Does corporate social performance reduce greenhouse gas emissions at the macro level?

Johan Graafland, Paul Hudson and Jonas Werner

Journal of Environmental Planning and Management, 2016, vol. 59, issue 2, 203-221

Abstract: Corporate social performance (CSP) is assumed to have a positive impact on macroeconomic sustainability, but empirical evidence of this impact is absent in the literature. The objective of this paper is to investigate the macro impacts of CSP. We first establish a conceptual framework on the relationship between CSP at the individual business level and sustainability at the macro level. Next, we empirically test the relationship between (averaged) CSP scores and greenhouse gas emissions at the macro level for 22 countries during 2004-2011. We use Granger causality tests to check for Granger causality. The estimation results show that CSP reduces greenhouse gas emissions, but the long-term effect is rather modest.

Date: 2016
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DOI: 10.1080/09640568.2014.1001021

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