Institutional Influence, Transition Management, and the Demand for Carbon Auditing: The Chinese Experience

Abstract

The primary objective of this study is to investigate factors associated with the increase in demand for carbon auditing in China. Based on an analysis of publically available carbon-related information and data, this paper documents the large scale of carbon auditing occurring in the public sector during the period from 2009 to 2013. This paper finds that the creation of carbon institutions and the significant increase in governmental green funding are the main reasons for the emergence of carbon auditing in this period. The change in models of economic development attempting to balance GDP growth and ecosystem protection, plus institutional reform has led carbon auditing from rhetoric to practice. In addition, we show that carbon auditing serves as a tool for the management of transitions and the governance of sustainable socio-technical and organizational innovation and transformation.