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Multinationals and Global Climate Change
Abstract
• Analyzes the strategic responses by U.S and European multinational enterprises in the oil and automobile industries to the global climate change issue
Introduction
• Measures to control the emissions of greenhouse gases (GHGs) threaten firms that produce fossil fuels as well as firms that depend on these fuels
• Companies vary considerably in their perspectives and strategies regarding climate change
• The climate issue poses a number of strategic dilemmas
? Companies can attempt to postpone regulation by debating the science of climate change and the economic cost of greenhouse gas controls, or they can attempt to invest in new low-emission technologies
Main Questions:
• Should a firm attempt to invest early and gain first mover advantages, or wait until the technological turmoil and regulatory uncertainty has subsided
• Should a firm decide to commit substantial resources to a single technology, or adopt a portfolio strategy, alone or with partners
Different responses to the threat of climate change by European and North American multinational enterprises (MNEs), particularly in the oil and automobile sectors
European= a more proactive perspective
European firms have invested more modest resources in political efforts to shape the emerging climate change regime and to experiment in emission trading schemes. Companies accept much quicker the need for action
America= a m ...