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Book part
Publication date: 16 May 2024

Gunnar Leymann and Anna Kehl

Multinational enterprises (MNEs) own and control technological resources and capabilities that make them critical actors in accelerating the transition toward net zero. Even…

Abstract

Multinational enterprises (MNEs) own and control technological resources and capabilities that make them critical actors in accelerating the transition toward net zero. Even beyond the energy sector, stakeholders are putting increasing pressure on MNEs to reduce the carbon intensity of their operations, that is, to improve their carbon performance. While there is unambiguous evidence that national climate policy is a critical catalyst for long-term carbon performance improvements, there is limited research on how MNEs’ carbon strategies react to climate policies. This chapter reviews the concepts, drivers, and strategies connected to carbon performance in the broader sustainability and management literature to clarify potential complementarities to international business (IB). The authors then highlight how MNEs will face increasing institutional complexity along two dimensions: (1) the structural diversity of institutional environments and (2) institutional dynamism, primarily reflected by public policy. The proposed conceptual framework maps these two dimensions to national and subnational levels, and the authors present two data sources that allow the quantitative analysis of country differences in the diversity and dynamism of national climate policy. The authors conclude that there are ample opportunities for IB researchers to explore MNEs’ strategic reactions to climate policy and to inform policymakers about the consequences of national climate policy in the global economy.

Details

Walking the Talk? MNEs Transitioning Towards a Sustainable World
Type: Book
ISBN: 978-1-83549-117-1

Keywords

Article
Publication date: 15 April 2024

Anam Ul Haq Ganie and Masroor Ahmad

The purpose of this study is to assess the influence of institutional quality (IQ), fossil fuel efficiency, structural change and renewable energy (RE) consumption on carbon…

Abstract

Purpose

The purpose of this study is to assess the influence of institutional quality (IQ), fossil fuel efficiency, structural change and renewable energy (RE) consumption on carbon efficiency.

Design/methodology/approach

This research uses an econometric approach, more specifically the Autoregressive Distributed Lag model, to examine the relationship between structural change, RE consumption, IQ, fossil fuel efficiency and carbon efficiency in India from 1996 to 2019.

Findings

This study finds the positive contributions of variables like fossil fuel efficiency, technological advancement, structural transformation, IQ and increased RE consumption in fostering environmental development through enhanced carbon efficiency. Conversely, this study emphasises the negative contribution of trade openness on carbon efficiency. These findings provide concise insights into the dynamics of factors impacting carbon efficiency in India.

Research limitations/implications

This study's exclusive focus on India limits the generalizability of findings. Future studies should include a broader range of variables impacting various nations' carbon efficiency. Furthermore, it is worth noting that this study examines renewable and fossil fuel efficiency aggregated. Future research endeavours could yield more specific policy insights by conducting analyses at a disaggregated level, considering individual energy sources such as wind, solar, coal and oil. Understanding how the efficiency of each energy source influences carbon efficiency could lead to more targeted and practical policy recommendations.

Originality/value

To the best of the authors’ knowledge, this study addresses a significant gap in the existing literature by being the first empirical investigation into the effects of IQ, fossil fuel efficiency, structural change and RE consumption on carbon efficiency. Unlike prior research, the authors consider a comprehensive IQ index, providing a more holistic perspective. The use of a comprehensive composite index for IQ, coupled with the focus on fossil fuel efficiency and structural change, distinguishes this study from previous research, contributing valuable insights into the intricate dynamics shaping India's path towards enhanced carbon efficiency, an area relatively underexplored in the existing literature.

Details

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

Keywords

Open Access
Article
Publication date: 1 February 2024

Marta Postula, Krzysztof Kluza, Magdalena Zioło and Katarzyna Radecka-Moroz

Environmental degradation resulting from human activities may adversely affect human health in multiple ways. Until now, policies aimed at mitigating environmental problems such…

Abstract

Purpose

Environmental degradation resulting from human activities may adversely affect human health in multiple ways. Until now, policies aimed at mitigating environmental problems such as climate change, environmental pollution and damage to biodiversity have failed to clearly identify and drive the potential benefits of these policies on health. The conducted study assesses and demonstrates how specific environmental policies and instruments influence perceived human health in order to ensure input for a data-driven decision process.

Design/methodology/approach

The study was conducted for the 2004–2020 period in European Union (EU) countries with the use of dynamic panel data modeling. Verification of specific policies' impact on dependent variables allows to indicate this their effectiveness and importance. As a result of the computed dynamic panel data models, it has been confirmed that a number of significant and meaningful relationships between the self-perceived health index and environmental variables can be identified.

Findings

There is a strong positive impact of environmental taxation on the health index, and the strength of this relationship causes effects to be observed in the very short term, even the following year. In addition, the development of renewable energy sources (RES) and the elimination of fossil fuels from the energy mix exert positive, although milder, effects on health. The reduction of ammonia emissions from agriculture and reducing noise pollution are other health-supporting factors that have been shown to be statistically valid. Results allow to identify the most efficient policies in the analyzed area in order to introduce those with the best results or a mix of such measures.

Originality/value

The results of the authors' research clearly indicate the health benefits of measures primarily aimed at improving environmental factors, such as environmental taxes in general. The authors have also discovered an unexpected negative impact of an increase in the share of energy taxes in total taxes on the health index. The presented study opens several possibilities for further investigation, especially in the context of the rapidly changing geopolitical environment and global efforts to respond to environmental and health challenges. The authors believe that the outcome of the authors' study may provide new arguments to policymakers pursuing solutions that are not always easily acceptable by the public.

Details

Central European Management Journal, vol. 32 no. 1
Type: Research Article
ISSN: 2658-0845

Keywords

Article
Publication date: 28 November 2023

Mosab I. Tabash, Umar Farooq and Adel Ahmed

Due to an increase in energy demands, it has become vital to devise efficient energy policies. Literature has suggested multiple factors influencing the consumption of specific…

Abstract

Purpose

Due to an increase in energy demands, it has become vital to devise efficient energy policies. Literature has suggested multiple factors influencing the consumption of specific energy types. Among others, institutional quality (INQ) is another factor that can determine energy consumption. Given this, the current study aimed to investigate the impact of INQ on fossil fuel energy (FFE) and renewable energy consumption (REC).

Design/methodology/approach

The empirical analysis was conducted on 20 years (2000–2019) of data from South Asian economies, and regression among variables was established by employing the dynamic ordinary least square and fully modified ordinary least square models. The selection of both techniques is subject to the existence of cointegration identified by the Johansen cointegration test. Other pre-estimation techniques include cross-section dependence and unit root testing validating the estimation of coefficients in the long run.

Findings

The analysis mainly reveals the negative impact of INQ on FFE and the positive impact of INQ on REC. The authors further find the asymmetric impact of control variables including foreign direct investment inflow, economic growth, inflation rate, financial sector development and energy investment on the consumption of both types of energy.

Research limitations/implications

Given the positive influence of INQ on REC, it is recommended to focus on improving the efficiency of institutions specifically those that are directly linked with energy-related policies. A better INQ can ensure environmental sustainability by enhancing the consumption of renewable energy. Therefore, it is advised to exert more efforts to improve the INQ.

Practical implications

In view of the positive influence of INQ on REC, it is recommended to focus on improving the efficiency of institutions specifically that are directly linked with energy-related policies. A better INQ can ensure environmental sustainability by enhancing the consumption of renewable energy. Therefore, it is advised to exert more efforts for improving the INQ.

Originality/value

This study offers robustness to the empirical findings of existing literature on the INQ-REC nexus and complements the underdeveloped literature on the INQ-FFE relationship.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 3
Type: Research Article
ISSN: 1477-7835

Keywords

Abstract

Details

A New Left Economics: An Economy with a Social Conscience
Type: Book
ISBN: 978-1-80455-402-9

Article
Publication date: 30 April 2024

Sidhartha Harichandan and Sanjay Kumar Kar

The purpose of this study is to explore the determinants influencing industrial adoption of green hydrogen amidst the global transition towards sustainability. Recognizing green…

Abstract

Purpose

The purpose of this study is to explore the determinants influencing industrial adoption of green hydrogen amidst the global transition towards sustainability. Recognizing green hydrogen as a pivotal clean energy alternative for industrial applications is critical for understanding its potential integration into sustainable practices.

Design/methodology/approach

This research examines the impact of factors such as innovativeness, perceived ease of use, user comfort, optimism and governmental policies on the industrial intention towards green hydrogen usage. Using responses from 227 Indian industry professionals and conducting analysis via the SmartPLS software, the study reveals a discernible discomfort among industrial workers pertaining to the daily application of green hydrogen.

Findings

The research presents an array of policy recommendations for stakeholders. Emphasized strategies include the introduction of green hydrogen certificates, sustainable public procurement mechanisms, tax incentives, green labelling protocols and the establishment of a dedicated hydrogen skill development council, all of which can significantly influence the trajectory of green hydrogen adoption within the industrial sector.

Originality/value

This research synthesizes various elements, from industry perception and challenges to policy implications, presenting a holistic view of green hydrogen’s potential role in industry decarbonization and SDG realization. In essence, this study deepens not only the empirical understanding but also pioneers fresh theoretical frameworks, setting a precedent for subsequent academic endeavours.

Details

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

Keywords

Book part
Publication date: 8 April 2024

Petr David

Road transport is an important sector of the economy, however, its negative impacts on the environment, human health and sustainability of potential economic growth are…

Abstract

Road transport is an important sector of the economy, however, its negative impacts on the environment, human health and sustainability of potential economic growth are significant. Transport externalities tend to be neglected within the market process. The damage generated through significant externalities of road transport in Czechia was identified, based on unique data processing, to reach almost 3.5 billion € annually. This chapter presents an overview of internalization taxes and fees, their current rates and generated receipts. If excise duty is disregarded as fundamentally unsuitable for the internalization of externalities, then the receipts from other applied taxes and fees, particularly the road tax, seem to be insufficient. Although economic growth is encouraged, its form is not sustainable in view of the rising phase of the Kuznets curve and the related irreversible environmental impacts.

Details

Modeling Economic Growth in Contemporary Czechia
Type: Book
ISBN: 978-1-83753-841-6

Keywords

Article
Publication date: 1 December 2023

Ebaidalla M. Ebaidalla

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…

Abstract

Purpose

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.

Design/methodology/approach

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).

Findings

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.

Originality/value

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.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 4
Type: Research Article
ISSN: 1477-7835

Keywords

Book part
Publication date: 16 May 2024

Jacqueline Mees-Buss

An in-depth analysis of how senior managers in a large multinational corporation interpret their social and environmental responsibilities revealed that, notwithstanding formal…

Abstract

An in-depth analysis of how senior managers in a large multinational corporation interpret their social and environmental responsibilities revealed that, notwithstanding formal corporate interpretations, discrepancies persisted in their interpretation of what was expected of them and how to implement it. Two fault lines emerged: (1) an instrumental versus a normative interpretation of corporate societal responsibilities, and (2) a focus on ‘doing less/no harm’ versus ‘doing more good’. This chapter introduces a theoretical framework that combines these fault lines to form four quadrants that each represent a different set of challenges managers face as they commit to improving their organisation’s impact on society. Rather than adjudicate between them, a holistic interpretation of corporate social responsibility (CSR) takes all four types into account. But the four types of challenges differ considerably in nature and thus in the strategic approach that is necessary to deal with them. In this chapter, each quadrant is discussed in detail. What characterises the issues in this quadrant, what mindset, and what strategy are necessary to address them? The chapter concludes with the observation that the framework, and the taxonomy of types of CSR challenges that it brings to the fore, creates greater awareness of how industries are confronted with different sets of challenges and thus need different strategic approaches. A better understanding of these differences may lead to more support, in particular for those managers who work in industries that face a disproportionate share of one particular type of challenges, the ‘nasty trade-offs’.

Details

Walking the Talk? MNEs Transitioning Towards a Sustainable World
Type: Book
ISBN: 978-1-83549-117-1

Keywords

Content available
Article
Publication date: 27 November 2023

Sharad Sharma, Rajesh Kumar Singh, Ruchi Mishra and Nachiappan (Nachi) Subramanian

This study aims to address three research questions pertaining to climate neutrality within the supply chain of metal and mining industry: (1) How can an organization implement…

Abstract

Purpose

This study aims to address three research questions pertaining to climate neutrality within the supply chain of metal and mining industry: (1) How can an organization implement practices related to climate neutrality in the supply chain? (2) How do members of the supply chain adopt different measures and essential processes to assist an organization in responding to climate change-related concerns? (3) How can the SAP-LAP framework assist in analyzing and proposing solutions to attain climate neutrality?

Design/methodology/approach

To address the proposed research questions concerning climate neutrality, this study employs a case study approach utilizing the SAP-LAP (situation, actor, process–learning, action, performance) framework. Within the SAP-LAP framework, adopting a natural resource-based perspective, the study thoroughly examines the intricacies and interactions among existing situations, pertinent actors and processes that impact climate initiatives within a metal and mining company.

Findings

The study's findings suggest that organizations can achieve the objective of climate neutrality by prioritizing resources and capabilities that lead to reduced GHG emissions, lower energy consumption and optimal resource utilization. The study further proposes key elements that significantly influence the pursuit of climate neutrality within enterprises.

Research limitations/implications

This study is one of the earliest contributions to the development of a holistic understanding of climate neutrality in the supply chain of the metal and mining industry.

Practical implications

The study will assist practitioners and policymakers in comprehending the present circumstances, actors and processes involved in enterprises' supply networks in order to attain climate neutrality in supply chains, as well as in taking the right steps to enhance performance.

Originality/value

This study presents a climate neutrality model and provides valuable insights into emission management, contributing to the achievement of the climate neutrality objective.

Details

The International Journal of Logistics Management, vol. 35 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

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