Conference Programme
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available). Note that the schedule is subject to changes.
|
Daily Overview |
| Session | |
|
Parallel Session 11: Carbon Markets & Corporate Accountability Location: Seminar Room 6 (Level 2) Session Chair: S Viswanathan, Nanyang Technological University, | |
    | |
Corporate Omissions: Correcting the Bias in Carbon Reporting 1: Princeton University, Department of Operations Research & Financial Engineering; 2: Massachusetts Institute of Technology, Sloan School of Management Corporate carbon disclosure is central to sustainability assessment and climate policy, yet firm-level emissions data remain incomplete and selectively reported. This paper investigates missing Scope 1 CO2 emissions assuming that firms behave strategically in their disclosure decisions. We model emissions reporting as a missing-not-at-random (MNAR) process in which voluntary disclosure depends on firms’ underlying emissions. Using U.S. firm-level data from 2012–2023, we implement an imputation framework that explicitly accounts for endogenous non-reporting. We find statistically significant evidence that higher-emitting firms are systematically less likely to disclose. Correcting for this behavior increases average Scope 1 emissions by 15–19% relative to conventional approaches, with the largest revisions concentrated in the upper tail of the emissions distribution. As a result, selective disclosure leads to substantial underestimation of aggregate corporate carbon damages, while preserving the return-emissions relationship observed among the subsample of disclosing firms. | |