Time horizons of environmental versus non-environmental costs: Evidence from US tort lawsuits

Business Strategy and the Environment

Volumn 16, Issue 4, 2007, Pages 249-265

  Regnier, Eva ^a   Tovey, Craig ^b  

^a NAVAL POSTGRADUATE SCHOOL   (United States)

^b Georgia Institute of Technology   (United States)

Author keywords

Accounting; Corporate sustainability; Discount rate; Environmental; EPA; Investment valuation; Management; Time horizon

Indexed keywords

COST; DISCOUNT RATE; EMPIRICAL ANALYSIS; ENVIRONMENTAL ECONOMICS; INVESTMENT;

NORTH AMERICA; UNITED STATES;

EID: 34248650174     PISSN: 09644733     EISSN: 10990836     Source Type: Journal    
DOI: 10.1002/bse.494     Document Type: Article

References (48)

1. Bennett M, Rikhardsson PM, Schaltegger S. 2003. Environmental Management Accounting - Purpose and Progress. Kluwer: Dordrecht.
2. Block S. 1997. Capital budgeting techniques used by small business firms in the 1990s. The Engineering Economist 42(4): 289-302.
3. Boyd J. 1998. Searching for the Profit in Pollution Prevention: Case Studies in the Corporate Evaluation of Environmental Opportunities, Resources for the Future Discussion Paper 98-30.
4. Brealey RA, Myers SC. 2003. Principles of Corporate Finance (7th edn). McGraw-Hill: New York.
5. Burritt RL. 2004. Environmental management accounting: roadblocks on the way to the green and pleasant land. Business Strategy and the Environment 13(1): 13-32.
6. Burritt RL, Schaltegger S, Kokuba K, Wagner M. 2003. Environmental management accounting for staff appraisal: evidence from Australia, Germany and Japan. In Environmental Management Accounting - Purpose and Progress. Kluwer: Dordrecht; Chapter 9, 151-183.
7. Cohen MA, Fenn SA, Konar S. 1999. Environmental and Financial Performance: Are They Related? Vanderbilt University Business School Working Paper.
8. Conover W. 1999. Practical Nonparametric Statistics (3rd edn). Wiley: New York.
9. DeCanio SJ. 1993. Barriers within firms to energy-efficient investments. Energy Policy 21:906-914.
10. Del Sol P, Ghemawat P. 1999. Strategic valuation of investment under competition. Interfaces 29(6): 42-56.
11. Deutsch C. 1998. For Wall Street, increasing evidence that green begets green. New York Times 19 July. A7.
12. The Economist 1999. How high a hurdle? 8 May: 81.
13. Epstein MJ. 1996. Measuring Corporate Environmental Performance: Best Practices for Costing and Managing an Effective Environmental Strategy. McGraw-Hill: New York.
14. Epstein MJ, Roy M-J. 1998. Integrating environmental impacts into capital investment decisions. In The Green Bottom Line: Environmental Accounting for Management: Current Practice and Future Trends. Greenleaf: Sheffield; Chapter 4, 100-114.
15. Farragher EJ, Kleiman RT, Sahu AP. 1999. Current capital investment practices. The Engineering Economist 44(2): 137-150.
16. Feldman SJ, Soyka PA, Ameer P. 1996. Does Improving a Firm's Environmental Management System and Environmental Performance Result in a Higher Stock Price? ICE Kaiser International Report.
17. Figge F, Hahn T, Schaltegger S, Wagner M. 2002. The sustainability balanced scorecard - linking sustainability management to business strategy. Business Strategy and the Environment 11: 269-284.
18. Graham JR, Harvey CR. 2001. The theory and practice of corporate finance: evidence from the field. Journal of Financial Economics 61(2/3): 187-243.
19. Gray R, Bebbington J, Walters D. 1993. Accounting for the Environment. Markus Wiener: Princeton.
20. Halme M, Niskanen J. 2001. Does corporate environmental protection increase or decrease shareholder value? The case of environmental investments. Business Strategy and the Environment 10(4): 200-214.
21. Hoffman AJ. 2000. Competitive Environmental Strategy: a Guide to the Changing Business Landscape. Island Press: Washington DC.
22. Hollander M, Wolfe D. 1999. Nonparametric Statistical Methods. Wiley: New York.
23. Johnson BE. 1994. Modeling energy technology choices: which investment analysis tools are appropriate? Energy Policy 22(10): 877-883.
24. Jones K, Rubin PH. 1999. Effect of Harmful Environmental Events on Reputations of Firms, Emory University School of Economics Working Paper.
25. Kaplan RS. 1986. Must CIM be justified by faith alone? Harvard Business Review 64(2): 87-95.
26. King A, Lenox M. 2001a. Does it really pay to be green? An empirical study of firm environmental and financial performance. Journal of Industrial Ecology 5(1): 105-116.
27. King A, Lenox M. 2001b. Lean and green? An empirical examination of the relationship between lean production and environmental performance. Production and Operations Management 10(3): 244-256.
28. King A, Lenox M. 2002. Exploring the locus of profitable pollution reduction. Management Science 48(2): 289-299.
29. Konar S, Cohen MA. 1997. Does the market value environmental performance? Vanderbilt University Working Paper.
30. Macve R. 1997. Accounting for environmental cost. In The Industrial Green Game: Implications for Environmental Design and Management. National Academy Press: Washington DC; 185-199.
31. Moilanen T, Martin C. 1996. Financial Evaluation of Environmental Investments. Gulf: Rugby, UK.
32. Neumayer E. 1999. Global warming: discounting is not the issue, but substitutability is. Energy Policy 27(1): 33-43.
33. Palmer K, Oates WE, Portney PR. 1995. Tightening environmental standards: the benefit-cost or the no-cost paradigm? The Journal of Economic Perspectives 9(4): 119-132.
34. Porter ME, van der Linde C. 1995. Toward a new conception of the environment-competitiveness relationship. The Journal of Economic Perspectives 9(4): 97-118.
35. Regnier E. 200l. Discounted Cash Flow Methods and Environmental Decisions, Ph. D. thesis, Georgia Institute of Technology.
36. Reinhardt FL. 1999. Down to Earth: Applying Business Principles to Environmental Management. Harvard Business School Press: Boston, MA.
37. Rennings K, Schröder M, Zigler A. 2003. The economic performance of European stock corporations: Does sustainability matter? Greener Management International 44: 33-43.
38. Schaltegger S, Burritt R. 2000. Contemporary Environmental Accounting: Issues, Concepts, and Practice. Greenleaf: Sheffield; Chapter 6.
39. Schaltegger S, Müller K. 1998. Calculating the true profitability of pollution prevention. In The Green Bottom Line: Environmental Accounting for Management: Current Practice and Future Trends. Greenleaf: Sheffield; Chapter 3, 86-99.
40. Schaltegger S, Synnestvedt T. 2002. The link between 'green' and economic success: environmental management as the crucial trigger between environmental and economic performance. Journal of Environmental Management 65:339-346.
41. Thurston D. 1999. Engineering economic decision issues in environmentally conscious design and manufacturing. The Engineering Economist 44(1): 50-63.
42. United Nations Division for Sustainable Development (UNDSD). 200l. Environmental Management Accounting: Procedures and Principles.
43. US Environmental Protection Agency (EPA). 1992. Economic Analysis of Pollution Prevention Projects: Facility Pollution Prevention Guide, EP1.8:f11/3.
44. US Environmental Protection Agency (EPA). 1995. An Introduction to Environmental Accounting as a Business Management Tool: Key Concepts and Terms, EPA 742-R-95-001.
45. US Environmental Protection Agency (EPA). 1999. Valuing Potential Environmental Liabilities for Managerial Decision-Making: a Review of Available Techniques, US EPA Office of Pollution Prevention and Toxics EPA 742-R-96-003.
46. Wagner M. 2003. The influence of ISO 14001 and EMAS certification on environmental and economic performance of firms: an empirical analysis. In Environmental Management Accounting - Purpose and Progress. Chapter 16, 367-386. Kluwer Academic Publishers: Dordrecht, Netherlands.
47. Walsh JP, Weber K, Margolis JD. 2003. Social issues and management: our lost cause found. Journal of Management. Vol. 29, No. 6, 859-881 (2003).
48. White AL, Savage D, Brody J, Cavander D, Lach L. 1995. Environmental Cost Accounting for Capital Budgeting: a Benchmark Survey of Management Accountants. Tellus Institute: Boston, MA.