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Factors affecting the adoption of energy efficiency measures across business enterprises in India

Jabir Ali (Indian Institute of Management Jammu, Jammu, India)
Farah Farooq Shah (Indian Institute of Management Jammu, Jammu, India)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 2 December 2024

61

Abstract

Purpose

This study aims to analyse the factors affecting the adoption of energy efficiency measures (EEMs), like energy conservation and management, heating and cooling improvements and improvements to lighting systems across business enterprises.

Design/methodology/approach

Analytical techniques such as descriptive statistics, chi-square test and logistic regression with marginal effect have been used on the World Bank Enterprise Survey 2022 data covering 9,374 firms in India to make the necessary inferences.

Findings

Analysis indicates that about 79.7 % firms have reported the adoption of at least one EEM. The chi-square statistics show that medium manufacturing firms with higher age, having female ownership, belonging to bigger cities, spending on R&D, taking credit from financial institutions and having international quality certification are comparatively more associated with EEM adoption. Further, the analysis of marginal effect indicates that enterprise characteristics such as age, size, ownership, lean operations, spending on R&D, availing credit and certification significantly impact the adoption of EEMs. Similarly, firms with higher capacity utilisation and facing business obstacles such as access to resources, regulations and externalities have significantly influenced the adoption of EEMs.

Practical implications

This study provides insights to firms in devising strategies and managing factors affecting the adoption of each element of EEM for enhancing efficiency and encouraging green economy practices.

Originality/value

Considering energy conservation and efficiency as an area of concern among the firms and the availability of limited comprehensive empirical investigation, this study provides unique theoretical and practical contributions.

Keywords

Acknowledgements

The authors extend sincere thanks to the Editor and Anonymous Reviewers for their valuable feedback and encouragement. The authors thank the Enterprise Analysis Unit of the Development Economics Global Indicators Department of the World Bank for the data.

Funding: There was no funding for conducting this research.

Conflicts of interest/Competing interests: The authors declare that there is no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Availability of data and material: The World Bank Enterprise Survey 2022 data can be retrieved from www.enterprisesurveys.org/en/data

Code availability: Not applicable.

Citation

Ali, J. and Shah, F.F. (2024), "Factors affecting the adoption of energy efficiency measures across business enterprises in India", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-06-2024-0022

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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