The British government's recent announcement that it will mandate carbon reporting from the nation's largest corporations is being greeted with enthusiasm by supporters of sustainable corporate growth. But skeptics say the required carbon reporting will add new economic burdens to affected companies. "Now [a] firm has the cost of measuring the emissions, the tax it has to pay, and the potential costs if it changes production methods to reduce emissions," said Mac Clouse, a professor of finance at the University of Denver's Daniels College of Business. "Overall, its costs have increased." He also questions a statement by a top UK official that reducing carbon emissions would help with long-term management of a company's energy costs. "If the production method with the least emissions was the most efficient and lowest cost, firms would choose to use that method," Clouse wrote in an email. "The fact that they aren’t and the fact that legislation and regulation are necessary to force firms to change to less emissions refutes [British deputy prime minister Nick] Clegg’s claims." Clouse wonders if U.S. firms would be willing to accept...
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