Analysing the Pattern of Productivity Change in the European Energy Industry
Djula Borozan () and
Dubravka Pekanov Starcevic ()
Additional contact information
Djula Borozan: Faculty of Economics, University of Osijek, 31000 Osijek, Croatia
Dubravka Pekanov Starcevic: Faculty of Economics, University of Osijek, 31000 Osijek, Croatia
Sustainability, 2021, vol. 13, issue 21, 1-14
For an industry to succeed in a competitive market, it should continuously take care of not only its stakeholders but also its technical efficiency and productivity. In this paper, data envelopment analysis was combined with Malmquist productivity analysis to investigate the pattern of multifactor productivity changes in the European energy industry over the period from 2005–2016. The results showed that the whole industry was technically inefficient and had large potential for improvement. A slight average increase in productivity that was observed over the studied period proved to be sensitive to the financial and economic situation and equally sensitive to technological and efficiency advances. As for efficiency gains, they reflected the nature of the energy industry, implying that they were due to scale efficiencies rather than human resource improvements. Although technological innovation and the optimal scale of production increased productivity, the slow pace at which this occurred and the negative outlook highlighted by the observed trends call for more serious consideration of the future productivity deployment of the European energy industry, particularly in the context of its decarbonisation, diversification, and modernisation.
Keywords: productivity changes; technical efficiency; energy industry; DEA-based Malmquist productivity index; European Union (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:21:p:11742-:d:663662
Access Statistics for this article
Sustainability is currently edited by Mr. Samuel Li
More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().