Do Environmental Practices Enhance Productivity? A Micro Level Analysis of Emerging Economies
Session
Management Business and Economics
Description
The relationship between environmental practices and economic performance has long been debated, with contrasting views on how such measures affect firm outcomes. While most existing research focuses on advanced economies and energy-intensive sectors, evidence for emerging economies remains limited. This study addresses that gap by investigating the relationship between green management practices and labour productivity using firm-level data from 27 emerging economies. Employing an instrumental variable (IV) approach to account for potential endogeneity, the analysis finds a positive association between green management measures and productivity. The presence of a manager dedicated to environmental or climate issues exerts the strongest effect, followed by the adoption of environmental objectives. Setting energy or CO₂ targets also has a positive, though less robust, relationship with productivity. These findings provide useful insights for policies aiming to enhance both environmental sustainability and firm outcomes in emerging economies.
Keywords:
Green management practices, labour productivity, firm-level analysis, emerging economies
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-982-41-2
Location
UBT Lipjan, Kosovo
Start Date
25-10-2025 9:00 AM
End Date
26-10-2025 6:00 PM
DOI
10.33107/ubt-ic.2025.401
Recommended Citation
Mulliqi, Arta, "Do Environmental Practices Enhance Productivity? A Micro Level Analysis of Emerging Economies" (2025). UBT International Conference. 16.
https://knowledgecenter.ubt-uni.net/conference/2025UBTIC/MBE/16
Do Environmental Practices Enhance Productivity? A Micro Level Analysis of Emerging Economies
UBT Lipjan, Kosovo
The relationship between environmental practices and economic performance has long been debated, with contrasting views on how such measures affect firm outcomes. While most existing research focuses on advanced economies and energy-intensive sectors, evidence for emerging economies remains limited. This study addresses that gap by investigating the relationship between green management practices and labour productivity using firm-level data from 27 emerging economies. Employing an instrumental variable (IV) approach to account for potential endogeneity, the analysis finds a positive association between green management measures and productivity. The presence of a manager dedicated to environmental or climate issues exerts the strongest effect, followed by the adoption of environmental objectives. Setting energy or CO₂ targets also has a positive, though less robust, relationship with productivity. These findings provide useful insights for policies aiming to enhance both environmental sustainability and firm outcomes in emerging economies.