Carbon risk management and corporate competitive advantages: “differential promotion” or “cost hindrance”?
Research output: Contribution to journal › Article
- Central South University
- Hunan University of Technology and Business
Given the strengthening of carbon regulations and the launch of emission trading scheme in China, companies are facing tremendous pressure to reduce carbon emissions, suggesting the necessity of understanding whether carbon risk management may affect corporate financial benefits. Therefore, this paper empirically demonstrates the influence of carbon risk management on corporate competitive advantages. We find that the relationship between carbon risk management and corporate competitive advantages is a “kuznets curve” that exists only among firms with weak product competition. And this relationship tends to be weakened in firms with a distant administrative hierarchy. We conclude that the influence of low carbon management on corporate competitive advantages is complicated and subject to the firm's political relevance.
|Number of pages||21|
|Journal||Business Strategy and the Environment|
|Early online date||22 Jan 2020|
|Publication status||E-pub ahead of print - 22 Jan 2020|
- Administrative hierarchical distance, Carbon risk management, Competitive advantages, Resource-based view, Sustainable development