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This study aims to investigate the link between carbon emissions and market value for nonfinancial companies in the STOXX Europe 600 index, with a specific focus on the moderating effect of executive compensation.

To achieve the study’s purpose, this study uses data from the STOXX Europe 600 index between 2010 and 2021. The researchers use ordinary least squares regression analysis to examine the relationship between carbon emissions and market value while taking into account the moderating effect of executive compensation. The study also uses additional tests, such as the dynamic two-step system generalized method of moments regression and the difference in differences method.

The study reveals four key findings. First, there is a statistically significant negative relationship between carbon emissions and market value. Second, executive compensation has a negative moderating effect on the association between carbon emissions and market value. Third, Say-on-Pay regulations can encourage companies to adopt environmentally responsible practices, which can positively impact their market value. Finally, the study shows that the Paris Agreement motivates companies to prioritize sustainability, leading to potentially higher market values for those that are more environmentally responsible.

This study highlights the importance of considering environmental sustainability in corporate decision-making. It suggests that prioritizing sustainability can lead to financial benefits, as companies with lower carbon emissions tend to have higher market values. The findings also have important implications for regulators and investors.

This study provides novel insights into the link between carbon emissions and market value and the moderating effect of executive compensation. It also sheds light on the potential impact of Say-on-Pay regulations and the Paris Agreement on corporate sustainability practices and market values.

Despite the importance of tax policy in reducing energy consumption and carbon emissions, there is a dearth of research on the environmental impact of indirect taxes. This paper examines the impact of indirect taxes on carbon dioxide (CO₂) emissions, with an emphasis on institutional quality.

The study uses the Government Revenue Dataset (2021), comprising 143 countries, dividing into 114 developing and 29 developed countries, during the period between 1996 and 2019. The author adopts panel data techniques, with Driscoll–Kraay standard errors to account for the issue of cross-sectional dependence (CSD).

The results indicate that indirect tax revenues have a negative and significant impact on CO₂ emissions for the total sample. The subsample analysis revealed that while indirect taxes reduce carbon emissions in developing countries, opposed results are reported for developed countries. This finding implies that most of the advanced countries have already reached a high level of taxes, at which carbon emissions increase as indirect tax increases further. Interestingly, the results revealed that institutional quality enhances the role of indirect taxes in mitigating carbon emissions for both developing and developed countries.

To the best of the authors' knowledge, this is the sole study using the newly developed tax data by the United Nations University, World Institute for Development Research (UNU-WIDER) to investigate the impact of indirect taxes on carbon emissions, with an emphasis on institutional quality. The existing literature focuses on specific taxes, like carbon taxes, with no comprehensive research on the link between indirect taxes and carbon emissions.

The purpose of this study is to analyze the correlation between a company’s efforts to reduce carbon emissions and its actual carbon performance. Additionally, the study investigates how female decision-makers may influence this relationship as moderators.

This study uses a data set consisting of 1,258 observations from companies listed on the STOXX Europe 600 index between 2009 and 2021. The study applies the ordinary least squares technique to investigate the connection between carbon reduction initiatives and actual carbon performance, taking into account the potential impact of board and executive gender diversity. To ensure the reliability of the findings, subsample analysis and a two-step generalized method of moments technique were used.

The results show a significant negative association between a firm’s commitment to environmental initiatives and its carbon emission intensity. Furthermore, the study explores the moderating effect of board and executive gender diversity on this relationship and finds that gender diversity has a significant negative impact on the relationship between emissions reduction initiatives and carbon emissions.

The study has practical implications for corporate sustainability efforts. It highlights the importance of implementing carbon reduction initiatives to effectively mitigate carbon emissions. This emphasizes the need for sustainable business strategies that prioritize environmental initiatives. Additionally, the study underscores the positive impact of gender diversity in leadership positions on carbon reduction efforts. Policymakers and organizations can leverage these findings to promote gender diversity and enhance sustainability practices.

It provides evidence-based insights for policymakers to develop specific policies and action plans in priority areas such as climate change and emissions reduction. It also highlights the positive influence of gender diversity in corporate leadership on environmental initiatives, promoting inclusivity and equality in sustainability practices.

This study brings originality by investigating the direct impact of a company’s carbon reduction initiatives on its carbon performance. It also explores the moderating effect of board and executive gender diversity on this relationship. The study provides evidence-based insights for policymakers and applies neo-institutional theory to analyze the interplay between carbon reduction initiatives, carbon emissions and gender diversity in executive and board positions.

Under the carbon tax policy, the authors examine the operational decisions of the low-carbon supply chain with the triple bottom line.

This paper uses the Stackelberg game theory to obtain the optimal wholesale prices, retail prices, sales quantities and carbon emissions in different cases, and investigates the effect of the carbon tax policy.

This study’s main results are as follows: (1) the optimal retail price of the centralized supply chain is the lowest, while that of the decentralized supply chain where the manufacturer undertakes the carbon emission reduction (CER) responsibility and the corporate social responsibility (CSR) is the highest under certain conditions. (2) The sales quantity when the retailer undertakes the CER responsibility and the CSR is the largest. (3) The supply chain obtains the highest profits when the retailer undertakes the CER responsibility and the CSR. (4) The environmental performance impact decreases with the carbon tax.

The results of this study can provide decision-making suggestions for low-carbon supply chains. Besides, this paper provides implications for the government to promote the low-carbon market.

Most of the existing studies only consider economic responsibility and social responsibility or only consider economic responsibility and environmental responsibility. This paper is the first study that examines the operational decisions of low-carbon supply chains with the triple bottom line under the carbon tax policy.

Large-scale industrialization, growth and development have come at the cost of severe environmental degradation, primarily measured in terms of carbon dioxide emissions. Apart from the several measures taken to reduce enviornmental degradation, provision of private capital is a necessity apart from the public capital. There is a debate on impact of carbon dioxide emissions with increase in affluence, technology, population and renewable energy. The purpose of the study is to look into the role of private equity investment on renewable energy and technological patents.

The study extends the use of stochastic impact by regression on population, affluence and technology model to include another factor for investments and capital, i.e. private equity along with renewable energy, population, technology and GDP growth on carbon emissions for the BRICS countries. The time period for the study is from 2002 to 2021, and the relationship between the variables has been tested using pooled mean group/autoregressive distributed lag, fully modified ordinary least squares and panel quantile regression.

First, the results depict a log-run relationship between the variables across the panel using cointegration. Private equity investments do not have a significant impact on carbon emissions. The study proposes important policy implications. There are two schools of thought on the impact of private equity on carbon emissions. For example, inherently private equity investments come with higher stakes and a shorter holding period because of which their primary focus remains on having higher returns instead of responsible investing. However, as private equity adds up to capital, which leads to an increase in productivity and eventually higher economic growth, this could affect carbon emissions. This study supports the first thought. Additionally, renewable energy also affects carbon emissions positively. The policymakers should look into the role and intent of the private equity investors in green investments and invest in technologies and patents that can lead to energy consumption.

The paper is the first of its kind, to the best of the authors’ knowledge, to look into the impact of private equity on renewable energy and technological patents.

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.

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).

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.

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.

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.

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.

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.

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.

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.

This study aims to investigate the relationship between business group affiliation and CO2 emissions in Chile, providing insights into the pollution externalities associated with business group structures and their implications for environmental performance.

A hand-matched sample of industrial facilities and subsidiaries of listed firms in Chile was utilized to analyze the CO2 emissions of business group-affiliated firms compared to stand-alone firms. Fixed-effect regression analysis and propensity score matching were employed to examine the differences in emissions levels.

The results suggest that firms affiliated with business groups have higher CO2 emissions in comparison to similar stand-alone firms. This suggests that business group structures may weaken the pressures for emission reduction and maintenance of public legitimacy among affiliated firms.

The findings of this study are subject to certain limitations, such as the use of a specific dataset from Chile and the inability to explore certain factors due to data constraints. For instance, we were unable to examine the separation between control and cash-flow rights as well as the influence of manager characteristics on pollution levels. Future research should address these limitations and expand the analysis to other emerging market countries to further investigate the impact of lax or ineffective environmental regulations on pollution outcomes.

The research findings have practical implications for investors and policymakers. Investors interested in environmentally sustainable investments should consider the higher pollution levels associated with business group-affiliated firms. Policymakers can use these findings to design more effective regulations and incentives to encourage emission reduction efforts within business group structures.

The study’s results emphasize the need for a comprehensive understanding of the environmental implications of business group affiliation. By recognizing the potential for higher emissions in business group structures, stakeholders can advocate for sustainable practices, encourage transparency and promote responsible environmental management within corporate entities.

This study contributes to the literature on corporate governance, climate risks and pollution externalities by providing an empirical evidence on the relationship between business group affiliation and CO2 emissions. It highlights the importance of considering the influence of corporate structures on environmental performance, particularly in the context of emerging market economies.

Este estudio tiene como objetivo investigar la relación entre la afiliación a grupos empresariales y las emisiones de CO2 en Chile, proporcionando información sobre las externalidades de contaminación asociadas con las estructuras de grupos empresariales y sus implicaciones para el desempeño ambiental de las empresas.

Se utilizó una muestra recolectada de manera manual de instalaciones industriales y subsidiarias de empresas listadas en Chile para analizar las emisiones de CO2 de empresas afiliadas a grupos empresariales en comparación con empresas independientes. Se emplearon análisis de regresión de efectos fijos y modelos de emparejamiento por puntaje de propensión para examinar las diferencias en los niveles de emisiones.

Los resultados sugieren que las empresas afiliadas a grupos empresariales tienen mayores emisiones de CO2 en comparación con empresas independientes similares. Esto sugiere que las estructuras de grupos empresariales pueden debilitar las presiones para la reducción de emisiones y el mantenimiento de la legitimidad pública entre las empresas afiliadas.

Este estudio contribuye a la literatura sobre gobierno corporativo, riesgos climáticos y externalidades de contaminación al proporcionar evidencia empírica sobre la relación entre la afiliación a grupos empresariales y las emisiones de CO2. Destaca la importancia de considerar la influencia de las estructuras corporativas en el rendimiento ambiental, especialmente en el contexto de las economías de mercados emergentes.

Los hallazgos de este estudio están sujetos a ciertas limitaciones, como el uso de un conjunto de datos específico de Chile y la incapacidad para explorar ciertos factores debido a restricciones de datos. Por ejemplo, no pudimos examinar la influencia de las características de los ejecutivos de las empresas en los niveles de contaminación. Investigaciones futuras deberían abordar estas limitaciones y ampliar el análisis a otros países de mercados emergentes para investigar más a fondo el impacto de regulaciones ambientales laxas o ineficaces en los resultados de contaminación.

Los hallazgos de la investigación tienen implicaciones prácticas para inversores y responsables políticos. Los inversores interesados en inversiones ambientalmente sostenibles deben tener en cuenta los niveles más altos de contaminación asociados con empresas afiliadas a grupos empresariales. Los responsables políticos pueden utilizar estos hallazgos para diseñar regulaciones más efectivas e incentivos para fomentar los esfuerzos de reducción de emisiones dentro de las estructuras de grupos empresariales.

Los resultados del estudio enfatizan la necesidad de comprender de manera integral las implicaciones ambientales de la afiliación a grupos empresariales. Al reconocer el potencial de mayores emisiones en las estructuras de grupos empresariales, los interesados pueden abogar por prácticas sostenibles, fomentar la transparencia y promover una gestión ambiental responsable dentro de las entidades corporativas.

While science has researched the impact of air pollution on human health, the economic dimension of it has been less researched so far. Renewable energy consumption is an important factor in determining the level of life expectancy and reducing health expenditure. Thus, this study aims to investigate the impact of renewable energy, carbon emissions, health expenditure and urbanization on life expectancy in G-7 countries over the period of 2000–2019.

This study has adopted a novel Method of Moments Quantile Regression (MMQR). Furthermore, as a robustness check for MMQR, the fully modified ordinary least square, dynamic ordinary least squares and fixed effect ordinary least square estimators have been used.

The results indicated that renewable energy consumption, health expenditure and urbanization lead to an increase in life expectancy across all quantiles (5th to 95th), whereas higher carbon dioxide emissions reduce life expectancy at birth across all the quantiles (5th to 95th).

The empirical findings conclude that governments should recognize their potential in renewable energy sources and devise policies such as tax-related regulations, or relevant incentives to encourage further investments in this field.

This paper in comparison to the other research studies used MMQR to investigate the impact of factors affecting life expectancy. Also, to the best of the authors’ knowledge, so far no study has investigated the impact of renewable energy on life expectancy in G-7 countries.

The Organization for Economic Cooperation and Development (OECD) countries are facing unprecedented challenges related to climate change and population aging. The purpose of the analysis is to explore the relationship between population aging and environmental degradation, accounting for human capital, using a sample of 19 OECD countries over the period 1980–2019.

On the empirical methodology, the analysis uses panel estimators with heterogenous coefficients and an error structure that takes into consideration cross-country heterogeneity and cross-sectional dependence for a panel of 19 OECD countries over the period 1980–2019. To examine the relationship between population aging and environmental degradation, the authors employ two alternative measures of environmental degradation that is energy consumption and CO2 emissions in metric tons per capita. Concerning the regressors, the authors account for two alternative aging indicators, namely the elderly population and the old-age dependency ratios to confirm robustness.

The analysis provides evidence that population aging and human capital development (IHC) lead to lower energy consumption in the OECD sample. Overall, the growing number of elderly people in the OECD seems to act as a mitigating factor for energy consumption. The authors view these results as conveying the message that the evolution of population aging along with channeling government expenditures towards human capital enhancement are important drivers of curbing energy consumption and ensuring environmental sustainability. The authors' research is of great significance for environmental policymakers by illuminating the favorable energy consumption patterns that population aging brings to advanced economies.

The main limitation of this study concerns data availability. Future research, and subject to greater data availability in the future, could dig deeper into understanding the dynamics of this complex nexus by incorporating additional control variables. Similarly, the authors focus on aggregate renewable energy consumption, and the authors do not explicitly model the sources of renewable energy (wind, hydropower, solar power, solid biofuels and other). Additional analysis of the breakdown of renewable energy sources would be insightful – subject to data availability – especially for meeting the recently agreed new target of 42.5% for European Union (EU) countries by 2030. A deep transformation of the European energy system is needed for the EU to meet the target. Finally, extending the model to include a range of non-OECD countries that are also experiencing demographic transformations is a promising avenue for future research.

To the best of the authors' knowledge, this study is the first to examine the effects of population aging and human capital on environmental degradation using a broad set of OECD countries and advanced spectrum estimation methods. Given cross-sectional dependencies and cross-country heterogeneity, the authors' empirical results underline the importance of cross-OECD policy spillovers and knowledge diffusions across the OECD countries. The new “energy culture” calls for concerted policy action even in an aging era.