Spatial variability and temporal patterns of internal price of carbon: A transitional management perspective

Huifa Chen, George Shan, Qingliang Tang, Junru Zhang

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose – This study investigates why companies use the internal price of carbon (IPC) for carbon management.
Design/methodology/approach – We adopt sustainable transition management theory to design the research and explain the findings of empirical models. Our sample includes companies that participated in the Carbon Disclosure Project (CDP) questionnaire survey, derived from 37 countries and regions for the period 2015 to 2018.
Findings – Our results first reveal that transition management facilitates an upward adoption trend annually during the study period. Second, we find that the proxies for transition management are all correlated with the adoption of the IPC in the predicted direction. Third, we identify spatial patterns and driving factors for adoption of the IPC.
Originality –This study provides additional insight beyond the limited prior literature in this area. In particular, the findings regarding the influence of physical environment on climate-related decisions have not been documented in extant literature. Internal price of carbon is expected to interact with and complement external price of carbon for climate change governance. Thus, the exploring results of the paper fill an important gap and pave the way for future study to examine emerging issues in the burgeoning field of carbon accounting for climate change.
Original languageEnglish
JournalMeditari Accountancy Research
DOIs
Publication statusE-pub ahead of print - 14 Feb 2022

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