Vortrag
Productivity Growth and Its Sources: A StoNED Metafrontier Analyis of the German Electricity Generating Sector

Stefan Seifert


42nd Annual Conference of the European Association for Research in Industrial Economics : EARIE 2015
München, 28.08.2015 - 30.08.2015



Abstract:
Energy supply in Germany has undergone considerable changes during the last decade, of which especially the nuclear phase-out and enormous installations of renewable energy sources pose new challenges for conventional combustion technologies. To analyze potential adaption processes due to this changing market conditions, this paper analyzes productivity change and its components in the German electricity and heat generation sector. A unique panel data set of 1555 power plants in Germany between 2003 and 2010 allows to estimate production frontiers for coal, lignite, gas and biomass fired power plants. Production functions are estimated using stochastic non-smooth envelopment of data (StoNED) in a meta-frontier framework. Productivity developments and its components are assessed at quantiles of the input value distributions of the different technologies using a metafrontier Malmquist decomposition. Results indicate (1) a dominant position of gas-fired plants in the metafrontier, (2) productivity changes for all technologies and reductions in production potentials (3) a catch-up for biomass plants to the other technologies.

Abstract

Energy supply in Germany has undergone considerable changes during the last decade, of which especially the nuclear phase-out and enormous installations of renewable energy sources pose new challenges for conventional combustion technologies. To analyze potential adaption processes due to this changing market conditions, this paper analyzes productivity change and its components in the German electricity and heat generation sector. A unique panel data set of 1555 power plants in Germany between 2003 and 2010 allows to estimate production frontiers for coal, lignite, gas and biomass fired power plants. Production functions are estimated using stochastic non-smooth envelopment of data (StoNED) in a meta-frontier framework. Productivity developments and its components are assessed at quantiles of the input value distributions of the different technologies using a metafrontier Malmquist decomposition. Results indicate (1) a dominant position of gas-fired plants in the metafrontier, (2) productivity changes for all technologies and reductions in production potentials (3) a catch-up for biomass plants to the other technologies.

Themen: Energiewirtschaft



Keywords: Electricity and Heat Generation, Productivity and Technical Change, StoNED, Metafrontier Malmquist Decomposition, Germany, Panel 2003 - 2010
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