TY - JOUR
T1 - Political connections and carbon footprint
T2 - a cross-country evidence
AU - Tee, Chwee-Ming
AU - Wong, Wai-Yan
AU - Hooy, Chee-Wooi
N1 - Funding Information:
Acknowledgement to \u201CMinistry of Higher Education Malaysia for Fundamental Research Grant Scheme with Project Code: FRGS/1/2021/SS01/UKM/02/4\u201D. In addition, Tee and Hooy would like to acknowledge the support from USM Post-Doctoral Fellowship.
Publisher Copyright:
© 2024 Elsevier Inc.
PY - 2024/6
Y1 - 2024/6
N2 - Drawing from a 60 cross-country dataset, this study examined the association between political connections and carbon footprint. Based on carbon emissions and carbon intensity measures, a positive and highly significant association between political connected (PCON) firms and carbon footprint was documented. The study also found that the carbon footprint results were largely driven by direct carbon emissions, while the effect of political connections was stronger for state owned enterprise (SOE). The baseline findings were found to be robust to endogeneity test. Further tests revealed that higher carbon footprint emitted from PCON firms was more pronounced in advanced economies, and in carbon-intensive industries. However, the study found that stronger institutional governance could partially alleviate the significant and positive association between PCON firms and carbon footprint.
AB - Drawing from a 60 cross-country dataset, this study examined the association between political connections and carbon footprint. Based on carbon emissions and carbon intensity measures, a positive and highly significant association between political connected (PCON) firms and carbon footprint was documented. The study also found that the carbon footprint results were largely driven by direct carbon emissions, while the effect of political connections was stronger for state owned enterprise (SOE). The baseline findings were found to be robust to endogeneity test. Further tests revealed that higher carbon footprint emitted from PCON firms was more pronounced in advanced economies, and in carbon-intensive industries. However, the study found that stronger institutional governance could partially alleviate the significant and positive association between PCON firms and carbon footprint.
KW - Carbon emissions
KW - Carbon footprint
KW - Carbon intensity
KW - Political connections
KW - State owned enterprises
UR - https://www.scopus.com/pages/publications/85190326108
U2 - 10.1016/j.iref.2024.04.013
DO - 10.1016/j.iref.2024.04.013
M3 - Article
AN - SCOPUS:85190326108
SN - 1059-0560
VL - 93
SP - 69
EP - 85
JO - International Review of Economics and Finance
JF - International Review of Economics and Finance
ER -