From “business as usual” to tackling climate change: Exploring factors affecting low-carbon decision-making in the canadian oil and gas sector

Mônica Cavalcanti Sá de Abreu, Kernaghan Webb, Francisco Sávio Maurício Araújo and Jaime Phasquinel Lopes Cavalcante

Energy Policy, 2021, vol. 148, issue PA

Abstract: This article investigates empirical evidence from the Canadian oil and gas sector regarding the key factors behind corporate decision-making in moving from “business as usual” to tackling climate change. The findings are based on survey data from a sample of 127 managers. Logit regression analysis revealed that pressure from government, customers, suppliers and competitors increased the likelihood that firms will adopt a low-carbon strategy. Compared to other stakeholders, investors and employees may not be as strongly committed to adopting a climate change strategy. Media and corporate sustainability reporting were not found to be important factors in influencing firms to adopt low-carbon strategies, while command-and-control policies and firms’ perceptions of the risk of resource scarcity were factors that seemed to have the most influence on corporate decision-making. Multinational oil and gas firms headquartered in Canada appeared to be more likely to adopt low-carbon strategies than foreign multinational oil and gas firms. This research contributes to a better understanding of the key factors that affect corporate decision-making concerning GHG emission-reduction policies. Regulatory action based on significant engagement with affected stakeholders would appear to be particularly important in creating a broad base of support and pressure for action on climate change.

Keywords: Climate change strategies; Carbon-intensive firms; Sustainability; Mitigation; Stakeholders (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:148:y:2021:i:pa:s0301421520306431

DOI: 10.1016/j.enpol.2020.111932

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