Modern Management: Good for the Environment or Just Hot Air?Nicholas Bloom (), Christos Genakos, Ralf Martin () and Raffaella Sadun () CEP Discussion Papers from Centre for Economic Performance, LSE Abstract: We use an innovative methodology to measure management practices in over 300 manufacturingfirms in the UK. We then match this management data to production and energy usage information forestablishments owned by these firms. We find that establishments in better managed firms aresignificantly less energy intensive. They use less energy per unit of output, and also in relation toother factor inputs. This is quantitatively substantial: going from the 25th to the 75th percentile ofmanagement practices is associated with a 17.4% reduction in energy intensity. This negativerelationship is robust to a variety of controls for industry, location, technology and other factor inputs.Better managed firms are also significantly more productive. One interpretation of these results is thatwell managed firms are adopting modern lean manufacturing practices, which allows them to increaseproductivity by using energy more efficiently. This suggests that improving the management practicesof manufacturing firms may help to reduce greenhouse gas emissions. Keywords: management; energy efficiency; energy intensity and productivity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:cep:cepdps:dp0891 Access Statistics for this paper More papers in CEP Discussion Papers from Centre for Economic Performance, LSE |
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