• The Journal of Industrial Distribution & Business
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• v.12 no.11
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• pp.9-16
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• 2021

Purpose: Carbon emissions have now become a major concern around the world, especially for the government and private sector. Unfortunately, in Indonesia, disclosure related to company carbon emissions is still done voluntarily. This research aims to provide empirical evidence on the effect of environmental performance, carbon emission disclosure, and carbon emission intensity on the cost of equity capital. Research design, data, and methodology: This research uses secondary data with a sample consisting of Indonesia companies that are sensitive to the environment and listed on the Indonesia Stock Exchange in 2017-2019. The analytical tool used in this research was multiple regression models. Result: The study found a carbon emission disclosure had a significant positive effect on the cost of equity capital. Carbon emission intensity and company size had a significant negative effect on the cost of equity capital. Meanwhile, environmental performance did not have a significant effect on the cost of equity capital. Conclusion: Therefore, the results of this research are expected to provide feedback to the company's stakeholders that environmental performance and carbon emissions are some of the points seen by investors in making investment decisions.

• Journal of Energy Engineering
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• v.11 no.1
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• pp.34-46
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• 2002

Carbon accounting is a key issue in the discussions on global warming/CO$_2$mitigation. This paper applies both the IPCC Approach and the NEAT (Non-Energy use Emission Accounting Tables) model, a bottom-up approach, to estimate the potential CO$_2$ emissions (carbon storage) originating from the non-energy use as to assess the actual CO$_2$ emissions (carbon release) from the use of fossil fuels in Korea. The current Korean carbon accounting seems to overestimate the potential CO$_2$ emissions and with it to underestimate the actual CO$_2$ emissions. The estimation shows that the potential CO$_2$ emissions calculated according to the IPCC Approach are lower than those calculated using the NEAT model. This is because the IPCC default storage fraction for naphtha seems to be low for the Korean petrochemical production structure, on the one hand and because the IPCC Approach does not consider the trade with short life petrochemical products, on the other hand. This paper shows that a bottom-up approach like the NEAT model can contribute to overcome some of limitations of the IPCC guidelines, especially by considering the international trade with short life petrochemical products and by estimating the storage fractions of fossil fuels used as feedstocks for the country in consideration. This paper emphasizes the importance of accurate energy statistics for carbon accounting.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.223-231
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• 2020

This research aims to examine (1) the effect of carbon emission disclosure on firm value, (2) the effect of good corporate governance on firm value, (3) the mediating role of financial performance between carbon emission disclosure and firm value, and (4) the mediating role of financial performance between good corporate governance and firm value. The research sample includes 43 mining, agro, and manufacturing firms listed in the Indonesian Stock Exchange over the 2015-2017 period. Carbon emission disclosure is measured by an indicator of the Global Reporting Initiative Series of Environmental Aspect. Good corporate governance is measured by the corporate governance score of shareholder rights, boards of directors, outside directors, audit committee and internal auditor, and disclosure to investors. Financial performance is measured by return on assets, while firm value is measured by Tobin's Q. Data analysis uses the structural equation modeling. The result shows carbon emission disclosure and good corporate governance have no direct effect on firm value. On the other hand, financial performance mediates the effect of carbon emission disclosure and good corporate governance on firm value. It shows that higher carbon emission disclosure and good corporate governance are meaningless for the investor if they do not give any financial performance improvement.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.123-133
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• 2021

This research aims to examine the effect of carbon emission disclosure on firm value and to reveal environmental performance and industrial type as the moderating variables. This study used 82 samples of companies listed on the Indonesia Stock Exchange (IDX) and receiving awards in the Indonesian Sustainability Reporting Award (ISRA) in 2014-2018. This study used a multiple linear regression analysis to test the hypotheses. The results showed that carbon emission disclosure had a positive and significant effect on firm value as carbon emission disclosure is a form of corporate concern on environment positively responded by the market and becomes the basis for investors to make their considerations in assessing the company sustainability. Besides, environmental performance and industrial type can strengthen the influence relationship of carbon emission disclosure on firm value since environmental performance was assessed based on ISO 14001 certification ensuring that the company has tried to preserve the environmental sustainability by creating a good environmental management system. Moreover, companies categorized into high profile industrial type have tried to change their unfavorable image and avoid lawsuits by performing carbon emission disclosure to gain positive responses from the market.

• Journal of Environmental Science International
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• v.32 no.6
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• pp.419-428
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• 2023

This study estimates the greenhouse gases (GHGs) emissions from energy sector of Changwon city from 2012 to 2020 and scenario analysis of GHGs reductions pathways in the context of the goal of 2030 NDC and 2050 carbon neutral scenario in Korea. As a result, the GHG emissions as a reference year of carbon neutral in 2018 were estimated as 8,872,641 tonCO_2eq accounting for 3,851,786 tonCO_2eq (43.6%) of direct source (scope 1) and 4,975,855 tonCO_2eq (56.4%) of indirect source (scope 2). Especially, among indirect sources as purchased electricity, manufacturing sector emitted the largest GHG accounting for 33.0%(2,915 thousands tonCO_2eq) of the total emissions from all energy sectors, scenario analysis of GHG reductions potential from the energy was analyzed 8,473,614 tonCO_2eq and the residual emissions were 354,027 tonCO_2eq. Purchased electricity and industry sector reducted the largest GHG accounting for 58.7%(4,976 thousands tonCO_2eq) and 42.1%(3,565 thousands tonCO_2eq) of the total emissions from all energy sectors, respectively.

• Journal of Korean Society of Forest Science
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• v.98 no.1
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• pp.55-65
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• 2009

Annex I parties continued its consideration of how to address, the definitions, modalities, rules and guidelines for the treatment of Land Use, Land-use Change and Forestry (LULUCF) in the second commitment period of the Kyoto Protocol by the year of 2009. In the AWG-KP conference held in Accra, Ghana in 2008, four alternatives (gross-net carbon accounting, net-net with base year or base period accounting, net-net with forward looking baseline accounting, and land-based accounting method) for negotiations were decided in order to revise gross-net accounting method applied during the first commitment period of the Kyoto Protocol. In this study, alternative scenarios are set in consideration with reporting system (voluntary or compulsory), discount factors and cap about these three alternatives except for the method of net-net with forward looking baseline accounting, and then estimates the Removal Unit (RMU) among the countries. In the case that article 3.4 activities under the Kyoto Protocol revises from voluntary reporting to mandatory reporting, it is estimated that the loss of RMU would be huge in Russia, Australia, New Zealand, as well as Canada potentially. Net-net with base year or base period carbon accounting and land-based carbon accounting method have big difference of RMU in accordance with the base year or the base period. So the more unfavorable the country with a lot of old-age forests was, the closer the base year or period comes to the commitment period in the context of RMU. If it is getting lowered for the current rate of 85% in discount factors, RMU is getting higher to the whole countries. Therefore in Korea with little potential for afforestation and reforestation, there was the most sensitive response to the change of discount factors. Post-2012 LULUCF hereafter, it is strongly expected for the succession of current carbon accounting system which is voluntary reporting of gross-net carbon accounting and the activity for article 3.4. Other carbon accounting method is hard to accept in aspect that there is big differentiated interests among the countries and it is required enormous cost and time to develop reliable method. Provide for Post-2012 mandatory greenhouse gas reduction, Korea needs to have a competitive negotiation strategies differentiated from Annex I countries. The most reliable alternative would be to lower the discounting factors about the activities for forest management.

• Environmental and Resource Economics Review
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• v.21 no.4
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• pp.851-891
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• 2012

The objective of this study can be presented as follows: First, given the consumption-based carbon accounting method which has now been claimed, this study reviews the emissions within Korea and the resulting position change in international society. Second, when each nation makes efforts to reduce carbon emissions under the Copenhagen Accord, this study, using the Computable General Equilibrium (CGE) model, reviews the resulting carbon leakage and analyzes the effect from the various border adjustment measures. However, reflecting uncertainties in the negotiation processes, this study attempts to apply scenarios with regards to the reduction-mandatory nation group. In addition, this study tries to observe the impact on Korea through testing the various border adjustment measures, including the free allocation and embodied carbon tariffs.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.2
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• pp.99-108
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• 2023

This study's goal is to investigate the effects of board size, the number of annual board meetings, the profitability of the company, and the audit Committee on the disclosure of climate change in Saudi companies listed on the stock exchange. It was conducted to evaluate affecting some factors on carbon emissions by the regression model. The study uses the content analysis method. Data was collected from the annual and sustainability reports, and the platform database Refinitiv, an LSEG (London Stock Exchange Group Company) for the period 2018 to 2021. The study sample is 51 companies. The study findings showed Saudi Arabia saw its first significant overall drop in CO2 emissions with a 22.61 MtCO2 decline (3.93%) in 2018. The study revealed a positive connection between the size of the director's board, and the disclosure of carbon emissions in Saudi firms listed on the stock market. While other factors are not related to the number of director's board meetings, the audit committee, and the profitability of the company on the disclosure of carbon emissions in the Saudi companies listed on the stock exchange.

• Journal of Korean Society of Forest Science
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• v.112 no.2
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• pp.188-194
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• 2023

This study aimed to derive the basic wood density, one of several carbon emission factors, for carbon accounting of bamboo forests in Korea. Bamboo is mainly distributed in Jeollanam-do and Gyeongsangnam-do provinces, and 101 sample trees were selected for each of the three species (Phyllostachys nigra var. henonis, P. bambusoides, and P. pubescens). The basic wood density derivation used the KS F 2098 method. The measurements showed that the basic wood density was 0.83 g/cm³ for P. nigra var. henonis, 0.81 g/cm³ for P. bambusoides, and 0.72 g/cm³ for P. pubescens. However, the bamboo distribution area in Korea is not very large, and P. pubescens grows in one area only. Therefore, the basic wood density that can be applied to bamboo was 0.79 g/cm³. Evaluation of the uncertainty of the extracted basic wood density showed a very low value of 1.61%, which confirmed the reliability of the basic wood density derived from this analysis. The basic wood density, biomass expansion factor, and root-to-shoot ratio were used to calculate the carbon storage capacity of one bamboo plant and expanded to calculate the capacity for a hectare of bamboo. Carbon storage and absorption of bamboo were calculated by applying a carbon-emission factor, such as the basic wood density. These study results are expected to contribute to the carbon-neutral policy and forest management direction in Korea.

• Journal of the Korean Wood Science and Technology
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• v.38 no.6
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• pp.507-517
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• 2010

This study estimated the amount of carbon stocks in harvested wood products (HWP) using accounting approaches suggested by 2006 IPCC guidelines and analyzed the impacts of different approaches on national greenhouse gas inventory and the forest sector in Korea. The change in carbon stocks was calculated at the level of semi-finished wood products, which cover sawnwood, wood-based panels, other industrial wood, paper and paperboard. An estimation of the changes in carbon stocks in HWP in use for the period 1970~2008 varied between -9,023 Gg $CO_2$/yr and 4,052 Gg $CO_2$/yr depending on the accounting approach used. The stock-change approach provided the most favorable results because Korea was a net importer of wood products. However, each approach generates different impacts on harvest, trade, the use of wood for energy production and recycling. When deciding its position on accounting approach, thus, the Government should consider future direction of national forest policies as well as the effect on national greenhouse gas inventory for the minimization of negative impacts resulting from its selection.