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Reputational impact of businesses’ compliance strategies under the EU Emissions Trading Scheme

In: Economics and Management of Climate Change

Author

Listed:
  • Corinne Faure

    (European Business School Schloβ Reichartshausen
    Johann Wolfgang Goethe-University)

  • Arne Hildebrandt

    (KPMG Deutsche Treuhandgesellschaft)

  • Karoline Rogge

    (Fraunhofer Institute Systems and Innovation Research
    ETH Zurich Group for Sustainability and Technology Department for Management Technology and Economics)

  • Joachim Schleich

    (Fraunhofer Institute Systems and Innovation Research
    Virginia Polytechnic Institute and State University Blacksburg)

Abstract

Since January 2005, more than 11,000 installations in the EU are participating in the CO2 Emission Trading Scheme. Within this system companies may choose from a variety of compliance strategy options. To assess the relevance of reputational effects on companies’ climate strategies, a survey of the 300 largest emitting companies in Germany was conducted. Results indicate that reputational effects matter, but are dominated by other factors such as compliance costs, technical and economic risks, or practicabilty. Long-run reputational risks are most relevant for the Clean Development Mechanism and Joint Implementation.

Suggested Citation

  • Corinne Faure & Arne Hildebrandt & Karoline Rogge & Joachim Schleich, 2008. "Reputational impact of businesses’ compliance strategies under the EU Emissions Trading Scheme," Springer Books, in: Bernd Hansjürgens & Ralf Antes (ed.), Economics and Management of Climate Change, pages 257-270, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-77353-7_19
    DOI: 10.1007/978-0-387-77353-7_19
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    Cited by:

    1. Numan-Parsons, Elisabeth & Stroombergen, Adolf Stroombergen & Fletcher, Ngaio, 2011. "Business Responses to the Introduction of the New Zealand Emissions Trading Scheme: Part I," Occasional Papers 11/4, Ministry of Economic Development, New Zealand.
    2. Slechten, Aurélie, 2013. "Intertemporal links in cap-and-trade schemes," Journal of Environmental Economics and Management, Elsevier, vol. 66(2), pages 319-336.

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