HOW CARBON PROJECTS CAN ADD TO SUSTAINABLE DEVELOPMENT GOALS OF INDIA’, AN ASSOCIATIVE STUDY OF CDM PROJECTS

Growing concerns of climate change have necessitated a re-examination of business activities and their viability, not only from a financial viewpoint but also social as well as environmental dimension, popularly known as the ‘Triple Bottom Line approach’. The paper is an attempt to bring around the focus on Clean Development projects that deal with carbon credit in India. The sector is a niche in its numbers but huge in potential. This study mainly examines the CDM project risk associated with carbon credit in the organizations from energy sector that had registered and implemented CDM projects in Gujarat. The analysis is based on purposive data collected for larg-scale CDM projects. Statistical analysis was done through non-parametric tests named descriptive analysis, Spearman correlation analysis, and Mann-Whitney U test applied. Analysis of the result reveals that all the enlisted risk has a high degree of association with large scale projects. Correlation results indicated that all kinds of carbon risks have a meaningful positive relationship with each other irrespective of the phase of the CDM project. Type of organizations (public/private sector) also creates differences in CDM project risks. The findings of the research will assist managers in decision-making about carbon emission project risks

EXAMINING THE RELATION BETWEEN MARKET VALUE AND CO2 EMISSION: STUDY OF INDIAN FIRMS

In the present era, sustainable business practices have become an important metric for measuring the organisational effectiveness. Shareholders have added sustainability as an important dimension of firms’ performance and consider it as value relevant for determining the market value of any company. Given the premises, present study examines the impact of CO2 emission on the market value of the firm (measured by market-to-book value ratio and Tobin’s Q ratio) in the context of a developing country. Current study is based on panel data of 230 firm-year observations collected from the annual report of Carbon Disclosure Project (CDP) and annual report of sample companies. Using panel least square regression analysis, the findings indicate significant adverse impact of CO2 emission on the firm value. In other words, shareholders assign negative value to higher discharge of carbon dioxide and reflect the same by lowering the market value of shares. Further, the results are checked for robustness using generalised method of moments (GMM) and the conclusions are found coinciding. Present findings have important implications for regulatory authorities, policy makers, and practicing managers