Clean manufacturing industries and environmental quality: The case of Egypt

- Clean manufacturing determines environmental quality in four of its forms.
- CO2 emissions per capita are reduced with clean manufacturing.
- Change in forest area is enhanced with clean manufacturing.
- Consumption of ozone depleting substances is reduced with clean manufacturing.
- Lack of access to improved sources of water is reduced with clean manufacturing.

The present paper investigates the relationship between the quality of the environment and clean manufacturing industries in Egypt over the period 1990-2013. The chosen estimation technique is the error correction model. For that purpose, the effect of clean manufacturing industries, per capita income and technology on the quality of the environment are examined. Clean manufacturing industries are defined as industries that have low actual emissions per unit of output. This is usually attained as a result of using technologies that reduce waste(s) and minimize the use of non-renewable sources of energy. The results indicate that clean manufacturing industries are a determinant of environmental quality as indicated through CO2 emissions per capita, change in forest area, consumption of ozone depleting substances, and lack of access to improved sources of water. However, it was found to be insignificant for the case of lack of access to sanitation facilities. Policy implications to promote clean industries are given.