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The Pollution Effects of Mergers and Acquisitions: Asymmetry, Disaggregation, and Multilateralism

Author

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  • Julia Swart

    (Erasmus University Rotterdam)

  • Charles van Marrewijk

    (Utrecht University and Tjalling C. Koopmans Institute)

Abstract

This paper studies the impact of cross-border Mergers and Acquisitions (M&As) on Carbon Dioxide emissions. Carbon Dioxide is the main anthropogenic greenhouse gas. A global problem that requires a multilateral solution. To take this into account we introduce an institutional variable, which captures the degree of international commitment to decrease and control the degradation of the environment. We test three hypotheses and find: (i) Asymmetry: the development level of the target country determines the direction of the effect of M&As on CO2 emissions; (ii) Sector-specific impact: pollution intensive sectors have an impact on CO2 emissions, whereas other sectors do not; (iii) Multilateralism: multilateral agreements are important to reduce CO2 emissions.

Suggested Citation

  • Julia Swart & Charles van Marrewijk, 2011. "The Pollution Effects of Mergers and Acquisitions: Asymmetry, Disaggregation, and Multilateralism," Tinbergen Institute Discussion Papers 11-073/2, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20110073
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    Cited by:

    1. Bose, Sudipta & Minnick, Kristina & Shams, Syed, 2021. "Does carbon risk matter for corporate acquisition decisions?," Journal of Corporate Finance, Elsevier, vol. 70(C).
    2. Farzan Yahya & Muhammad Rafiq, 2020. "Brownfield, greenfield, and renewable energy consumption: Moderating role of effective governance," Energy & Environment, , vol. 31(3), pages 405-423, May.
    3. Mahelet G. Fikru & Luis Gautier, 2017. "Environmental taxation and mergers in oligopoly markets with product differentiation," Journal of Economics, Springer, vol. 122(1), pages 45-65, September.
    4. Choi, Gunae, 2022. "Determinants of target location selection for acquirers in the manufacturing sector: Pollution intensity, policy enforcement, and civic environmentalism," Journal of Business Research, Elsevier, vol. 146(C), pages 308-324.
    5. Roxana Manuela Dicu & Ioan-Bogdan Robu & George-Marian Aevoae & Daniela-Neonila Mardiros, 2020. "Rethinking the Role of M&As in Promoting Sustainable Development: Empirical Evidence Regarding the Relation Between the Audit Opinion and the Sustainable Performance of the Romanian Target Companies," Sustainability, MDPI, vol. 12(20), pages 1-17, October.

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    More about this item

    Keywords

    Carbon Dioxide Emission; Mergers and Acquisitions; Foreign Direct Investment; Institution; Environment;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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