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A Market Concentration Analysis of the Biomass Sector in Romania

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  • Mihail Busu

    (Faculty of Business Administration in Foreign Languages, Bucharest University of Academic Studies, 010374 Bucharest, Romania)

Abstract

The degree of market concentration is an important investigative tool used by competition authorities, as well as any public entity or undertaking that is interested in a specific market. There are several market concentration indices, but the most popular measure for computing the degree of market concentration is the Herfindahl–Hirschman Index (HHI). However, a limitation of this indicator is that its computation requires data on all the entities that are active in a market. Therefore, due to the large number of companies in some specific markets, sometimes it is cumbersome to compute the HHI. The aim of this paper was to develop an algorithm to estimate as accurately as possible the HHI in such cases, so that the degree of market concentration can be identified. An interdisciplinary application of this method on the Romanian biomass sector is presented at the end of this paper.

Suggested Citation

  • Mihail Busu, 2020. "A Market Concentration Analysis of the Biomass Sector in Romania," Resources, MDPI, vol. 9(6), pages 1-10, May.
    • Handle: RePEc:gam:jresou:v:9:y:2020:i:6:p:64-:d:364682
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    2. Tarald O. Kvålseth, 2022. "Cautionary Note About the Herfindahl-Hirschman Index of Market (Industry) Concentration," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 16(1), March.
    3. Alexandra Catalina NEDELCU & Mihail BUSU, 2022. "An Overview of the Gas Market in Romania in the Context of the Liberalization Process," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(2), pages 231-241, May.
    4. Przemysław Kaszyński & Aleksandra Komorowska & Jacek Kamiński, 2023. "Revisiting Market Power in the Polish Power System," Energies, MDPI, vol. 16(13), pages 1-23, June.
    5. Ignat Raluca & Chiripuci Bogdan-Cristian & Pătărlăgeanu Simona Roxana & Constantin Marius & Lazăr Valentin, 2022. "Tackling market opportunities for the biomass production in Romania," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 327-335, August.

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