IDEAS home Printed from https://ideas.repec.org/a/ags/afjecr/333992.html
   My bibliography  Save this article

Clean production and Employment Outcomes: An Eco-efficiency Firm Level Analysis in Kenya

Author

Listed:
  • Akama, Erick Maiko
  • Lokina, Razack
  • Mkenda, Beatrice Kalinda

Abstract

This study explores the correlation between environmental performance and employment outcomes in the manufacturing industry in Kenya. Specifically, the study seeks to achieve three primary goals: first, to examine the impact of eco-efficiency on various types of employment outcomes; second, to examine the effect of adopting an Environmental Management System (EMS) on employment outcomes; and lastly, to compare the impact of using either a commitment-based approach (proactive firms) or a compliance-based approach (reactive firms) on different types of employment outcomes. The study uses a 2-year panel data of Kenya's manufacturing firms from the Regional Programme Enterprise Development (RPED). Analysis is done using a pooled panel regression model that utilizes eco-efficiency scores as explanatory variables and employment outcomes as the dependent variable. The study findings indicate that by improving eco-efficiency in resource allocation, there is a potential gain in employment outcomes – though this gain varies depending on the type of employment outcome being considered. Moreover, proactive firms were found to perform better than reactive firms in employment outcomes, implying that adopting a commitment-based approach towards environmental management is more beneficial for manufacturing firms in terms of bolstering their employment outcomes.

Suggested Citation

  • Akama, Erick Maiko & Lokina, Razack & Mkenda, Beatrice Kalinda, 2023. "Clean production and Employment Outcomes: An Eco-efficiency Firm Level Analysis in Kenya," African Journal of Economic Review, African Journal of Economic Review, vol. 11(2), March.
    • Handle: RePEc:ags:afjecr:333992
    DOI: 10.22004/ag.econ.333992
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/333992/files/243588-Article%20Text-585364-1-10-20230315.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.333992?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    2. Cahuc, Pierre & Malherbet, Franck, 2004. "Unemployment compensation finance and labor market rigidity," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 481-501, March.
    3. Glenn Sheriff & Ann E. Ferris & Ronald J. Shadbegian, 2019. "How Did Air Quality Standards Affect Employment at US Power Plants? The Importance of Timing, Geography, and Stringency," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(1), pages 111-149.
    4. Frijns, Jos & Van Vliet, Bas, 1999. "Small-Scale Industry and Cleaner Production Strategies," World Development, Elsevier, vol. 27(6), pages 967-983, June.
    5. Kahn, Matthew E. & Mansur, Erin T., 2013. "Do local energy prices and regulation affect the geographic concentration of employment?," Journal of Public Economics, Elsevier, vol. 101(C), pages 105-114.
    6. Yazid Dissou & Qian Sun, 2013. "GHG Mitigation Policies and Employment: A CGE Analysis with Wage Rigidity and Application to Canada," Canadian Public Policy, University of Toronto Press, vol. 39(s2), pages 53-66, August.
    7. E. Mark Curtis, 2018. "Who Loses under Cap-and-Trade Programs? The Labor Market Effects of the NOx Budget Trading Program," The Review of Economics and Statistics, MIT Press, vol. 100(1), pages 151-166, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Curtis, E. Mark, 2020. "Reevaluating the ozone nonattainment standards: Evidence from the 2004 expansion," Journal of Environmental Economics and Management, Elsevier, vol. 99(C).
    2. Clay, Karen & Jha, Akshaya & Lewis, Joshua & Severnini, Edson R., 2021. "Impacts of the Clean Air Act on the Power Sector from 1938-1994: Anticipation and Adaptation," IZA Discussion Papers 14494, Institute of Labor Economics (IZA).
    3. Ann Wolverton & Ron Shadbegian & Wayne Gray, 2022. "The U.S. Manufacturing Sector�s Response to Higher Electricity Prices: Evidence from State-Level Renewable Portfolio Standards," Working Papers 22-47, Center for Economic Studies, U.S. Census Bureau.
    4. Hille, Erik & Möbius, Patrick, 2019. "Do energy prices affect employment? Decomposed international evidence," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 1-21.
    5. Mao, Jie & Wang, Chunhua & Yin, Haitao, 2023. "Corporate responses to air quality regulation: Evidence from a regional environmental policy in China," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    6. Marin, Giovanni & Vona, Francesco, 2019. "Climate policies and skill-biased employment dynamics: Evidence from EU countries," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    7. Zhao, Desen & Dou, Yao & Tong, Lu, 2022. "Effect of fiscal decentralization and dual environmental regulation on green poverty reduction: The case of China," Resources Policy, Elsevier, vol. 79(C).
    8. Jiyu Zhao & Ning Zhang, 2023. "Environmental regulation and labor market: a bibliometric analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6095-6116, July.
    9. Marin, Giovanni & Vona, Francesco, 2021. "The impact of energy prices on socioeconomic and environmental performance: Evidence from French manufacturing establishments, 1997–2015," European Economic Review, Elsevier, vol. 135(C).
    10. Olivier Deschenes, 2018. "Environmental regulations and labor markets," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-22, November.
    11. repec:hal:spmain:info:hdl:2441/5ahh4t5kfl8nprei89ignlk5nl is not listed on IDEAS
    12. repec:hal:spmain:info:hdl:2441/1jrfjrj6fp8t6q12fv5lra520c is not listed on IDEAS
    13. repec:spo:wpmain:info:hdl:2441/5ahh4t5kfl8nprei89ignlk5nl is not listed on IDEAS
    14. Chao Wu & Yu Hua, 2023. "Does Environmental Regulation Have an Employment Dividend? Evidence from China," Sustainability, MDPI, vol. 15(7), pages 1-20, April.
    15. Ferris, Ann E. & Frank, Eyal G., 2021. "Labor market impacts of land protection: The Northern Spotted Owl," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    16. Yip, Chi Man, 2018. "On the labor market consequences of environmental taxes," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 136-152.
    17. Die Li & Jinsheng Zhu, 2019. "The Role of Environmental Regulation and Technological Innovation in the Employment of Manufacturing Enterprises: Evidence from China," Sustainability, MDPI, vol. 11(10), pages 1-23, May.
    18. Aldy, Joseph E. & Auffhammer, Maximillian & Cropper, Maureen L. & Fraas, Arthur G. & Morgenstern, Richard D., 2020. "Looking Back at Fifty Years of the Clean Air Act," RFF Working Paper Series 20-01, Resources for the Future.
    19. repec:spo:wpmain:info:hdl:2441/1jrfjrj6fp8t6q12fv5lra520c is not listed on IDEAS
    20. Curtis, E. Mark & Lee, Jonathan M., 2019. "When do environmental regulations backfire? Onsite industrial electricity generation, energy efficiency and policy instruments," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 174-194.
    21. Bin Xiong & Xingdong Xie, 2024. "Impact of Environmental Regulation on the Employment Effect of High-Tech Industries: Evidence from Spatial Durbin Model," Sustainability, MDPI, vol. 16(18), pages 1-22, September.
    22. Luo, Ximing & Dong, Cong & Dong, Xiucheng, 2024. "How economic transformation influence the employment of resource-based cities: Evidence from Shanxi Province, China," Resources Policy, Elsevier, vol. 89(C).
    23. Dennis C. Hutschenreiter & Tommaso Santini & Eugenia Vella, 2022. "Automation and sectoral reallocation," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 13(1), pages 335-362, May.
    24. Till F. Hollstein & Kristian Estévez, 2017. "Industrial Policy and the Timing of Trade Liberalization," UB School of Economics Working Papers 2017/361, University of Barcelona School of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afjecr:333992. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.ajol.info/index.php/ajer/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.