Analysis of the Economic Effects of Promoting New Energy-Saving Technologies in Textile Industry on Labor Productivity and Return on Investment of Midstream Enterprises

Jing Chen

Article
2026 / Volume 9 / Pages 791-806
Received 22 October 2025; Accepted 20 November 2025; Published 31 March 2026
https://doi.org/10.31881/TLR.2026.791

Abstract
The mid-stream segment of textile manufacturing, particularly dyeing and finishing, is highly energy-intensive and environmentally burdensome, making it a critical target for sustainable technological upgrading. This study evaluates the economic effects of adopting new-type energy-saving technologies on labor productivity and return on investment (ROI) in mid-stream textile enterprises. Using panel data from 30 Asia-Pacific dyeing and finishing firms over the period 2020–2024, the analysis deconstructs technological adoption into hardware upgrades (low-liquor-ratio dyeing machines and wastewater heat recovery) and digital process integration (real-time monitoring and automated control). An augmented Cobb–Douglas production function with fixed effects is employed to estimate productivity impacts, while a discounted cash flow (DCF) framework is used to assess long-term financial viability. The results indicate that integrated adoption of energy-saving technologies increases total factor productivity by 8.5%, with hardware upgrades contributing 3.2% and digital process integration contributing a larger 5.3%, highlighting the dominant role of digitalization in enhancing labor efficiency. Financial analysis shows strong investment performance, with an average internal rate of return (IRR) of 28.5%, a payback period of 3.2 years, and a consistently positive net present value (NPV) even under a higher discount rate of 10%. These findings demonstrate that energy-saving technologies deliver not only environmental benefits but also substantial economic returns. The study provides a data-driven business case for mid-stream textile SMEs to prioritize synergistic hardware–digital upgrades as a pathway toward improved productivity, financial resilience, and sustainable competitiveness.

Keywords
textile wet processing, energy conservation, textile machinery, labor productivity, return on investment (ROI)