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Carbon management accounting and financial performance: Evidence from the European Union emission trading system
Author(s) -
Naranjo Tuesta Yenny,
Crespo Soler Cristina,
Ripoll Feliu Vicente
Publication year - 2021
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2683
Subject(s) - accounting , emissions trading , management accounting , business , european union , accounting information system , stakeholder , sample (material) , control (management) , greenhouse gas , economics , industrial organization , economic policy , ecology , chemistry , management , chromatography , biology
Companies are responding to the effects of climate change by reducing CO 2 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.