Work

Business environmental innovation and CO2 emissions: The moderating role of environmental governance

Year: 2022

Type: article

Abstract: This paper examines the effects of environmental innovation on CO2 emissions as well as the moderating role of environmental governance in this relationship. Based on a sample of companies listed on the London Stock Exchange for the period from 2016 to 2020, the findings show that environmental innovation reduces CO2 emissions including Scope 1 and Scope 2 CO2 emissions. Likewise, our findings are associative of a moderating effect of environmental governance on the environmental innovation‐CO2 emissions nexus. We argue that environmental innovation along with better environmental governance leads to a reduction in CO2 emissions. Our results hold for subsamples of firms with a strong/low environmental governance and ESG performance. Our findings offer important implications for companies and policymakers towards adopting more environmental technologies along with enhancing environmental governance to reduce CO2 emissions.

Source: Business Strategy and the Environment

DOI: 10.1002/bse.3232

Authors: Khaldoon Albitar, Hela Borgi, Muzammal Khan, Anum Zahra

Institutions: University of Portsmouth, Princess Nourah bint Abdulrahman University, University of the West of Scotland, Taylor's University

Language: English

Topic: Environmental Sustainability in Business

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,950