3062. Environmental Resources and its Cost-Efficient Utilization
Invited abstract in session WC-39: Sustainable Supply Chains II, stream Sustainable & Resilient Systems and Infrastructures.
Wednesday, 12:30-14:00Room: Newlyn LG.01
Authors (first author is the speaker)
| 1. | Muktak Tripathi
|
| Accounting and Management Control, IE University |
Abstract
The study aims to provide insights into the cost-efficient allocation of environmental resources and further promote firms’ participation in promoting United Nations Sustainable Development Goals (SDG) goals. I examine marginal cost trade-offs of the environmental resources as the determinants of firms’ cost-efficiency. I first measure environmental resource efficiency by using data envelopment analysis (DEA) to peer-benchmark firms’ production function that maximizes the output of total revenues given inputs of environmental resources’ total costs, including soil, water, flora, fauna, and human capital. On average, firms’ environmental resource efficiency is sticky, given changes in demand, and improves through greater (lesser) utilization of soil, fauna, and human capital resources (water and flora). This finding provides insights into reducing total environmental resources costs by understanding marginal cost trade-offs, optimizing allocations, and improving utilization rates. In doing so, at a minimum, firms can invest in long-term procuring and cultivating cost-efficient environmental resources for future years. I also test for the implication of environmental resource efficiency on firms' decisions by examining their commitment to climate control actions. I find efficient firms are more likely to select and opt-in to conducting climate control actions, positively affecting commitment towards carbon neutrality and global warming targets.
Keywords
- Efficiency Analysis
- Environmental Management
- Sustainable Development
Status: accepted
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