Effects of Organizational and Political-Legal Arrangements on Greenhouse Gas Emissions Energy Sector Parent Companies

• In Event: 119 - Regular Session. Corporate Power, Politics and the Environment

Abstract

This paper examines the effects of financial, organizational and political-legal arrangements on greenhouse gas emission in the largest parent companies in the energy producing sector of the U.S. economy, which consumes a high percentage of all fossil fuels. There are five important findings from the quantitative analysis. First, parent company financial variables have no effect on greenhouse gas emissions. Second, organizational complexity measured by the number of first-level subsidiaries and the number of facilities have a positive effect on greenhouse gas emissions. Third, the environmental strength of firms’ management operating programs does not result in lower pollution, which suggests that these programs are legitimacy enhancing mechanisms. Fourth, parent companies located in subnational states with strong environmental enforcement mechanisms have lower greenhouse gas emissions. Fifth, the interaction effects show that the largest parent companies pollute at a lower rate in subnational states with strong environmental standards. The findings suggest that social structural variables more important than financial considerations when explaining greenhouse gas emissions.

Author

• Harland Prechel, Texas A&M University