Shale Gas Booms and Environmental CSR

47 Pages Posted: 16 Sep 2023

See all articles by Changhwan Choi

Changhwan Choi

UIBE Business School, University of International Business and Economics

Chune Young Chung

Chung-Ang University - College of Business & Economics

Abstract

Using staggered county-level shale gas developments, we examine whether uncertain environmental risks affect firms’ environmental CSR. We find that firms headquartered in shale gas boom counties significantly increase environmental CSR compared with firms in nonboom counties. Furthermore, we show that the impact of shale gas booms on environmental CSR is more pronounced when firms’ litigation risk is higher, when firms have more stakeholder interactions, and when firms’ orientation is more long-term. The increased environmental CSR driven by the shale boom is associated with subsequent firm value. We provide evidence that firms trade off the benefits and potential legal liability of internalizing physical environmental risk in environmental CSR decisions.

Keywords: Environmental CSR, Shale gas booms, Stakeholder, corporate social responsibility

Suggested Citation

Choi, Changhwan and Chung, Chune Young, Shale Gas Booms and Environmental CSR. Available at SSRN: https://ssrn.com/abstract=4573713 or http://dx.doi.org/10.2139/ssrn.4573713

Changhwan Choi

UIBE Business School, University of International Business and Economics ( email )

10 Huixindongjie, Chaoyang District
Beijing, 100029
China

Chune Young Chung (Contact Author)

Chung-Ang University - College of Business & Economics ( email )

84 Heuk-suk Ro
Seoul
Korea, Republic of (South Korea)

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