The Features of the Shadow Economy Impact’ on Biomass Energy Sector

Mantas Svazas, Valentinas Navickas, Yuriy Bilan and László Vasa
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Mantas Svazas: School of Economics and Business, Kaunas University of Technology, 44249 Kaunas, Lithuania
Valentinas Navickas: School of Economics and Business, Kaunas University of Technology, 44249 Kaunas, Lithuania
Yuriy Bilan: Faculty of Bioeconomy Development, Vytautas Magnus University, 44239 Kaunas, Lithuania
László Vasa: Faculty of Economics, Széchenyi István University, 9024 Gyor, Hungary

Energies, 2022, vol. 15, issue 8, 1-16

Abstract: The shadow economy is a significant factor in impoverishing the economies of countries and unequal operating and competitive conditions distort the market economy system, as opaque parallel activities impoverish socially responsible business units. The biomass energy sector faces this risk because the biomass supply chain is not yet fully secure and balanced. The study conducted by the authors showed that the manifestations of the shadow economy in the biomass energy sector are possible in the biomass production and transportation sub-sectors. Lack of digitization and poor resource management can lead to the problem of misuse of resources, which has non-transparent economic activities. The evaluation methodology developed by the authors allows to investigate the directions of shadow economy in the biomass energy sector and to measure the possible extent of such activities. The measurements were made in order to compare the official activities of enterprises with the factors attributable to the shadow economy. This is also due to the lack of innovation and digital solutions. The application of innovative solutions would help to reduce the size of the shadow economy, which would increase the income of regions and the state, and reduce the level of poverty.

Keywords: biomass energy sector; shadow economy; innovations; factor analysis (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: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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