IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i5p1794-d761023.html
   My bibliography  Save this article

Impact Analysis of a National and Corporate Carbon Emission Reduction Target on Renewable Electricity Use: A Review

Author

Listed:
  • Chung-Hao Chang

    (International Research Division, Chung-Hua Institution for Economic Research (CIER), Taipei 10672, Taiwan)

  • Shih-Fang Lo

    (International Research Division, Chung-Hua Institution for Economic Research (CIER), Taipei 10672, Taiwan)

Abstract

The Paris Agreement requires countries to propose their National Determined Contributions (NDCs) and encourages companies to engage in climate action. This two-stage study explores the mutual influence of national and corporate carbon reduction targets and their effect on the adoption of renewable energy using Hierarchical Linear Modeling (HLM). The subjects are companies nested in the G20, engaging in the Science-Based Target initiative (SBT i ) or the RE100 initiative. These empirical results show corporate targets are positively correlated to adoption of renewable energy, and development of renewable energy varies by country groups, however; national targets are insignificantly correlated. Our key findings: (1) companies which set SBTs are more willing to use renewable energy to achieve their targets but prefer power purchase agreements (PPAs) and renewable energy certificates (RECs) to investment in renewables. (2) The effect of a national-level target on corporate renewable energy use is non-significant, probably because most multinational corporations are used to compliance and their performances are likely to be better than the national deployment on climate change. We argue that an industrial energy transition to renewables is economically beneficial and needs substantial support in the form of policies or subsidies, instead of just setting targets or attracting publicity.

Suggested Citation

  • Chung-Hao Chang & Shih-Fang Lo, 2022. "Impact Analysis of a National and Corporate Carbon Emission Reduction Target on Renewable Electricity Use: A Review," Energies, MDPI, vol. 15(5), pages 1-18, February.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:5:p:1794-:d:761023
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/5/1794/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/5/1794/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kornelis Blok & Niklas Höhne & Kees van der Leun & Nicholas Harrison, 2012. "Bridging the greenhouse-gas emissions gap," Nature Climate Change, Nature, vol. 2(7), pages 471-474, July.
    2. Derek Wang, 2017. "A Comparative Study of Firm-Level Climate Change Mitigation Targets in the European Union and the United States," Sustainability, MDPI, vol. 9(4), pages 1-19, March.
    3. Zhang, Bin & Lai, Kee-hung & Wang, Bo & Wang, Zhaohua, 2017. "Shareholder value effects of corporate carbon trading: Empirical evidence from market reaction towards Clean Development Mechanism in China," Energy Policy, Elsevier, vol. 110(C), pages 410-421.
    4. Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004. "Incentives for environmental self-regulation and implications for environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 632-654, July.
    5. Mejda Mahmoudi Akrout & Hakim Ben Othman, 2016. "Environmental disclosure and stock market liquidity: evidence from Arab MENA emerging markets," Applied Economics, Taylor & Francis Journals, vol. 48(20), pages 1840-1851, April.
    6. Carfora, A. & Pansini, R.V. & Romano, A.A. & Scandurra, G., 2018. "Renewable energy development and green public policies complementarities: The case of developed and developing countries," Renewable Energy, Elsevier, vol. 115(C), pages 741-749.
    7. Frances E. Bowen, 2000. "Environmental visibility: a trigger of green organizational response?," Business Strategy and the Environment, Wiley Blackwell, vol. 9(2), pages 92-107, March.
    8. Liliana B. Andonova & Michele M. Betsill & Harriet Bulkeley, 2009. "Transnational Climate Governance," Global Environmental Politics, MIT Press, vol. 9(2), pages 52-73, May.
    9. Tongdan Jin & Tianqin Shi & Taeho Park, 2018. "The quest for carbon-neutral industrial operations: renewable power purchase versus distributed generation," International Journal of Production Research, Taylor & Francis Journals, vol. 56(17), pages 5723-5735, September.
    10. Åsa Persson, 2019. "Global adaptation governance: An emerging but contested domain," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 10(6), November.
    11. Hyunju Shin & Alexander E. Ellinger & Helenka Hopkins Nolan & Tyler D. DeCoster & Forrest Lane, 2018. "An Assessment of the Association Between Renewable Energy Utilization and Firm Financial Performance," Journal of Business Ethics, Springer, vol. 151(4), pages 1121-1138, September.
    12. Frank Biermann & Philipp Pattberg & Harro van Asselt & Fariborz Zelli, 2009. "The Fragmentation of Global Governance Architectures: A Framework for Analysis," Global Environmental Politics, MIT Press, vol. 9(4), pages 14-40, November.
    13. Wang, Derek D. & Sueyoshi, Toshiyuki, 2018. "Climate change mitigation targets set by global firms: Overview and implications for renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 386-398.
    14. Chunark, Puttipong & Limmeechokchai, Bundit & Fujimori, Shinichiro & Masui, Toshihiko, 2017. "Renewable energy achievements in CO2 mitigation in Thailand's NDCs," Renewable Energy, Elsevier, vol. 114(PB), pages 1294-1305.
    15. Bogdanov, Dmitrii & Ram, Manish & Aghahosseini, Arman & Gulagi, Ashish & Oyewo, Ayobami Solomon & Child, Michael & Caldera, Upeksha & Sadovskaia, Kristina & Farfan, Javier & De Souza Noel Simas Barbos, 2021. "Low-cost renewable electricity as the key driver of the global energy transition towards sustainability," Energy, Elsevier, vol. 227(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guoyu Wang & Jinsheng Zhou, 2022. "Multiobjective Optimization of Carbon Emission Reduction Responsibility Allocation in the Open-Pit Mine Production Process against the Background of Peak Carbon Dioxide Emissions," Sustainability, MDPI, vol. 14(15), pages 1-21, August.
    2. Clara Privato & Matthew P. Johnson & Timo Busch, 2024. "Raising the bar: What determines the ambition level of corporate climate targets?," Climatic Change, Springer, vol. 177(9), pages 1-24, September.
    3. Mei Zhang & Jia Tang & Jun Gao, 2023. "Examining the Effects of Built Environments and Individual Characteristics on Commuting Time under Spatial Heterogeneity: An Empirical Study in China Using HLM," Land, MDPI, vol. 12(8), pages 1-20, August.
    4. Jin-Li Hu, 2022. "Green Energy Economies Are Continually On-Going," Energies, MDPI, vol. 15(13), pages 1-3, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Derek D. & Sueyoshi, Toshiyuki, 2018. "Climate change mitigation targets set by global firms: Overview and implications for renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 386-398.
    2. Galaz, Victor & Crona, Beatrice & Österblom, Henrik & Olsson, Per & Folke, Carl, 2012. "Polycentric systems and interacting planetary boundaries — Emerging governance of climate change–ocean acidification–marine biodiversity," Ecological Economics, Elsevier, vol. 81(C), pages 21-32.
    3. Nasiritousi, Naghmeh & Hjerpe, Mattias & Buhr, Katarina, 2014. "Pluralising climate change solutions? Views held and voiced by participants at the international climate change negotiations," Ecological Economics, Elsevier, vol. 105(C), pages 177-184.
    4. Sylvia Karlsson-Vinkhuyzen & Harro Asselt, 2009. "Introduction: exploring and explaining the Asia-Pacific Partnership on Clean Development and Climate," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 9(3), pages 195-211, August.
    5. van der Ven, Hamish & Sun, Yixian & Cashore, Benjamin, 2021. "Sustainable commodity governance and the global south," Ecological Economics, Elsevier, vol. 186(C).
    6. Matthew P. Johnson & Theresa S. Rötzel & Brigitte Frank, 2023. "Beyond conventional corporate responses to climate change towards deep decarbonization: a systematic literature review," Management Review Quarterly, Springer, vol. 73(2), pages 921-954, June.
    7. Adis Dzebo, 2019. "Effective governance of transnational adaptation initiatives," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 19(4), pages 447-466, October.
    8. Piero Morseletto & Frank Biermann & Philipp Pattberg, 2017. "Governing by targets: reductio ad unum and evolution of the two-degree climate target," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(5), pages 655-676, October.
    9. Lasse Folke Henriksen & Stefano Ponte, 2018. "Public orchestration, social networks, and transnational environmental governance: Lessons from the aviation industry," Regulation & Governance, John Wiley & Sons, vol. 12(1), pages 23-45, March.
    10. Singh, Neelam & Jain, Suresh & Sharma, Prateek, 2015. "Motivations for implementing environmental management practices in Indian industries," Ecological Economics, Elsevier, vol. 109(C), pages 1-8.
    11. Alexandre Gajevic Sayegh, 0. "Moral duties, compliance and polycentric climate governance," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 0, pages 1-24.
    12. Fraj, Elena & Matute, Jorge & Melero, Iguácel, 2015. "Environmental strategies and organizational competitiveness in the hotel industry: The role of learning and innovation as determinants of environmental success," Tourism Management, Elsevier, vol. 46(C), pages 30-42.
    13. Derek Wang, 2017. "A Comparative Study of Firm-Level Climate Change Mitigation Targets in the European Union and the United States," Sustainability, MDPI, vol. 9(4), pages 1-19, March.
    14. Eleni Dellas & Philipp Pattberg & Michele Betsill, 2011. "Agency in earth system governance: refining a research agenda," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 11(1), pages 85-98, March.
    15. Christian Downie, 2022. "Steering global energy governance: Who governs and what do they do?," Regulation & Governance, John Wiley & Sons, vol. 16(2), pages 487-499, April.
    16. Hao Zhang, 2022. "China and Climate Multilateralism: A Review of Theoretical Approaches," Politics and Governance, Cogitatio Press, vol. 10(2), pages 50-60.
    17. Benjamin Cashore & Jette Steen Knudsen & Jeremy Moon & Hamish van der Ven, 2021. "Private authority and public policy interactions in global context: Governance spheres for problem solving," Regulation & Governance, John Wiley & Sons, vol. 15(4), pages 1166-1182, October.
    18. Harro Asselt & Fariborz Zelli, 2014. "Connect the dots: managing the fragmentation of global climate governance," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(2), pages 137-155, April.
    19. Thomas Hickmann & Joshua Philipp Elsässer, 2020. "New alliances in global environmental governance: how intergovernmental treaty secretariats interact with non-state actors to address transboundary environmental problems," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 20(3), pages 459-481, September.
    20. Thomas Hickmann & Joshua Philipp Elsässer, 0. "New alliances in global environmental governance: how intergovernmental treaty secretariats interact with non-state actors to address transboundary environmental problems," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 0, pages 1-23.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:5:p:1794-:d:761023. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.