The Effect of Firms Reporting to the Carbon Disclosure Project on Their Co2 Emissions

Abstract

Nowadays, we are more aware of climate change and so increasingly sensitive to the “green” economics in order to assure the future. Consequently, companies are pushed to rapidly and significantly cut down their CO2 emissions and review their policies. The objective of our study is to assess the pertinence of green policy introduction at the business level. For our analysis, we are using unique data sets of the firm’s CO2 emissions. We built our data by adding several firms’ characteristics to an initial database provided by South Pole Company. Based on a particular companies’ specificities we were then able to select the suitable treated and control groups. In our study we intend to evaluate whether signing up to the Carbon disclosure project, as one of the binding reporting standards, has a positive effect on the firms’ emissions. It is a typical causal effect evaluation problem that we solve using a relatively new method called “synthetic control approach” developed by Abadie (2001). This approach is an econometric method used for program or treatment evaluation. Almer and Winkler (2012) used this method in environmental problematic. To our knowledge it has never been applied to evaluate firms’ politics and indeed we use this approach to analyse the environmental programme at a company level. We chose this method because it allows researchers to analyse phenomena that occur in a limited population or that apply to only a small number of firms, perfectly suited to our problematic. We will present the results of our study.



Author Information
Adéla Turková, University of Fribourg, Switzerland
Laurent Donzé, University of Fribourg, Switzerland

Paper Information
Conference: ECSEE2016
Stream: Economic Sustainability: Sustainable Businesses and CSR

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