Business Readiness on Greenhouse Gas Emission Reduction of Thai SMEs Processed Food Exporting Business in Response to Pre-Cross-Border Greenhouse Gas Tariffs on Imported Goods (Carbon Border Adjustment Mechanism: CBAM)

Authors

  • Tanyamai Chiarakul Faculty of Business Administration, Thai-Nichi Institute of Technology
  • Phatcharika Naunthong Faculty of Business Administration, Thai-Nichi Institute of Technology

Keywords:

Greenhouse Gas Emission Reduction, Carbon Border Adjustment Mechanism (CBAM), Business Readiness, Thai SMEs Processed Food Exporting Business

Abstract

The objectives of this study were to: (1) explore the knowledge, understanding, and attitudes of
processed food consumers towards eco-labeled or low-carbon products; (2) study the perception, knowledge,
and preparation perspectives on participation in greenhouse gas emission reduction within the supply chain;
and (3) examine the readiness of Thai SMEs exporting processed food to respond to the CBAM abroad.
The research employed mixed methods including both quantitative and qualitative approaches. Quantitative
research involved a questionnaire survey of 110 European consumers selected through accidental sampling.
For the qualitative research, purposive sampling was employed to select key stakeholders, including 10
entrepreneurs exporting processed food from Thailand for in-depth interviews. For the quantitative research,
the study analyzed data from 120 individuals using statistical tools such as mean, standard deviation,
t-test, F-test, and multiple regression. The findings showed that most respondents were expatriates,
female, aged 21-30 years with a bachelor's degree, employed by companies, and earning a monthly income
of more than USD 900. The results revealed that different countries of residence lead to varying average
monthly incomes, which in turn affect purchasing behavior towards carbon-labeled products, except; gender,
education level, and occupation, the differences of levels of knowledge and understanding did not affect
purchasing behavior towards carbon-labeled products. The multiplicative relationship between the
purchasing behavior of environmentally friendly products and attitudes towards carbon-labeled products
with the purchasing behavior towards carbon-labeled products. Interviews with Thai processed food exporters
revealed a consensus that businesses must begin preparing to respond to the CBAM soon, as discussed in
the research as well as perform the guidelines to promote the accountability for greenhouse gas emission
reduction in SMEs exporting processed food as well.

References

Adams, D., Donovan, J., & Topple, C. (2021). Achieving sustainability in food manufacturing operations and their supply chains: Key insights from a systematic literature review. Sustainable Production and Consumption, 28, 1491-1499. https://doi.org/10.1016/j.spc.2021.06.010

Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211. https://doi.org/10.1016/0749-5978(91)90020-T

Ali, M., Ullah, S., Ahmad, M. S., Cheok, M. Y., & Alenezi, H. (2023). Assessing the impact of green consumption behavior and green purchase intention among millennials toward sustainable environment. Environmental Science and Pollution Research, 30(9), 23335-23347.

Bhatia, L., Jha, H., Sarkar, T., & Sarangi, P. K. (2023). Food waste utilization for reducing carbon footprints towards sustainable and cleaner environment: a review. International journal of environmental research and public health, 20(3), 2318.

Chaiwanich, K. (2020). Carbon footprint of organization: A case study of the Department of Weaponry Engineering, Education Division, Chulachomklao Royal Military Academy. Science and Technology Nakhon Sawan Rajabhat University Journal, 12(15), 48-57. [in Thai]

Chantha, S., Inthep, A., Khanprasert, C., & Trisup, K. (2017). A survey project on the status of the Sustainable Development Goals in the Thai context and economic, social and legal options for Goal 2. Thailand Science Research and Innovation. [in Thai]

Chatzidakis, A., Kastanakis, M., & Stathopoulou, A. (2016). Sociocognitive determinants of consumers’ support for the fair trade movement. Journal of Business Ethics, 133, 95–109.

Digital Economy Base. (2022). CBAM: What Thai exporters should know about Europe's green reform plan. Than Settakij. https://www.thansettakij.com/economy/535435

Digital Economy Base. (2022). Parliament approves the 13th National Economic and Social Development Plan, to be announced on October 1, 2022. Than Settakij. https://www.thansettakij.com/economy/538321

Diniso, Y. S., Zhou, L., & Jaja, I. F. (2022). Dairy farmers’ knowledge and perception of climate change in the Eastern Cape province, South Africa. International Journal of Climate Change Strategies and Management, 14(2), 168-179. https://doi.org/10.1108/IJCCSM-07-2021-0082

Djekic, I., Operta, S., Djulancic, N., Lorenzo, J. M., Barba, F. J., Djordjević, V., & Tomasevic, I. (2019). Quantities, environmental footprints and beliefs associated with household food waste in Bosnia and Herzegovina. Waste Management & Research, 37(12), 1250-1260.

Dobranschi, M., Nerudová, D. Solilová, V., & Stadler, K. (2024). Carbon border adjustment mechanism challenges and implications: The case of Visegrad countries. Heliyon, 10(10), e30976

Duan, J., Zhang, M., & Cheng, B. (2023). Study on consumers’ purchase intentions for carbon-labeled products. Sustainability, 15(2), 1116. https://doi.org/10.3390/su15011116

Faul, F., Erdfelder, E., Buchner, A., & Lang, A.-G. (2009). Statistical power analyses using G*Power 3.1: Tests for correlation and regression analyses. Behavior Research Methods, 41(4), 1149-1160.

Fisher, C., Bashyal, S., & Bachman, B. (2012). Demographic impacts on environmentally friendly purchase behaviors. Journal of Targeting, Measurement and Analysis for Marketing, 20, 172-184.

Food and Agriculture Organization of the United Nations (FAO). (2016). FAO’s work on Climate Change: Greenhouse Gas Emissions from Agriculture, Forestry and Other Land Use. http://www.fao.org/3/a-i6340e.pdf.

Grankvist, G., & Biel, A. (2007). The impact of environmental information on professional purchasers' choice of products. Business Strategy and the Environment, 16(6), 421-429.

Indriani, I. A. D., Rahayu, M., & Hadiwidjojo, D. (2019). The influence of environmental knowledge on green purchase intention: The role of attitude as mediating variable. International Journal of Multicultural and Multireligious Understanding, 6(2), 627-635.

Intergovernmental Panel on Climate Change (IPCC). (2018). Global Warming of 1.5° C. An IPCC Special Report on the Impacts of Global Warming of 1.5° C Above Pre-Industrial Levels and Related Global Greenhouse Gas Emission Pathways, in the Context of Strengthening the Global Response to the Threat of Climate Change, Sustainable Development and Efforts to Eradicate Poverty. https://www.ipcc.ch/

sr15/download/

Kasikorn Research Center. (2022). Carbon Measures Criteria CBAM: What Exporters Should Know. https://www.kasikornresearch.com/th/analysis/k-econ/business/Pages/CBAM-z3322.aspx [in Thai]

Munkongtham, C, & Moryadee, C. (2022). Creating the Efficiency Measure Model of the Carbon Footprint in Warehouse Activities. NKRAFA. Journal of Science and Technology, 18(2), 73-82.

Moazzam, M., Ahmad, M., Hussain, A., & Akram, M. A. (2023). Examining the Factors That Shape Green Purchase Behavior: The Role of Subjective Norms, Self-Efficacy, Attitude and Intention. Bulletin of Business and Economics (BBE), 12(3), 221-232.

National Science and Technology Development Agency (NSTDA). (2021). BCG Model: Fostering Sustainable Development in Thai Economy. https://www.nstda.or.th/en/images/pdf/ BCG_Booklet1.pdf. [in Thai]

Parashar, S., Mungra, Y., & Sood, G. (2019). Health consciousness as an enabler for exploratory buying behavior among consumers. SCMS Journal of Indian Management, 16(2), 87-102.

Peattie, K., & Crane, A. (2005). Green marketing: Legend, myth, farce or prophesy? Qualitative Market Research: An International Journal, 8(4), 357-370. https://doi.org/10.1108/13522750510619733

Rong, A., Akkerman, R., & Grunow, M. (2011). An optimization approach for managing fresh food quality throughout the supply chain. International Journal of Production Economics, 131(1), 421-429.

Schiffman, L. G., Kanuk, L. L., & Wisenblit, J. (2000). Consumer Behavior. Prentice Hall.

Scholz, K., Eriksson, M., & Strid, I. (2015). Carbon footprint of supermarket food waste. Resources, Conservation and Recycling, 94, 56-65.

SME Social Planet. (2022). 'Carbon tax', new global trade rules, how should Thai exports prepare for it? Towards sustainability goals with ESG. Bangkok Bank Public Company Limited. https://www.bangkokbanksme.com/en/sme3-carbon-tax [in Thai]

Soralump, C., & Chaichana, C. (2019). Comparative carbon footprint and ecological footprint of loss and gain of forest and agriculture area due to large-scale water development project. Thai Environmental Engineering Journal, 33(3), 59-68. [in Thai]

Sukonthawirot, O. (2017). Attitudes of Generation Y towards Intention to Use Hostel Accommodation in Bangkok Metropolitan Area [Independent Study, Master of Business Administration]. Bangkok University. [in Thai]

Tidy, M., Wang, X. & Hall, M. (2016). The role of Supplier Relationship Management in reducing Greenhouse Gas emissions from food supply chains: supplier engagement in the UK supermarket sector. Journal of Cleaner Production, 112, 3294-3305.

Tobarameekul, P., & Worathanakul, P. (2021). Heat management options to reduce carbon footprint of green zeolite faujasite synthesis from rice husk ash. Thai Environmental Engineering Journal, 35(3), 59-68. [in Thai]

United Nations. (1987). Report of the World Commission on Environment and Development: Our Common Future. United Nations.

Valamis. (2020). Cognitive Learning. https://www.valamis.com/hub/cognitive-learning.

Downloads

Published

2024-12-07

How to Cite

Chiarakul, T., & Naunthong, P. . (2024). Business Readiness on Greenhouse Gas Emission Reduction of Thai SMEs Processed Food Exporting Business in Response to Pre-Cross-Border Greenhouse Gas Tariffs on Imported Goods (Carbon Border Adjustment Mechanism: CBAM). Journal of Business Administration The Association of Private Higher Education Institutions of Thailand, 12(2), 157–174. Retrieved from https://so02.tci-thaijo.org/index.php/apheitvu/article/view/272490

Issue

Section

Research Articles