Beschreibung:
Emission reduction is expected to increase companies’ competitiveness; however, this postulate is still debatable. On one side, the reduction is believed to reduce costs from inefficiency, but companies need expensive investment that may increase the costs of capital. The Indonesian government has an interest to reduce carbon emissions while maintaining competitiveness. Using mediation regression analysis, this study examined the direct effect of green investment, foreign ownership, and export on competitiveness. It investigated the indirect effects of the three variables on competitiveness mediated by GHG emission growth. The results of this study are that an investment in green investment can reduce GHG emission, but through the GHG reduction, the investment cannot enhance competitiveness. Foreign ownership can reduce GHG emission growth, and through the GHG reduction, foreign ownership can improve competitiveness. Finally, export increases GHG emission growth, but the increase in GHG emission growth reduces competitiveness. These findings indicate that GHG emission reduction is a success factor for companies to achieve competitiveness.