An Analysis of the Effects of Climate Change Policy, Stakeholder Pressure, and Corporate Carbon Management on Carbon Efficiency on the Korean Petrochemical Industry

Soo-Hyun Lee and Su-Yol Lee
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Soo-Hyun Lee: College of Business Administration, Chonnam National University, Yongbong-ro 77, Buk-gu, Gwangju 61186, Korea
Su-Yol Lee: College of Business Administration, Chonnam National University, Yongbong-ro 77, Buk-gu, Gwangju 61186, Korea

Sustainability, 2018, vol. 10, issue 12, 1-16

Abstract: Climate change is a challenging issue for government and society as well as in business circles; it has the potential to transform the competitive business environment entirely. This study analyzed the carbon efficiency of petrochemical companies subject to the Target Management System, a Korean carbon policy. The results of data envelopment analysis of 20 Korean petrochemical companies over three years yield some interesting findings. First, companies showed a wide range of carbon efficiency ranging from 0.05 (the least efficient) to 1.00 (the most efficient). Second, because this gap is so wide, the effect of the TMS carbon policy was not apparent. Third, pressure from media and financial investors facilitates carbon efficiency. Fourth, firms’ efforts toward low-carbon product/technology development also improve carbon efficiency. This study provides some implications for managers and policy-makers who wish to foster firms’ competitiveness and reduce greenhouse gas emissions at the same time.

Keywords: carbon efficiency; climate change policies; stakeholder pressure; corporate carbon management practices; data envelopment analysis; the Korean petrochemical industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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