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Environmental sustainability

Improving Carbon Emission Efficiency in Developing Countries Key to Mitigating Climate Change

Strategic Insights

— 1 min read

A study published in the Journal of Business Strategy and the Environment has found that improving carbon emission efficiency (CEE) is a cost-effective way to enhance sustainability and address climate change mitigation in developing countries like India. The research analyzed manufacturing firms' CEE of sustainability initiatives (SI) and nonsustainability initiatives (non-SI) and examined the effect of nationally determined contributions commitments on these firms. The study's findings suggest that most manufacturing firms in India, both in the SI and non-SI groups, are carbon inefficient due to pure carbon emission inefficiency.

Key Takeaways:

  • The study adopted a nonradial slack-based model to assess efficiency over the period 2012-2022 and found that workforce skills training (0.23%) and technological progress (0.14%) positively impact the CEE of manufacturing firms.
  • The research concluded that policymakers in developing countries should implement performance-based policies through trading programs and focus on skilled labor training and technological advancements to address climate change mitigation better and promote sustainability.
  • The study supported the Porter hypothesis, suggesting that strict emissions regulations improve efficiency and encourage innovation.
  • The findings highlighted the need for policymakers to prioritize CEE in developing countries to mitigate climate change.
  • The research identified workforce skills training and technological progress as key factors that promote CEE in manufacturing firms.
  • The study's results have significant implications for climate change policy and sustainability initiatives in developing countries.

Statistics:

  • The study analyzed 2012-2022 data on manufacturing firms in India.
  • The nonradial slack-based model assessed efficiency over the 10-year period.
  • Workforce skills training had a 0.23% positive impact on CEE.
  • Technological progress had a 0.14% positive impact on CEE.
  • Most manufacturing firms in India were found to be carbon inefficient.

Sources:

Measuring Carbon Emission Efficiency In a Developing Country: a Comparative Study of Sustainability Initiatives and Nonsustainability Initiatives of Manufacturing Firms. Business Strategy and the Environment, 2025.

Wiley, 111 River St, Hoboken 07030-5774, NJ, USA (www.wiley.com/)

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