Heterogeneous impacts of regulatory policy stringency on the EU electricity Industry:A Bayesian shrinkage dynamic analysis

Bigerna, Simona; D’Errico, Maria Chiara; Polinori, Paolo

doi:10.1016/j.enpol.2020.111522

Cited by 17 publications

(6 citation statements)

References 63 publications

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“…In the last years, the energy policy in the EU is based on few key objectives: Energy security in competitive economics, environmental and climate protection [12,13]. In this context, economic and policy decision makers agreed that the application of the European Green Deal is compulsory.…”

Section: Literature Reviewmentioning

confidence: 99%

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Renewable Energy and Economic Performance in the Context of the European Green Deal

2020

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The European Green Deal considers the increase in the share of renewable energy in final energy consumption (REFEC) among the main targets for achieving sustainable EU economies. In this context, the main aim of this paper is to provide an empirical evaluation of the relationship between GDP, global competitiveness index (GCI) and renewable energy consumption. According to panel data models based on the fully modified ordinary least squares method (FMOLS), there is a positive effect of renewable energy consumption progress on GDP and GCI growth, and also a positive influence of economic growth on renewable energy consumption in the period 2007–2019 in the EU countries. The energy consumption is more influenced by economic growth rather than economic competitiveness. Few scenarios were proposed for economic growth and share of renewable sources (RESs) in the final consumption using as forecasting method the proposed panel data models. The cluster analysis suggested two groups of countries according to RES share in gross final energy consumption (GFEC). The first group includes six countries (Sweden, Denmark, Finland, Latvia, Portugal and Austria) that fixed a target of 30% or more, while the second one refers to countries with lower targets. Some policy recommendations are provided for the EU countries to enhance the utilization of renewable energy.

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Section: Literature Reviewmentioning

confidence: 99%

“…This impacts the conditions of the policy initiatives in this field. According to Bigerna et al (2020), there are different national behaviors related to the impact of market and environmental regulations on energy efficiency in the EU countries. Stringent regulatory policies decreased energy efficiency.…”

Section: Literature Reviewmentioning

confidence: 99%

Renewable Energy and Economic Performance in the Context of the European Green Deal

2020

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“…Ahmed and Ahmed found that stringent environmental policies have a negative impact on China's GDP [27]. Bigerna et al [28] analyzed the strength of environmental regulation on efficiency in the electricity sector for a panel of European Union countries and argued that stringent policy negatively affects productivity. The study by Wang et al [29] based on the panel data of OECD countries indicates that, within a certain level of stringency, the environmental policy has a positive impact on green productivity growth which supports the Porter hypothesis.…”

Section: Environmental Policy Stringency and Its Impact On The Economy And The Natural Environmentmentioning

confidence: 99%

The Impact of Environmental Policy Stringency on Renewable Energy Production in the Visegrad Group Countries

Godawska

Wyrobek

2021

Energies

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Various environmental policy instruments supporting the development of renewable energy are used on an increasing scale as part of the policy of mitigating climate change and more. In our paper, we examine the influence of environmental policy stringency on renewable energy production in the Czech Republic, Hungary, Poland and Slovakia for the period 1993–2012 after controlling for gross domestic product per capita growth, CO2 emissions per capita and income inequality. We use the Panel Pooled Mean Group Autoregressive Distributive Lag model to analyze the long-run and the short-run relationship between restrictiveness of environmental policy and renewable energy generation. The results reveal that, in the long run, a more stringent environmental policy has a positive impact both on the increase in the absolute volume of renewable energy production, as well as on the replacement of energy from fossil sources. Our main findings indicate that renewable energy production is positively influenced not only by the stringency of instruments aimed directly at the development of this energy sector, but also by the stringency of instruments with other environmental goals and by the overall level of restrictiveness of the environmental policy.

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“…However, although they use panel data in their application, their models did not use any panel features and there was no dynamics. 2 There are other papers in the literature that use the non parametric DEA approach, such as Bigerna et al (2020) that accounts for Greenhouse gas emissions as bad output and Bigerna et al (2019) which estimates the spatial effects on efficiency. Unfortunately our literature survey is not exhaustive primarily because we focus on bi-production spatial econometric models with good and bad outputs first, and then endogeneity of inputs and outputs (both bad and good) with dyanmic inefficiency.…”

Section: Introductionmentioning

confidence: 99%

Endogenous Bad Outputs and Technical Inefficiency in U.S. Electric Utilities

Tsionas¹,

Kumbhakar²

2024

The Energy Journal

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In this paper, we consider a simultaneous modeling of good and bad outputs. We use an input distance function (IDF) with endogenous inputs as well as endogenous bad outputs, which is novel in the literature. Moreover, we model input efficiency to depend on the production of bad outputs which allows us to investigate whether emissions of pollutants (bad outputs) are related to technological performance (technical efficiency). We also model production of each bad output with a spatial structure separately, each depending on production of good outputs, inputs and other exogenous variables. These bad output production functions allow us to estimate both direct and indirect effects of good output on the production of bad outputs, which may be of special interest because they show the cost (to the society) in terms of releasing pollutants to the environment in order to increase production of good outputs. We apply the new technique to a data set on U.S. electric utilities with four bad outputs, three inputs and two good outputs. We used a Bayesian technique to estimate the model which is a system consisting of the input distance function, reduced form equations for each input, dynamics of inefficiency and bad output production technology-separately for each. Empirically, bad outputs are found to affect inefficiency positively. Percentage increases in inefficiency due to a percentage increase in each bad output are found to vary from 0.225% to 0.42%. Energy prices are found to be positively related to inefficiency. From the spatial specifications of bad outputs, we find that the spillover effects of increasing production of good outputs account for the majority of the total effect, indicating that neighborhood effects are more important than own effects. This means, the neighboring utilities played a crucial role indicating "contagion" of practices.

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Heterogeneous impacts of regulatory policy stringency on the EU electricity Industry:A Bayesian shrinkage dynamic analysis

Cited by 17 publications

References 63 publications

Renewable Energy and Economic Performance in the Context of the European Green Deal

Renewable Energy and Economic Performance in the Context of the European Green Deal

The Impact of Environmental Policy Stringency on Renewable Energy Production in the Visegrad Group Countries

Endogenous Bad Outputs and Technical Inefficiency in U.S. Electric Utilities

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