A Dynamic Perspective on the Gender Diversity–Firms’ Environmental Performances Nexus: Evidence from the Energy Industry

Abstract

We explore the role that a country’s economic and political uncertainty plays in shaping its environmental performance. We put emphasis on the role played by gender diversity in the board of firms, and we address two limitations characterizing the literature on the topic: (i) the use of static modelling that prevents identifying static and dynamic endogeneity and (ii) the assumption that the relationship is linear, which prevents accounting for the factors that affect the magnitude and the shape of this nexus. Using a System-GMM approach, we find evidence that gender diversity is associated positively with firms’ environmental results. Furthermore, the intensity of this relationship is increasing in gender diversity, and more importantly, the effect tends to be greater in less uncertain countries. These findings are of first importance in terms of the policy. Improving environmental quality can be achieved cost-effectively through the promotion of gender diversity, along with building/strengthening institutions to mitigate the effects of economic and political uncertainty. The benefits of these actions can support an effective implementation of the UN SDGs related to gender equality (Goal 5) and several environment-related SDGs (Goal 13 and Goal 15).