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Assessing the Effects of Climate Change Regulations on the Business Community: A System Dynamic Approach

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  • Thomas A. Tsalis
  • Ioannis E. Nikolaou

Abstract

Based on the business environmental literature and system dynamics, this paper develops a simulation model for managing the business risks derived from climate change. In particular, the purpose of this paper is to transform the valuable findings from the literature regarding climate change and corporate implications into an effective business management model with a broad applicability, regardless of the size of the business or the sector in which it operates. A methodology consistent with the basic principles of the system dynamic modeling process is developed, and a case study is designed to determine the level of completeness of the simulation model and its ability to address different aspects of business performance. To do so, three different scenarios have been simulated to analyze the reactive, proactive and inactive stance of managers against climate change risks. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

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  • Thomas A. Tsalis & Ioannis E. Nikolaou, 2017. "Assessing the Effects of Climate Change Regulations on the Business Community: A System Dynamic Approach," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 826-843, September.
    • Handle: RePEc:bla:bstrat:v:26:y:2017:i:6:p:826-843
    DOI: 10.1002/bse.1953
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    Cited by:

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    2. George Halkos & Antonis Skouloudis & Chrisovaladis Malesios & Konstantinos Evangelinos, 2018. "Bouncing Back from Extreme Weather Events: Some Preliminary Findings on Resilience Barriers Facing Small and Medium‐Sized Enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 27(4), pages 547-559, May.
    3. Wanke, Peter Fernandes & Chiappetta Jabbour, Charbel José & Moreira Antunes, Jorge Junio & Lopes de Sousa Jabbour, Ana Beatriz & Roubaud, David & Sobreiro, Vinicius Amorim & Santibanez Gonzalez‬, Erne, 2021. "An original information entropy-based quantitative evaluation model for low-carbon operations in an emerging market," International Journal of Production Economics, Elsevier, vol. 234(C).
    4. Solji Nam & Jungwoo Shin & Jaena Ryu & Hanee Ryu, 2021. "Climate impacts on geographical changes in the energy industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 478-488, January.
    5. Chamari Pamoshika Jayarathna & Duzgun Agdas & Les Dawes, 2024. "Viability of sustainable logistics practices enabling circular economy: A system dynamics approach," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3422-3439, May.
    6. Daniel Tisch & Jeremy Galbreath, 2018. "Building organizational resilience through sensemaking: The case of climate change and extreme weather events," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1197-1208, December.
    7. Andrea Chiarini, 2017. "Setting Strategies outside a Typical Environmental Perspective Using ISO 14001 Certification," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 844-854, September.

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