Does clean technology weaken the environmental impact on the financial performance? Insight from global oil and gas companies

Rayenda Khresna Brahmana; Maria Kontesa

doi:10.1002/bse.2810

Does clean technology weaken the environmental impact on the financial performance? Insight from global oil and gas companies

Rayenda Khresna Brahmana, Maria Kontesa

Research output: Contribution to journal › Article › peer-review

23 Citations (Scopus)

58 Downloads (Pure)

Abstract

This study aims to clarify the relationship between environmental performance and financial performance by introducing clean technology as the moderating variable. We contest two major theories, natural resource-based view theory and neoclassical theory, to reveal a comprehensive understanding of environmental performance's impact on financial performance. The hypotheses are tested on 111 global oil and gas companies using dynamic panel generalized method of moments (GMM). Our analysis reveals three key findings. First, lower environmental performance leads to lower financial performance confirming the natural resource-based view theory. Second, clean technology has no significant effect on financial performance, arguing the marginal abatement cost. Finally, our results report that clean technology has no impact on increasing financial performance during high waste spills or high emissions. Theoretical and practical implications resulting from the adoption of clean technology to moderate the environmental impact on financial performance are also discussed.

Original language	English
Pages (from-to)	3411-3423
Number of pages	13
Journal	Business Strategy and the Environment
Volume	30
Issue number	7
Early online date	7 May 2021
DOIs	https://doi.org/10.1002/bse.2810
Publication status	Published - 18 Nov 2021
Externally published	Yes

Bibliographical note

This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in anymedium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.© 2021 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.

Funder

This research acknowledges the financing assistance from Universiti Malaysia Sarawak.

Publisher Copyright:
© 2021 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.

Keywords

clean technology
environmental performance
financial performance
oil and gas industry

ASJC Scopus subject areas

Business and International Management
Geography, Planning and Development
Strategy and Management
Management, Monitoring, Policy and Law

Access to Document

10.1002/bse.2810Licence: CC BY-NC-ND

Bus Strat Env - 2021 - Brahmana - Does clean technology weaken the environmental impact on the financial performance Final published version, 1.24 MBLicence: CC BY-NC-ND

Cite this

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Does clean technology weaken the environmental impact on the financial performance? Insight from global oil and gas companies

Abstract

Bibliographical note

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Keywords

ASJC Scopus subject areas

Access to Document

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