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The dynamics of belief in climate change and its risks in business organisations

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  • Bleda, Mercedes
  • Shackley, Simon

Abstract

This paper presents a simulation model of the formation of the belief in climate change of a business organisation using a systems dynamics approach. Understanding how businesses form their belief on the issue of climate change is of paramount importance given the key role of beliefs and cognitive characteristics in the triggering and shaping of organisational adaptation processes. The main assumption of the model is that the dynamics of belief is driven by the perceived actual and potential changes in competitiveness as a consequence of climate impacts rather than by the growth of an ecological 'business conscience'. The model has been built using the STELLA software program, and it is based upon theoretical hypotheses drawn from behavioural studies of organisations and evolutionary theories of economic change.

Suggested Citation

  • Bleda, Mercedes & Shackley, Simon, 2008. "The dynamics of belief in climate change and its risks in business organisations," Ecological Economics, Elsevier, vol. 66(2-3), pages 517-532, June.
    • Handle: RePEc:eee:ecolec:v:66:y:2008:i:2-3:p:517-532
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    Cited by:

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    3. Dong Chen, 2021. "Extreme weather and ratings on corporate climate mitigation policies," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 30(4), pages 570-587, October.
    4. Diendéré, Achille & Nguyen, Geneviève & Del Corso, Jean-Pierre & Kephaliacos, Charilaos, 2018. "Modeling the Relationship Between Pesticide Use and Farmers' Beliefs about Water Pollution in Burkina Faso," Ecological Economics, Elsevier, vol. 151(C), pages 114-121.
    5. Matthias Damert & Rupert J. Baumgartner, 2018. "External Pressures or Internal Governance – What Determines the Extent of Corporate Responses to Climate Change?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 473-488, July.
    6. Kalantzis,Fotios & Schweiger,Helena & Dominguez,Sofia, 2022. "Green Investment by Firms : Finance or Climate Driven ?," Policy Research Working Paper Series 10064, The World Bank.
    7. Thomas A. Tsalis & Ioannis E. Nikolaou, 2017. "Assessing the Effects of Climate Change Regulations on the Business Community: A System Dynamic Approach," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 826-843, September.
    8. Bank, Matthias & Wiesner, Robert, 2011. "Determinants of weather derivatives usage in the Austrian winter tourism industry," Tourism Management, Elsevier, vol. 32(1), pages 62-68.
    9. Georg Weinhofer & Timo Busch, 2013. "Corporate Strategies for Managing Climate Risks," Business Strategy and the Environment, Wiley Blackwell, vol. 22(2), pages 121-144, February.
    10. Mercedes Bleda & Elisabeth Krull & Jonatan Pinkse & Eleni Christodoulou, 2023. "Organizational heuristics and firms' sensemaking for climate change adaptation," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6124-6137, December.
    11. Jennifer Steeves & Swenja Surminski, 2014. "Taking an organisational approach to private sector adaptation � the case of Tata Teleservices in India," GRI Working Papers 171, Grantham Research Institute on Climate Change and the Environment.
    12. Kenneth Dooley, 2018. "Routine Rigidity and Environmental Sustainability: Why Rational Innovations are Regularly Ignored," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 70-81, January.
    13. Yousefpour, Rasoul & Didion, Markus & Jacobsen, Jette B. & Meilby, Henrik & Hengeveld, Geerten M. & Schelhaas, Mart-Jan & Thorsen, Bo J., 2015. "Modelling of adaptation to climate change and decision-makers behaviours for the Veluwe forest area in the Netherlands," Forest Policy and Economics, Elsevier, vol. 54(C), pages 1-10.
    14. Silvia Amato, 2016. "East Asia Industrial Conversion Activity: Outlook at Post-Disaster Crisis Assessments with Technology Integration and Competitive Assimilation Modes," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-44, June.

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