Productivity growth and its determinants of the bioenergy industry in the EU28 region: Empirical evidence using Malmquist productivity index

摘要

Abstract In recent years, the bioenergy industry has been gaining recognition among renewable energy sources in many countries, specifically in the EU28 member states, the unified green energy legislation in which the bioenergy industry is a significant player in achieving several climate and energy efficiency goals. This research investigated the total factor productivity (TFP) of the bioenergy industry in the European Union during the period 1990–2018, using the Malmquist productivity index of the data envelopment analysis method. More so, this article estimates the economic factors of TFP, where a panel regression analysis framework was applied. The empirical results indicate that capital input, labor input, size of raw biomass, and investment influence on the TFP of the bioenergy industry of the European Union during the observed period. However, the labor input has the highest effect on TFP, followed by investment compare. The findings of the study suggest that regulators should focus more on research and development so labor augmentation and other input variables can further improve the TFP of the bioenergy industry.