Publication Type

Working Paper

Version

publishedVersion

Publication Date

4-2021

Abstract

We study the impact of corporate ownership and community conditions on firm environmental pollution. While the existing literature often thinks of environmental pollution as a unitary construct, we emphasize the distinction between toxic emissions, which have immediate but locally bounded impact, and greenhouse gas (GHG) emissions which have gradual but global impact, producing climate change. Using a facility-level panel of all manufacturing facilities in the US from 2010-2018, and leveraging within-facility changes in ownership status, we show that locally owned firms have lower levels of toxic emissions, but they are also less likely to report GHG emissions, and have higher levels of such emissions when they do report them, with these effects being stronger where the owner is not only headquartered locally, but has operations limited to that state. Our study suggests that while the pressures of local embeddedness may drive firms to be more environmentally responsible towards their local community, they also make firms more indifferent to their global environmental impact.

Keywords

environmental performance, ownership, toxic emissions, greenhouse gas, climate change, sustainability

Discipline

Organizational Behavior and Theory | Place and Environment | Strategic Management Policy

Research Areas

Strategy and Organisation

First Page

1

Last Page

42

Identifier

10.2139/ssrn.3830153

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.2139/ssrn.3830153

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