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1 – 2 of 2Huifa Chen, Yuan George Shan, Qingliang Tang and Junru Zhang
This study aims to investigate why companies use the internal price of carbon (IPC) for carbon management.
Abstract
Purpose
This study aims to investigate why companies use the internal price of carbon (IPC) for carbon management.
Design/methodology/approach
The authors adopt sustainable transition management theory to design the research and explain the findings of empirical models. The sample includes companies that participated in the Carbon Disclosure Project (CDP) questionnaire survey, derived from 37 countries and regions for the period 2015–2018.
Findings
The results first reveal that transition management facilitates an upward adoption trend annually during the study period. Second, the authors find that the proxies for transition management are all correlated with the adoption of the IPC in the predicted direction. Third, the authors identify spatial patterns and driving factors for adoption of the IPC.
Originality/value
This study provides additional insight beyond the limited prior literature in this area. In particular, the findings regarding the influence of physical environment on climate-related decisions have not been documented in extant literature. IPC is expected to interact with and complement external price of carbon for climate change governance. Thus, the exploring results of the paper fill an important gap and pave the way for future study to examine emerging issues in the burgeoning field of carbon accounting for climate change.
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Keywords
This study aims to examine the impact of mandatory adoption of The Act 2013 in UK on voluntary carbon disclosure. Mandatory adoption of The Act 2013 in UK is a compelling setting…
Abstract
Purpose
This study aims to examine the impact of mandatory adoption of The Act 2013 in UK on voluntary carbon disclosure. Mandatory adoption of The Act 2013 in UK is a compelling setting to examine this research question because it is an exogenous imposed event and is unlikely to be affected by disclosure choice.
Design/methodology/approach
This study uses a difference-in-differences research design to examine the impact of mandatory adoption of The Act 2013 in UK on voluntary carbon disclosure. The treatment sample includes 451 UK firms subject to mandatory adoption of The Act 2013, and the control sample includes firms from 15 EU countries that did not mandate adoption during the sample period.
Findings
The authors document an increase in the quantity and quality of voluntary carbon disclosure following adoption of The Act 2013 in the treatment sample relative to the control sample. They also find that firms with better environmental, social and governance (ESG) performance experience a highly significant increase in voluntary carbon disclosure after adoption of The Act 2013. For firms from carbon-intensive vs less-carbon-intensive sectors, the results suggest that firms in carbon-intensive sectors experience a greater increase in the propensity of voluntary disclosure after adoption of The Act.
Originality/value
The authors examine the impact of mandatory adoption of The Act 2013 in UK on voluntary carbon disclosure and the impact of firms’ ESG activity on the relationship between voluntary and mandatory carbon disclosure. To the best of the authors’ knowledge, this insight has never been documented in the literature.
Details