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Growth through Green? Evidence from Firms Adopting Resource Efficiency Practices

Author

Listed:
  • Vincenzo Capalbo
  • Alessandra Caruso
  • Fulvio Iavernaro
  • Angela Fortunato

Abstract

This study examines the relationship between the adoption of resource-efficiency practices and firm growth, measured in terms of employment and turnover. Drawing on survey data from Flash Eurobarometer 549, considering 10,994 firms, we analyze both the cumulative implementation of ten distinct resource-efficiency actions and the individual impact of each practice. Our results show that the breadth of implementation does not have a significant effect on firm growth, suggesting that merely increasing the number of adopted practices is insufficient to drive performance. However, specific practices, such as internal recycling and switching to greener suppliers, are associated with positive growth outcomes, while others, including waste minimization and external waste sales, exhibit negative or mixed effects. These findings contribute to the literature on corporate sustainability by highlighting the heterogeneous impact of environmental actions and emphasizing the importance of strategic alignment in achieving sustainable growth. Implications for firm-level decision-making and policy design are discussed.

Suggested Citation

  • Vincenzo Capalbo & Alessandra Caruso & Fulvio Iavernaro & Angela Fortunato, 2025. "Growth through Green? Evidence from Firms Adopting Resource Efficiency Practices," Research in Social Sciences, Academia Publishing Group, vol. 8(4), pages 1-15.
    • Handle: RePEc:ajo:reissc:v:8:y:2025:i:4:p:1-15:id:434
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