IS IT WORTH GOING GREEN IN CROATIA? EMPIRICAL EVIDENCE FROM SMEs

Abstract

Technological progress and innovations in production are the basis for increasing productivity and reducing operating costs. On the other hand, rapid development accompanied by neglected environmental issues has resulted in adverse effects on the environment, and thus on the entire society. The consequences on the environment occur in the form of natural disasters, climate change and global warming. In order to reduce the adverse effects on the environment, states have introduced legal provisions, such as pollution charges. Such charges represent the costs incurred by the company that consequently burden its financial result. On the other hand, those charges can be lower for companies that apply more efficient production methods. The question is whether it is worth for a company to be “green” and hence pay a lower charge, or not to take into account “green business” and pay a higher charge for using inefficient production methods. This paper will explore whether it is worth being green, i.e. whether improving production efficiency results in a reduction of production costs. The emphasis is thereby placed on small and medium-sized enterprises as generators of economic growth and green jobs. In order to give an adequate review of green business and green market in Croatia, authors will analyse the Eurobarometer survey Flash Eurobarometer 426, focusing on Croatian data (n=502). It is evident that “green business” is one of the main business areas in the context of sustainable and socially responsible business.

Keywords: Green business, green markets, resource efficiency, costs, Eurobarometer survey