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Accounting for unobserved management in renewable energy & growth

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  • Menegaki, Angeliki N.

Abstract

The paper employs a management random parameters frontier stochastic frontier and a simple frontier stochastic model to benchmark European countries according to their management efficiency in growth and renewable energy development. The results come from an empirical application of a panel with 31 European countries over a 14 year old period using a translog type stochastic frontier production function. In particular the paper focuses on results from a management random coefficients model and compares results with the conventional stochastic frontier model with inputs such as renewable energy, fossil fuel energy, employment and capital. The results suggest that the interaction of renewable energy with management affects growth in Europe and that the technical efficiency estimated by the management model is by 6.05% higher than the one produced by the simple stochastic frontier model.

Suggested Citation

  • Menegaki, Angeliki N., 2013. "Accounting for unobserved management in renewable energy & growth," Energy, Elsevier, vol. 63(C), pages 345-355.
  • Handle: RePEc:eee:energy:v:63:y:2013:i:c:p:345-355
    DOI: 10.1016/j.energy.2013.10.057
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    References listed on IDEAS

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    Cited by:

    1. Marques, António Cardoso & Fuinhas, José Alberto & Menegaki, Angeliki N., 2014. "Interactions between electricity generation sources and economic activity in Greece: A VECM approach," Applied Energy, Elsevier, vol. 132(C), pages 34-46.
    2. Derafshian, Mehdi & Amjady, Nima, 2015. "Optimal design of power system stabilizer for power systems including doubly fed induction generator wind turbines," Energy, Elsevier, vol. 84(C), pages 1-14.
    3. Ramli, Makbul A.M. & Twaha, Ssennoga, 2015. "Analysis of renewable energy feed-in tariffs in selected regions of the globe: Lessons for Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 649-661.
    4. Seixas, M. & Melício, R. & Mendes, V.M.F., 2014. "Offshore wind turbine simulation: Multibody drive train. Back-to-back NPC (neutral point clamped) converters. Fractional-order control," Energy, Elsevier, vol. 69(C), pages 357-369.
    5. Honma, Satoshi & Hu, Jin-Li, 2014. "A panel data parametric frontier technique for measuring total-factor energy efficiency: An application to Japanese regions," Energy, Elsevier, vol. 78(C), pages 732-739.

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