Abstract
This paper aims to understand the effects of natural capital on environmental responsibility. Based on a sample of 28,402 firm-year observations from 60 countries between 2010 and 2018, the results show that natural capital negatively affects companies’ environmental responsibilities. In particular, the availability of non-renewable natural capital leads firms to overexploit resources, leading to weaker engagement in environmental activities. We also show that the Paris Agreement in 2015 improved the focus of firms operating in natural capital–rich countries on environmental responsibility. Further evidence shows that the influence of natural capital on corporate environmental responsibility is more prevalent for firms in developing countries and manufacturing industries. This negative effect also holds for the emission-reduction and resource-use subdimensions of environmental responsibility. However, renewable natural capital positively affects environmental innovation. Our results are robust to endogeneity concerns.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
