DOES SELF-REGULATION IMPROVE CORPORATE ECOLOGICAL-EFFICIENCY? AN EMPIRICAL INVESTIGATION INTO THE AUSTRALIAN PETROLEUM INDUSTRY FROM 1996 TO 2002

Abstract

This study presents a detailed description of greenhouse gas emissions and reduction strategies adopted by the Australian petroleum industry from 1996–2002. An empirical analysis has been undertaken to examine the impact of such strategies in improving overall industry environmental performance and has ranked them to establish their relative importance in improving corporate ecological-efficiency ratios, a relative measure of environmental performance that compares the production of oil and gas and their environmental impact added. Two major classes of environmental self-regulatory activities identified are greenhouse gas management strategies and greenhouse gas influence strategies; where the latter was found highly inconsistent throughout the study period. We found that investment in emissions abatement activities, environmental collaboration and staff training, implementation of greenhouse policies and environmental reporting act as better greenhouse gas management strategies. In contrast, changing consumer behaviour or demand side management and supporting research and development on projects that reduce greenhouse gas emissions act as better influence strategies. We predict that the two classes of environmental strategies are highly inter-linked and that an optimal combination is needed for achieving better corporate environmental performance. The study provides a basis for the improvement in greenhouse gas management that may help in attaining an effective emission management plan for the industry.