Assessing Trade-Offs in Investments for the Environment – The Case of a VOC-Reduction Investment at Auto Group

Corporate Social Responsibility and Environmental Management, 19(2): 114–128

Posted: 10 Aug 2013

See all articles by Tobias Hahn

Tobias Hahn

KEDGE Business School

Frank Figge

KEDGE Business School

Andrea Liesen

Institute for Ecological Economy Research (IOEW)

Date Written: 2012

Abstract

This case focuses on the assessment of trade-offs between different environmental features of investments. Using the example of a VOC-reduction investment at a car maker, the case applies an innovative approach for the assessment of environmental investment projects. Since it is unusual that all environmental performance characteristics of investment projects will be in harmony, decision-makers need to ascertain the overall environmental effect of different investments. This case transfers the logic of financial investment appraisal to the environmental assessment of investment projects. The analysis shows, in monetary terms, by how much each investment option out-performs or under-performs environmental efficiency targets. With monetary figures, decision-makers can balance conflicting environmental performances and identify the investment option that supports a company's environmental strategy best. The case provides a step-by-step explanation of the assessment approach and offers students and decision makers a novel perspective on the assessment of trade-offs in environmental investments.

Keywords: environmental investment, trade-offs, sustainable value, automobile industry, VOC emissions, investment appraisal

Suggested Citation

Hahn, Tobias and Figge, Frank and Liesen, Andrea, Assessing Trade-Offs in Investments for the Environment – The Case of a VOC-Reduction Investment at Auto Group (2012). Corporate Social Responsibility and Environmental Management, 19(2): 114–128. Available at SSRN: https://ssrn.com/abstract=2307953

Tobias Hahn (Contact Author)

KEDGE Business School ( email )

Domaine de Luminy - BP 921
BP 921
Marseille, PACA 13288
France
+33491827313 (Phone)

HOME PAGE: http://www.kedgebs.com

Frank Figge

KEDGE Business School ( email )

Domaine de Luminy
BP 921 13288 Marseille Cedex 9, 13288
France

Andrea Liesen

Institute for Ecological Economy Research (IOEW) ( email )

Potsdamer Str. 105
Berlin, 10785
Germany

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