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Production Factors Use in the European Electricity Producing Companies During the Last Financial Crisis


  • France Krizanic

    (EIPF - Economic Institute, Presernova, Ljubljana, Slovenia)

  • Zan Jan Oplotnik

    (Department of Finance and International Economy, Faculty of Economics and Business, University of Maribor, Razlagova, Maribor, Slovenia)

  • Vasja Kolsek

    (EIPF: Economic Institute, Presernova 21, 1000 Ljubljana, Slovenia)

  • Alenka Kavkler

    (Department of Quantitative Economic Analysis, Faculty of Economics and Business, University of Maribor, Razlagova, Maribor, Slovenia
    EIPF - Economic Institute, Presernova, Ljubljana, Slovenia)


In the period from 2009 to 2012, the value added among the eight major European electricity producing companies on average oscillated around the stagnated trend. Between these companies there were large differences in organizational structure and technology of electricity production. Labor contributes to value added the most in European Data Forum (EDF) and Vattenfall, while capital contribution to value added is the greatest in Fortum and above average in GEN, Enel and CEZ. From 2009 to 2012 the contribution of labor on average increased, and the contribution of capital decreased. The single exception with opposite changes in production factors’ contribution was Enel. Total factor productivity (TFP) is greatest in RWE, and this company improves it even at the cost of a decline in value added, employment and assets. At the other end from 2009 to 2012 EDF and Enel increased their TFP connected with value added growth. In terms of labor and capital engagement the European electric energy producing company adapts to the market. The elasticity of labor employment on fi nal electricity consumption is 0.5, on the price of this energy for industrial use is 0.3, and on the labor costs per employee is -0.2. The elasticity of capital (assets) engagement is 0.8 on fi nal electricity consumption, and 0.5 on the prices of electricity for industrial use (total Eurogroup).

Suggested Citation

  • France Krizanic & Zan Jan Oplotnik & Vasja Kolsek & Alenka Kavkler, 2015. "Production Factors Use in the European Electricity Producing Companies During the Last Financial Crisis," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 725-730.
  • Handle: RePEc:eco:journ2:2015-03-11

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    References listed on IDEAS

    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. W. Erwin Diewert & Alice O. Nakamura, 1999. "Benchmarking and the measurement of the best practice efficiency: an electricity generation application," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 570-588, April.
    3. Nuri Ozgur DOGAN & Can Tansel TUGCU, 2015. "Energy Efficiency in Electricity Production: A Data Envelopment Analysis (DEA) Approach for the G-20 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 246-252.
    4. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
    5. Santosh Kumar Sahu & Krishnan Narayanan, 2011. "Total Factor Productivity and Energy Intensity in Indian Manufacturing: A Cross-Sectional Study," International Journal of Energy Economics and Policy, Econjournals, vol. 1(2), pages 47-58, September.
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    More about this item


    Industrial Organization; Electric Utilities; Energy; Energy Companies; International Comparision;

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy


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