Examining the Industrial Energy Consumption Determinants: A Panel Bayesian Model Averaging Approach

Djula Borozan and Luka Borozan
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Djula Borozan: Faculty of Economics in Osijek, Josip Juraj Strossmayer University of Osijek, Gajev trg 7, 31000 Osijek, Croatia
Luka Borozan: Department of Mathematics, Josip Juraj Strossmayer University of Osijek, Gajev trg 3, 31000 Osijek, Croatia

Energies, 2019, vol. 13, issue 1, 1-17

Abstract: The paper explores the impact of early stage and established entrepreneurs on industrial energy consumption across European countries for the period 2001–2017. It proposes that industrial energy consumption is a complex multifaceted result of value-added activities conducted by different types of entrepreneurs and the quality of macroeconomic and entrepreneurial framework conditions, which support or hinder entrepreneurial activity and consequently energy use. After selecting the most appropriate model using a panel Bayesian averaging model approach, a fixed effects panel regression analysis was conducted to investigate more deeply the impact of different types of entrepreneurs on industrial energy consumption. The results show that early stage and established entrepreneurs exhibit different behavioral patterns with respect to energy use. The former follows, although statistically insignificantly, a U-shaped energy use curve. By contrast, the latter follows statistically significantly an inverted U-shaped curve. Additionally, the results confirm the important role of the governments and other policy authorities in creating favorable framework conditions, which can support the changes in behavioral energy practices and the development of new or established businesses aiming for sustainability.

Keywords: entrepreneurial activity; industrial energy consumption; Bayesian model averaging; GEM; panel data (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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