Does the Involvement of "Green Energy" Increase the Productivity of Companies in the Production of the Electricity Sector?

Veronika Varvařovská and Michaela Staňková
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Veronika Varvařovská: Mendel University in Brno, Czech Republic

European Journal of Business Science and Technology, 2021, vol. 7, issue 2, 152-164

Abstract: This article evaluates the production possibilities of the electricity sector in selected EU countries. The estimates for production functions are based on the financial data of individual companies in the selected sector. The analysis was based on a linearized version of the two-factor Cobb-Douglas production function, which was subsequently modified to compare productivity results by company size and country. The countries were selected based on the results of a cluster analysis. The cluster analysis was performed using aggregated data on the shares of energy sources in production in the electricity sector. The results show that companies from countries with a high share of renewables (such as Denmark) perform the worst in terms of total productivity. Furthermore, it was found that large companies have significantly higher productivity when compared to their smaller competitors.

Keywords: energy industry; productivity; Cobb-Douglas function; EU; cluster analysis (search for similar items in EconPapers)
JEL-codes: C32 C38 D24 O13 Q40 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:men:journl:v:7:y:2021:i:2:p:152-164

DOI: 10.11118/ejobsat.2021.012

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