Assessing the Interdependencies Between the Production Environmental and Fiscal Activities of European Union Industrial Enterprises Using Structural Equation Modeling

Małgorzata Sztorc () and Medard Makrenek
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Małgorzata Sztorc: Department of Management and Organization, Faculty of Management and Computer Modelling, Kielce University of Technology, al. Tysiąclecia Państwa Polskiego 7, 25-314 Kielce, Poland
Medard Makrenek: Department of Mathematics and Physics, Faculty of Management and Computer Modelling, Kielce University of Technology, al. Tysiąclecia Państwa Polskiego 7, 25-314 Kielce, Poland

Sustainability, 2025, vol. 17, issue 22, 1-38

Abstract: Today, industrial activity is a significant factor in the economic growth of the European Union countries. It is characterized by complex relationships between economic efficiency, environmental impact, and the social environment. This study aims to identify and analyze the interconnections between the economic, ecological, and social dimensions of the operations of industrial enterprises, with particular emphasis on their importance in the implementation of the principles of sustainable development. This article attempts to create a theoretical model of sustainable development composed of three latent variables: Work, Eco, and Poll, for industrial enterprises from 27 European Union countries, based on statistical data from Eurostat databases. Structural equation modeling was used to analyze complex relationships between variables. The model was verified, estimated, and evaluated using two approaches: Covariance-Based Structural Equation Modeling and Partial Least Squares Structural Equation Modeling. The research confirmed that the intensity of production activity of industrial enterprises promotes the implementation of advanced pro-ecological strategies that contribute to the optimization of fiscal obligations. Implementing a sustainable development strategy not only minimizes negative environmental impacts but also enhances the economic efficiency and competitiveness of industrial enterprises. The results indicate a significant need to integrate the economic, ecological, and fiscal dimensions within a coherent sustainable development strategy.

Keywords: sustainable development; structural equation modeling; environmental protection; manufacturing enterprise (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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