IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v40y2019i1_supplp29-54.html
   My bibliography  Save this article

Environmental and Energy Efficiency of EU Electricity Industry: An Almost Spatial Two Stages DEA Approach

Author

Listed:
  • Simona Bigerna
  • Maria Chiara D ’Errico
  • Paolo Polinori

Abstract

This study analyzes the relationship between the energy efficiency and the stringency of environmental and market regulation in the electricity sectors has been analyzed. Using 19 European Union countries (2006-2014), we decomposed the environmental policy stringency index, the OECD regulatory indicators and the total factor productivity growth to highlight the complexity of the relations between electricity sector and regulatory policies. In the first stage we compute the three main components of total factor productivity. These three efficiency measures are used in the second stage to assess the impact of the regulatory policies on the total factor productivity also controlling for spatial effect. Results suggest that market and environmental regulations have not unidirectional impacts on the three components of total factor productivity. Pure and scale efficiency index are negatively affected by sectorial regulation that positively affect the shift of technological frontier. Environmental policy negatively affects the shift of the efficient frontier, but has a positive effect on the scale efficiency.

Suggested Citation

  • Simona Bigerna & Maria Chiara D ’Errico & Paolo Polinori, 2019. "Environmental and Energy Efficiency of EU Electricity Industry: An Almost Spatial Two Stages DEA Approach," The Energy Journal, , vol. 40(1_suppl), pages 29-54, June.
    • Handle: RePEc:sae:enejou:v:40:y:2019:i:1_suppl:p:29-54
    DOI: 10.5547/01956574.40.SI1.sbig
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.40.SI1.sbig
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.40.SI1.sbig?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yang, Hongliang & Pollitt, Michael, 2009. "Incorporating both undesirable outputs and uncontrollable variables into DEA: The performance of Chinese coal-fired power plants," European Journal of Operational Research, Elsevier, vol. 197(3), pages 1095-1105, September.
    2. Tooraj Jamasb and Michael Pollitt, 2005. "Electricity Market Reform in the European Union: Review of Progress toward Liberalization & Integration," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 11-42.
    3. Glachant, Jean-Michel & Ruester, Sophia, 2014. "The EU internal electricity market: Done forever?," Utilities Policy, Elsevier, vol. 30(C), pages 1-7.
    4. Fiorio, Carlo V. & Florio, Massimo, 2013. "Electricity prices and public ownership: Evidence from the EU15 over thirty years," Energy Economics, Elsevier, vol. 39(C), pages 222-232.
    5. Glachant, Jean-Michel & Ruester, Sophia, 2014. "The EU internal electricity market: Done forever?," Utilities Policy, Elsevier, vol. 31(C), pages 221-228.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu Zhao & Yunning Ma & Yongrok Choi & Ning Zhang, 2024. "The Effects of The Multi-Target Policy on Green Productivity: Evidence from China’s Fossil Fuel Power Plants," The Energy Journal, , vol. 45(3), pages 177-202, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simona Bigerna & Maria Chiara D’Errico & Paolo Polinori, 2019. "Environmental and Energy Efficiency of EU Electricity Industry: An Almost Spatial Two Stages DEA Approach," The Energy Journal, , vol. 40(1), pages 30-56, January.
    2. Hyland, Marie, 2016. "Restructuring European electricity markets – A panel data analysis," Utilities Policy, Elsevier, vol. 38(C), pages 33-42.
    3. Gaffney, F. & Deane, J.P. & Gallachóir, B.P.Ó, 2017. "A 100 year review of electricity policy in Ireland (1916–2015)," Energy Policy, Elsevier, vol. 105(C), pages 67-79.
    4. Bigerna, Simona & D'Errico, Maria Chiara & Polinori, Paolo, 2020. "Heterogeneous impacts of regulatory policy stringency on the EU electricity Industry:A Bayesian shrinkage dynamic analysis," Energy Policy, Elsevier, vol. 142(C).
    5. Cassetta, Ernesto & Nava, Consuelo R. & Zoia, Maria Grazia, 2022. "EU electricity market integration and cross-country convergence in residential and industrial end-user prices," Energy Policy, Elsevier, vol. 165(C).
    6. Simona Bigerna & Maria Chiara D’Errico & Paolo Polinori, 2022. "Sustainable Power Generation in Europe: A Panel Data Analysis of the Effects of Market and Environmental Regulations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(2), pages 445-479, October.
    7. Lindberg, Marie Byskov & Markard, Jochen & Andersen, Allan Dahl, 2019. "Policies, actors and sustainability transition pathways: A study of the EU’s energy policy mix," Research Policy, Elsevier, vol. 48(10).
    8. del-Río, Belén & Fernández-Sainz, Ana & Martinez de Alegria, Itziar, 2019. "Industrial electricity prices in the European Union following restructuring: A comparative panel-data analysis," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    9. Facchini, Angelo & Rubino, Alessandro & Caldarelli, Guido & Di Liddo, Giuseppe, 2019. "Changes to Gate Closure and its impact on wholesale electricity prices: The case of the UK," Energy Policy, Elsevier, vol. 125(C), pages 110-121.
    10. Karsten Neuhoff & Sophia Rüster & Sebastian Schwenen, 2015. "Power Market Design beyond 2020: Time to Revisit Key Elements?," Discussion Papers of DIW Berlin 1456, DIW Berlin, German Institute for Economic Research.
    11. Zajdler, Robert, 2020. "The role of capacity in the EU internal electricity market in the context of the general court's judgment of 15 November 2018. In case T-793/14 Tempus energy," Energy Policy, Elsevier, vol. 143(C).
    12. Joalland, Olivier & Pereau, Jean-Christophe & Rambonilaza, Tina, 2019. "Bargaining local compensation payments for the installation of new power transmission lines," Energy Economics, Elsevier, vol. 80(C), pages 75-85.
    13. Jaraitė, Jūratė & Di Maria, Corrado, 2012. "Efficiency, productivity and environmental policy: A case study of power generation in the EU," Energy Economics, Elsevier, vol. 34(5), pages 1557-1568.
    14. Michael L. Polemis & Thanasis Stengos, 2017. "Electricity Sector Performance: A Panel Threshold Analysis," The Energy Journal, , vol. 38(3), pages 141-158, May.
    15. Bigerna, Simona & Bollino, Carlo Andrea & Ciferri, Davide & Polinori, Paolo, 2017. "Renewables diffusion and contagion effect in Italian regional electricity markets: Assessment and policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 199-211.
    16. Ringler, Philipp & Keles, Dogan & Fichtner, Wolf, 2017. "How to benefit from a common European electricity market design," Energy Policy, Elsevier, vol. 101(C), pages 629-643.
    17. de Frutos Cachorro, J. & Willeghems, G. & Buysse, J., 2019. "Strategic investment decisions under the nuclear power debate in Belgium," Resource and Energy Economics, Elsevier, vol. 57(C), pages 156-184.
    18. Asane-Otoo, Emmanuel, 2016. "Competition policies and environmental quality: Empirical analysis of the electricity sector in OECD countries," Energy Policy, Elsevier, vol. 95(C), pages 212-223.
    19. Lockwood, Matthew & Froggatt, Antony & Wright, Georgina & Dutton, Joseph, 2017. "The implications of Brexit for the electricity sector in Great Britain: Trade-offs between market integration and policy influence," Energy Policy, Elsevier, vol. 110(C), pages 137-143.
    20. Do, Hung Xuan & Nepal, Rabindra & Pham, Son Duy & Jamasb, Tooraj, 2024. "Electricity market crisis in Europe and cross border price effects: A quantile return connectedness analysis," Energy Economics, Elsevier, vol. 135(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:40:y:2019:i:1_suppl:p:29-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.