Title: Determinants of corporate carbon reduction targets

Authors: John Byrd; Elizabeth S. Cooperman; Ken Bettenhausen

Addresses: Business School, University of Colorado Denver, Campus Box 165, P.O. Box 173364, Denver, Colorado 80217-3364, USA ' Business School, University of Colorado Denver, Campus Box 165, P.O. Box 173364, Denver, Colorado 80217-3364, USA ' Business School, University of Colorado Denver, Campus Box 165, P.O. Box 173364, Denver, Colorado 80217-3364, USA

Abstract: This paper examines attributes affecting a corporation's choice of an intensity-only (carbon emissions relative to sales, production, etc.) versus an absolute carbon dioxide (CO₂) emissions goal. We investigate alternative hypotheses for this choice including: 1) a high growth hypothesis whereby high growth companies select an intensity goal, to continue to grow without an absolute emission reduction; 2) a high emissions industrial sector hypothesis where firms in high CO₂ emission industries prefer an intensity goal that is easier to reach; 3) a green window dressing hypothesis whereby firms tied to consumer acceptance select an easier to meet intensity target. Utilising maximum likelihood logit regressions, we find a higher likelihood for firms with higher growth, in high emission industries, and those in the consumer/retail sector to be more likely to have an intensity-only CO₂ emissions goal. Corporations with stronger brands, however, are associated with more transparent, absolute emission targets.

Keywords: environmental accounting; global warming; corporate social responsibility; CSR; carbon reduction targets; climate change; green washing; absolute emissions reduction; corporate carbon reduction; carbon dioxide; CO2; carbon emissions.

DOI: 10.1504/IER.2014.065031

Interdisciplinary Environmental Review, 2014 Vol.15 No.4, pp.271 - 289

Received: 06 May 2014
Accepted: 14 Jul 2014
Published online: 30 Sep 2014 *

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