IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v8y2020i1p103-122.html
   My bibliography  Save this article

Toward the best practice emissions reduction in an emerging economy: an analysis of cement manufacturing in Indonesia

Author

Listed:
  • Togar W. S. Panjaitan

    (University of Queensland, Australia)

  • Togar W. S. Panjaitan

    (Petra Christian University, Indonesia)

  • Paul Dargusch

    (University of Queensland, Australia)

  • David Wadley

    (University of Queensland, Australia)

  • Ammar A. Aziz

    (University of Queensland, Australia)

Abstract

Cement manufacturing is an energy-and carbon-intensive process and a prominent contributor to global anthropogenic greenhouse gases (GHGs). Within emerging economies, this industry’s considerable potential to pollute can be exacerbated by outmoded plant or practices, and management’s limited capacity to remediate. In this context, the current study analyses the case of Indonesia’s leading producer, recording variations in greenhouse gas (GHG) sources to pinpoint opportunities for reduction. Emissions, measured 20% higher than the 2030 global industry target, occur from the calcination process, abetted by fuel combustion. Reductions should be focused on reducing the clinker-to-cement ratio and promoting the uptake of alternative fuels. Avenues lie in increasing the use of clinker substitutes such as fly ash and limestone, and employing fuels derived from waste and biomass. Both sources are abundant in Indonesia. Further declines in GHGs could be achieved through technological innovations such as the upgrading of kilns. The inquiry provides recommendations for emission mitigation in the cement industry not only in Indonesia but also in other developing countries.

Suggested Citation

  • Togar W. S. Panjaitan & Togar W. S. Panjaitan & Paul Dargusch & David Wadley & Ammar A. Aziz, 2020. "Toward the best practice emissions reduction in an emerging economy: an analysis of cement manufacturing in Indonesia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 103-122, September.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:1:p:103-122
    DOI: 10.9770/jesi.2020.8.1(7)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/29/Panjaitan_Toward_the_best_practice_emissions_reduction_in_an_emerging_economy_an_analysis_of_cement_manufacturing_in_Indonesia.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/607
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2020.8.1(7)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rahman, Md. Mizanur & B. Mostafiz, Suraiya & Paatero, Jukka V. & Lahdelma, Risto, 2014. "Extension of energy crops on surplus agricultural lands: A potentially viable option in developing countries while fossil fuel reserves are diminishing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 108-119.
    2. Roger L. Burritt & Stefan Schaltegger & Dimitar Zvezdov, 2011. "Carbon Management Accounting: Explaining Practice in Leading German Companies," Australian Accounting Review, CPA Australia, vol. 21(1), pages 80-98, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rahman, Md. Mizanur & Hasan, Mohammad Mahmodul & Paatero, Jukka V. & Lahdelma, Risto, 2014. "Hybrid application of biogas and solar resources to fulfill household energy needs: A potentially viable option in rural areas of developing countries," Renewable Energy, Elsevier, vol. 68(C), pages 35-45.
    2. Natalia Semenova, 2021. "Management control systems in response to social and environmental risk in large Nordic companies," International Journal of Corporate Social Responsibility, Springer, vol. 6(1), pages 1-11, December.
    3. Binh Bui & Carolyn Fowler, 2022. "Carbon controls in a New Zealand electricity utility: An application of theoretical triangulation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4423-4451, December.
    4. Mia Kaspersen & Thomas Riise Johansen, 2016. "Changing Social and Environmental Reporting Systems," Journal of Business Ethics, Springer, vol. 135(4), pages 731-749, June.
    5. Burritt, Roger & Schaltegger, Stefan, 2014. "Accounting towards sustainability in production and supply chains," The British Accounting Review, Elsevier, vol. 46(4), pages 327-343.
    6. Mahmoudian, Fereshteh & Lu, Jing & Yu, Dongning & Nazari, Jamal A. & Herremans, Irene M., 2021. "Inter-and intra-organizational stakeholder arrangements in carbon management accounting," The British Accounting Review, Elsevier, vol. 53(1).
    7. Zahra Borghei, 2021. "Carbon disclosure: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5255-5280, December.
    8. Ahmed Nahar Al-Hussaini, 2019. "The Role of Financial Management in Testing Environmental Kuznets Curve in Kuwait: Evidence from ARDL Bound Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 353-359.
    9. Roger Burritt & Katherine Christ, 2016. "Industry 4.0 and environmental accounting: a new revolution?," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 1(1), pages 23-38, December.
    10. Mishra, Ranjeet Kumar & Mohanty, Kaustubha, 2019. "Pyrolysis of three waste biomass: Effect of biomass bed thickness and distance between successive beds on pyrolytic products yield and properties," Renewable Energy, Elsevier, vol. 141(C), pages 549-558.
    11. Lartey, Theophilus A. & Amankwah-Amoah, Joseph & Danso, Albert & Adomako, Samuel & Khan, Zaheer & Tarba, Shlomo Y., 2021. "Environmental sustainability practices and offshoring activities of multinational corporations across emerging and developed markets," International Business Review, Elsevier, vol. 30(5).
    12. Anufriev, I.S., 2021. "Review of water/steam addition in liquid-fuel combustion systems for NOx reduction: Waste-to-energy trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    13. Kuang, Yonghong & Zhang, Yongjun & Zhou, Bin & Li, Canbing & Cao, Yijia & Li, Lijuan & Zeng, Long, 2016. "A review of renewable energy utilization in islands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 504-513.
    14. David Talbot & Olivier Boiral, 2018. "GHG Reporting and Impression Management: An Assessment of Sustainability Reports from the Energy Sector," Journal of Business Ethics, Springer, vol. 147(2), pages 367-383, January.
    15. Asif, Muhammad & Searcy, Cory & Castka, Pavel, 2023. "ESG and Industry 5.0: The role of technologies in enhancing ESG disclosure," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    16. Martina K. Linnenluecke & Jacqueline Birt & Xiaoyan Chen & Xin Ling & Tom Smith, 2017. "Accounting Research in Abacus, A&F, AAR, and AJM from 2008–2015: A Review and Research Agenda," Abacus, Accounting Foundation, University of Sydney, vol. 53(2), pages 159-179, June.
    17. Yijie Dou & Qinghua Zhu & Joseph Sarkis, 2015. "Integrating Strategic Carbon Management into Formal Evaluation of Environmental Supplier Development Programs," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 873-891, December.
    18. Morgane Le Breton & Franck Aggeri, 2015. "La Construction De La Comptabilite Carbone : Histoire, Usages Et Perspectives," Post-Print hal-01200628, HAL.
    19. Weldekidan, Haftom & Strezov, Vladimir & Town, Graham, 2018. "Review of solar energy for biofuel extraction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 184-192.
    20. Iwona Posadzińska & Małgorzata Grzeszczak, 2022. "Management Accounting System in the Management of an Intelligent Energy Sector Enterprise," Energies, MDPI, vol. 15(20), pages 1-17, October.

    More about this item

    Keywords

    emission intensity; reductions; clinker substitutes; alternative fuels; kilns;
    All these keywords.

    JEL classification:

    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:8:y:2020:i:1:p:103-122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.