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Estimating the Economic Determinants of Technical Efficiency of Bioenergy in EU-28: An Application of Tobit Analysis

Author

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  • Mohd Alsaleh
  • A.S Abdul-Rahim

Abstract

This study identified the effects of economic factors on technical efficiency (TE) rate in the bio-energy section for the European Union zone (EU-28). A Tobit framework estimation was used to investigate the economic factors of TE rate in the bio-energy sector for the EU-28 zone during the period among 1990 through 2013. The findings point that economic determinants have a significant impact on TE rate of the bio-energy sector in the EU-28 countries. The empirical findings suggest that labor input and gross domestic product (GDP) significantly affected the TE of the bio-energy sector in the EU-28 zone through the duration of this paper. The results obviously inviting governors and politicians to investigate the TE rate of the bio-energy sector within the EU-28 zone. This paper gives further facts and details to the senates of the bio-energy sectors, as they require to get a further comprehension of the impact TE has on bio-energy production execution. In addition, the findings of this paper have suggestions for financiers who concentrates significantly on revenues from their direct-investments.

Suggested Citation

  • Mohd Alsaleh & A.S Abdul-Rahim, 2019. "Estimating the Economic Determinants of Technical Efficiency of Bioenergy in EU-28: An Application of Tobit Analysis," Journal of Social Economics Research, Conscientia Beam, vol. 6(2), pages 97-105.
    • Handle: RePEc:pkp:josere:v:6:y:2019:i:2:p:97-105:id:1340
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    Cited by:

    1. Bambang Santoso Haryono & Abdul Hakim & Mardiono Mardiono & Safri Safri & Qomariyatus Sholihah, 2020. "The Impact of Energy Production, Consumption and Import on the Budgetary Energy Requirement of Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 588-593.

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