Green Technology Innovation and Firm-Level Technical Efficiency in the Philippines

paper
green-innovation
firm-efficiency
DEA
Using Data Envelopment Analysis and spatial Tobit models on 748 firms from the 2024 World Bank Green Economy Survey, this paper shows that green innovation improves technical efficiency by 8.7%, with greater gains for large firms and urban manufacturers.
Published

February 1, 2025

Summary

This study examines how green technology innovation (GI) influences firm-level technical efficiency in the Philippines, applying the Resource-Based View (RBV) and institutional theory. Using data from 748 firms in the 2024 World Bank Enterprise Survey Green Economy module, a two-stage approach is employed:

  1. Data Envelopment Analysis (DEA) measures technical efficiency across firms of different sizes, sectors, and regions.
  2. A spatial Tobit model assesses the impact of GI (via the GreenInov2 index), adjusting for internal resources (financial access, energy and internet usage, managerial experience) and external pressures (environmental inspections, climate strategies).

Results show GI improves efficiency by 8.7%, with greater gains for large firms and urban manufacturers, especially in Calabarzon. Robustness is confirmed using alternative measures and instrumental variable models. The findings position GI as a VRIN resource under RBV and highlight the role of regulation under institutional theory.

Presented at

12th International Conference on the Global Congress on Emerging Technologies (GCET 2025), University Lyon 1, Lyon, France, December 2–5, 2025. Proceedings pp. 108–116.

Citation

Niankara, I. (2025). Green Technology Innovation and Firm-Level Technical Efficiency: A Two-Stage Analysis in the Philippines. 2025 Global Congress on Emerging Technologies (GCET 2025), pp. 108–116.