Corporate Risk Tolerance and Acceptability towards Sustainable Energy Transition

Muhammad Rafiq, Ahsan Akbar, Saif Maqbool, Marcela Sokolová, Syed Arslan Haider, Shumaila Naz and Syed Muhammad Danish
Additional contact information
Muhammad Rafiq: Faculty of Management Sciences, Superior University, Lahore 54000, Pakistan
Ahsan Akbar: International Business School, Guangzhou City University of Technology, Guangzhou 510080, China
Saif Maqbool: FAST School of Management, Chiniot-Faisalabad Campus, National University of Computer and Emerging Sciences, Chiniot 35400, Pakistan
Marcela Sokolová: Department of Management, Faculty of Informatics and Management, University of Hradec Kralove, 500 03 Hradec Kralove, Czech Republic
Syed Arslan Haider: Department of Management, Sunway University Business School (SUBS), Sunway University, Bandar Sunway 47500, Malaysia
Shumaila Naz: Faculty of Business Administration, Iqra University, Karachi 75500, Pakistan
Syed Muhammad Danish: Department of Security, Economics and Planning, Faculty of Science and Technology, University of Stavanger, 4021 Stavanger, Norway

Energies, 2022, vol. 15, issue 2, 1-19

Abstract: The omnipresence of risk prevails in almost every aspect of human life. Individuals and societal factors are pivotal in the decision-making process to judge acceptability and tolerability of risk. Tolerability of risk (ToR) is characterized by dynamism pinned in the process of decision making that helps to gauge the society and individual’s risk. The energy transition implies switching the energy system from fossil fuels or any traditional mechanism to modern renewable sources that are sustainable. The energy transition is paramount important in the current global energy system to attain sustainable goals for organizations. This study used the positivism research paradigm to address the research questions. The quantitative approach helps to examine the cause-and-effect relationship. It also helps to collect systematic information to meet the objectives of the research. A total sample of 300 was selected for the data collection from renewable energy companies. The study used positivism research philosophy applied deductive approach. The data is analyzed through PLS-SEM. It is summarized that the scale of risk acceptability and tolerability in Pakistan is moderate which encourages companies to work progressively and increases sociocultural activities to make society a partner of this new shift in energy transition that will ultimately increase the level of risk acceptability. Nevertheless, as a society, people are neither high-risk takers nor risk avoiders due to income constraints, macroeconomic uncertainty, and political instability.

Keywords: risk tolerability and acceptability; sustainable energy transition; renewable energy usage; Pakistan (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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