Factors affecting the adoption of energy efficiency measures across business enterprises in India

PurposeThis study aims to analyse the factors affecting the adoption of energy efficiency measures (EEMs), like energy conservation and management, heating and cooling improvements and improvements to lighting systems across business enterprises.Design/methodology/approachAnalytical techniques such as descriptive statistics, chi-square test and logistic regression with marginal effect have been used on the World Bank Enterprise Survey 2022 data covering 9,374 firms in India to make the necessary inferences.FindingsAnalysis indicates that about 79.7 % firms have reported the adoption of at least one EEM. The chi-square statistics show that medium manufacturing firms with higher age, having female ownership, belonging to bigger cities, spending on R&D, taking credit from financial institutions and having international quality certification are comparatively more associated with EEM adoption. Further, the analysis of marginal effect indicates that enterprise characteristics such as age, size, ownership, lean operations, spending on R&D, availing credit and certification significantly impact the adoption of EEMs. Similarly, firms with higher capacity utilisation and facing business obstacles such as access to resources, regulations and externalities have significantly influenced the adoption of EEMs.Practical implicationsThis study provides insights to firms in devising strategies and managing factors affecting the adoption of each element of EEM for enhancing efficiency and encouraging green economy practices.Originality/valueConsidering energy conservation and efficiency as an area of concern among the firms and the availability of limited comprehensive empirical investigation, this study provides unique theoretical and practical contributions.