Analyzing Resource Efficiency Methods in Turkey: The Impact on Production Cost and Sales Volume

Abstract

Rapid economic growth along with carelessness related to environmental problems have caused adverse impacts on nature and to civilization as a whole. The effects on nature include temperature changes and increased climactic and environmental disasters. To minimize the negative effects of climate change and reduce future emissions, several governments have announced charges for greenhouse gas emissions. However, these charges present extra operational costs for firms and impact their financial health. This study analyses the impact of offering ecological friendly products and services on the production costs and sales volume of resource-efficient Turkish Small and medium sized enterprises (SMEs) using data from the Flash Eurobarometer 456. The findings reveal that offering “green” products do not increase the sales volume. However, resource efficiency activities can influence SMEs’ production costs. This result can help practitioners who are looking for opportunities for cost reductions in manufacturing to apply more resource-efficient mechanisms.