IMPACT EVALUATION OF CARBON AND ENERGY MANAGEMENT PRACTICES ON SUSTAINABLE INNOVATION OF MANUFACTURING FIRMS IN NIGERIA
Keywords:
Carbon Management Practice, Energy Management Practice, Environmental Sustainability Practices, Sustainable Innovation, Research and Development InvestmentAbstract
This study examined the role of carbon and energy management practices in fostering sustainable innovation within Nigeria manufacturing sector. As global environmental concerns increase, manufacturing firms are under pressure to adopt carbon reduction and energy efficiency measures. This research investigated how these practices contribute to innovation, particularly in research and development (R&D) expenditure investments. Using data from 38 listed manufacturing firms for the years 2013 - 2023, the study finds that There is a significant and positive effect of carbon management practice on research and development (R & D) innovation expenditures of listed manufacturing companies in Nigeria (p-value 0.009; t-statistic 2.5955); and There is no significant and negative effect of energy management practice on research and development (R & D) innovation expenditures. hence, the practice of carbon management will obviously lead to the reduction in carbon emissions and improvement in energy efficiency thereby resulting in a lower operational cost. Firms implementing carbon reduction strategies and energy-efficient processes experience significant improvements in product development, operational efficiency, and regulatory compliance. The study recommended the need to incorporate carbon management considerations into decision-making processes, investment criteria, even as research and development (R & D) planning can help firms optimize resources, improve operational efficiency, and drive innovation. Secondly, transitioning to renewable energy sources such as solar, wind, or biomass, can help manufacturing firms reduce reliance on traditional fossil fuels, lower carbon emissions, and mitigate energy costs. Integrating renewable energy systems into operations can provide a sustainable and reliable source of power for R&D initiatives, while supporting environmental sustainability goals. Lastly, regular Manufacturing firms should start by conducting comprehensive energy audits to assess current energy consumption patterns, identify areas of inefficiency, and pinpoint opportunities for improvement.
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