Do perceived operational impacts affect the portfolio of carbon-abatement technologies?

Abstract

Firms face a variety of stakeholder pressures to improve their environmental performance. Afirm’s perceptions of these pressures can radically affect its strategic reactions and subse-quent resource allocation decisions. Previous studies do not explain how perceived opera-tional impacts may influence afirm’s investment in environmental technologies. Thisstudy examines the relationship between perceived impacts on process and product and car-bon preventive projects withinfirms’environmental technology portfolio. Using carbonemissions and carbon disclosure data, wefind that higher perceived process-related impactsare associated with a higher proportion of carbon preventive projects, while perceivedproduct-related impacts have the opposite effect.