Call for Papers: Exploring the link between institutional, economic, financial development with climate change

Advisory Editors

Nazim Hussain

Faculty of Economics and Business, University of Groningen, Groningen, The Netherlands

Email: [email protected]

Duc Khuong Nguyen

IPAG Business School, 184 Boulevard Saint-Germain, 75006 Paris, France

Email: [email protected]

Themed Issue Information

The 21st century has brought various challenges, chief among which is the pressing issue of climate change. This phenomenon has been linked to all aspects of growth and development, including economic development, social fabric, productivity, and industrial development, and has caused environmental hazards, climate-related risk management, and transitional risks (Breitenstein, Nguyen & Walther, 2021; Breitenstein et al., 2020). Moreover, research has identified the presence of a price discount on stocks affected by climate risks (Hong, Li, & Xu, 2019), demonstrating the value relevance of climate risk. The primary cause of this climate risk is attributed mainly to unsustainable industrial growth, as industries and corporations are major drivers of economic development and significant consumers of environmental resources (Hussain, Rigoni, & Orij, 2018). In response, many countries have implemented a carbon tax to control greenhouse gas emissions, and stakeholders, including policymakers, are pressuring corporations to disclose information about their sustainability initiatives and climate change risks (Griffin & Jaffe, 2022; Hussain, Rigoni & Cavezzali, 2018).

The link between institutional, economic and financial development and climate change is one of the most pressing issues facing the world today (Sinha et al., 2023). As global temperatures rise, the impact of climate change on economies, institutions and financial systems is becoming increasingly clear. As such, this presents an urgent need to explore the connections between these various components in order to develop effective strategies to mitigate and adapt to the effects of climate change.

Similarly, recent literature on financial development and its environmental implications has suggested two distinct views on the role of financial development (FD) in ecological sustainability. On the one hand, a well-developed financial system has the potential to provide easier access to capital and make it simpler for investment to take place. This can lead to economic growth, which leads to greater financial resources and better technology to help address environmental issues. On the other hand, there is a concern that FD can lead to an increase in resource use and environmental degradation, which may offset any environmental gains from economic growth. It is, therefore, essential to understand the potential implications of FD for environmental sustainability to ensure that the benefits of a better-developed financial system outweigh any potential negative impacts on the environment.

As the effects of climate change become increasingly evident, it is of utmost importance for governments, stakeholders, and corporations to take proactive steps to mitigate the risks associated with such changes (García-Sánchez, Hussain, Khan, & Martínez-Ferrero, 2021). Accordingly, the research papers submitted for this special issue must explore and evaluate the methods used by corporations to reduce the risks associated with climate change and the potential impacts of such initiatives on the stakeholders involved. Findings will allow us to better understand the effect of corporate environmental performance on society and ultimately help create a more sustainable world for future generations.

This call for papers seeks to bring together leading experts and practitioners to explore the link between institutional, economic and financial development and climate change. Papers should discuss the challenges and opportunities presented by this relationship, and propose practical solutions to address them. In particular, we are interested in exploring how the public and private sectors can work together to create effective policies and investments that will reduce the impact of climate change on economies, institutions and financial systems. By contributing to this call for papers, you will join a global conversation that is essential to effectively addressing the climate crisis.

Overall, this themed issue will focus on evaluating the implementation of corporate environmental performance in a true sense and its impacts on society from a broader perspective and stakeholders in a more specific view. Consequently, we invite original research papers exploring the determinants and consequences of sustainable development policies and practices at individual, corporate and country level.  

Specifically, topics of interest may include, but are not limited to:

• Institutional level determinants of reduced climate change effects;
• How the public and private sectors can work together to create effective policies and investments that will reduce the impact of climate change on economies, institutions and financial systems?;
• Role of informal institutions in fostering sustainable development;
• Impact of financial development on sustainable development;
• Effects of social equity on sustainable development;
• Effect of corporate sustainability practices on corporate financial transparency?
• Market and firm level determinants of financial and non-financial performance;
• Corporate social responsibility performance and access to finance;
• Corporate social responsibility performance and firm risk;
• Corporate sustainability performance and investors’ response;
• Corporate reputation management;
• Effects of managerial characteristics corporate financial and non-financial transparency;
• Effects of governance characteristics corporate financial and non-financial transparency;

Manuscript Submission Information

Manuscripts should be submitted online here. Manuscripts can be submitted until the deadline. Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers).

All submissions that pass pre-check are peer-reviewed. All manuscripts are thoroughly refereed through the standard double-blind peer-review process. Submissions to the themed issue will be reviewed under fast-track review process. A guide for authors and other relevant information for submission of manuscripts is available on the Author guidelines page. There is no charge to the author. Submitted papers should be well formatted and use good English.
For any further information, please contact the Advisory Editor, Prof. Dr. Duc Khuong Nguyen at [email protected] or the Journal’s Editor in Chief, Prof. Dr. Le Quoc Hoi at [email protected].

Please forward this call for papers to your colleagues or friends if they are interested in submitting to the themed issue. 

Deadline for manuscript submissions: 30 October 2023

References

Breitenstein, M., Nguyen, D. K., & Walther, T. (2021). Environmental hazards and risk management in the financial sector: A systematic literature review. Journal of Economic Surveys, 35(2), 512-538.

Breitenstein, M., Anke, C.-P., Nguyen, D.K. and Walther, T. (2020). Stranded asset risk and political uncertainty: the impact of the coal phase-out on the german coal industry. The Energy Journal, 43(5).

García-Sánchez, I. M., Hussain, N., Khan, S. A., & Martínez-Ferrero, J. (2021). Do markets punish or reward corporate social responsibility decoupling?. Business & Society, 60(6), 1431-1467.

Griffin, P., & Jaffe, A. M. (2022). Challenges for a climate risk disclosure mandate. Nature Energy, 7(1), 2-4.

Hong, H., Li, F. W., & Xu, J. (2019). Climate risks and market efficiency. Journal of econometrics, 208(1), 265-281.

Hussain, N., Rigoni, U., & Cavezzali, E. (2018). Does it pay to be sustainable? Looking inside the black box of the relationship between sustainability performance and financial performance. Corporate Social Responsibility and Environmental Management, 25(6), 1198-1211.

Hussain, N., Rigoni, U., & Orij, R. P. (2018). Corporate governance and sustainability performance: Analysis of triple bottom line performance. Journal of Business Ethics, 149(2), 411-432.

Sinha, A., Bekiros, S., Hussain, N., Nguyen, D. K., & Khan, S. A. (2023). How social imbalance and governance quality shape policy directives for energy transition in the OECD countries?. Energy Economics, 106642.