Making a Difference: Accounting for the Impact of Management Decisions in Environmental Management

Stanimir Ivanov Kabaivanov, Veneta Markovska


Management decisions are typically meant to be making a lasting impact, or at least bringing us one step closer to a long-term goal. Yet there are situations where it is hard to link decisions made and results achieved. The problem gets more complex when comparing different backgrounds, as management quality is often assessed either in specific organizational context (Ghoshal and Bartlett, 1994; Coggburn and Schneider, 2003) or in a finite number of case-studies. These methods have been successfully used for a long time in corporate environment (Gong et al., 2018) and for public sector decisions (Eller et al., 2018), but their application is not as easy when facing problems that are affected by multiple economy-wide factors, and/or by variables that are not directly observable. We study the long term impact on management decisions in environmental management by using market information on different instruments used to manage and control environmental pollution and risk. The core reason for choosing this approach is that market data is able to account for economic reasons and capture changes that go beyond the scope of an individual corporation or a public agency.


environmental management; policy assessment; climate bonds; Hurst exponent; market memory.

JEL Codes

G13; G17; G18.

Full Text:



Apostoaie, C. M., 2018. Green Banking: A Shared Responsibility Between Financial Regulators and Banking Institutions. SEA - Practical Application of Science, VI(18), 275-281.

Bariviera, A., Guercio, M., and Martinez, L., 2012. A comparative analysis of the informational efficiency of the fixed income market in seven European countries. Economics Letters, 116(3), 426-428.

Climate Bonds Initiative, 2018. Green Bonds Market Summary.

Coggburn, J. D., and Schneider, S. K., 2003. The Quality of Management and Government Performance: An Empirical Analysis of the American States. Public Administration Review, 63(2), 206-213.

Dietz, T., 2010. What is a Good Decision? Criteria for Environmental Decision Making. Human Ecology Review, 10(1), 33-39.

Domino, K., 2011. The use of the Hurst exponent to predict changes in trends on the Warsaw Stock Exchange. Physica A, 390(1), 98-109.

Eller, W. S., Gerber, B. J., and Robinson, S. E., 2018. Public Administration Research Methods: Tools for Evaluation and Evidence-Based Practice. New York: Taylor & Francis Group, Routledge.

Flammer, C., 2018. Corporate Green Bonds. Boston.

Galaz, V., Gars, J., Moberg, F., Nykvist, B., and Repinski, C., 2015. Why Ecologists Should Care about Financial Markets. Trends in Ecology & Evolution, 30(10), 571-580.

Ghoshal, S., and Bartlett, C. A., 1994. Linking organizational context and managerial action: The dimensions of quality of management. Strategic Management Journal, 15, 91-112.

Gong, M., Simpson, A., Koh, L., and HuaTan, K., 2018. Inside out: The interrelationships of sustainable performance metrics and its effect on business decision making: Theory and practice. Resources, Conservation and Recycling, 128, 155-166.

Hurst, H. E., 1951. Long-term storage capacity of reservoirs. Transactions of the American Society of Civil Engineers, 116(1), 770-799.

Kabaivanov, S., and Markovska, V., 2017. Modelling Environment Changes for Pricing Weather Derivatives. Scientific Annals of Economics and Business, 64(4), 423-430.

Kabaivanov, S., Markovska, V., and Milev, M., 2013. Using real options analysis to support strategic management decisions. AIP Conference Proceedings, 87(1), 87-96.

Kreps, D., 2018. Notes On The Theory Of Choice. New York: Routledge.

Martinez, L., Guercio, M., Bariviera, A., and Terceno, A., 2016. The impact of the financial crisis on the long-range memory of European corporate bond and stock markets. Emprica, Journal of Applied Economics and Economic Policy, 1-19.

Morel, M., 2012. Financing the transition to a green economy: their word is their (green) bond? CDC Climat.

Pham, L., 2016. Is it risky to go green? A volatility analysis of the green bond market. Journal of Sustainable Finance & Investment, 6(4), 263-291.

Reichelt, H., 2010. Green bonds: a model to mobilise private capital to fund climate change mitigation and adaptation projects. Euromoney Handbooks(1).

S&P Dow Jones Indices. 2019. from

Sabbaghi, O., 2011. Do Green Exchange-Traded Funds Outperform the S&P500? Journal of Accounting and Finance, 11(1), 50-59.

The World Bank, 2019. Global Economic Prospects. Heightened Tensions, Subdued Investment. World Bank Group Flagship Report.

UN - Economic Analysis & Policy Division, 2018. World Economic Situatio and Prospects (WESP).

UniCredit, 2018. UniCredit anticipates another record year for green bonds. Milan, Munich: UniCredit Financial.

Vlek, C., Edwards, W., Kiss, I., Majone, G., and Toda, M., 1984. What constitutes "a good decision"? Acta Psychologica, 56(1-3), 5027.

Wu, Y., Zhu, Q., and Zhu, B., 2018. Decoupling analysis of world economic growth and CO2 emissions: A study comparing developed and developing countries. Journal of Cleaner Production, 190, 94-103.

Yadong, Y., Dingjiang, C., Bing, Z., and Shanying, H., 2013. Eco-efficiency trends in China, 1978-2010: Decoupling environmental pressure from economic growth. Ecological Indicators, 24, 177-184.

York, R., and McGee, J. A., 2017. Does Renewable Energy Development Decouple Economic Growth from CO2 Emissions? Socius: Sociological Research for a Dynamic World, 3, 1-6.



  • There are currently no refbacks.