From “Fairly Good” to “Optimal” Energy Efficiency Practices within the Moroccan Manufacturing Sector: Are Financial Resources Sufficient?

Abstract

Climate change urgency requires a fast transition to a low carbon society which implies broad-scale changes at all levels, hence the need of an energy transition based on enhancing energy efficiency and renewable energy. Energy efficiency is pivotal to combat climate change, it is the most affordable and readily accessible resource, and the most profitable path to sustainability. Manufacturing companies are increasingly adopting energy efficiency practices (EEP) as they become more knowledgeable about the central role energy efficiency plays in their companies’ competitiveness and the planet’s sustainability. However, the severity of climate change requires the adoption of “optimal” EEP rather than “fairly good” ones. Companies’ satisficing behavior occurs when they do not operate as profit-maximisers, but as satisfactory solutions-seekers. This study explores avenues to address companies’ satisficing behavior regarding EEP. Our research model was empirically tested through survey data collected from 193 manufacturing companies in Morocco. Results show that satisficing negatively affects EEP. Financial slack and governments’ incentives have a positive direct effect on EEP without attenuating the negative relationship between satisfying and EEP. Mimetic pressure attenuates the negative relationship between satisfying and EEP. Based on our findings, policy implications are discussed.