The effect of carbon accounting and R&D expenditures on emissions in European companies: A time and event analysis

Introduction:

Economists have regularly argued the widely held belief that achieving both economic growth and ecological sustainability simultaneously has been impossible since the 1990s. Indeed, investing in greener technology entails a series of economic advantages. A bigger volume of waste is strongly linked to a greater use of expensive raw materials. As a result, as highlighted by Brzobohatý and Janský (2010), deploying enhanced technology not only minimizes pollution but also improves the efficient use of resources and materials, hence increasing overall efficiency and productivity in the manufacturing process.

However, suppose a corporation is already in the advanced stages of pollution reduction efforts. In that case, additional reductions become excessively challenging, and the costs per unit of pollution abatement increase. For this reason, it is highly important to perform time and event analysis to understand the impact of R&D and carbon accounting expenditures on company emissions. Time and event analysis is critical because it can help uncover causality, patterns, and the influence of events on variables, offering insights into how relevant phenomena have evolved. The following study focuses on specific variables, including carbon accounting, emissions, and R&D expenditures in European countries.

The following chapter is of high importance because it is based on the comprehensive and critical analysis of the existing literature to gain valuable insights into how increased R&D and improved carbon accounting practices can reduce emissions within organizations. The literature review synthesizes previous research to inform the development of a hypothesis for a critical investigation into European.