Customer concentration and corporate carbon emissions

This paper examines whether economic links with major corporate customers curb corporate carbon emissions. We show that supplier firms with a concentrated customer base have significantly lower carbon emissions. The baseline results are robust to alternative measures of carbon emissions and customer...

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Main Authors: DENG, Saiying, DUAN, Tinghua, LI, Frank Weikai, PU, Xiaoling
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2022
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/7090
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8089/viewcontent/SSRN_id4180681__1_.pdf
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Institution: Singapore Management University
Language: English
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spelling sg-smu-ink.lkcsb_research-80892022-09-29T05:42:38Z Customer concentration and corporate carbon emissions DENG, Saiying DUAN, Tinghua LI, Frank Weikai PU, Xiaoling This paper examines whether economic links with major corporate customers curb corporate carbon emissions. We show that supplier firms with a concentrated customer base have significantly lower carbon emissions. The baseline results are robust to alternative measures of carbon emissions and customer concentration, and various approaches that mitigate endogeneity concerns due to omitted variables and reverse causality. Moreover, the curbing effect of customer concentration on supplier carbon emissions is more pronounced in firms facing lower customer switching costs, with less (more) supplier (customer) bargaining power, fewer redeployable assets, operating in more carbon-intensive industries, and after the Paris Agreement of 2015. Collectively our evidence suggests that major corporate customers can facilitate the transition to a low-carbon economy through decarbonization along the supply chain. 2022-08-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/7090 info:doi/10.2139/ssrn.4180681 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8089/viewcontent/SSRN_id4180681__1_.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Customer-supplier relationships Customer concentration Carbon emissions Finance Finance and Financial Management
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Customer-supplier relationships
Customer concentration
Carbon emissions
Finance
Finance and Financial Management
spellingShingle Customer-supplier relationships
Customer concentration
Carbon emissions
Finance
Finance and Financial Management
DENG, Saiying
DUAN, Tinghua
LI, Frank Weikai
PU, Xiaoling
Customer concentration and corporate carbon emissions
description This paper examines whether economic links with major corporate customers curb corporate carbon emissions. We show that supplier firms with a concentrated customer base have significantly lower carbon emissions. The baseline results are robust to alternative measures of carbon emissions and customer concentration, and various approaches that mitigate endogeneity concerns due to omitted variables and reverse causality. Moreover, the curbing effect of customer concentration on supplier carbon emissions is more pronounced in firms facing lower customer switching costs, with less (more) supplier (customer) bargaining power, fewer redeployable assets, operating in more carbon-intensive industries, and after the Paris Agreement of 2015. Collectively our evidence suggests that major corporate customers can facilitate the transition to a low-carbon economy through decarbonization along the supply chain.
format text
author DENG, Saiying
DUAN, Tinghua
LI, Frank Weikai
PU, Xiaoling
author_facet DENG, Saiying
DUAN, Tinghua
LI, Frank Weikai
PU, Xiaoling
author_sort DENG, Saiying
title Customer concentration and corporate carbon emissions
title_short Customer concentration and corporate carbon emissions
title_full Customer concentration and corporate carbon emissions
title_fullStr Customer concentration and corporate carbon emissions
title_full_unstemmed Customer concentration and corporate carbon emissions
title_sort customer concentration and corporate carbon emissions
publisher Institutional Knowledge at Singapore Management University
publishDate 2022
url https://ink.library.smu.edu.sg/lkcsb_research/7090
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8089/viewcontent/SSRN_id4180681__1_.pdf
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