Investigating the Impact of Manufacturing Agglomeration on Green Economic Efficiency of Industrial Workshops with Ten or More Employees

Document Type : applicative

Authors

1 Master of Energy Economics, Shahid Bahonar University of Kerman, Kerman, Iran.

2 Associate Professor in the Department of Economics, Shahid Bahonar University of Kerman, Kerman, Iran.

3 Professor in the Department of Economics, Shahid Bahonar University of Kerman, Kerman, Iran.

10.30473/jier.2025.73645.1490

Abstract

With the intensification of global environmental challenges, green development has become an essential low-carbon and sustainable approach. The United Nations Environment Programme (UNEP) and many countries have implemented green economic policies. This study measures Green Economic Efficiency (GEE) as a key indicator using the SBM method for industrial workshops with ten or more employees across eleven industrial categories (such as beverages, food products, apparel, chemical manufacturing, etc.). It then examines the impact of production agglomeration and control variables on green efficiency over the period 2011 to 2021. Analyzing the efficiency of Iranian industries during this period reveals significant fluctuations in productivity across different sectors. The beverage industry has maintained the highest efficiency, whereas industries such as apparel and metals have performed poorly. High production agglomeration has negatively impacted green efficiency, while human capital and infrastructure development have had positive effects. Environmental regulations have been ineffective, and technological innovation has not had a significant impact. Improvement requires reducing production agglomeration, investing in workforce education, reforming environmental regulations, developing green technologies, enhancing infrastructure, and increasing energy efficiency. These measures, collectively, can contribute to the country’s sustainable industrial development.

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Journal of Industrial Economics researches
Volume 8, Issue 29
September 2025
Pages 20-38

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History

  • Receive Date: 31 January 2025
  • Revise Date: 02 April 2025
  • Accept Date: 22 May 2025

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