Does Corporate R&D Investment Affect Firm Environmental Performance? Evidence from G-6 Countries
The rate of climate change due to global warming has become a substantial concern and appeared as a real-world phenomenon in the recent years. However, it is imperative to know how business enterprises alter such concern. Recent studies involve a variety of firm-level factors to create a robust link between business enterprises’ environmental and financial performance. However, little is known regarding the role of research and development (R&D) investment on firms’ environmental performance. Using a firm-level data for the period 2004 – 2016 from G-6 countries, this study empirically investigates how R&D investment affects the firm environmental performance measured by energy and carbon emissions intensities. We find that R&D investment improves the firm’s environmental performance consistent with the theoretical argument of natural resource-based view (NRBV). Our findings are robust to alternative econometric specifications, alternative variable specifications, and sub-samples. Our findings offer novel insights to the policymakers, business managers, and regulators.
The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.
Citation : Alam, M.S., Atif, M., Chien-Chi, C. and Soytaş, U. (2018) Does corporate R&D investment affect firm environmental performance? Evidence from G-6 countries. Energy Economics. 78, pp. 401-411
Peer Reviewed : Yes