Energy Efficiency and Carbon Emission Reduction in Coffee Roasting: Approach of Activity-Based Costing (ABC) Methodology

Wen-Hsien Tsai (), Kuo-Hsien Lee and Chung-Chen Huang
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Wen-Hsien Tsai: Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan
Kuo-Hsien Lee: Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan
Chung-Chen Huang: Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan

Energies, 2025, vol. 18, issue 5, 1-27

Abstract: This study explores optimizing carbon emissions in the coffee bean roasting industry through the application of Activity-Based Costing (ABC). By analyzing three roasting product combinations—light roast, medium roast, and dark roast—the research evaluates production costs, energy consumption, carbon emissions, and profitability. The light roast demonstrates the highest profitability and the lowest environmental impact, offering a favorable balance between economic and environmental objectives. Light roasting reduces carbon emissions by 33.33% compared to dark roasting and by 16.67% compared to medium roasting. The medium roast achieves moderate profitability while maintaining manageable energy consumption and carbon emissions. Conversely, the dark roast, though profitable, shows significantly higher energy consumption and carbon emissions, highlighting the need for targeted improvements in process efficiency. This study underscores the advantages of ABC in providing precise cost allocation and identifying resource inefficiencies, enabling businesses to implement energy-efficient technologies and optimize operations. It also emphasizes the importance of adopting renewable energy sources and leveraging government incentives to align sustainability with financial goals. This study serves as a model for integrating economic performance with environmental responsibility, offering actionable insights for businesses. Future research could expand the scope of this approach to other continuous process industries, demonstrating its broader applicability and potential for improving sustainability across diverse sectors.

Keywords: activity-based costing (ABC); carbon emission reduction; energy efficiency; coffee roasting optimization; sustainability optimization (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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