Influencing climate change regulations: examining responses from large-scale firms

Abstract

Recent climate change projections and a push towards a universal agreement on carbon emission reductions suggest that firms will need to respond to future regulatory changes. This paper employs an influencing strategies lens to examine how large-scale firms might respond to future climate change regulations. The study uses a structured qualitative methodology to explore and explicate the strategic responses from 21 international firms to the proposed emissions trading scheme outlined in Australia's Garnaut Climate Change Review. The results of the analysis show that firms can use pre-emptive influencing strategies in attempts to shape and mould regulatory design parameters, secure high levels of transitional economic support, and shift the balance of public policies and expenditure. Complementary defensive strategies may also target policy makers and regulators with some of the potential negative consequences of the new regulations.