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Carbon Emissions and Corporate Financial Performance: A Systematic Literature Review and Options for Methodological Enhancements

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Book cover Corporate Carbon and Climate Accounting

Abstract

This paper systematically reviews the existing empirical literature on the linkage between carbon emissions and corporate financial performance (CFP). The results show that superior corporate environmental performance (CEP) pays off when market measures, such as Tobin’s q, are linked to a firm’s level of carbon emissions. However, modeling the relationship between carbon emissions and CFP is a complex task. This complexity is illustrated by methodological differences between the studies included in the review which may systematically influence the results. Therefore, a set of options for methodological enhancements is suggested which may guide further inquiries into the relationship between carbon emissions and CFP.

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Acknowledgements

Comments from two anonymous reviewers improved the results of the literature review substantially. Special thanks go to editors Stefan Schaltegger and Dimitar Zvezdov for their valuable support and to Timo Busch, Alice Sakhel, and Marcel Richert for insightful discussions. All errors are the responsibility of the author.

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Authors and Affiliations

  1. School of Business, Economics and Social Science, University of Hamburg, Hamburg, Germany

    Stefan Lewandowski

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  1. Stefan Lewandowski
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Correspondence to Stefan Lewandowski .

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Editors and Affiliations

  1. Centre for Sustainability Management, Leuphana University Lüneburg, Lüneburg, Germany

    Stefan Schaltegger

  2. Friedrich-Alexander University, Nürnberg, Bayern, Germany

    Dimitar Zvezdov

  3. University of Basque Country, San Sebastian, Spain

    Igor Alvarez Etxeberria

  4. Corvinus University of Budapest, Budapest, Hungary

    Maria Csutora

  5. TU Dresden, Dresden, Germany

    Edeltraud Günther

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Lewandowski, S. (2015). Carbon Emissions and Corporate Financial Performance: A Systematic Literature Review and Options for Methodological Enhancements. In: Schaltegger, S., Zvezdov, D., Alvarez Etxeberria, I., Csutora, M., Günther, E. (eds) Corporate Carbon and Climate Accounting. Springer, Cham. https://doi.org/10.1007/978-3-319-27718-9_9

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