What drives internal carbon pricing as a climate risk management tool?

• Autor(a) principal: Meier, Phillip
• Data de Publicação: 2018
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/48397
• topic: Internal carbon pricing; Carbon management system; Climate risk management; Carbon disclosure project

Recent developments in climate regulation have led corporations to adjust their business models to prepare for the transition to a low-carbon economy. To respond to existing legislation and hedge against future climate regulations risk, an increasing number of mainly large corporations voluntarily embed an internal carbon value in decision-making processes as part of their business strategy. The aim of this study is to investigate the main forces that drive the adoption of such practice. A sample of 261 firms participating in the Carbon Disclosure Project is used to test a framework based on stakeholder theory and the resource-based view. The binary logistic regression analysis provides empirical evidence for the positive effect of institutional and stakeholder pressure on internal carbon pricing adoption. This paper finds that large corporations that employ a sustainability committee and rely on carbon-intense operations are more likely to adopt it. The results of this research should be of interest to policymakers, executive directors and external stakeholders engaged in climate change mitigation and adaptation policies.