MGT723 Research Project For Pearson Correlation Coefficient

Does the climate change integration into business strategy help in carbon emission reduction.

Answer:

Management incentives and carbon emission

The table below shows the chi-square test between management incentive and carbon emission reduction. The Pearson Chi-Square value is 271.192^a  with degree of freedom of 280 and p-value 0.636. The Likelihood Ratio has a value of 260.832 with degree of freedom of 280 with p-value 0.434. Linear-by-Linear Association has a value of 0.613 with a degree of freedom of 1 and p-value of 434.

Since from the table the p-value is 0.636>0.05 at 95% confidence level it can be conclude that management incentive has no significant relationship with carbon emission reduction

Chi-Square Tests
	Value	df	Asymptotic Significance (2-sided)
Pearson Chi-Square	271.192a	280	.636
Likelihood Ratio	260.832	280	.788
Linear-by-Linear Association	.613	1	.434
N of Valid Cases	387
a. 558 cells (99.3%) have expected count less than 5. The minimum expected count is .17.

The table below has the additional information on the Pearson correlation coefficient and Spearman correlation coefficient between management incentive and carbon emission reduction. The Pearson correlation coefficient has a value of -0.040 and asymptotic standardized error of 0.027. The Spearman’s correlation coefficient has a value of 0.27 and asymptotic standardized error of 0.054  

Symmetric Measures
		Value	Asymptotic Standardized Errora	Approximate Tb	Approximate Significance
Interval by Interval	Pearson's R	-.040	.027	-.783	.434c
Ordinal by Ordinal	Spearman Correlation	.027	.054	.539	.590c
N of Valid Cases		387
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

Climate change integration and carbon emission reduction

The table below shows the chi-square test between climate change integration and carbon emission reduction. The Pearson Chi-Square value is 260.168^a with degree of freedom of 280 and p-value 0.797. The Likelihood Ratio has a value of 192.967with degree of freedom of 280 with p-value 1.000. Linear-by-Linear Association has a value of 0.445 with a degree of freedom of 1 and p-value of 0.505.

Since from the table the p-value is 0.797>0.05 at 95% confidence level it can be conclude that management incentive has no significant relationship with carbon emission reduction 

Chi-Square Tests
	Value	df	Asymptotic Significance (2-sided)
Pearson Chi-Square	260.168a	280	.797
Likelihood Ratio	192.967	280	1.000
Linear-by-Linear Association	.445	1	.505
N of Valid Cases	387
a. 557 cells (99.1%) have expected count less than 5. The minimum expected count is .11.

The table below has the additional information on the Pearson correlation coefficient and Spearman correlation coefficient between management incentive and carbon emission reduction. The Pearson correlation coefficient has a value of -0.034 and asymptotic standardized error of 0.019. The Spearman’s correlation coefficient has a value of -0.04 and asymptotic standardized error of 0.050 

Symmetric Measures
		Value	Asymptotic Standardized Errora	Approximate Tb	Approximate Significance
Interval by Interval	Pearson's R	-.034	.019	-.667	.505c
Ordinal by Ordinal	Spearman Correlation	-.004	.050	-.079	.937c
N of Valid Cases		387
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

ANOVA test

ANOVA is the analysis of variance. ANOVA uses anova table to compare the means of two or more than two variables. In cases where we cannot use the Student-t distribution because we have more than two variables we apply the ANOVA test. Comparing for example the means of the countries, industries and carbon dioxide emissions

The regression analysis relate integration of climate change in business strategy and carbon emission

The table below shows the summary of ANOVA and regression test. Multiple R is 0.039849, R square is 0.001588, Adjusted R square is -0.00101 with a standard error of 56.37351.

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.039849
R Square	0.001588
Adjusted R Square	-0.00101
Standard Error	56.37351
Observations	387

The table below is an ANOVA table giving the columns for source of variation, degree of freedom, sum of squares, mean square F value. The regressed has degree of freedom of 1, sum of squares of 1945.922, mean square of 1945.922. The residual has a degree of freedom of 385, sum of squares of 1223519, mean square of 3177.972. The total sum of squares is 1225465 and degree of freedom of 386. The overall F-value is 0.612315.

Table 6. Analysis of variance table

ANOVA
	df	SS	MS	F	Significance F
Regression	1	1945.922	1945.922	0.612315	0.434398
Residual	385	1223519	3177.972
Total	386	1225465

The table below shows the intercept and coefficient of the regression model. The intercept is 7.15604 and coefficient is -5.9266. The intercept also has a standard error of 9.335796, t statistics of 0.766516 and p-value of 0.443839. The x variable has a standard error of 7.573875, t statistics of 0.78251 and p-value of 0.434398.

Table 7. Coefficient of Intercept and independent variable

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	7.15604	9.335796	0.766516	0.443839	-11.1995	25.51157	-11.1995	25.51157
X Variable 1	-5.9266	7.573875	-0.78251	0.434398	-20.8179	8.964734	-20.8179	8.964734

The table below shows the ANOVA table. The table has on the column the source of variation, sum of square, degree of freedom, mean square, F value, p-value and critical value of F. Rows has sum of squares of 612496.5, degree of freedom of 365, mean square of 1590.9, F-value of 0.999255 and p-value of 0.502916 with critical value of F being 1.182778. The column has the sum of squares of 150.8793, degree of freedom of 1, mean square of 150.8793, F-value 0.094768 and p-value of 0.758367 and the critical value of F to be 3.865725. The error or the residual has sum of squares of 612953.4, degree of freedom of 385, and mean square of 1592.087. The total sum of squares is 1225601 and total degree of freedom of 771.

The F value of the columns and rows are 0.999255 and 0.094768 respectively.

Table 8. Analysis of variance table

ANOVA
Source of Variation	SS	df	MS	F	P-value	F crit
Rows	612496.5	385	1590.9	0.999255	0.502916	1.182778
Columns	150.8793	1	150.8793	0.094768	0.758367	3.865725
Error	612953.4	385	1592.087
Total	1225601	771

Hypothesis testing (ASSESSED):

T-TEST

T-test is a statistical test used to compare means of the variables. It enable us to make conclusions based on the findings we get. For example, on the data in question about the percentage change of carbon dioxide emitted in metric tons, comparing the mean of the current emissions by the previous emissions can help us to establish if there is statistical difference in the means of the two seasons. T-test uses the Student-t distribution table  (Lyamin, 2011) (Dongming Zhu, 2010). 

1. Hypothesis:

H₀: Integration of climate change in business strategy has no significant relationship with carbon emission reduction.

H₁: Integration of climate change in business strategy has significant relationship with carbon emission reduction. 

One-Sample Statistics
	N	Mean	Std. Deviation	Std. Error Mean
Carbon emission reduction	387	.203385	56.3451908	2.8641870

In the table below, the t-value is 0.071, degree of freedom of 386, mean difference of 0.2033853 and confidence interval (-5.427975, 5.83474) at 95% confidence interval

One-Sample Test   Test Value = 0 t df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the Difference Lower Upper Carbon emission reduction .071 386 .943 .2033853 -5.427975 5.834746

From the above table of one-sample statistics the mean is 0.203385

The p-value on the second table is 0.943, this is higher than the reference confidence level of p-value 0.05. We fail to reject the null hypothesis and conclude that Integration of climate change in business strategy has no significant relationship with carbon emission reduction  

Discussion (ASSESSED):

From the above findings it is shown that the highest number of factories emitting carbon dioxide in the atmosphere is from Japan at 51.9% with the least number of countries from Indonesia at only 0.5%. This is due to the fact that Japan is more developed than Indonesia and therefore, has more active industries.

From the industries observed, it be observed that many of them offer management incentives to the employees as 82.7% saying they offer incentives to the employees. It is also observed that majority of the industries agreeing by the fact that they integrate climate change in their business strategy as 89.4% agreeing that they integrate climate change in their business strategy.

From the analysis we observed that, there is no significant relationship between integrate climate change in the business strategy and the reduction of carbon dioxide emission. Many industries have adopted the integration but the implementation is lacking. This might be reason for the result of t-test analysis  (Taeger, 2014) (Taeger, 2014) (Taeger, 2014). 

Limitations (ASSESSED):

• One of the major challenge of the research was finance. The research involved many countries which are far apart hence a lot of moving from one to another. This made the overreliance on secondary data.
• Calculate the size of the sample from such a huge data was not an easy task.
• The only countries whose effects have been observed here are only five. This cannot give a good representation of the contribution of countries to global climate change.
• Data cleaning from such big data posed a lot of challenges as it took time to finally come up with substantial data to analyze.  

Further Research (ASSESSED):

More research should be done on the same variables from other countries to observe the difference on how different countries handle the issue on emission. This can help to address some challenges other countries face in addressing the issue of carbon dioxide emission and how those challenges can be tackled  (I., 2012) (MABE FRANKLIN NANTUI, 2012) (OGUNBAMERU B.O., 2013) (PANOV VIKTOR I., 2011)..

Further research should be conducted on the different kinds of knowledge and specifically engage on ecological, social, physical, and health science.

Research touching on the implications of certain choices across scales and sectors to optimize the benefits and bring understanding net effects on different scales of decision making.

Further researches can focus the mechanisms which are flexible in identifying and addresses new scientific challenges emerging in the daily basis. It should also focus on the interaction by the decision makers because of the dynamic needs. More on monitoring, projecting and assessing the change in climate  (Andre J. C., 2005) (Brönnimann, 2015) (Brönnimann, 2015)    

References

Andre J. C., M. M. L. J. P., 2005. From GICC, the French research programme on management and impacts of climate change, to circle, a coordinated European initiative including Russia. p. 7.

Ballou,b, 2015. exploring the strategic integration of sustainbility. 26(sustanable development ), pp. 265-288.

Brönnimann, S., 2015. [Advances in Global Change Research] Climatic Changes Since 1700 Volume 55 || Climatic Changes Since 1700. p. 155.

Brönnimann, S., 2015. [Advances in Global Change Research] Climatic Changes Since 1700 Volume 55 || The Machinery: Mechanisms Behind Climatic Changes. p. 96.

Dongming Zhu, J. W. G., 2010. A generalized asymmetric Student- distribution with application to financial econometrics.

I., D. L., 2012. CR AND OTHER SPACE CLIMATE FACTORS INFLUENCED ON THE EARTH'S CLIMATE CHANGE. DORMAN LEV I., p. 11.

Lyamin, O. O., 2011. On the rate of convergence of the distributions of certain statistics to the Laplace and student distributions.

MABE FRANKLIN NANTUI, S. D. B. O.-A. Y., 2012. ADAPTIVE CAPACITIES OF FARMERS TO CLIMATE CHANGE ADAPTATION STRATEGIES AND THEIR EFFECTS ON RICE PRODUCTION IN THE NORTHERN REGION OF GHANA. p. 9.

OGUNBAMERU B.O., M. S. I. Y., 2013. CAPACITY BUILDING FOR CLIMATE CHANGE ADAPTATION: MODULES FOR AGRICULTURAL EXTENSION CURRICULUM DEVELOPMENT. p. 6.

PANOV VIKTOR I., K. S. R., 2011. CLIMATE CHANGE AND THE ECOLOGICAL PSYCHOLOGY. p. 12.

Taeger, D. K. S., 2014. Statistical Hypothesis Testing with SAS and R (Taeger/Statistical Hypothesis Testing with SAS and R) || Statistical hypothesis testing. p. 14.

Taeger, D. K. S., 2014. Statistical Hypothesis Testing with SAS and R (Taeger/Statistical Hypothesis Testing with SAS and R) || Tests on the Mean. p. 17.

Taeger, D. K. S., 2014. Statistical Hypothesis Testing with SAS and R (Taeger/Statistical Hypothesis Testing with SAS and R) || Tests on the variance. p. 12.

Wiley, 2011. british journal of management. What Makes Better Boards? A Closer Look at Diversity and Ownership.