Culture and Corporate Decarbonization Efforts: A Time-Varying Analysis and Topology Approach

Lingju Chen, Jiancheng Jiang () and Sha Yu ()
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Lingju Chen: College of Mathematics and Data Science (Software College), Minjiang University, Fuzhou 350108, China
Jiancheng Jiang: Department of Mathematics and Statistics, University of North Carolina at Charlotte, Charlotte, NC 28223, USA
Sha Yu: Department of Mathematics and Statistics, University of North Carolina at Charlotte, Charlotte, NC 28223, USA

JRFM, 2023, vol. 16, issue 8, 1-22

Abstract: This study examines the influence of culture on corporate responses to climate change. Given the inherent uncertainty associated with climate change, cultural values, as a non-market force, are expected to impact corporate’s decision making regarding decarbonization.To investigate this, a sample of large firms from 23 societies participating in the Carbon Disclosure Project (CDP) survey was analyzed, along with cultural measures assessed by the Global Leadership and Organizational Behavior Effectiveness (GLOBE) study. The findings of this study reveal that cultural values have diverse effects on corporate decarbonization efforts. Specifically, a preference for avoiding uncertainty and a future-oriented perspective tend to foster decarbonization, while a strong focus on performance appears to hinder such efforts. Additionally, the relationship between culture and decarbonization demonstrates a time-varying characteristic, indicating the influence of culture on carbon performance is contingent upon the evolution of carbon-related institutions over the study period.

Keywords: climate change; national culture; decarbonization performance; time-varying coefficients feature; local linear smoother; topology (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
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