Overcoming information asymmetry in tourism carbon management: The application of a new reporting architecture to Aotearoa New Zealand

Responding to the United Nations Sustainable Development Goals and Paris Climate commitments are urgent priorities facing many governments. Meeting these commitments will require new industry management architectures that align measures of progress (economic, environmental, human and social) with government structures, datasets, and reporting. Comprehensive emissions quantification and reduction targets for tourism must be a part of this new architecture. In this paper we propose a comprehensive Tourism Carbon Information System (TCIS), comprising four essential information components: national tourism carbon footprint, the carbon-economic linkage, drivers and decarbonization progress, and benchmarking. The TCIS is then tested and applied to Aotearoa New Zealand (2007–2013) to track tourism carbon performance and its decarbonization speed, compared to the national average across sectors. This critical information sheds light on future growth in tourism relative to the national greenhouse gas inventory and establishes the required mitigation trajectory for destinations to move onto a sustainable emissions pathway.     

A review of tourism and climate change mitigation: The scales,scopes, stakeholders and strategies of carbon management

Tourism needs to reduce emissions in line with other economic sectors, if the international community's objective of staying global warming at 1.5°-2.0 °C is to be achieved. This will require the industry to half emissions to 2030, and to reach net-zero by mid-century. Mitigation requires consideration of four dimensions, the Scales, Scopes, Stakeholders and Strategies of carbon management. The paper provides a systematic review of these dimensions and their interrelationships, with a focus on emission inventory comprehensiveness; allocation principles at different scales; clearly defined responsibilities for decarbonization; and the identification of significant mitigation strategies. The paper concludes that without mitigation efforts, tourism will deplete 40% of the world's remaining carbon budget to 1.5 °C. Yet, the most powerful decarbonization measures face major corporate, political and technical barriers. Without worldwide policy efforts at the national scale to manage the sector's emissions, tourism will turn into one of the major drivers of climate change.     

The curious case of Canadian corporate emissions valuation

This study examines the relevance to investors of the greenhouse gas (GHG) emissions of publicly-traded Canadian firms over 2006–2018. Based on two independent datasets, we document that firm value varies positively in the level of emissions. This result suggests that the Canadian setting differs from those studied previously, notably because of low climate litigation risk and national and subnational expenditure policies to offset climate impacts on the economy. While national and subnational expenditures to mitigate emissions affect firms' on-balance-sheet costs and profits, investors price the future payoffs to these expenditures into firm value. Supporting this view, we find that the positive relation between emissions and firm value in Canada is amplified for high GHG-intensity firms (mainly energy firms in Alberta), whose future payoffs to environmental policies and spending exceed those of low GHG-intensity firms. Our results are consistent with investors’ recognition of the benefits to firm value of national and subnational policies to decarbonize the Canadian economy.