Taking Carbon into Account in Capital Budgeting: A Field Study of Municipal Energy Companies in Finland

References

• Abdel-Kader, M.G., and D. Dugdale. 1998. Investment in advanced manufacturing technology: A study of practice in large U.K. companies. Management Accounting Research 9, no. 3: 261–84.
   Google Scholar
• Ahrens, T., and C.S. Chapman. 2006. Doing qualitative field research in management accounting: Positioning data to contribute to theory. Accounting, Organizations and Society 31, no. 8: 819–41.
   Web of Science ®Google Scholar
• Ascui, F. 2014. A review of carbon accounting in the social and environmental accounting literature: What can it contribute to the debate? Social and Environmental Accountability Journal 34, no. 1: 6–28.
   Google Scholar
• Ascui, F., and H. Lovell. 2011. As frames collide: Making sense of carbon accounting. Accounting, Auditing & Accountability Journal 24, no. 8: 978–99.
   Web of Science ®Google Scholar
• Baker, M., R. Gray, and S. Schaltegger. 2023. Debating accounting and sustainability: From incompatibility to rapprochement in the pursuit of corporate sustainability. Accounting, Auditing & Accountability Journal 36, no. 2: 591–619.
   Web of Science ®Google Scholar
• Baxter, J., and W.F. Chua. 2003. Alternative management accounting research – whence and whither. Accounting, Organizations and Society 28, no. 2-3: 97–126.
   Web of Science ®Google Scholar
• Bebbington, J., M. Laine, C. Larrinaga, and G. Michelon. 2023. Environmental accounting in the European accounting review: A reflection. European Accounting Review 32, no. 5: 1107–28.
   Web of Science ®Google Scholar
• Bebbington, J., and C. Larrinaga-González. 2008. Carbon trading: Accounting and reporting issues. European Accounting Review 17, no. 4: 697–717.
   Web of Science ®Google Scholar
• Bebbington, J., C. Larrinaga, B. O’Dwyer, and I. Thomson, eds. 2021. Routledge handbook of environmental accounting. Abingdon: Routledge.
   Google Scholar
• Bennett, M., and P. James, eds. 1998. The green bottom line. environmental accounting for management control practice and future trends. London: Routledge.
   Google Scholar
• Berry, A.J., and D.T. Otley. 2004. Case-based research in accounting. In The real life guide to accounting research – A behind-the-scenes view of using qualitative research methods, eds. C. Humphrey, and B. Lee, 231–55. Oxford: Elsevier.
   Google Scholar
• Borghei, Z. 2021. Carbon disclosure: A systematic literature review. Accounting & Finance 61, no. 4: 5255–80.
   Web of Science ®Google Scholar
• Bouten, L., and S. Hoozée. 2022. Hybridity in a hotel chain: Designing a package of controls to sustain a hybrid mission. Accounting, Auditing & Accountability Journal 35, no. 8: 1862–91.
   Web of Science ®Google Scholar
• Bromwich, M. 2007. Economics in management accounting. In Handbook of management accounting research, edited by C. S. Chapman, A. G. Hopwood, and Shields, 137–62. Oxford: Elsevier.
   Google Scholar
• Bueger, C. 2014. From expert communities to epistemic arrangements: Situating expertise in international relations. In International relations and the global politics of science and technology, edited by M. Mayer, M. Carpes, and R. Knoblich, 39–54. Heidelberg: Springer.
   Google Scholar
• Bui, B., and C. de Villiers. 2017. Business strategies and management accounting in response to climate change risk exposure and regulatory uncertainty. The British Accounting Review 49: 4–24.
   Web of Science ®Google Scholar
• Bui, B., Z. Wang, and M. Tekathen. 2024. Carbon toolmaking: Responding to multiple interacting logics in carbon management. Accounting, Auditing & Accountability Journal 37, no. 1: 227–56.
   Web of Science ®Google Scholar
• Cadez, S., and C. Guilding. 2017. Examining distinct carbon cost structures and climate change abatement strategies in CO2 polluting firms. Accounting, Auditing & Accountability Journal 30, no. 5: 1041–64.
   Web of Science ®Google Scholar
• Carr, C., K. Kolehmainen, and F. Mitchell. 2010. Strategic investment decision making practices: A contextual approach. Management Accounting Research 21, no. 3: 167–84.
   Web of Science ®Google Scholar
• Charnock, R., M. Brander, and T. Schneider. 2021. Carbon. In Routledge handbook of environmental accounting, eds. J. Bebbington, C. Larrinaga, B. O’Dwyer, and I. Thomson, 353–64. Abingdon: Routledge.
   Google Scholar
• Cho, C.H., M. Laine, R.W. Roberts, and M. Rodrigue. 2015. Organized hypocrisy, organizational façades, and sustainability reporting. Accounting, Organizations and Society 40, no. 1: 78–94.
   Web of Science ®Google Scholar
• Chua, W.F. 1986. Radical developments in accounting thought. The Accounting Review 61: 601–32.
   Web of Science ®Google Scholar
• Covaleski, M.A., M.W. Dirsmith, and S. Samuel. 2017. Analyzing and interpreting qualitative data in management accounting research. In The routledge companion to qualitative accounting research methods, eds. Z. Hoque, L.D. Parker, M.A. Covaleski, and K. Hayness. London: Routledge.
   Google Scholar
• Deegan, C. 2008. Environmental costing in capital investment decisions: Electricity distributors and the choice of power Poles. Australian Accounting Review 18, no. 1: 2–15.
   Web of Science ®Google Scholar
• DiMaggio, P.J., and W.W. Powell. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review 48: 147–60.
   Web of Science ®Google Scholar
• Dunlop, C.A. 2013. Epistemic communities. In Routledge handbook of public policy, edited by E. Araral, S. Fritzen, M. Howlett, M. Ramesh, and X Wu, 229–43. Abingdon: Routledge.
   Google Scholar
• Eisenhardt, K.M. 1989. Building theories from case study research. The Academy of Management Review 14, no. 4: 532–50.
   Web of Science ®Google Scholar
• Elmassri, M.M., E.P. Harris, and D.B. Carter. 2016. Accounting for strategic investment decision-making under extreme uncertainty. The British Accounting Review 48, no. 2: 151–68.
   Web of Science ®Google Scholar
• Folke, C., S. Polasky, J. Rockström, V. Galaz, F. Westley, M. Lamont, M. Scheffer, et al. 2021. Our future in the anthropocene biosphere. AMBIO 50, no. 4: 834–69.
   PubMed Web of Science ®Google Scholar
• Garcia-Torea, N., S. Giordano-Spring, C. Larrinaga, and G. Riviére-Giordano. 2022. Accounting for carbon emission allowances: An empirical analysis in the EU ETS phase 3. Social and Environmental Accountability Journal 42, no. 1-2: 93–115.
   Google Scholar
• Garcia-Torea, N., C. Larrinaga, and M. Luque-Vílchez. 2023. Bridging the understanding of sustainability accounting and organizational change. Organization & Environment 36, no. 1: 17–38.
   Web of Science ®Google Scholar
• Greenwood, R., C. Oliver, T.B. Lawrence, and R.E. Meyer. 2017. The SAGE handbook of organizational institutionalism. London: Sage.
   Google Scholar
• Haas, P.M. 1992. Introduction: Epistemic communities and international policy coordination. International Organization 46, no. 1: 1–35.
   Web of Science ®Google Scholar
• Hartmann, F., P. Perogo, and A. Young. 2013. Carbon accounting: Challenges for research in management control and performance measurement. Abacus 49, no. 4: 539–63.
   Web of Science ®Google Scholar
• He, R., L. Luo, A. Shamsuddin, and Q. Tang. 2022. Corporate carbon accounting: A literature review of carbon accounting research from the Kyoto protocol to the Paris agreement. Accounting & Finance 62, no. 1: 261–98.
   Web of Science ®Google Scholar
• Heugens, P.P.M.A.R., and M.W. Lander. 2009. Structure! agency! (And other quarrels): A meta-analysis Of institutional theories Of organization. Academy of Management Journal 52, no. 1: 61–85.
   Web of Science ®Google Scholar
• Himick, D., and M. Brivot. 2018. Carriers of ideas in accounting standard-setting and financialization: The role of epistemic communities. Accounting, Organizations and Society 66: 29–44.
   Web of Science ®Google Scholar
• Hirsch, B., B.E. Reichert, and M. Sohn. 2017. The impact of clawback provisions on information processing and investment behaviour. Management Accounting Research 37, no. 1: 1–11.
   Google Scholar
• Hopwood, A.G. 2009. Accounting and the environment. Accounting, Organizations and Society 34: 433–9.
   Web of Science ®Google Scholar
• Huikku, J. 2007. Explaining the Non-adoption of post-completion auditing. European Accounting Review 16, no. 2: 363–98.
   Web of Science ®Google Scholar
• Huikku, J., and K. Lukka. 2016. The construction of persuasiveness of self-assessment-based post-completion auditing reports. Accounting and Business Research 46, no. 3: 243–77.
   Web of Science ®Google Scholar
• Hyvönen, T., J. Järvinen, L. Oulasvirta, and J. Pellinen. 2012. Contracting out municipal accounting: The role of institutional entrepreneurship. Accounting, Auditing & Accountability Journal 25, no. 6: 944–63.
   Web of Science ®Google Scholar
• IPCC. 2014. Climate change 2014: Synthesis report, fifth IPCC report on climate change [core writing team, R.K. Pachauri and L.A. Meyer (eds.)]. IPCC, Geneva, Switzerland, 151 pp.
   Google Scholar
• Järvenpää, M., and A. Länsiluoto. 2016. Collective identity, institutional logic and environmental management accounting change. Journal of Accounting & Organizational Change 12, no. 2: 152–76.
   Google Scholar
• Järvinen, J., M. Laine, T. Hyvönen, and H. Kantola. 2022. Just look at the numbers: A case study on quantification in corporate environmental disclosures. Journal of Business Ethics 175: 23–44.
   Web of Science ®Google Scholar
• Jordan, S., L. Jörgensen, and H. Mitterhofer. 2013. Performing risk and the project: Risk maps as mediating instruments. Management Accounting Research 24: 156–74.
   Web of Science ®Google Scholar
• Kazemian, S., T. Djajadikerta, K. Trireksani, Z.N. Sohag, Z.M. Sanusi, and L. Said. 2021. Carbon management accounting (CMA) practices in Australia’s high carbon-emission industries. Sustainability Accounting, Management and Policy Journal 13, no. 5: 1132–68.
   Web of Science ®Google Scholar
• Laine, M. 2009. Ensuring legitimacy through rhetorical changes? A longitudinal interpretation of the environmental disclosures of a leading Finnish chemical company. Accounting, Auditing & Accountability Journal 22, no. 7: 1029–54.
   Google Scholar
• Laine, M. forthcoming. Accounting, reporting and verification of impact: Implications for sustainability: A commentary on adams et al. (2023) “styles of verification and the pursuit of organisational repair: The case of social impact. Accounting, Organizations and Society 101540.
   Google Scholar
• Lillis, A.M., and J. Mundy. 2005. Cross-Sectional field studies in management accounting research-closing the gaps between surveys and case studies. Journal of Management Accounting Research 17: 119–41.
   Google Scholar
• Lounsbury, M. 2007. Institutional rationality and practice variation: New directions in the institutional analysis of practice. Accounting, Organizations and Society 33, no. 4-5: 349–61.
   Web of Science ®Google Scholar
• Lukka, K., and E. Vinnari. 2014. Domain theory and method theory in management accounting research. Accounting, Auditing & Accountability Journal 27: 1308–38.
   Web of Science ®Google Scholar
• MacKenzie, D. 2009. Making things the same: Gases, emission rights and the politics of carbon markets. Accounting, Organizations and Society 34, no. 3-4: 440–55.
   Web of Science ®Google Scholar
• Meyer, J.W., and B. Rowan. 1977. Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology 83: 340–63.
   Web of Science ®Google Scholar
• Mikes, A., and M. Metzner. 2023. Lightening the carbon load: Using management control systems to manage decarbonization strategies. Journal of Management Accounting Research 35, no. 3: 121–51.
   Web of Science ®Google Scholar
• Miller, P., and M. Power. 2013. Accounting, organizing, and economizing: Connecting accounting research and organization theory. Academy of Management Annals 7, no. 1: 557–605.
   Web of Science ®Google Scholar
• Modell, S. 2009. Institutional research on performance measurement and management in the public sector accounting literature: A review and assessment. Financial Accountability & Management 25, no. 3: 277–303.
   Google Scholar
• Morales Burgos, J.A., M. Kittler, and M. Walsh. 2020. Bounded rationality, capital budgeting decisions and small business. Qualitative Research in Accounting & Management 17, no. 2: 293–318.
   Web of Science ®Google Scholar
• Moya, J.A., N. Pardo, and A. Mercier. 2011. The potential for improvements in energy efficiency and CO2 emissions in the EU27 cement industry and the relationship with the capital budgeting decision criteria. Journal of Cleaner Production 19: 1207–15.
   Web of Science ®Google Scholar
• Ocasio, W., P.H. Thornton, and M. Lounsbury. 2017. Advances to the institutional logics perspective. In The SAGE handbook of organizational institutionalism, eds. R. Greenwood, C. Oliver, T. B. Lawrence, and R. E. Meyer, 509–31. London: Sage.
   Google Scholar
• Ott, C, and J Endrikat. 2023. “Exploring the association between financial and nonfinancial carbon-related incentives and carbon performance.” Accounting and Business Research 53 (3): 271–304.
   Web of Science ®Google Scholar
• Richardson, K., W. Steffen, W. Lucht, J. Bendtsen, S.E. Cornell, J.F. Donges, M. Drüke, et al. 2023. Earth beyond six of nine planetary boundaries. Science Advances 9: eadh2458.
   PubMed Web of Science ®Google Scholar
• Rodrigue, M., and C.-F. Picard. 2023. Non-accountants and accounting: On the emancipatory mobilization of accounting by sustainability managers. European Accounting Review 32, no. 5: 1217–45.
   Web of Science ®Google Scholar
• Schaltegger, S., and M. Csutora. 2012. Carbon accounting for sustainability and management. status quo and challenges. Journal of Cleaner Production 36: 1–16.
   Web of Science ®Google Scholar
• Schiemann, F., and A. Sakhel. 2019. Carbon disclosure, contextual factors, and information asymmetry: The case of physical risk reporting. European Accounting Review 28, no. 4: 791–818.
   Web of Science ®Google Scholar
• Stechemesser, K., and E. Guenther. 2012. Carbon accounting: A systematic literature review. Journal of Cleaner Production 36: 17–38.
   Web of Science ®Google Scholar
• Steinmeier, M, and M Stich. 2019. “Does Sustainability Assurance Improve Managerial Investment Decisions?.” European Accounting Review 28 (1): 177–209.
   Web of Science ®Google Scholar
• Ter Bogt, H.J., and R.W. Scapens. 2019. Institutions, situated rationality and agency in management accounting: A research note extending the burns and scapens framework. Accounting, Auditing & Accountability Journal 32, no. 6: 1801–25.
   Web of Science ®Google Scholar
• Thomson, I., and R. Charnock. 2022. Engaging with the IPCC on climate finance: A call to action and platform for social and environmental accounting scholars. Social and Environmental Accountability Journal 42, no. 1-2: 1–10.
   Google Scholar
• Thornton, P.H., and W. Ocasio. 1999. Institutional logics and the historical contingency of power in organizations: Executive succession in the higher education publishing industry, 1958– 1990. American Journal of Sociology 105: 801–43.
   Web of Science ®Google Scholar
• Vesty, G.M., A. Telgenkamp, and P.J. Roscoe. 2015. Creating numbers: Carbon and capital investment. Accounting, Auditing & Accountability Journal 28, no. 3: 302–24.
   Web of Science ®Google Scholar
• Wilmott, H. 2015. Why institutional theory cannot be critical. Journal of Management Inquiry 24, no. 1: 105–11.
   Web of Science ®Google Scholar