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Is green manufacturing expensive? Empirical evidence from China

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  • Yunshi Mao
  • Jing Wang

Abstract

With increasingly serious environmental problems, a circular economy production system is in urgent needs. This study explores whether green manufacturing (GM) is expensive and how external institutional environmental pressures influence the cost of GM among industrial enterprises in emerging economies. Through an analysis of 10,380 observations of 1470 listed manufacturing firms in the Chinese share market from 2008 to 2015, this paper finds that GM increases operating cost (OC). In addition, the positive relationship between GM and OC is strengthened with reduced pollution level in the local city. Furthermore, synergistic effects of the local pollution level and the local government’s pollution information transparency are found. Firms’ OC increases more as firms carry out GM when both the local pollution level and pollution information transparency of local government are high, or when the local pollution level and the local government’s pollution information transparency are low.

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  • Yunshi Mao & Jing Wang, 2019. "Is green manufacturing expensive? Empirical evidence from China," International Journal of Production Research, Taylor & Francis Journals, vol. 57(23), pages 7235-7247, December.
    • Handle: RePEc:taf:tprsxx:v:57:y:2019:i:23:p:7235-7247
    DOI: 10.1080/00207543.2018.1480842
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    Cited by:

    1. Jing Wang & Yunshi Mao, 2020. "Pains and gains of environmental management system certification for the sustainable development of manufacturing companies: Heterogeneous effects of industry peer learning," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 2092-2109, July.
    2. Die Wu & Hafeezullah Memon, 2022. "Public Pressure, Environmental Policy Uncertainty, and Enterprises’ Environmental Information Disclosure," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    3. Yanyan Zheng & Jin Zhang & Mengyuan Wang & Peng Liu & Tong Shu, 2023. "Low-Carbon Manufacturing or Not? Equilibrium Decisions for Capital-Constrained News Vendors with Subsidy and Carbon Tax," Sustainability, MDPI, vol. 15(15), pages 1-23, July.
    4. Liu, Fuzhen & He, Chaocheng & Lai, Kee-hung, 2024. "Market reaction to responsible production practices adoption: The role of firm size and financial slack," International Journal of Production Economics, Elsevier, vol. 272(C).
    5. Farooque, Muhammad & Zhang, Abraham & Liu, Yanping & Hartley, Janet L., 2022. "Circular supply chain management: Performance outcomes and the role of eco-industrial parks in China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).

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