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Unravelling the Effects of the Environmental Technology Portfolio on Corporate Sustainable Development

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  • Derek D. Wang

Abstract

A firm's environmental technology portfolio comprises of a heterogeneous class of technologies, each with distinct economic and environmental implications. Having a portfolio with a proper mix of different technologies is critical in achieving economic and environmental goals. Using data on major United States’ corporates, I identify five types of environmental technologies: pollution control, eco‐efficiency, green design, low‐carbon energy, and management systems. I find that the composition of the environmental technology portfolio affects a firm's performance. Most notably, raising the share of low‐carbon energy and pollution control technologies in the portfolio can negatively affect economic performance. But both low‐carbon energy and pollution control are effective in improving carbon productivity. The other technologies do not display significant impacts on firm performance. The results highlight that firms should take the differential effects of environmental technologies into consideration when designing an adequate technology portfolio to attain desired economic and environmental objectives. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment

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  • Derek D. Wang, 2018. "Unravelling the Effects of the Environmental Technology Portfolio on Corporate Sustainable Development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 457-472, July.
    • Handle: RePEc:wly:corsem:v:25:y:2018:i:4:p:457-472
    DOI: 10.1002/csr.1472
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    2. Wang, Derek D. & Sueyoshi, Toshiyuki, 2018. "Climate change mitigation targets set by global firms: Overview and implications for renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 386-398.
    3. Sueyoshi, Toshiyuki & Mo, Fei & Wang, Derek D., 2022. "Sustainable development of countries all over the world and the impact of renewable energy," Renewable Energy, Elsevier, vol. 184(C), pages 320-331.

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