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Toward the best practice emissions reduction in an emerging economy: an analysis of cement manufacturing in Indonesia

Author

Listed:
  • Togar W. S. Panjaitan

    (University of Queensland, Australia)

  • Togar W. S. Panjaitan

    (Petra Christian University, Indonesia)

  • Paul Dargusch

    (University of Queensland, Australia)

  • David Wadley

    (University of Queensland, Australia)

  • Ammar A. Aziz

    (University of Queensland, Australia)

Abstract

Cement manufacturing is an energy-and carbon-intensive process and a prominent contributor to global anthropogenic greenhouse gases (GHGs). Within emerging economies, this industry’s considerable potential to pollute can be exacerbated by outmoded plant or practices, and management’s limited capacity to remediate. In this context, the current study analyses the case of Indonesia’s leading producer, recording variations in greenhouse gas (GHG) sources to pinpoint opportunities for reduction. Emissions, measured 20% higher than the 2030 global industry target, occur from the calcination process, abetted by fuel combustion. Reductions should be focused on reducing the clinker-to-cement ratio and promoting the uptake of alternative fuels. Avenues lie in increasing the use of clinker substitutes such as fly ash and limestone, and employing fuels derived from waste and biomass. Both sources are abundant in Indonesia. Further declines in GHGs could be achieved through technological innovations such as the upgrading of kilns. The inquiry provides recommendations for emission mitigation in the cement industry not only in Indonesia but also in other developing countries.

Suggested Citation

  • Togar W. S. Panjaitan & Togar W. S. Panjaitan & Paul Dargusch & David Wadley & Ammar A. Aziz, 2020. "Toward the best practice emissions reduction in an emerging economy: an analysis of cement manufacturing in Indonesia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 103-122, September.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:1:p:103-122
    DOI: 10.9770/jesi.2020.8.1(7)
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    References listed on IDEAS

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    1. Rahman, Md. Mizanur & B. Mostafiz, Suraiya & Paatero, Jukka V. & Lahdelma, Risto, 2014. "Extension of energy crops on surplus agricultural lands: A potentially viable option in developing countries while fossil fuel reserves are diminishing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 108-119.
    2. Roger L. Burritt & Stefan Schaltegger & Dimitar Zvezdov, 2011. "Carbon Management Accounting: Explaining Practice in Leading German Companies," Australian Accounting Review, CPA Australia, vol. 21(1), pages 80-98, March.
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    More about this item

    Keywords

    emission intensity; reductions; clinker substitutes; alternative fuels; kilns;
    All these keywords.

    JEL classification:

    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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