Environmental projects and financial performance: Exploring the impact of project characteristics

Mira Thoumy and Stephan Vachon

International Journal of Production Economics, 2012, vol. 140, issue 1, 28-34

Abstract: In several manufacturing organizations, environmental management systems are often operationalized through a series of green projects that can lead to a reduction of waste or a more efficient use of the resources. In turn, these types of green projects contribute directly to the bottom line. Using detailed reports of 79 environmental projects that took place in manufacturing organizations in the Province of Quebec over the last decade; this paper examines the influence of four project characteristics on the project's financial outcome. The results suggest that projects related to the main product or its underlying production process (as opposed to peripheral projects) can be financially more beneficial despite their disruptive nature. Evidence was also found that green projects involving changes in the management systems are more profitable than the ones that entail a structural transformation. Finally, a positive linkage between organizational size and project's financial performance has been supported, as larger organizations have more capabilities to implement such green initiatives.

Keywords: Environmental projects; Manufacturing; Environmental technologies (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527312000163
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:140:y:2012:i:1:p:28-34

DOI: 10.1016/j.ijpe.2012.01.014

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().