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Does the Involvement of "Green Energy" Increase the Productivity of Companies in the Production of the Electricity Sector?

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  • Veronika Varvařovská

    (Mendel University in Brno, Czech Republic)

  • Michaela Staňková

    (Mendel University in Brno, Czech Republic)

Abstract

This article evaluates the production possibilities of the electricity sector in selected EU countries. The estimates for production functions are based on the financial data of individual companies in the selected sector. The analysis was based on a linearized version of the two-factor Cobb-Douglas production function, which was subsequently modified to compare productivity results by company size and country. The countries were selected based on the results of a cluster analysis. The cluster analysis was performed using aggregated data on the shares of energy sources in production in the electricity sector. The results show that companies from countries with a high share of renewables (such as Denmark) perform the worst in terms of total productivity. Furthermore, it was found that large companies have significantly higher productivity when compared to their smaller competitors.

Suggested Citation

  • Veronika Varvařovská & Michaela Staňková, 2021. "Does the Involvement of "Green Energy" Increase the Productivity of Companies in the Production of the Electricity Sector?," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 7(2), pages 152-164.
    • Handle: RePEc:men:journl:v:7:y:2021:i:2:p:152-164
    DOI: 10.11118/ejobsat.2021.012
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    More about this item

    Keywords

    energy industry; productivity; Cobb-Douglas function; EU; cluster analysis;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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