Green measures and firm characteristics: evidence from small businesses in an emerging economy

ABSTRACT

This paper attempts to investigate the firm characteristics that could possibly influence the use of green practices in a sample of small firms. Using a probit model and a firm-level dataset containing information on the use of green measures by the firms, the paper investigates the link between firm characteristics and several ‘green’ practices. These green practices include the use of an electricity system equipped with residual current device, the use of energy-efficient devices, the use of measures to save water and finally measures taken to reduce/reuse/recycle waste. The paper finds that there is some evidence indicating that characteristics such as size and financial performance of firms affect the use of green practices in small firms in Mauritius. This is an area that is largely understudied, especially in the case of emerging economies such as Mauritius, given data limitations. Hence, this paper is an important empirical contribution to the literature.

KEYWORDS:

• Green practices
• small firms
• performance

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1. Although strictly speaking, the RCD is not exactly a ‘green’ measure but it can help to lengthen the lifespan of electrical devices and thus reduce the carbon footprint of small businesses. Hence, in this study the use of an RCD is treated as a green measure.

2. As mentioned earlier, the RCD is not exactly a ‘green’ measure but it can help to lengthen the lifespan of electrical devices and thus reduce the carbon footprint of small businesses.