Are There Limits to Emissions-Operational Performance Linkage?
30 Pages Posted: 16 Dec 2016 Last revised: 18 Aug 2020
Date Written: October 1, 2016
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
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