Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in...
Transcript of Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in...
![Page 1: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/1.jpg)
Corporate Environmental
Strategies in Emerging Economies
Dietrich Earnhart
Department of Economics
University of Kansas
June 22, 2015
International Energy Agency (IEA)
Industry/Business Use of “Complementary Measures”
for Decarbonisation
![Page 2: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/2.jpg)
6/24/2015 2
1. Emerging Economies
• Developing
»Physical, human resources
»Institutions
• Transition
»from reliance on govt allocation
»to market-based allocation
• China: special case
»Mix of developing, transition,
developed
![Page 3: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/3.jpg)
6/24/2015 3
2. Insight from Research
• Better understanding
»Environmental management in
general
»Conventional pollutants
• Meaningful transfer to
“decarbonisation”
»Clean energy
»Energy efficiency
![Page 4: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/4.jpg)
4
3. Firm Environmental Behavior
• Measures
» Clean technology adoption
» Environmental management system
» ISO 14001 certification
» Audit, pollution prevention program
» Environment department establish
» Environmental plan adoption
» Environmental training
![Page 5: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/5.jpg)
5
3. Firm Environmental Behavior
• Drivers
![Page 6: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/6.jpg)
6
4. Developing Economies
• Challenge
»Undeveloped institutions
• Opportunity
»More room to establish
sustainable development path
![Page 7: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/7.jpg)
7
4. Developing Economies
• Empirical Evidence of Drivers
» Foreign ownership: influential
» Foreign customer pressure: influential
» Government: weak
» Civil society: weak
» Information disclosure: promise for future
![Page 8: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/8.jpg)
8
4. Developing Economies
• Empirical Evidence of Drivers
»Locally owned firms with products
domestically consumed or exported to
less “green” countries
• Market pressure: weak
• Law enforcement capacity: limited
• Environmental pressure groups: weak
![Page 9: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/9.jpg)
9
4. Developing Economies
• Empirical Evidence of Drivers (cont)
» Locally owned firms supplying
customers in developed economies
• Market pressure: influential
»Multinational corporations
• ISO certification: more likely
• Require suppliers too: more likely
![Page 10: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/10.jpg)
6/24/2015 10
5. Transition:
Central and East Europe
![Page 11: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/11.jpg)
6/24/2015 11
Soviet-style Economies:
Central and East Europe
![Page 12: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/12.jpg)
6/24/2015 12
5. Transition
• Extensive transformation
• Fast transformation
• 1989 to 2004 (1st EU)
• 1989 to 2007 (2nd EU)
![Page 13: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/13.jpg)
6/24/2015 13
1. Transition
![Page 14: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/14.jpg)
6/24/2015 14
6. Transition Forces
• Price liberalization
• Privatization
• Budget constraint
• Enterprise restructuring
• Trade development
• Foreign investment / ownership
• Capital markets growth
![Page 15: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/15.jpg)
6/24/2015 15
6. Transition Forces
• Environmental Regulator
»Protection laws strengthening
»Capacity development
»Relationship: more adversarial
![Page 16: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/16.jpg)
16
Czech Ministry of Environment
![Page 17: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/17.jpg)
Czech Enforcement: 2001-2010
6/24/2015 17
![Page 18: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/18.jpg)
6/24/2015 18
6. Transition Forces
• Civil society growth
»free speech
»independent press
»environmental NGOs
»access to environmental info
![Page 19: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/19.jpg)
19
Access to Info: Facebook
![Page 20: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/20.jpg)
20
7. Transition Firm Behavior
• Drivers of better behavior
» Internal:
• Need to reduce energy use: some practices
• Private (vs state) owner: mixed
• Foreign (vs domestic) owner: some practices
• Export orientation: some practices
• Foreign market pressure: some practices
• Management-related internal pressure
![Page 21: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/21.jpg)
6/24/2015 21
7. Transition Firm Behavior
• Drivers of better behavior (cont)
» External: Regulatory
• Permits: some practices
• Self-reporting of emissions
• Enforcement, inspections
• Emissions charges
» External: Other
• Community pressure: some practices
• Public disclosure in media
![Page 22: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/22.jpg)
6/24/2015 22
7. Transition Firm Behavior
• Irrelevant factors:
»Investor pressure
»Customer pressure
• Comparison to Developing Economies
»Weaker roles
• foreign ownership
• foreign customer pressure
»Stronger role for govt policies
![Page 23: Corporate Environmental Strategies in Emerging Economies · Corporate Environmental Strategies in Emerging Economies Dietrich Earnhart Department of Economics University of Kansas](https://reader033.fdocuments.in/reader033/viewer/2022053003/5f0774617e708231d41d107e/html5/thumbnails/23.jpg)
6/24/2015 23
8. China
• Drivers of environmental behavior
»Emission charges
»Foreign ownership: moderate evidence
»Export orientation to Japan/EU
»Consumer pressure:
• Foreign: more important
• Domestic: less important