Abstract:

This paper examines the effect of the Environmental Management System (EMS) on the reduction of carbon dioxide emissions, taking into account the role of Greenhouse Gas (GHG) emission taxes as well as the Sustainability Committee (SSC) in international context. To test our hypotheses, we use a sample of 9944 firm-year observations in the Group of Seven (G7) countries (Canada, France, Germany, Italy, Japan, United Kingdom and United States) from 2013 to 2022. The econometric approach is based on a panel data logistic regression model. The empirical results show that both EMS and SSC significantly and positively reduce carbon dioxide emissions. However, we don’t find evidence of a significant effect of GHG taxes on carbon dioxide reduction. These findings have important implications for managers and regulators who are concerned about the environmental performance of the firm.