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The Role of Female Leadership in Firms’ Environmental Performance

Author

Listed:
  • Rafael Duarte Lisboa Paschoaleto

    (University of Göttingen)

  • Inmaculada Martínez-Zarzoso

    (Universitat Jaume I, University of Göttingen)

Abstract

This paper investigates the relationship between female leadership and firms’ environmental performance using data on 15,612 firms across 32 countries in Europe, Central Asia, and MENA from the World Bank Enterprise Surveys. Environmental performance is measured through the Firm Environmental Performance Index (FEPI). The instrumental variable approach results show that female leadership significantly improves environmental performance and green practices such as CO₂ monitoring, environmental certifications, and energy management. A one-standard-deviation increase in female leadership raises FEPI by 11 percent, particularly in smaller and low-technology firms. Therefore, policies promoting women leadership could help to mitigate the consequences of climate change.

Suggested Citation

  • Rafael Duarte Lisboa Paschoaleto & Inmaculada Martínez-Zarzoso, 2026. "The Role of Female Leadership in Firms’ Environmental Performance," Working Papers 2026.02, International Network for Economic Research - INFER.
    • Handle: RePEc:inf:wpaper:2026.02
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    More about this item

    Keywords

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    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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