Carbon management accounting and financial performance: Evidence from the European Union emission trading system

Abstract

Companies are responding to the effects of climate change by reducing CO2 emissions as a way of managing stakeholder interests and complying with legal and regulatory requirements. In Europe, the emissions trading system is consolidated as a limiting market and control scheme to support business climate change management through a collaborative relationship between government and industry. This work focuses on the economic accounting field, analysing carbon management accounting and its impact on financial performance in scenarios attached to that trading system. The methodological approach used is quantitative, empirically testing the hypotheses through a multiple regression analysis with a sample of 350 European companies. The results attest to the importance of carbon management accounting (CMA) control and its effects on financial performance. Compared with European emission trading, the results failed to display significant differences in the relationship studied between those that make up this type of market and those that do not.

Green intellectual capital and environmental management accounting: Natural resource orchestration in favor of environmental performance

“…Hence, this enables them to embed financial controls and environmental management strategies in environmental management control systems. EMA assists to measure, control, and disclose the environmental performance of organizations (Ferreira et al, 2010; Naranjo Tuesta et al, 2021). It is widely acknowledged that environmentally friendly practices have a positive effect on firm performance (Henri & Journeault, 2010; Journeault, 2016).…”

The Energy Saving and Emission Reduction Effect of Carbon Trading Pilot Policy in China: Evidence from a Quasi-Natural Experiment

“…Collecting the micro companies as samples, Dutta [ 10 ] and Anke et al [ 11 ] proved that EU (European Union) carbon trading plays a very trivial role in low-carbon technology innovation. Carbon trading in the EU may lead to high emission technology innovation [ 12 ]. The third argument holds that there is a nonlinear relationship between environmental regulation and innovation.…”

Impact of the implementation of carbon emission trading on corporate financial performance: Evidence from listed companies in China

“…Based on the studies [44][45][46][47][48][49], the models ( 1)-( 2) have been constructed and the OLS method has been employed for the regression analysis. The specific model is given as follows.…”