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Sustainable performance-oriented production practices in the Indian iron and steel industry: An empirical investigation
- Bali, Naveen, Panta, Murali Prasad, Antelo, Manel
- Journal of cleaner production 2019 v.226 pp. 379-391
- carbon dioxide, environmental assessment, fossil fuels, greenhouse gas emissions, greenhouse gases, industry, iron, metallurgy, pollution control, research and development, steel, sustainable development, sustainable technology, technology, value added
- Capital-intensive industries consume fossil fuels for mass production with little concern for nature's assimilative capacity, which results in an accumulation of greenhouse gases (GHGs). Pollution abatement systems based on market-induced correctives and multi-national agreements works as ex-post remedial measures and have limited effectiveness in the reduction of GHGs. In this paper, we formulate the sustainable-structure-conduct-performance (S-SCP) paradigm as an ex-ante remedial measure by mimicking the structure-conduct-performance (SCP) paradigm to reduce the GHGs. By using a dynamic panel data, the workability of the S-SCP paradigm was tested on CO2 emissions for selected major Indian iron and steel industries (IISI). Our findings show that the green relative index was positively significant in respect of green value added (GREVA). However, green R&D and barriers to entry and exit were negatively significant in respect of GREVA. Overall, the S-SCP paradigm's test in ISII suggests that the incorporation of social cost into the firm's structure and conduct will achieve sustainable performance-oriented production practices that reduce CO2 emissions. We propose general suggestions on industrial parks for green technology innovation, management responsibility mechanisms, environmental impact assessment notifications and an Indian sustainable development commission.