IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i12p4420-d185647.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Soo-Hyun Lee & Su-Yol Lee, 2018. "An Analysis of the Effects of Climate Change Policy, Stakeholder Pressure, and Corporate Carbon Management on Carbon Efficiency on the Korean Petrochemical Industry," Sustainability, MDPI, vol. 10(12), pages 1-16, November.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4420-:d:185647
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/12/4420/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/12/4420/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mahlberg, Bernhard & Luptacik, Mikulas & Sahoo, Biresh K., 2011. "Examining the drivers of total factor productivity change with an illustrative example of 14 EU countries," Ecological Economics, Elsevier, vol. 72(C), pages 60-69.
    2. Su‐Yol Lee & Robert D. Klassen, 2016. "Firms’ Response to Climate Change: The Interplay of Business Uncertainty and Organizational Capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 577-592, December.
    3. Boussofiane, A. & Dyson, R. G. & Thanassoulis, E., 1991. "Applied data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 52(1), pages 1-15, May.
    4. Oggioni, G. & Riccardi, R. & Toninelli, R., 2011. "Eco-efficiency of the world cement industry: A data envelopment analysis," Energy Policy, Elsevier, vol. 39(5), pages 2842-2854, May.
    5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    6. G. R. Jahanshahloo & A. Shirzadi & S. M. Mirdehghan, 2008. "Finding The Reference Set Of A Decision Making Unit," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 25(04), pages 563-573.
    7. Su‐Yol Lee, 2012. "Corporate Carbon Strategies in Responding to Climate Change," Business Strategy and the Environment, Wiley Blackwell, vol. 21(1), pages 33-48, January.
    8. Magali Delmas & Michael W. Toffel, 2004. "Stakeholders and environmental management practices: an institutional framework," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 209-222, July.
    9. Magali A. Delmas & Michael W. Toffel, 2008. "Organizational responses to environmental demands: opening the black box," Strategic Management Journal, Wiley Blackwell, vol. 29(10), pages 1027-1055, October.
    10. Timo Kuosmanen & Mika Kortelainen, 2005. "Measuring Eco‐efficiency of Production with Data Envelopment Analysis," Journal of Industrial Ecology, Yale University, vol. 9(4), pages 59-72, October.
    11. Rens Meijkamp, 1998. "Changing consumer behaviour through eco‐efficient services: an empirical study of car sharing in the Netherlands," Business Strategy and the Environment, Wiley Blackwell, vol. 7(4), pages 234-244, September.
    12. Chin Hee Hahn & Sang-Hyop Lee & Kyoung-Soo Yoon (ed.), 2012. "Responding to Climate Change," Books, Edward Elgar Publishing, number 14709.
    13. Korhonen, Pekka J. & Luptacik, Mikulas, 2004. "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(2), pages 437-446, April.
    14. Zhang, Bing & Bi, Jun & Fan, Ziying & Yuan, Zengwei & Ge, Junjie, 2008. "Eco-efficiency analysis of industrial system in China: A data envelopment analysis approach," Ecological Economics, Elsevier, vol. 68(1-2), pages 306-316, December.
    15. Harish Kumar Jeswani & Walter Wehrmeyer & Yacob Mulugetta, 2008. "How warm is the corporate response to climate change? Evidence from Pakistan and the UK," Business Strategy and the Environment, Wiley Blackwell, vol. 17(1), pages 46-60, January.
    16. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    17. Su-Yol Lee & Young-Hoon Kim, 2015. "Antecedents and Consequences of Firms’ Climate Change Management Practices: Stakeholder and Synergistic Approach," Sustainability, MDPI, vol. 7(11), pages 1-16, October.
    18. Figge, Frank & Hahn, Tobias, 2004. "Sustainable Value Added--measuring corporate contributions to sustainability beyond eco-efficiency," Ecological Economics, Elsevier, vol. 48(2), pages 173-187, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Federico Galán-Valdivieso & Laura Saraite-Sariene & Juana Alonso-Cañadas & María del Carmen Caba-Pérez, 2019. "Do Corporate Carbon Policies Enhance Legitimacy? A Social Media Perspective," Sustainability, MDPI, vol. 11(4), pages 1-23, February.
    2. Chieh-Wen Chang & Kun-Shan Wu & Bao-Guang Chang, 2019. "Productivity Change and Decomposition in Taiwan Bakery Enterprise―Evidence from 85 °C Company," Sustainability, MDPI, vol. 11(24), pages 1-13, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trinks, Arjan & Mulder, Machiel & Scholtens, Bert, 2020. "An Efficiency Perspective on Carbon Emissions and Financial Performance," Ecological Economics, Elsevier, vol. 175(C).
    2. Andrés J. Picazo-Tadeo & Juana Castillo & Mercedes Beltrán-Esteve, 2013. "A dynamic approach to measuring ecological-economic performance with directional distance functions: greenhouse gas emissions in the European Union," Working Papers 1304, Department of Applied Economics II, Universidad de Valencia.
    3. Zheng, Saina & Lam, Chor-Man & Hsu, Shu-Chien & Ren, Jingzheng, 2018. "Evaluating efficiency of energy conservation measures in energy service companies in China," Energy Policy, Elsevier, vol. 122(C), pages 580-591.
    4. Picazo-Tadeo, Andrés J. & Castillo-Giménez, Juana & Beltrán-Esteve, Mercedes, 2014. "An intertemporal approach to measuring environmental performance with directional distance functions: Greenhouse gas emissions in the European Union," Ecological Economics, Elsevier, vol. 100(C), pages 173-182.
    5. Tianqun Xu & Ping Gao & Qian Yu & Debin Fang, 2017. "An Improved Eco-Efficiency Analysis Framework Based on Slacks-Based Measure Method," Sustainability, MDPI, vol. 9(6), pages 1-21, June.
    6. Beltrán-Esteve, Mercedes & Picazo-Tadeo, Andrés J., 2015. "Assessing environmental performance trends in the transport industry: Eco-innovation or catching-up?," Energy Economics, Elsevier, vol. 51(C), pages 570-580.
    7. Yongyoon Suh & Hyeonju Seol & Hyerim Bae & Yongtae Park, 2014. "Eco-efficiency Based on Social Performance and its Relationship with Financial Performance," Journal of Industrial Ecology, Yale University, vol. 18(6), pages 909-919, December.
    8. Beltrán-Esteve, Mercedes & Picazo-Tadeo, Andrés J., 2017. "Assessing environmental performance in the European Union: Eco-innovation versus catching-up," Energy Policy, Elsevier, vol. 104(C), pages 240-252.
    9. David Littlewood & Rachel Decelis & Carola Hillenbrand & Diane Holt, 2018. "Examining the drivers and outcomes of corporate commitment to climate change action in European high emitting industry," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1437-1449, December.
    10. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
    11. Jae Kyu Myung & Hyoung-Tae An & Su-Yol Lee, 2019. "Corporate Competitiveness Index of Climate Change: A Balanced Scorecard Approach," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    12. Pérez, Karen & González-Araya, Marcela C. & Iriarte, Alfredo, 2017. "Energy and GHG emission efficiency in the Chilean manufacturing industry: Sectoral and regional analysis by DEA and Malmquist indexes," Energy Economics, Elsevier, vol. 66(C), pages 290-302.
    13. Jesús Peiró-Palomino & Andrés J. Picazo-Tadeo, 2019. "Is Social Capital Green? Cultural Features and Environmental Performance in the European Union," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(3), pages 795-822, March.
    14. Simon Cadez & Albert Czerny & Peter Letmathe, 2019. "Stakeholder pressures and corporate climate change mitigation strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 1-14, January.
    15. Eduard Nezinsky, 2014. "Eco-efficiency and convergence," Department of Economic Policy Working Paper Series 008, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    16. Eder, Andreas & Salhofer, Klaus & Scheichel, Eva, 2021. "Land tenure, soil conservation, and farm performance: An eco-efficiency analysis of Austrian crop farms," Ecological Economics, Elsevier, vol. 180(C).
    17. M. Lábaj & M. Luptáčik & E. Nežinský, 2014. "Data envelopment analysis for measuring economic growth in terms of welfare beyond GDP," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 407-424, August.
    18. George Halkos & George Papageorgiou, 2016. "Spatial environmental efficiency indicators in regional waste generation: a nonparametric approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 59(1), pages 62-78, January.
    19. Xiangxiang Sun & Lawrence Loh, 2019. "Sustainability Governance in China: An Analysis of Regional Ecological Efficiency," Sustainability, MDPI, vol. 11(7), pages 1-16, April.
    20. Lucio Cecchini & Francesco Romagnoli & Massimo Chiorri & Biancamaria Torquati, 2023. "Eco-Efficiency and Its Determinants: The Case of the Italian Beef Cattle Sector," Agriculture, MDPI, vol. 13(5), pages 1-18, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4420-:d:185647. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.