The developmental state's legacy and corporate carbon emission performance: evidence from Taiwanese firms between 2014 and 2018

Abstract

ABSTRACT Despite international efforts to address human-caused climate change, greenhouse gas emissions continue to rise. However, existing literature often overlooks the role of the state and social actors in exacerbating or mitigating emissions. This study adopts the political-economic embeddedness perspective to argue that the role of the state and social actors cannot be separated in the greenhouse gas economy. Specifically, we explore how the embeddedness within the Taiwanese state and private corporations enables resistance to greenhouse gas reduction policies. Through an analysis of greenhouse gas emissions data and examination of corporate characteristics among major emitters in Taiwan, we find that two key legacies of Taiwan's developmental state period, family-controlled firms and private corporations with more governmental directors, tend to have higher emissions levels. Importantly, these legacies persist even after neo-liberal reforms. This study's findings have implications for developing countries, particularly in Asia, that employ developmental state strategies. It underscores the need for countries to consider the potential negative impacts of state intervention and market dynamics on greenhouse gas emissions.