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Anatomy of a paradox: management practices, organizational structure and energy efficiency

Martin, Ralf, Muuls, Mirabelle, de Preux, Laure B. and Wagner, Ulrich J. (2012) Anatomy of a paradox: management practices, organizational structure and energy efficiency. Journal of Environmental Economics and Management, 63 (2). pp. 208-223. ISSN 0095-0696

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Identification Number: 10.1016/j.jeem.2011.08.003


This paper provides new evidence on the relationship between management practices and firm performance. We interviewed managers of 190 randomly selected manufacturing plants in the UK and matched their responses with official business microdata. We find that climate friendly management practices are associated with lower energy intensity and higher productivity. Firms that adopt more such practices also conduct more climate friendly R&D which will sustain future growth in energy efficiency. Our findings are akin to the "energy efficiency paradox" and highlight the linkages between particular management practices and firm-level energy efficiency. We also find a strong empirical link between climate friendly management practices and organizational structure. Firms are more likely to adopt such practices if climate change issues are managed by the environmental or energy manager, and if this manager is close to the CEO. Adoption is less likely when the CEO is in charge of climate change issues.

Item Type: Article
Official URL:
Additional Information: © 2012 Elsevier
Divisions: Grantham Research Institute
Centre for Economic Performance
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
JEL classification: L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting; Environmental Equity
Date Deposited: 04 Oct 2011 08:27
Last Modified: 11 Jun 2024 07:18

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