Corporate Environmental Strategy, Lobby Group Participation and Political Reaction to New Zealand Emissions Trading Bill
Accounting, Accountability & Performance Journal 19 (1):5-32, 2014
38 Pages Posted: 11 Jan 2014 Last revised: 28 Apr 2017
Date Written: January 9, 2014
Abstract
This paper aims to investigate the environmental strategy on the choice of a firm’s political reaction in response to a proposed Emissions Trading Scheme (ETS) in New Zealand. Using sample of 33 firms in four industries that are affected by the introduction of the ETS, this study found a contingency relationship between environmental strategy and political reaction. Accordingly, firms adopting a more reactive environmental strategy tend to oppose and dismiss the introduction of an ETS. Additionally, firms that actively participate in different lobby groups are also more likely to dismiss the ETS Bill. A firm’s political reaction is also found to correlate with firm size and industry.
Keywords: emissions trading scheme, regulation, environmental strategy, political reaction, lobby group participation
JEL Classification: C21, M14
Suggested Citation: Suggested Citation