Cleaner Production in Small Firms taking part in Mexico ́ s Sustainable Supplier Program September 2012

This research assesses the environmental and economic benefits and costs of cleaner production projects formulated by smalland medium-sized enterprises (SMEs) participating in a sustainable supply program in Mexico. The program was designed as a public-private voluntary partnership to spur cleaner production dissemination in SMEs that are part of global supply chains. The study analyzes how project benefits varied as a function of different types of cleaner production applications, company characteristics and participant profiles. The results, based on statistical evidence from 1,934 cleaner production projects formulated by a group of 972 small and medium sized firms, indicate that on average waste recycling and waste prevention projects yielded higher economic and environmental value than energy efficiency and water conservation projects. Waste reduction applications also showed more attractive net present values than technology innovations or best practices. Economic and environmental benefits of cleaner production are positively related to firm size. This study contributes to the literature by providing empirical evidence on how larger supplier and waste recycling projects influence potential positive outcomes of cleaner production applications in a program such as the Mexican sustainable supply program. More broadly, it provides evidence on the potential costs and benefits of sustainable supply efforts.