Analysis of CO2 Emissions by Selected Sri Lankan Apparel Industry Factories Across Economic Shifts (2019-2022)

Abstract

The effects of economic growth on environmental well-being are frequently examined, but it is equally crucial to evaluate the impact of economic downturns. This study aims to address this gap by focusing on Sri Lanka’s export-based apparel manufacturing sector. Due to global concern on climate change and related impacts, there is an urgent need to reduce industry sector emissions of greenhouse gases, including CO₂. The study investigates monthly CO₂ emissions from 2019 to 2022, covering pre-COVID-19 (Jan 2019 - Jan 2020), COVID-19 (Feb 2020 - May 2021), and the economic crisis (Jun 2021 - Dec 2022) periods. Data from six major export-oriented apparel factories were analyzed for their CO₂ emissions, using IPCC (2006) guidelines for national greenhouse gas inventories. The monthly CO₂ emissions showed a significant disparity across the considered economic periods (χ² = 23.44, p<0.001). Notably, Scope 1 emissions, entailing onsite direct emissions from fuel combustion, witnessed a distinct mean increase of 126% during the economic crisis period (241.47 ± 62.25 t CO₂) compared to the mean COVID-19 period (106.78 ± 40.61 t CO₂, p<0.001) and a 78% rise compared to pre-COVID-19 levels (135.17 ± 30.64 t CO₂, p<0.001). Multiple linear regression on monthly average exchange rates and monthly production revealed a significant impact on monthly emissions (Adj. R² = 0.761, p<0.001), with both factors showing positive influences. The current study highlights the importance of incorporating greener solutions in industries and countries facing similar economic challenges.