An integrated approach to resource efficiency, green markets and support measures in SMEs

Abstract Small and medium-sized enterprises (SMEs) play a prominent role in the ecological transition process needed to curb climate change. The European commitment to eliminate emissions by 2050 requires significant changes in business structures. This research seeks to provide quantitative information on the level of efficiency of the activities carried out by 13,343 companies of the EU-27. The aim is twofold: (1) to analyse the link between resource efficiency and green markets; and (2) to evaluate the boost that certain public and private measures can give to the green processes undertaken by SMEs, as these economic units are responsible for the bulk of carbon emissions. DEA-Bootstrap is applied, confirming the asymmetry between green markets and resource efficiency in efforts to achieve climate neutrality, with more progress needed on the latter to help tackle environmental challenges. Decision-makers should target subsidies to ensure the circularity of productive systems and thereby make progress on meeting the goals established by the 2030 Agenda. The study focuses on European SMEs, showing that in countries such as Denmark, the level of resource efficiency could improve by more than 72% if SMEs were provided with tools for self-assessing their activity, consultancy services, grants, and financial and technological advice, as well as a better understanding of the advantages offered.