THE INFLUENCE OF ENVIRONMENTAL COST AND CARBON PRODUCTIVITY ON PROFITABILITY: The Mediating Role of Green Innovation

Satrio Ashif Kevin Meikoko, . and Afni Sirait, . (2026) THE INFLUENCE OF ENVIRONMENTAL COST AND CARBON PRODUCTIVITY ON PROFITABILITY: The Mediating Role of Green Innovation. EKOMBIS REVIEW: JURNAL ILMIAH EKONOMI DAN BISNIS, 14 (3). pp. 1-14. ISSN 27164411

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Abstract

This study aims to examine the influence of environmental cost and carbon productivity on
company profitability, with green innovation as a mediating variable. The sample comprises 54
firm-year observations from 18 basic industry sector companies listed on the Indonesia Stock
Exchange (IDX) for the 2022–2024 period. Data were analyzed using Partial Least Squares-
Structural Equation Modeling (PLS-SEM). The results show that green innovation does not
mediate the effect of environmental cost or carbon productivity on profitability. However,
environmental cost has a significant direct effect on profitability (negative direction), while carbon
productivity has no significant effect. In addition, green innovation itself exerts a significant
positive influence on profitability. These findings suggest that environmental investment directly
impacts firm profits and green innovation can enhance profitability, whereas improving carbon
productivity alone has not yet produced a tangible financial impact. Practically, this study provides
insights for basic industry sector in formulating sustainability strategies that balance environmental
cost, carbon productivity, and green innovation to optimize profitability.

Keywords: Environmental Investment, Sustainability Strategies, Carbon Tax, Carbon Emission

Item Type:	Article
Additional Information:	Satrio Ashif Kevin Meikoko (Penulis - 142220043) Afni Sirait, S.E., M.Acc (Pembimbing)
Uncontrolled Keywords:	Environmental Investment, Sustainability Strategies, Carbon Tax, Carbon Emission
Subjek:	H Social Sciences > HG Finance
Divisions:	Fakultas Ekonomi dan Bisnis > (S1) Akuntansi
Depositing User:	Indah Lestari
Date Deposited:	17 Apr 2026 04:27
Last Modified:	17 Apr 2026 04:27
URI:	http://eprints.upnyk.ac.id/id/eprint/47832

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