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

Author

Listed:
  • 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)

Abstract

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

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    Cited by:

    1. Ireneusz Górowski & Bartosz Kurek & Marek Szarucki, 2022. "The Impact of a New Accounting Standard on Assets, Liabilities and Leverage of Companies: Evidence from Energy Industry," Energies, MDPI, vol. 15(4), pages 1-15, February.

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    More about this item

    Keywords

    Industrial Organization; Electric Utilities; Energy; Energy Companies; International Comparision;
    All these keywords.

    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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