Are There Limits to Emissions-Operational Performance Linkage?

30 Pages Posted: 16 Dec 2016 Last revised: 18 Aug 2020

See all articles by Rohit Nishant

Rohit Nishant

Université Laval

Thompson Teo

National University of Singapore (NUS) - NUS Business School

Mark Goh

National University of Singapore (NUS) - NUS Business School

Date Written: October 1, 2016

Abstract

Since past research holds divergent views on the impact of environmental performance on operational performance, we use the micro-measures of environmental performance to understand the relationship between environmental performance and operational performance. We specifically focus on the constituent emissions from the firm’s processes, constituent emissions from purchased utility and the purchase of green power intended for emissions reduction. At the micro level, we find that reducing emissions from stationary combustion sources and process/fugitive emissions reduce the operational cost ratios (i.e., it improves operational performance). Further, purchasing green power improves operational performance, but reducing the emissions from purchased electricity does not. Implications for research and practice are discussed.

Keywords: Environmental Performance, Operational Performance, Emissions, Sustainability, Green

Suggested Citation

Nishant, Rohit and Teo, Thompson and Goh, Mark, Are There Limits to Emissions-Operational Performance Linkage? (October 1, 2016). Available at SSRN: https://ssrn.com/abstract=2851778 or http://dx.doi.org/10.2139/ssrn.2851778

Rohit Nishant (Contact Author)

Université Laval ( email )

2325 Rue de l'Université
Québec, QC G1V 0A6
Quebec, G1V 0A6
Canada

Thompson Teo

National University of Singapore (NUS) - NUS Business School ( email )

1 Business Link
Singapore, 117592
Singapore

Mark Goh

National University of Singapore (NUS) - NUS Business School ( email )

1 Business Link
Singapore, 117592
Singapore

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