EconPapers    
Economics at your fingertips  
 

Size, Subsidies and Technical Efficiency in Renewable Energy Production: The Case of Austrian Biogas Plants

Andreas Eder and Bernhard Mahlberg

The Energy Journal, 2018, vol. Volume 39, issue Number 1

Abstract: This study estimates the efficiency of biogas plants and identifies determinants of inefficiencies. Data Envelopment Analysis is applied on a sample of 86 Austrian biogas plants for the year 2014, covering about one third of the installed electric capacity of Austrian biogas plants. We decompose technical efficiency into scale efficiency and pure technical efficiency (managerial efficiency). In a second-stage regression analysis the effects of subsidies and other variables on managerial efficiency are investigated. The main results are: i) 34% of biogas plants in our sample are technically efficient, 40% are scale efficient and 50% are managerial efficient; ii) small biogas plants (≤100 kW) are scale inefficient exhibiting increasing returns to scale; iii) production subsidies show a significant, negative relationship to managerial efficiency. The results are consistent with the hypothesis that production subsidies provide a disincentive to managerial effort of plant operators.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=3033 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aen:journl:ej39-1-eder

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().

 
Page updated 2018-12-01
Handle: RePEc:aen:journl:ej39-1-eder