Role of government towards adoption of cleaner technologies for climate proactivity. A survey-based empirical study of Indian firms
| DOI | https://doi.org/10.1108/WJSTSD-02-2016-0027 |
| Date | 03 January 2017 |
| Published date | 03 January 2017 |
| Pages | 29-49 |
| Author | Santanu Kumar Satapathy,Shirish Sangle,Seema Unnikrishnan |
| Subject Matter | Public policy & environmental management,Environmental technology & innovation |
Role of government towards
adoption of cleaner technologies
for climate proactivity
A survey-based empirical study of Indian firms
Santanu Kumar Satapathy
National Institute of Industrial Engineering (NITIE), Mumbai, India
Shirish Sangle
Sustainable Business, National Institute of Industrial Engineering (NITIE),
Mumbai, India, and
Seema Unnikrishnan
National Institute of Industrial Engineering (NITIE), Mumbai, India
Abstract
Purpose –There is a need for considerable attention on the adoption of cleaner technologies (CT) by firms
for climate proactivity for developing countries such as India. Literature survey suggests that government,
market and civil society are the key drivers of CT adoption (CTA) in developing countries.The purpose of this
paper is to investigate the mediating and moderating role of the government in CTA for climate proactivity.
Design/methodology/approach –The data collected from a survey of Indian firms were analyzed through
exploratory factor analysis and multiple regression analysis to examine the mediating and moderating role of
the government.
Findings –The empirical outcome was compared with the current government policies to summarize the
research findings.
Research limitations/implications –There is scope of future research to examine the moderating and
mediating role of market and civil society in CTA for climate proactivity.
Practical implications –The study will provide significant insight into various stakeholders associated
with the CTA such as government, technology manufacturers, marketing community, environmental
professionals and associated researchers. The research model will be useful for policymakers, managers and
researchers for understanding CTA in the Indian context.
Social implications –The output model will be useful for the government to formulate forward-looking
strategies toward the adoption of CT by industries for climate proactivity.
Originality/value –Unlike previous studies in which the government was recognized as a key driver of
CTA, this study makes an attempt to test the moderating/mediating role of government in CTA in India. The
findings of the study are supported by adequate empirical evidence.
Keywords Government policy, Cleaner technologies adoption, Climate proactivity, Indian firms,
Moderating and mediating role
Paper type Research paper
1. Introduction
What is the role of government toward the adoption of cleaner technologies (CTs) by firms
in India? While many studies have been carried out in developed countries on CT adoption
(CTA), very less research is evident on developing countries such as India. In the early
1970s, most of the developed countries such as USA and Canada established stringent
environmental regulations to address the concern of environmental pollution and the
threat of climate change. This resulted in an increase in their pollution abatement
investments significantly. For example pollution abatement expenditure of USA was
increased by 137 percent over the period 1979-1994 (Berman and Bui, 2001). Similarly,
Canada had to increase its pollution abatement expenditure by 27 percent during
1995-2002 to meet the new environmental norms (Statistics Canada, 2004). A recent study
World Journal of Science,
Technology and Sustainable
Development
Vol. 14 No. 1, 2017
pp. 29-49
© Emerald PublishingLimited
2042-5945
DOI10.1108/WJSTSD-02-2016-0027
The current issue and full text archive of this journal is available on Emerald Insight at:
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29
Adoption of
CTs for climate
proactivity
finds that CT diffusion in India is only 12 percent compared with 59 percent by China
(Dechezleprêtre et al., 2009).
CTs use lesser natural resources and have reduced environmental impact (OECD, 2014;
Truffer, 2012) compared with the conventional technologies. Current studies show that
technological innovation is strongly focusing on the development of CTs for various
applications ( Jacobsson and Bergek, 2011). Despite the urgent need for CTA, very few
studies have been carried out in the developing countries pertaining to technological
innovation, which limits access to the clean-tech potential in emerging economies such as
India and China (Bai et al., 2009; Binz et al., 2014, 2012; Gosens and Lu, 2013; Hansen and
Nygaard, 2013; van Alphen et al., 2008; Vasseur et al., 2013).
Multinational companies operating in the regions of negligent environmental compliance
requirement, but with presence in the mature global marketplaces with a demand for
environment-friendly goods, are more inclined toward the adoption of CTs (Luken and
Van Rompaey, 2008; Calleja et al., 2002; Luukkanen, 2003).
As developing countries such as India, China and Africa are rapidly industrializing, it is
important for them to develop and adopt CT right from the design stage of new projects.
Since the Rio Conference of 1992, environmental performance of the industries in developing
countries has achieved major improvements. Between 1990 and around 2002, developing
countries have fared better in terms of reducing water pollution and energy conservation.
Developing countries have achieved a 27 percent reduction in energy intensity and a
49 percent reduction in water pollutant intensity during this period. In contrast, the
developed countries have achieved only about an 8 percent reduction in energy intensity
and a 29 percent reduction in water pollutant intensity during the same period (Luken and
Castellanos-Silveria, 2006). However, despite this, developed countries remain better placed
in terms of pollution reduction compared with their counterparts in developing countries.
The energy use, water use, water pollutant and carbon dioxide emission of industries in
developing countries remain almost three times, more than 11 times, six times and four
times higher, respectively (Luken et al., 2008). The gap needs to be analyzed by the
governments of developing countries and the factors need to be identified to step up the
speedy adoption of CT.
Developing countries will be the most impacted by the climate change effects; in
particular, the poor populations will suffer the most because of their inability to sufficiently
adapt to the change (World Bank Report, 2013). Therefore, climate change offers ample
opportunity for the developing countries to formulate their own strategy to promote local
cleaner industries that can lead to economic, social and environmental benefits. CTA is
extremely essential to tackle the issues arising from environmental pollution resulting in
climate change. A study of past research work on CTA indicates that ample research has
been carried out on the adoption of CT at factory as well as sector levels (Montalvo, 2002;
Wijk et al., 2001). As it is evident that widespread adoption of CT will help mitigate the
climate change effects, it is essential to determine the factors affecting CTA for climate
variability (Sangle, 2011).
1.1 Need and significance
Technology and human activities are the pivotal causative agents of climate change.
Literature survey suggests that a reduction in GHG emissions can only be achieved through
adoption of CT by companies and eco-friendly technology-based product adoption by
individuals. As India is becoming a major player in the global economy in the twenty-first
century, it is necessary that it takes steps to address the climate change issue through
policies and regulations. Investing in CTs holds the greatest promise toward addressing
these challenges while generating superior returns and job creation. As a rising economy of
the twenty-first century, India is under global pressure to reduce its GHG emissions while
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WJSTSD
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