European Journal of Business Science and Technology 2021, 7(2):152-164 | DOI: 10.11118/ejobsat.2021.012

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

Veronika Varvaøovská1, Michaela Staòková1
1 Mendel University in Brno, Czech Republic

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
JEL classification: C32, C38, D24, O13, Q40

Received: June 11, 2021; Revised: October 6, 2021; Accepted: November 15, 2021; Published: December 21, 2021  Show citation

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Varvaøovská, V., & Staòková, M. (2021). Does the Involvement of “Green Energy” Increase the Productivity of Companies in the Production of the Electricity Sector? European Journal of Business Science and Technology, 7(2), 152-164. doi: 10.11118/ejobsat.2021.012
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