Journal
ECONOMIC JOURNAL
Volume 120, Issue 544, Pages 551-572Publisher
OXFORD UNIV PRESS
DOI: 10.1111/j.1468-0297.2010.02351.x
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Funding
- Economic and Social Research Council [ES/G021694/1, RES-107-28-1001, ES/H02123X/1] Funding Source: researchfish
- ESRC [ES/G021694/1, ES/H02123X/1] Funding Source: UKRI
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We use an innovative methodology to measure management practices in over 300 manufacturing firms in the UK. We then match this management data to production and energy usage information for establishments owned by these firms. We find that establishments in better managed firms are significantly less energy intensive. This effect is quantitatively substantial: going from the 25th to the 75th percentile of management practices is associated with a 17.4% reduction in energy intensity. Better managed firms are also significantly more productive. These results suggest that management practices that are associated with improved productivity are also linked to lower greenhouse gas emissions.
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