This study investigates the impact of green production on export performance within Asia’s agricultural and manufacturing sectors. It uses threshold panel data analysis to determine the specific emission thresholds that facilitate a shift from cost burden to competitive advantage. Results indicate that adopting renewable energy significantly enhances export values, especially when carbon emissions are maintained below 1.751 tons per capita for the manufacturing sector and 1.878 tons per capita for the agriculture sector. The findings highlight that manufacturing exports exhibit heightened sensitivity to changes in emission levels, suggesting an inverse relation between emission levels and export potential. For instance, when emissions exceed critical thresholds, they negatively impact exports to regions enforcing stringent environmental regulations, such as the European Union, Oceania, and North America, underscoring the potential trade benefits of lower emissions. In contrast, the effect of emissions on export performance in Asian markets is more subdued, likely due to less stringent environmental policies in this region. These insights demonstrate the economic benefits of integrating sustainable practices into production processes. They provide a valuable framework for policymakers and businesses aiming to enhance their competitive edge through environmental sustainability.

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Can Green Production Drive Competitive Advantage in Asian Agriculture and Manufacturing? A Threshold Panel Analysis Approach

  • Chatchai Khiewngamdee,
  • Terdthiti Chitkasame

摘要

This study investigates the impact of green production on export performance within Asia’s agricultural and manufacturing sectors. It uses threshold panel data analysis to determine the specific emission thresholds that facilitate a shift from cost burden to competitive advantage. Results indicate that adopting renewable energy significantly enhances export values, especially when carbon emissions are maintained below 1.751 tons per capita for the manufacturing sector and 1.878 tons per capita for the agriculture sector. The findings highlight that manufacturing exports exhibit heightened sensitivity to changes in emission levels, suggesting an inverse relation between emission levels and export potential. For instance, when emissions exceed critical thresholds, they negatively impact exports to regions enforcing stringent environmental regulations, such as the European Union, Oceania, and North America, underscoring the potential trade benefits of lower emissions. In contrast, the effect of emissions on export performance in Asian markets is more subdued, likely due to less stringent environmental policies in this region. These insights demonstrate the economic benefits of integrating sustainable practices into production processes. They provide a valuable framework for policymakers and businesses aiming to enhance their competitive edge through environmental sustainability.