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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…

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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

Article
Publication date: 24 November 2023

Ayman Issa

This study aims to examine the relationship between carbon reduction initiatives and financial performance. Additionally, it explores potential moderating variables, such as…

Abstract

Purpose

This study aims to examine the relationship between carbon reduction initiatives and financial performance. Additionally, it explores potential moderating variables, such as corporate social responsible (CSR) strategy and corporate governance practices, that may strengthen the link between carbon reduction initiatives and financial performance.

Design/methodology/approach

The empirical analysis is conducted using 1,740 firm-year observations from UK firms listed on the FTSE 350. Data on carbon emissions and firm-specific characteristics are obtained from the Refinitiv Eikon database for the period 2011–2020. Various econometric techniques, including ordinary least squares and system generalized method of moments, are used to examine the relationship between carbon reduction initiatives and financial performance. Additionally, alternative samples are used to further explore this relationship.

Findings

The author observes a significantly positive association between carbon reduction initiatives and financial performance in this study. Additionally, the significance of this relationship is found to be present specifically after the announcement of the Paris Agreement. Furthermore, a channel analysis reveals that moderating factors like CSR strategy and corporate governance quality influence this relationship.

Practical implications

The study underscores the importance of carbon reduction initiatives for sustainable business growth and financial performance. Managers can use these insights to prioritize investments in sustainable practices. Policymakers should consider implementing supportive regulations to incentivize companies to adopt carbon reduction strategies.

Originality/value

This study adds value to the existing body of literature by empirically examining the moderating role of CSR strategy and best corporate governance practices in the relationship between carbon reduction initiatives and financial performance. The findings contribute to a deeper understanding of how these factors interact and influence the outcomes.

Details

International Journal of Accounting & Information Management, vol. 32 no. 2
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 22 March 2024

Yumei Zhang, Ming Lei, Xiangmin Lan, Xiangyang Zhang, Shenggen Fan and Ji Gao

As one of its major strategies, China has made a new plan to further expand High Standard Farmland (HSF) to all permanent basic farmland (80% of total farmland) for grain security…

Abstract

Purpose

As one of its major strategies, China has made a new plan to further expand High Standard Farmland (HSF) to all permanent basic farmland (80% of total farmland) for grain security over the next decade. Yet, what will be the impact of farmland infrastructure investment on agrifood systems? The paper aims to systematically evaluate the multiple effects (food security, economy, nutrition and environment) of expanding HSF construction under the context of the “Big Food vision” using an interdisciplinary model.

Design/methodology/approach

An interdisciplinary model – AgriFood Systems Model, which links the China CGE model to diet and carbon emission modules, is applied to assess the multiple effects of HSF construction on agrifood systems, such as food security and economic development, residents’ diet quality and carbon emissions. Several policy scenarios are designed to capture these effects of the past HSF investment based on counterfactual analysis and compare the effects of HSF future investment at the national level under the conditions of different land use policies – restricting to grain crops or allowing diversification (like vegetables, and fruit).

Findings

The investments in HSF offer a promising solution for addressing the challenges of food and nutrition security, economic development and environmental sustainability. Without HSF construction, grain production and self-sufficiency would decline significantly, while the agricultural and agrifood systems’ GDP would decrease. The future investment in the HSF construction will further increase both grain production and GDP, improve dietary quality and reduce carbon emissions. Compared with the policy of limiting HSF to planting grains, diversified planting can provide a more profitable economic return, improve dietary quality and reduce carbon emissions.

Originality/value

This study contributes to better informing the impact of land infrastructure expanding investment on the agrifood systems from multiple dimensions based on an interdisciplinary model. We suggest that the government consider applying diversified planting in the future HSF investment to meet nutritional and health demands, increase household income and reduce carbon emissions.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 28 March 2024

Anna Young-Ferris, Arunima Malik, Victoria Calderbank and Jubin Jacob-John

Avoided emissions refer to greenhouse gas emission reductions that are a result of using a product or are emission removals due to a decision or an action. Although there is no…

Abstract

Purpose

Avoided emissions refer to greenhouse gas emission reductions that are a result of using a product or are emission removals due to a decision or an action. Although there is no uniform standard for calculating avoided emissions, market actors have started referring to avoided emissions as “Scope 4” emissions. By default, making a claim about Scope 4 emissions gives an appearance that this Scope of emissions is a natural extension of the existing and accepted Scope-based emissions accounting framework. The purpose of this study is to explore the implications of this assumed legitimacy.

Design/methodology/approach

Via a desktop review and interviews, we analyse extant Scope 4 company reporting, associated accounting methodologies and the practical implications of Scope 4 claims.

Findings

Upon examination of Scope 4 emissions and their relationship with Scopes 1, 2 and 3 emissions, we highlight a dynamic and interdependent relationship between quantification, commensuration and standardization in emissions accounting. We find that extant Scope 4 assessments do not fit the established framework for Scope-based emissions accounting. In line with literature on the territorializing nature of accounting, we call for caution about Scope 4 claims that are a distraction from the critical work of reducing absolute emissions.

Originality/value

We examine the implications of assumed alignment and borrowed legitimacy of Scope 4 with Scope-based accounting because Scope 4 is not an actual Scope, but a claim to a Scope. This is as an act of accounting territorialization.

Details

Accounting, Auditing & Accountability Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 5 September 2023

Weihua Liu, Zhixuan Chen, Tsan-Ming Choi, Paul Tae-Woo Lee, Hing Kai Chan and Yongzheng Gao

This study aims to explore the impact of carbon neutral announcements on “stock market value” of publicly listed companies in China.

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Abstract

Purpose

This study aims to explore the impact of carbon neutral announcements on “stock market value” of publicly listed companies in China.

Design/methodology/approach

The event study approach is adopted. Market, market-adjusted, Carhart four-factor model and a cross-sectional regression model are employed to examine the impacts of carbon neutral announcements on “stock market value” of Chinese companies based on data from 188 carbon neutral announcements.

Findings

Carbon neutral announcements positively impact Chinese shareholder value. Carbon neutral announcements at the strategic level have a more positive and significant impact on Chinese stock market value. Innovative carbon neutral announcements do not significantly cause Chinese stock market reactions. Companies have more positive and significant stock market reactions when the companies make carbon neutral announcements that reflect high supply chain network resilience and heterogeneity and strong supply chain network relationships.

Practical implications

The findings uncover the business value of carbon neutral activities and provide operations managers in developing countries insights into how to improve enterprises' market value by actively implementing carbon neutral activities.

Originality/value

This paper is the first trial to apply an event study to examine the relationship between carbon neutral announcements and Chinese stock market value from the perspective of announcement level and type and supply chain networks. This paper introduces corporate reputation theory and enriches the application of corporate reputation theory in the field of low-carbon environmental protections and supply chains.

Details

International Journal of Operations & Production Management, vol. 44 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 21 November 2023

Pham Duc Tai, Krit Jinawat and Jirachai Buddhakulsomsiri

Distribution network design involves a set of strategic decisions in supply chains because of their long-term impacts on the total logistics cost and environment. To incorporate a…

Abstract

Purpose

Distribution network design involves a set of strategic decisions in supply chains because of their long-term impacts on the total logistics cost and environment. To incorporate a trade-off between financial and environmental aspects of these decisions, this paper aims to determine an optimal location, among candidate locations, of a new logistics center, its capacity, as well as optimal network flows for an existing distribution network, while concurrently minimizing the total logistics cost and gas emission. In addition, uncertainty in transportation and warehousing costs are considered.

Design/methodology/approach

The problem is formulated as a fuzzy multiobjective mathematical model. The effectiveness of this model is demonstrated using an industrial case study. The problem instance is a four-echelon distribution network with 22 products and a planning horizon of 20 periods. The model is solved by using the min–max and augmented ε-constraint methods with CPLEX as the solver. In addition to illustrating model’s applicability, the effect of choosing a new warehouse in the model is investigated through a scenario analysis.

Findings

For the applicability of the model, the results indicate that the augmented ε-constraint approach provides a set of Pareto solutions, which represents the ideal trade-off between the total logistics cost and gas emission. Through a case study problem instance, the augmented ε-constraint approach is recommended for similar network design problems. From a scenario analysis, when the operational cost of the new warehouse is within a specific fraction of the warehousing cost of third-party warehouses, the solution with the new warehouse outperforms that without the new warehouse with respective to financial and environmental objectives.

Originality/value

The proposed model is an effective decision support tool for management, who would like to assess the impact of network planning decisions on the performance of their supply chains with respect to both financial and environmental aspects under uncertainty.

Open Access
Article
Publication date: 25 March 2024

Tiago Ferreira Barcelos and Kaio Glauber Vital Costa

This study aims to analyze and compare the relationship between international trade in global value chains (GVC) and greenhouse gas (GHG) emissions for Brazil and China from 2000…

Abstract

Purpose

This study aims to analyze and compare the relationship between international trade in global value chains (GVC) and greenhouse gas (GHG) emissions for Brazil and China from 2000 to 2016.

Design/methodology/approach

The input-output method apply to multiregional tables from Eora-26 to decompose the GHG emissions of the Brazilian and Chinese productive structure.

Findings

The data reveals that Chinese production and consumption emissions are associated with power generation and energy-intensive industries, a significant concern among national and international policymakers. For Brazil, the largest territorial emissions captured by the metrics come from services and traditional industry, which reveals room for improving energy efficiency. The analysis sought to emphasize how the productive structure and dynamics of international trade have repercussions on the environmental dimension, to promote arguments that guide the execution of a more sustainable, productive and commercial development strategy and offer inputs to advance discussions on the attribution of climate responsibility.

Research limitations/implications

The metrics did not capture emissions related to land use and deforestation, which are representative of Brazilian emissions.

Originality/value

Comparative analysis of emissions embodied in traditional sectoral trade flows and GVC, on backward and forward sides, for developing countries with the main economic regions of the world.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Abstract

Details

Communicating Climate
Type: Book
ISBN: 978-1-83753-643-6

Content available
Book part
Publication date: 25 March 2024

Eleanor Ross

Abstract

Details

Communicating Climate
Type: Book
ISBN: 978-1-83753-643-6

Article
Publication date: 3 January 2023

Alina-Petronela Haller, Mirela Ștefănică, Gina Ionela Butnaru and Rodica Cristina Butnaru

The purpose of this paper is to analyse the influence of economic growth, digitalisation, eco-innovation, energy consumption and patents on environmental technologies on the…

Abstract

Purpose

The purpose of this paper is to analyse the influence of economic growth, digitalisation, eco-innovation, energy consumption and patents on environmental technologies on the volume of greenhouse gas emissions (GHG) recorded in European countries for a period of nine years (2010–2018).

Design/methodology/approach

Two empirical methods were integrated into the theoretical approach developed based on the analysis of the current scientific framework. Multiple linear regression, an extended version of the OLS model, and a non-causal analysis as a robustness method, Dumitrescu–Hurlin, were used to achieve the proposed research objective.

Findings

Digitalisation described by the number of individual Internet users and patents on environmental technologies determines the amount of GHG in Europe, and economic growth continues to have a significant effect on the amount of emissions, as well as the consumption of renewable energy. European countries are not framed in well-established patterns, but the economic growth, digitalisation, eco-innovation and renewable energy have an impact on the amount of GHG in one way or another. In many European countries, the amount of GHGs is decreasing as a result of economic growth, changes in the energy field and digitalisation. The positive influence of economic growth on climate neutrality depends on its degree of sustainability, while patents have the same conditional effect of their translation into environmentally efficient technologies.

Research limitations/implications

This study has a number of limitations which derive, first of all, from the lack of digitalisation indicators. The missing data restricted the inclusion in the analysis of variables relevant to the description of the European digitalisation process, also obtaining conclusive results on the effects of digitalisation on GHG emissions.

Originality/value

A similar analysis of the relationship among the amount of greenhouse gas emissions and economic growth, digitalisation, eco-innovation and renewable energy is less common in the literature. Also, the results can be inspirational in the sphere of macroeconomic policy.

Details

Kybernetes, vol. 53 no. 4
Type: Research Article
ISSN: 0368-492X

Keywords

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