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Clean production and Employment Outcomes: An Eco-efficiency Firm Level Analysis in Kenya

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  • Akama, Erick Maiko
  • Lokina, Razack
  • Mkenda, Beatrice Kalinda

Abstract

This study explores the correlation between environmental performance and employment outcomes in the manufacturing industry in Kenya. Specifically, the study seeks to achieve three primary goals: first, to examine the impact of eco-efficiency on various types of employment outcomes; second, to examine the effect of adopting an Environmental Management System (EMS) on employment outcomes; and lastly, to compare the impact of using either a commitment-based approach (proactive firms) or a compliance-based approach (reactive firms) on different types of employment outcomes. The study uses a 2-year panel data of Kenya's manufacturing firms from the Regional Programme Enterprise Development (RPED). Analysis is done using a pooled panel regression model that utilizes eco-efficiency scores as explanatory variables and employment outcomes as the dependent variable. The study findings indicate that by improving eco-efficiency in resource allocation, there is a potential gain in employment outcomes – though this gain varies depending on the type of employment outcome being considered. Moreover, proactive firms were found to perform better than reactive firms in employment outcomes, implying that adopting a commitment-based approach towards environmental management is more beneficial for manufacturing firms in terms of bolstering their employment outcomes.

Suggested Citation

  • Akama, Erick Maiko & Lokina, Razack & Mkenda, Beatrice Kalinda, 2023. "Clean production and Employment Outcomes: An Eco-efficiency Firm Level Analysis in Kenya," African Journal of Economic Review, African Journal of Economic Review, vol. 11(2), March.
    • Handle: RePEc:ags:afjecr:333992
    DOI: 10.22004/ag.econ.333992
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    References listed on IDEAS

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    4. Frijns, Jos & Van Vliet, Bas, 1999. "Small-Scale Industry and Cleaner Production Strategies," World Development, Elsevier, vol. 27(6), pages 967-983, June.
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