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This paper aims to provide multinational corporations (MNCs) with a portfolio of corporate environmental responsibility (CER) responses that help curbing the exacerbated negative environmental externalities caused by their business activities in emerging and developing economies.

This paper transposes the market-related concept of institutional voids to the context of CER, that is, to the context of exacerbated negative environmental externalities as result of absent, weak or incoherent institutions.

This paper proposes that the transfer of products, processes and business models from developed to emerging or developing economies often gives rise to exacerbated negative externalities because of institutional voids in environmental protection. Thus, it suggests a portfolio of CER responses – circumventing, coping and compensating – that allow MNCs to mitigate the exacerbated negative environmental externalities caused by them.

The authors present an analytical framework for identifying and navigating environment related institutional voids, which serves as a starting point for an action research approach. In tune with recent calls for critical performativity in critical management studies, the action research approach aims at tackling the real-life problem of exacerbated negative environmental externalities caused by MNCs’ activities in emerging and developing economies.

This paper sensitizes scholars, policymakers and managers to exacerbated negative environmental externalities within the context of international business activities in emerging and developing economies. The contribution provides stakeholders with a better understanding of the causes as well as alternative responses to the problem.

This paper transposes the market-related concept of institutional voids and the strategic responses to dealing with them to the non-market context of CER. The authors argue that institutional voids can be seen as the absence or poor functioning of formal and informal institutions for environmental protection, resulting in exacerbated negative environmental externalities.

The purpose of this study is to assess the impact of rivalry and excludability in transport systems on the positive external effects important for the functioning of a large private university in Wroclaw (Poland). In the context of campus sustainability, policy implications supporting sustainable transport are discussed.

Four research questions were formulated, which were tested by way of questionnaire research among students of the Bachelor and Engineer Programmes in Logistics and taking part in the course Transport Economics at the WSB University in Wroclaw (Poland).

Car use seems to be the most important for the positive transport externalities enabling the functioning of the university. Levels of rivalry and excludability did not have a significant impact on the levels of external transport benefits or the transport behaviour of students. To sustain/enhance the levels of positive external effects of transport and stimulate sustainable commuting, the university should support the development of alternative modes of transport, by improving transport infrastructure on the campus, and develop cooperation with the Wroclaw municipality to develop synergies between their transport policy goals.

The research should be interpreted with care, as it is a case study of one large private university in Poland. Further research should be conducted among different private and public universities that are characterised by different levels of accessibility (location, development of infrastructure). The case study is based on students' transport behaviour, not considering transport behaviour of academic and non-academic workers, which could function as a role mode.

Policy aiming at banning cars is likely to be unsuccessful and/or could lead to a decrease in positive externalities in a short term. For this reason, more attention should be given to marketing and promotion of more sustainable means of transport, including e.g. better information on the possibilities of reaching the campus by train or urban public transport, facilitations for non-motorised students and improvements in cycling and walking infrastructure. To support campus sustainability in the field of transport, stronger cooperation with local administration is needed to undertake joint, consistent actions aimed at sharing and supporting the idea of sustainable commuting among students.

While many activities for supporting campus sustainability focus on reducing negative environmental externalities, positive externalities are not so often considered. In this context, the levels of rivalry and excludability can become an indicator of the contribution of transport systems to social and economic sustainability.

The absence of government intervention and market supervision cannot effectively promote green process innovation in manufacturing industries. As a new government regulation approach, environmental taxes provide a platform to internalize the externality of environmental pollution. This paper empirically investigates the impact of environmental taxes on green process innovation and the moderating effects of industry pollution heterogeneity and green credit.

This research collects manufacturing industry data ranging from 2008 to 2020, resulting in a total of 351 observations. Time-individual, two-way fixed effect models are constructed to examine the hypotheses.

The results indicate environmental taxes have an inverted-U effect on green process innovation in manufacturing industries. Implementation intensity of the current environmental taxes on China's manufacturing industries does not reach an inflection point. Further analysis suggests that environmental taxes exert influence on the inverted-U relationship with low-pollution industries displaying a steeper curvilinear pattern than high-pollution industries. Moreover, the analysis shows that green credit plays a moderating role in the inverted-U relationship, as low green credit provides more limited stimulus than high green credit in terms of the effect of environmental taxes on green process innovation.

This study offers empirical evidence to accommodate negative externalities of corporate production and provides new perspectives in nudging corporate green-process innovation.

This paper verifies the effect of environmental taxes on green process innovation amid industry pollution heterogeneity by introducing an industrial-level analysis unit. This study improves the means by which environmental taxes are measured. Existing literature has narrowly used pollution discharge fees as a proxy for environmental taxes. The authors have summed up the taxes on vehicle and vessels, urban land use, urban maintenance and construction, vehicle purchases, waste gas, wastewater and solid waste to measure the effect of environmental taxes in this study.

This study seeks to collaborate with the discussions on the usefulness of the narrative approach in accounting. In this context, this study aims to elaborate small collective stories, developed from interviews, to expose the population’s perception of the social and environmental impact (positive and negative externalities) resulting from iron ore mining in the city of Congonhas-Minas Gerais (MG).

This research, using counternarratives, aims to elaborate small collective stories, developed from 52 interviews, to expose the population’s perception of externalities resulting from the exploitation of iron ore in the city of Congonhas-MG, Brazil, to give more insight for social and environmental accounting reporting. A qualitative investigation is used with a narrative approach that focuses on a specific event in the participants’ lives.

The authors sought to create a sense of collective experiences of the interviewees through narratives representative of the residents’ perception of externalities in the form of small collective stories. However, it can be observed that the local population recognizes the impact of numerous externalities. Likewise, the use of narratives allows the reader to experience another reality – a reflection on the impact of business activities in a given context. Unlike conventional corporate social reporting, models based on qualitative information can be inclusive, produced by/for the community toward action that transforms the local reality.

This study intends to contribute to the debate on reporting models that are developed by and for external stakeholders. This approach has the potential to improve participants’ both awareness and engagement, supporting transformative social action. This study makes several contributions. It contributes to the literature with a narrative approach, which is not often used in the accounting literature; it brings insights from the Latin American context, which is especially valuable given how the Anglo-American accounting literature includes few papers addressing this context; it presents the view of marginalized communities that are too often overlooked (this narrative approach offers important insights into the lived experience of people at a very granular level).

The purpose of this study is to explore the effects of revitalization of old industrial buildings on the market value of the neighbourhood residential properties. Hong Kong’s economy has undergone a remarkable transformation in the past three decades. The most visible phenomenon in this transformation is the relocation of traditional manufacturing activities from Hong Kong to China since the 1990s. This has led many of the old industrial buildings in Hong Kong to be empty/underutilized and dilapidated. The Hong Kong Special Administrative Region Government launched the “Revitalizing Industrial Buildings Policy” to revitalize these underutilized properties with the aim to provide suitable land and premises to meet local’s economic and social needs.

The study used a hedonic price model to determine whether there is a relationship between revitalization projects and neighbourhood residential property values and the influence of revitalization programmes on the residential property price if there is such a relationship. The study is based on a sample of 4,015 residential transactions obtained from the residential developments located near three large-scale revitalization projects in an old industrial district, Kwun Tong.

Empirical findings suggest that revitalization programmes have not brought net positive price effects on the value of neighbourhood residential properties. This is in line with findings of some previous studies. However, it reveals that both the mode and scale of revitalization projects have different impacts on the neighbourhood: wholesale conversion has less negative impacts compared with redevelopment, while the larger the scale of a revitalization programme, the greater are the negative impacts on nearby property values. The study also finds that negative externalities generated by the revitalization during and post-revitalization stages are almost similar in magnitudes.

The results imply that industrial revitalization projects located adjacent to residential developments both reduce the value of the latter and discourage potential property buyers. The negative public perception of these properties diminishes their value and hence decreases the value of the property.

The paper raises the concern about the importance of adequately addressing issues of planning and zoning to minimize the negative externalities arising from urban renewal projects.

This research paper is first of its kind to analyze the effects of revitalized industrial buildings on the value of neighbourhood properties in Hong Kong. The tangible benefits identified in this study would be incentives, or otherwise, to motivate the revitalization policy in general.

This paper explores the way in which industrial pollution has been expressed in the narrative accounts of nature, landscape and industry by William Gilpin in his 18th-century picturesque travel writings. A positive description of pollution is generally outdated and unacceptable in the current society. The authors contrast his “picturesque” view with the contemporary perception of industrial pollution, reflect on these early accounts of industrial impacts as representing the roots of impression management and use the analysis to inform current accounting.

The research uses an interpretive content analysis of the text to draw out themes and features of impression management. Goffman's impression management is the theoretical lens through which Gilpin's travel accounts are interpreted, considering this microhistory through a thematic research approach. The picturesque accounts are explored with reference to the context of impression management.

Gilpin's travel writings and the “Picturesque” aesthetic movement, it appears, constructed a social reality around negative industrial externalities such as air pollution and indeed around humans' impact on nature, through a lens which described pollution as adding aesthetically to the natural landscape. The lens through which the picturesque tourist viewed and expressed negative externalities involved quite literally the tourists' tricks of the trade, Claude glass, called also Gray's glass, a tinted lens to frame the view.

The paper adds to the wealth of literature in accounting and business pertaining to the ways in which companies socially construct reality through their accounts and links closely to the impression management literature in accounting. There is also a body of literature relating to the use of images and photographs in published corporate reports, which again is linked to impression management as well as to a growing literature exploring the potential for the aesthetic influence in accounting and corporate communication. Further, this paper contributes to the growing body of research into the historical roots of environmental reporting.

Long haul freight transport imposes huge negative environmental externalities on society. Although these can never be entirely eliminated, they can be reduced. The purpose of this chapter is to analyse some of the many mitigating measures, or interventions, that can be used.

The approach used in this chapter is to review the literature and provide an overview of the main theoretical and practical mitigation measures available to transport operators.

There are literally thousands of possible mitigation measures and combinations that can be used by operators to reduce their environmental footprint. Each of these measures warrants a separate chapter. This chapter can only present an overview of the principle available measures. Although some mainland European examples are used, it is acknowledged that the examples used are somewhat skewed towards the United Kingdom.

The value of the chapter is in bringing together some of the many measures and approaches that can be used to reduce the environmental externalities of long haul freight transport. Much of the information on such interventions is based on industrial and EU project sources rather than purely academic research and so is less likely to be found in academic journals.

This paper forwards a conceptual model identifying some of the key sources of judgment error in individual environmental sensemaking. Recommendations are offered to mitigate some of these biasing dysfunctions and thereby improve the effectiveness of environmentally related business policy.

Theories of cognitive and behavioral sciences are reviewed and applied to create a conceptual model describing some of the key influences on individual sensemaking in regard to environmental risk and opportunity.

It is found that the model presented in this paper contributes to the literature of corporate social responsibility in explaining some of the heuristic phenomena that can lead to denial of a firm's negative environmental impact, or conversely, recognition of emerging opportunities arising from increasing societal concern for environmental integrity. Many environmental scientists believe denial is omnipresent in modern business and governmental organizations. In addition, because the model is grounded in well‐established theories of problematic heuristic bias, it helps identify “leverage points” where well‐designed interventions can be deployed to promote learning and improved decision making. The model helps the decision maker better understand and potentially influence ethical judgment because ethical decision making is conceived within the frame of bounded ethicality versus a less potent theory of intervention based upon espoused moral prescriptions.

Some important influences on environmental sensemaking are not emphasized in the model to include dimensions of individual personality, early childhood experiences, gender, religious background, etc. Rather, the emphasis here is placed upon relatively ubiquitous cognitive heuristics and other cognitive phenomena likely to influence many organizational decision makers.

This analysis and resulting conceptual model should help change agents, students, policy makers and business practitioners avoid predictable biases and sensemaking distortions and, in so doing, improve the firm's social responsibility profile and recognition of emerging business opportunities growing out of sustainability imperatives.

This paper aims to quantify the (syndicated) loan exposure to elevated environmental risk sectors of the banking system in the USA, EU, China, Japan and Switzerland at US$1.6tn and to highlight its importance, which ranges from 3.8 (USA) to 0.5 per cent (China) in terms of total national banking assets. The paper highlights the relevance of exploring prudential policy responses, including a harmonized taxonomy, statistical and reporting framework that could contribute to internalizing the negative externalities associated with climate risks by both banks and their supervisors. Among the prudential supervisory tools, credit registers facilitate the assessment of environmental risk drivers in “carbon stress tests.” This paper also presents a framework of analysis for the regulatory treatment of climate-related risks.

Similarly to Weyzig et al. (2014), this paper uses financial databases on the banks’ role as book runners for syndicated loans; that is, as the lead arrangers who also provide a large share of the actual lending. Loans are outstanding on December 31, 2014, and the paper assumes linear amortization of loans issued before that date and with maturity after that date. This study includes the largest banks from the above-mentioned countries with financial information available in SNL Financial and EU banks with financial information available in the ECB database on December 31, 2014. By assessing the relative share of the ten largest (or total reporting if less) banks’ exposure to each high environmental risk sector in relation to their total assets, these findings can be extrapolated across sectors in the respective country.

This paper quantifies the loan exposure to elevated environmental risk sectors of the banking system in the USA, EU, China, Japan and Switzerland in US$1.6tn, broadly in line with the findings of Battiston et al. (2017) and Weyzig et al. (2014). This paper also explores prudential policy approaches and tools. In addition to the lack of taxonomy of “brown” vs “green,” the paper identifies the limitations to assess the risks involved in the transition to a low-carbon economy: supervisory reports that do not make full use of the existing international statistical framework (e.g. EU COREP and FINREP); lack of harmonized reporting requirements of environmental risks; lack of credit registers as tools to perform carbon stress-testing; and supervisors’ governance framework that do not internalize environmental risks (e.g. proposed revision of the Basel Core Principles of Banking Supervision). As per the stress-testing, the paper presents two examples. The paper presents a framework of analysis for the regulatory treatment of climate-related risks. The author identifies two critical elements of such framework if prudential regulation of environmental risks is to be considered: the consideration or not of climate risk as credit risk and the impact of environmental risks over probabilities of default over the entire business cycle.

No internationally accepted “official” taxonomy of high environmental risk sectors exists. This paper uses Moody’s (2015a) classification of sectors according to their environmental risk exposure. This paper’s exposures do not reflect the real risk exposure of these institutions and the banking industry as a whole because, as explained in Page 6, these values are without regard to bilateral loans and guarantees and securitizations of loans; in the case of loans to power generation companies, renewable sources are not excluding and, similarly, for the production of electric vehicles, loans are not excluded. Furthermore, this paper does not assess banks’ exposures to sovereigns subject to high environmental risks and bonds and equity issued by corporations operating in high environmental risk sectors.

Contribution to the present policy debate on how to regulate banks’ exposure to high environmental risk and how to manage the transition to a low-carbon economy.

This paper can increase awareness of the banking sector transition risks to a low-carbon economy.

This paper quantifies banks direct exposures to high environmental risk sectors using an ample definition of sectors exposed to environmental risk. The author suggests policy actions to assess the environmental risks. The author defines a regulatory framework for banks to internalize the negative externalities of environmental risks.