Educated CEOs Increase Energy Efficiency
This is the conclusion made by platform director Birthe Larsen in an article now out by The Network for Business Sustainability.
More educated CEOs lead more energy-efficient firms, according to a study of privately-held Danish firms from 1996 to 2012. CEO education in business-related fields had the greatest impact on energy efficiency, compared to education in engineering, natural sciences, or humanities. Researchers Mario Daniele Amore, Morten Bennedsen, Birthe Larsen and Philip Rosenbaum find that an additional year of CEO education is associated with 7 per cent lower electricity use and 17 per cent less gas use.
The researchers suggest that CEOs with business training are more efficient managers, better able to identify and pursue energy-saving approaches.
The researchers also found that more CEO education generally is positively associated with greener personal lifestyles and greater awareness of climate issues, perhaps because education increases civic engagement.
Article: Amore, M.D., Bennedsen, M., Larsen, B., & Rosenbaum, P. 2019. CEO education and corporate environmental footprint. Journal of Environmental Economics and Management, 94, 254-273.