Does corporate R&D investment affect firm environmental performance? Evidence from G-6 countries

Md Samsul Alam, Muhammad Atif, Chu Chien-Chi*, Uğur Soytaş

*Corresponding author for this work

Research output: Contribution to journalArticle

21 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)401-411
Number of pages11
JournalEnergy Economics
Volume78
DOIs
Publication statusPublished - 1 Feb 2019
Externally publishedYes

Keywords

  • Carbon emissions
  • Corporate R&D investment
  • Energy intensity
  • Sustainability

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