-driven carbon emission reduction of the industrial chain. Further, this paper enriches the role of knowledge resources in the industrial industry, and the theoretical results support the advantages of knowledge resource in the field of chain carbon emission reduction.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 29 December 2023

Md Safiullah, Muhammad Nurul Houqe, Muhammad Jahangir Ali and Md Saiful Azam

This study investigates the association between debt overhang and carbon emissions (both direct and indirect emissions) using a sample of US publicly listed firms.

Abstract

Purpose

This study investigates the association between debt overhang and carbon emissions (both direct and indirect emissions) using a sample of US publicly listed firms.

Design/methodology/approach

The study applies generalized least squares (GLS) regression analyses to a sample of 2,043 US firm-year observations over a period of 14 years from 2007 to 2020. The methods include contemporaneous effect, lagged effect, alternative measures of carbon emissions and debt overhang, intensive versus non-intensive analysis, channel analysis, firm fixed effects, change analysis, controlling for credit rating analysis, propensity score matching approach, instrumental variable analysis with industry and year fixed effect.

Findings

This study's findings reveal that the debt overhang problem increases carbon emissions. This finding holds when the authors use alternative measures of carbon emissions and debt overhang. The authors find that carbon abatement investment is a channel that is negatively impacted by debt overhang, which in turn increases carbon emissions. This study's results are robust for several endogeneity tests, including firm fixed effects, change analysis, propensity score matching approach and two-stage least squares (2SLS) instrumental variable analysis.

Practical implications

The outcome of this research has policy implications for several stakeholders, including investors, firms, market participants and regulators. This study's findings offer insights for investors and firms, helping them allocate resources effectively and make financing decisions aimed at reducing carbon emissions. Regulators and policymakers can also use the findings to formulate policies that promote alternative sustainable finance practices.

Originality/value

The outcome of this research is likely to help firms develop their understanding of the debt overhang problem and undertake strategies that yield a significant amount of funding to invest in reducing carbon emissions.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

Open Access
Article
Publication date: 6 October 2023

Ijaz Ur Rehman, Faisal Shahzad, Muhammad Abdullah Hanif, Ameena Arshad and Bruno S. Sergi

This study aims to empirically examine the influence of financial constraints on firm carbon emissions. In addition to the role of financial constraints in firm-level carbon…

1148

Abstract

Purpose

This study aims to empirically examine the influence of financial constraints on firm carbon emissions. In addition to the role of financial constraints in firm-level carbon emissions, this study also examines this influence in the presence of governance, environmental orientation and firm-level attributes.

Design/methodology/approach

Using pooled ordinary least square, this study examines the impact of financial constraints on firm-level carbon emissions using a panel of 1,536 US firm-year observations from 2008 to 2019. This study also used two-step generalized method of moment–based dynamic panel data and two-stage least square approaches to address potential endogeneity. The results are robust to endogeneity and collinearity issues.

Findings

The results suggest that financial constraints enhance the carbon emissions of the firms. The economic significance of financial constraints on carbon emissions is more pronounced for the firms that do not report environment-related expenditure investment and those that are highly leveraged. The authors further document that firms with a nondiverse gender board signify a statistically significant impact of financial constraints on carbon emissions. These results are also economically significant, as one standard deviation increase in financial constraints is associated with a 3.340% increase in carbon emissions at the firm level.

Research limitations/implications

Some implicit and explicit factors like corporate emissions policy and culture may condition the relationship of financial constraints with carbon emissions. Therefore, it would be worthwhile to consider these factors for future research. In addition, it is beneficial to identify the thresholds and/or quantiles at which financial constraints may significantly make a difference in enhancing carbon emissions.

Practical implications

The findings offer policy implications for investment in stakeholder engagement for capital acquisitions, thereby effectively enforcing environmental innovation and leading to a reduction in carbon emissions.

Originality/value

This study integrated governance and environment-oriented variables in the model to empirically examine the role of financial constraints on the carbon emissions of the firms in the USA over and above what has already been documented in the earlier literature.

Details

Social Responsibility Journal, vol. 20 no. 4
Type: Research Article
ISSN: 1747-1117

Keywords

Open Access
Article
Publication date: 14 September 2023

Laurens Swinkels and Thijs Markwat

To better understand the impact of choosing a carbon data provider for the estimated portfolio emissions across four asset classes. This is important, as prior literature has…

1165

Abstract

Purpose

To better understand the impact of choosing a carbon data provider for the estimated portfolio emissions across four asset classes. This is important, as prior literature has suggested that Environmental, Social and Governance scores across providers have low correlation.

Design/methodology/approach

The authors compare carbon data from four data providers for developed and emerging equity markets and investment grade and high-yield corporate bond markets.

Findings

Data on scope 1 and scope 2 is similar across the four data providers, but for scope 3 differences can be substantial. Carbon emissions data has become more consistent across providers over time.

Research limitations/implications

The authors examine the impact of different carbon data providers at the asset class level. Portfolios that invest only in a subset of the asset class may be affected differently. Because “true” carbon emissions are not known, the authors cannot investigate which provider has the most accurate carbon data.

Practical implications

The impact of choosing a carbon data provider is limited for scope 1 and scope 2 data for equity markets. Differences are larger for corporate bonds and scope 3 emissions.

Originality/value

The authors compare carbon accounting metrics on scopes 1, 2 and 3 of corporate greenhouse gas emissions carbon data from multiple providers for developed and emerging equity and investment grade and high yield investment portfolios. Moreover, the authors show the impact of filling missing data points, which is especially relevant for corporate bond markets, where data coverage tends to be lower.

Details

Managerial Finance, vol. 50 no. 1
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 19 April 2023

Dilpreet Kaur Dhillon and Kuldip Kaur

The growth of the Indian economy is accompanied by the rising trend of energy utilisation and its devastating effect on the environment. It is vital to understand the nexus…

Abstract

Purpose

The growth of the Indian economy is accompanied by the rising trend of energy utilisation and its devastating effect on the environment. It is vital to understand the nexus between energy utilisation, climate and environment degradation and growth to devise a constructive policy framework for achieving the goal of sustainable growth. This study aims to analyse the long- and short-run association and direction of association between energy utilisation, carbon emission and growth of the Indian economy in the presence of structural break.

Design/methodology/approach

The study probes the association and direction of association between variables at both aggregate (total energy utilisation, total carbon emission and gross domestic product [GDP]) and disaggregates level (coal utilisation and coal emission, oil utilisation and oil emission, natural gas utilisation and natural gas emission along with GDP) over the time period of 50 years, i.e. 1971–2020. Autoregressive distributed lag model is used to examine the association between the variables and presence of structural break is confirmed with the help of Zivot–Andrews unit root test. To check the direction of association, vector error correction model Granger causality is performed.

Findings

Aggregate carbon emissions are affected positively by aggregate energy consumption and GDP in both short and long run. Bidirectional causality exists between total emissions and GDP, whereas a unidirectional causality runs from energy consumption towards carbon emission and GDP in the long run. At disaggregate level, consumption of coal energy impacts positively, whereas GDP influences coal emission negatively in the long run only. Furthermore, consumption of oil and GDP influences oil emissions positively in the long run. Lastly, natural gas is the energy source that has the fewest emissions in both short and long run.

Originality/value

There is a rapidly growing body of research on the connections and cause-and-effect relationships between energy use, economic growth and carbon emissions, but it has not conclusively proved how important the presence of structural breaks or changes within the economy is in shaping the outcomes of the aforementioned variables, especially when focusing on the Indian economy. By including the impact of structural break on the association between energy use, carbon emission and growth, where energy use and carbon emission are evaluated at both aggregate and disaggregate level, the current study aims to fill this gap in Indian literature.

Details

International Journal of Energy Sector Management, vol. 18 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 20 March 2024

Jinwei Lv, Bing Liu and Li Chai

Urbanization is driving the growth of China’s carbon footprint. It’s important to investigate what factors, how and to what extent, affect carbon footprints embedded in various…

Abstract

Purpose

Urbanization is driving the growth of China’s carbon footprint. It’s important to investigate what factors, how and to what extent, affect carbon footprints embedded in various categories of rural and urban households’ consumption.

Design/methodology/approach

We employ an environmental extended input-output model to assess and compare the rural-urban household carbon footprints and perform a multivariant regression analysis to identify the varying relationships of the determinants on rural and urban household carbon footprints based on the panel data of Chinese households from 2012 to 2018.

Findings

The results show evidence of urbanity density effect on direct carbon footprints and countervailing effect on indirect carbon footprints. The old dependency ratio has no significant effect on rural family emissions but has a significantly negative effect on urban direct and indirect carbon footprints. A higher child dependency ratio is associated with less rural household carbon emissions while the opposite is true for urban households. Taking advantage of recycled fuel saves direct carbon emissions and this green lifestyle benefits urban households more by saving more carbon emissions. There is a positive relationship between consumption structure ratio and direct carbon footprints while a negative relationship with indirect carbon footprints and this impact is less significant for urban households. The higher the price level of water, electricity and fuel, the lower the rural household’s direct carbon footprints. Private car ownership consistently augments household carbon footprints across rural and urban areas.

Originality/value

This paper provides comprehensive findings to understand the relationships between an array of determinants and China’s rural-urban carbon emissions, empowering China’s contribution to the global effort on climate mitigation.

Details

China Agricultural Economic Review, vol. 16 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 12 March 2024

Ankita Bedi and Balwinder Singh

This study aims to determine the influence of corporate governance characteristics on carbon emission disclosure in an emerging economy.

Abstract

Purpose

This study aims to determine the influence of corporate governance characteristics on carbon emission disclosure in an emerging economy.

Design/methodology/approach

The study is based on S&P BSE 500 Indian firms for the period of 6 years from 2016–2017 to 2021–2022. The panel data regression models are used to gauge the association between corporate governance and carbon emission disclosure.

Findings

The empirical findings of the study support the positive and significant association between board activity intensity, environment committee and carbon emission disclosure. This evinced that the board activity intensity and presence of the environment committee have a critical role in carbon emission disclosure. On the contrary, findings reveal a significant and negative relationship between board size and carbon emission disclosure.

Practical implications

The present study provides treasured insights to regulators, policymakers, investors and corporate managers, as the study corroborates that various corporate governance characteristics exert significant influence on carbon emission disclosure.

Originality/value

The current research work provides novel insights into corporate governance and climate change literature that good corporate governance significantly boosts the carbon emission disclosure of firms. Previous studies examining the impact of corporate governance on carbon emission disclosure ignored emerging economies. Thus, the current work explores the role of governance mechanisms on carbon emission disclosure in an emerging context. Further, to the best of the author’s knowledge, the current study is the first of its kind to investigate the role of corporate governance on carbon emission disclosure in the Indian context.

Details

International Journal of Law and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 29 January 2024

Xiaozhuang Jiang, Licheng Sun and Yushi Wang

This paper aims to refine the mechanisms affecting the two-way technology spillover and carbon transfer interactions between supply chain enterprises, and to guide their reduction…

Abstract

Purpose

This paper aims to refine the mechanisms affecting the two-way technology spillover and carbon transfer interactions between supply chain enterprises, and to guide their reduction of carbon emissions.

Design/methodology/approach

This study formulates a supplier-led Stackelberg game model to explore the effects of the interactions between two-way technology spillover effects and carbon transfers in decentralized and centralized decision-making scenarios. The optimized Shapley value is introduced to coordinate across the supply chain and determine the overall profits lost in the decentralized scenario.

Findings

Emission reductions by the low-carbon manufacturer are negatively correlated with the carbon transfers. Vertical technology spillovers promote carbon reduction, whereas horizontal technology spillovers inhibit it. The vertical technology spillovers amplify the negative effects of the carbon transfers, whereas the horizontal technology spillovers alleviate these negative effects. When the vertical technology spillover effect is strong or the horizontal technology spillover effect is weak in the centralized scenario, the carbon reduction is negatively correlated with the carbon transfers. Conversely, when the vertical technology spillover effect is weak or the horizontal technology spillover effect is strong, the enterprise’s carbon reduction is positively correlated with the carbon transfers. An optimized Shapley value can coordinate the supply chain.

Originality/value

This study examines the effects of carbon transfers on enterprises from a micro-perspective and distinguishes between vertical and horizontal technology spillovers to explore how carbon transfers and different types of technology spillovers affect enterprises’ decisions to reduce carbon emissions.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 12 January 2024

Lipeng Pan, Yongqing Li, Xiao Fu and Chyi Lin Lee

This paper aims to explore the pathways of carbon transfer in 200 US corporations along with the motivations that drive such transfers. The particular focus is on each firm’s…

Abstract

Purpose

This paper aims to explore the pathways of carbon transfer in 200 US corporations along with the motivations that drive such transfers. The particular focus is on each firm’s embeddedness in the global value chain (GVC) and the influence of environmental law, operational costs and corporate social responsibility (CSR). The insights gleaned bridge a gap in the literature surrounding GVCs and corporate carbon transfer.

Design/methodology/approach

The methodology comprised a two-step research approach. First, the authors used a two-sided fixed regression to analyse the relationship between each firm’s embeddedness in the GVC and its carbon transfers. The sample consisted of 217 US firms. Next, the authors examined the influence of environmental law, operational costs and CSR on carbon transfers using a quantitative comparison analysis. These results were interpreted through the theoretical frameworks of the GVC and legitimacy theory.

Findings

The empirical results indicate positive relationships between carbon transfers and GVC embeddedness in terms of both a firm’s position and its degree. From the quantitative comparison, the authors find that the pressure of environmental law and operational costs motivate these transfers through the value chain. Furthermore, CSR does not help to mitigate transfers.

Practical implications

The findings offer insights for policymakers, industry and academia to understand that, with globalised production and greater value creation, transferring carbon to different parts of the GVC – largely to developing countries – will only become more common. The underdeveloped nature of environmental technology in these countries means that global emissions will likely rise instead of fall, further exacerbating global warming. Transferring carbon is not conducive to a sustainable global economy. Hence, firms should be closely regulated and given economic incentives to reduce emissions, not simply shunt them off to the developing world.

Social implications

Carbon transfer is a major obstacle to effectively reducing carbon emissions. The responsibilities of carbon transfer via GVCs are difficult to define despite firms being a major consideration in such transfers. Understanding how and why corporations engage in carbon transfers can facilitate global cooperation among communities. This knowledge could pave the way to establishing a global carbon transfer monitoring network aimed at preventing corporate carbon transfer and, instead, encouraging emissions reduction.

Originality/value

This study extends the literature by investigating carbon transfers and the GVC at the firm level. The authors used two-step research approach including panel data and quantitative comparison analysis to address this important question. The authors are the primary study to explore the motivation and pathways by which firms transfer carbon through the GVC.

Details

Sustainability Accounting, Management and Policy Journal, vol. 15 no. 2
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 8 February 2024

Shakeel Sajjad, Rubaiyat Ahsan Bhuiyan, Rocky J. Dwyer, Adnan Bashir and Changyong Zhang

This study aims to examine the relationship between financial development (FD), financial risk, green finance and innovation related to carbon emissions in the G7 economies.

Abstract

Purpose

This study aims to examine the relationship between financial development (FD), financial risk, green finance and innovation related to carbon emissions in the G7 economies.

Design/methodology/approach

This quantitative study examines the roles that financial development [FD: Domestic credit to private sector by banks as percentage of gross domestic product (GDP)], economic growth (GDP: Constant US$ 2015), financial risk index (FRI), green finance (GFIN: Renewable energy public research development and demonstration (RD&D) budget as percentage of total RD&D budget), development of environment-related technologies (DERTI: percentage of all technologies) and human capital (HCI: index) have on the environmental quality of developed economies. Based on panel data, the study uses a novel approach method of moments quantile regression as a main method to tackle the issue of cross-sectional dependency, slope heterogeneity and nonnormality of the data.

Findings

The study confirms that increasing economic development increases emissions and negatively impacts the environment. However, efficient resource allocation, improved financial systems, and green innovation are likely to contribute to emission mitigation and the overall development of a sustainable viable economy. Furthermore, the study highlights the importance of risk management in financial systems for future emissions prevention.

Practical implications

The study uses a reliable estimation procedure, which extends the discussion on climate policy from a COP-27 perspective and offers practical implications for policymakers in developing more effective emission mitigation strategies.

Social implications

The study offers policy suggestions for a sustainable economy, focusing on both COP-27 and the G7 countries. Recommendations include implementing carbon pricing, developing carbon capture and storage technologies, investing in renewables and energy efficiency and introducing financial instruments for emission mitigation. From a COP-27 standpoint, the G7 should prioritize transitioning to low-carbon economies and supporting developing nations in their sustainability efforts to address the pressing challenges of climate change and global warming.

Originality/value

In comparison to the literature, this study examines the importance of financial risk for G7 economies in promoting a sustainable environment. More specifically, in the context of FD and national income with carbon emissions, previous researchers have disregarded the importance of green innovation and human capital, so the current study fills the gap in the literature related to G7 economies by exploring the link between the identified variables related to carbon emissions.

Details

Studies in Economics and Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1086-7376

Keywords

1 – 10 of over 1000