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Does corporate R&D investment affect firm environmental performance? Evidence from G-6 countries

Alam, Md Samsul and Atif, Muhammad and Chien-Chi, Chu and Soytaş, Uğur (2019) 'Does corporate R&D investment affect firm environmental performance? Evidence from G-6 countries.' Energy Economics, 78. 401 - 411. ISSN 0140-9883

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Abstract

The rate of climate change due to global warming has become a substantial concern and appeared as a real-world phenomenon in the recent years. However, it is imperative to know how business enterprises alter such concern. Recent studies involve a variety of firm-level factors to create a robust link between business enterprises' environmental and financial performance. However, little is known regarding the role of research and development (R&D) investment on firms' environmental performance. Using a firm-level data for the period 2004–2016 from G-6 countries, this study empirically investigates how R&D investment affects the firm environmental performance measured by energy and carbon emissions intensities. We find that R&D investment improves the firm's environmental performance consistent with the theoretical argument of natural resource-based view (NRBV). Our findings are robust to alternative econometric specifications, alternative variable specifications, and sub-samples. Our findings offer novel insights to the policymakers, business managers, and regulators.

Item Type: Article
Uncontrolled Keywords: Sustainability, Carbon emissions, Energy intensity, Corporate R&D investment
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Accounting Centre
Depositing User: Elements
Date Deposited: 19 Jul 2019 15:13
Last Modified: 19 Jul 2019 15:13
URI: http://repository.essex.ac.uk/id/eprint/24997

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