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Firm Commitments

Author

Listed:
  • Patrick Bolton

    (Imperial College London, South Kensington, London SW7 2AZ, United Kingdom; and Center for Economic and Policy Research, Washington, District of Columbia 20009; and Columbia University, New York, New York 10027)

  • Marcin Kacperczyk

    (Imperial College London, South Kensington, London SW7 2AZ, United Kingdom; and Center for Economic and Policy Research, Washington, District of Columbia 20009)

Abstract

A growing fraction of companies globally have made commitments to reduce their carbon emissions by a certain date. Whereas the companies that make commitments subsequently reduce their emissions, the effect on overall emissions of companies (including those that do not commit) has been small. The companies that commit and those that make the most ambitious commitments tend to have lower emissions; firm commitments are less prevalent in countries where governments have made national commitments. Overall, the commitment movements have been successful in drawing the willing but have found greater resistance from the companies that most need to reduce their emissions.

Suggested Citation

  • Patrick Bolton & Marcin Kacperczyk, 2026. "Firm Commitments," Management Science, INFORMS, vol. 72(3), pages 2134-2167, March.
    • Handle: RePEc:inm:ormnsc:v:72:y:2026:i:3:p:2134-2167
    DOI: 10.1287/mnsc.2024.07298
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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