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Does larger scale enhance carbon efficiency? Assessing the impact of corporate size on manufacturing carbon emission efficiency

Author

Listed:
  • Qiang Wang

    (Xinjiang University
    China University of Petroleum)

  • Tingting Sun

    (China University of Petroleum)

  • Rongrong Li

    (Xinjiang University
    China University of Petroleum)

Abstract

This study investigates the impact of corporate scale on manufacturing corporate carbon efficiency (MCEE) using empirical analyses and diverse modeling techniques. The research begins with rigorous unit root and cointegration tests, confirming the stationary nature of the data and establishing long-term equilibrium relationships among the variables. Subsequently, benchmark regression analyses employing various models, including system GMM, reveal a robust and significantly positive association between corporate scale and MCEE. The findings emphasize that as corporate scale increases, there is a substantial enhancement in MCEE, attributed to expanded resources, technological advancements, and improved management systems. Robustness tests employing alternative approaches consistently reaffirm this positive correlation, further validating the pivotal role of corporate scale in augmenting MCEE. Furthermore, nonlinear analyses demonstrate varying impacts across different quantile levels of MCEE, highlighting the consistent positive correlation between corporate scale and MCEE. Additionally, the panel threshold model underscores the influence of environmental regulations, R&D investments, and trade openness on this relationship. Notably, stricter environmental regulations intensify the impact of corporate scale on MCEE, emphasizing the importance of corporate expansion in minimizing environmental costs and enhancing resource efficiency. These findings underscore the significance of corporate scale in driving corporate carbon efficiency. They advocate for corporations to not only expand their production capacities but also focus on optimizing management strategies and resource allocation, particularly in contexts influenced by environmental regulations, R&D investments, and trade openness. Overall, this research contributes comprehensive insights into understanding the dynamics governing corporate environmental efficiency and emphasizes the critical role of corporate scale in fostering environmental sustainability.

Suggested Citation

  • Qiang Wang & Tingting Sun & Rongrong Li, 2024. "Does larger scale enhance carbon efficiency? Assessing the impact of corporate size on manufacturing carbon emission efficiency," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03474-8
    DOI: 10.1057/s41599-024-03474-8
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