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The Importance of Corporate and Social Involvement in the Implementation of Climate Friendly Projects

Author

Listed:
  • Attila Zsolt Kovács

    (Szent István University, Gödöllő, Hungary)

  • Bálint Horváth

    (Szent István University, Gödöllő, Hungary)

  • Waleed Ali Hussein Al-Zaidi

    (Szent István University, Gödöllő, Hungary)

  • Enikő Lencsés

    (Szent István University, Gödöllő, Hungary)

Abstract

Everyday people have been experiencing changes in weather and climate. The question is whether we are really on the top of a tendency or we just overstate the weather change because of our heuristic mentality? If the negative tendency of change is adopted we must involve climate friendly technologies in the strategic decision making process of enterprises. On the other hand, the important thing to keep in mind is that the main motor of the strategy is the profit. In case of the latest climate related strategies the problem is the hard quantification of the real profitability because it also depends on external effects. In spite of the classical investment analysis, the costbenefit analysis is able to take into account negative and positive external effects. In case of strategic decision the new technologies or methods are also confronted with resistance. In the strategic decision making process we should calculate with these resistances as well. The aim of this study is to highlight those long-term calculation methods and business models which are able to consider the external effects of projects and examine the real profitability and break-even point in case of bad climate tendency scenarios. This paper presents a new method which includes the cost-benefit analysis and the change equation.

Suggested Citation

  • Attila Zsolt Kovács & Bálint Horváth & Waleed Ali Hussein Al-Zaidi & Enikő Lencsés, 2016. "The Importance of Corporate and Social Involvement in the Implementation of Climate Friendly Projects," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 2(2), pages 131-140.
    • Handle: RePEc:men:journl:v:2:y:2016:i:2:p:131-140
    DOI: 10.11118/ejobsat.v2i2.57
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    References listed on IDEAS

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    1. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    2. Loum, Alieu & Fogarassy, Csaba, 2015. "The effects of climate change on cereals yield of production and food security in Gambia," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 9(4), pages 1-10, December.
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    More about this item

    Keywords

    climate strategy; environmental project development; cost-benefit analysis; internalization (pricing of externalities); change management;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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