PERTANIKA JOURNAL OF TROPICAL AGRICULTURAL SCIENCE

 

e-ISSN 2231-8542
ISSN 1511-3701

Home / Regular Issue / JTAS Vol. 29 (3) Sep. 2021 / JSSH-4704-2019

 

Determinants of Bioenergy Consumption in the European Continental Countries: Evidence from GMM Estimation

Mohd Alsaleh and Abdul Samad Abdul-Rahim

Pertanika Journal of Tropical Agricultural Science, Volume 29, Issue 3, September 2021

DOI: https://doi.org/10.47836/pjssh.29.3.01

Keywords: Bioenergy consumption, bioenergy price, capital input, gross domestic product, investment

Published on: 27 September 2021

This study contributes to the existing literature by examining bioenergy consumption and related factors in continental European countries (ECC). This study extends the current research through its focus on the ECC, which mainly consists of nationwide studies. This study analyses the determinants of bioenergy consumption in the ECC from 2005-2013, estimates its economic variables and evaluates the influence of each variable on bioenergy consumption and related significance level. A generalised method of moments estimator (GMM) was designed for ECC. The estimated models show that bioenergy capital input (CI) positively impacts bioenergy consumption. The most influential factor on use was the price of bioenergy (PR) followed by investment (INV), then gross domestic product (GDP). These results should be considered and used as a tool to develop legislation and policies that could benefit the bioenergy sector in ECC. The evidence shows that CI, INV, and PR have been the primary keys in improving bioenergy consumption in recent years in ECC countries. Thus, they have advanced the efficiency of bioenergy consumption.

  • Ahn, S., & Schmidt, P. (1995). Efficient estimation of models with dynamic panel data. Journal Economic, 68(1), 5-28. https://doi.org/10.1016/0304-4076(94)01641-C

  • Albani, M., Blaschke, B., Denis, N., & Granskog, A. (2014). Bioenergy in Europe: A new beginning — or the end of the road? McKinsey on Sustainability & Resource Productivity, 3(4), 222-241.

  • Andersen, B. H. (2016). Bioenergy in the EU: contradictions driving excess and unequal land use for industrial biomass production (Colloquium Paper No. 54.). International Institute of Social Studies (ISS). https://www.iss.nl/sites/corporate/files/54-ICAS_CP_Andersen.pdf

  • Alsaleh, M., & Abdul-Rahim, A. S. (2019). The forecasted accuracy of the bioenergy market in the EU-28 region. Journal of Sustainability Science and Management, 14(4), 118-129. http://jssm.umt.edu.my/.../10-V14N4.pdf

  • Alsaleh, M., Abdul-Rahim, A. S., & Mohd-Shahwahid, H. O. (2016). Determinants of technical efficiency in the bioenergy industry in the EU28 region. Renewable and Sustainable Energy Reviews, 78, 1331-1349. https://doi.org/10.1016/j.rser.2017.04.049

  • Alsaleh, M., Abdul-Rahim, A. S., Mohd-Shahwahid, H. O. (2017). An empirical and forecasting analysis of the bioenergy market in the EU28 region: Evidence from a panel data simultaneous equation model. Renewable and Sustainable Energy Review, 80, 1123-1137. https://doi.org/10.1016/j.rser.2017.05.167

  • Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review Economic Studies, 58(2), 277-297. https://doi.org/10.2307/2297968

  • Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal Economic, 68(1), 29-51. https://doi.org/10.1016/0304-4076(94)01642-D

  • Arodudu, O., Helming, K., Wiggering, H., & Voinov, A. (2016). Towards a more holistic sustainability assessment framework for agro-bioenergy systems — A review. Environmental Impact Assessment Review, 62, 61-75. https://doi.org/10.1016/j.eiar.2016.07.008

  • Azam, M., Khan, A. Q., Zafeiriou, E., & Arabatzis, G. (2015). Socio-economic determinants of energy consumption: An empirical survey for Greece. Renewable and Sustainable Energy Reviews, 57, 1556-1567. https://doi.org/10.1016/j.rser.2015.12.082

  • Bamiro, O. M., & Ogunjobi, J. O. (2015). Determinants of household energy consumption in Nigeria: Evidence from Ogun State. Research Journal for Social Science and Management, 4(12), 35-41. https://core.ac.uk/download/pdf/34725344.pdf

  • Bhattacharya, M., Paramati, S. R., Ozturk, I., & Bhattacharya, S. (2015). The effect of renewable energy consumption on economic growth: Evidence from top 38 countries. Applied Energy 162, 733-741. https://doi.org/10.1016/j.apenergy.2015.10.104

  • Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal Economic, 87(1), 115-143. https://doi.org/10.1016/S0304-4076(98)00009-8

  • Brien, K. O., & Torugsa, N. A. (2011). Supply-side determinants of Energy Consumption and Efficiency (ECE) innovations. Journal of Business Chemistry, 8(3) 115-122.

  • https://nbn-resolving.de/urn:nbn:de:hbz:6-69379468538

  • Burck, J., Hermwille, L., & Krings, L. (2012). Climate change performance index result 2013. Climate Action Network Europe. https://germanwatch.org/sites/default/files/publication/7159.pdf

  • Calderon, C., Gauthier, G., & Jossart, J. M. (2015). Emerging Central European Bioenergy Fund. European Biomass Association statistical report. European Biomass Association. https://bioenergyeurope.org/statistical-report.html

  • Chang, L., Leung, D. Y. C., Wu, C. Z., & Yuan, Z. H. (2003). A review on the energy production, consumption, and prospect of renewable energy in China. Renewable and Sustainable Energy Reviews, 7(5), 453-468. https://doi.org/10.1016/S1364-0321(03)00065-0

  • Clerici, A., & Assayag, M. (2013). World Energy Resource 2013 survey (World Energy Council Report: ISBN: 978 0 946121 29 8). World Energy Council. https://www.worldenergy.org/publications/entry/world-energy-resources-2013-survey

  • Dam, J., Faaij, A. P. C., Hilbert, J., Petruzzi, H., & Turkenburg, W. C. (2009). Large-scale bioenergy production from soybeans and switch grass in Argentina Part A: Potential and economic feasibility for national and international markets. Renewable and Sustainable Energy Reviews, 13(8), 1710-1733. https://doi.org/10.1016/j.rser.2009.03.009

  • Geheeb, G. (2007). The Renewable Energy Sources Act: The success story of sustainable policies for Germany. Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). https://www.bmu.de/en/publication/climate-action-plan-2050

  • Hara, K., Uwasu, M., Kishita, Y., & Takeda, H. (2015). Determinant factors of residential consumption and perception of energy conservation: Time-series analysis by large-scale questionnaire in Suita, Japan. Energy Policy, 87, 240-249. https://doi.org/10.1016/j.enpol.2015.09.016

  • Hu, J. L., & Wang, S. C. (2005). Total-factor energy efficiency of regions in China. Energy Policy, 34(17), 3206-3217. https://doi.org/10.1016/j.enpol.2005.06.015

  • Ibrahim, M. H., & Law, S. H. (2014). Social capital and CO2 emission-output relations: A panel analysis. Renewable & Sustainable Energy Review, 29, 528-534. https://doi.org/10.1016/j.rser.2013.08.076

  • Johnson, K. A. (2016). Structural determinants of energy consumption in an importing country: The case of Togo. British Journal of Economics, Management & Trade, 14(3), 1-11. https://doi.org/10.9734/BJEMT/2016/27636

  • Jossart, J. M., & Calderon, C. (2013). European Bioenergy outlook report 2013 AEBIOM. European Biomass Association. https://bioenergyeurope.org/statistical-report.html

  • Junginger, M., Dam, J., Zarrilli, S., Mohamed, F., Marchal, D., & Faaij, A. (2011). Opportunities and barriers for international bioenergy trade. Energy Policy, 39(4), 2028-2042. https://doi.org/10.1016/j.enpol.2011.01.040

  • Khishtandar, S., Zandieh, M., & Dorri, B. (2016). A multi criteria decision making framework for sustainability assessment of bioenergy production technologies with hesitant fuzzy linguistic term sets: The case of Iran. Renewable and Sustainable Energy Reviews, 77, 1130-1145. http://dx.doi.org/10.1016/j.rser.2016.11.212

  • Lin, B., & Moubarak, M. (2014). Renewable energy consumption – Economic growth nexus for China. Renewable and Sustainable Energy Reviews, 40, 111-117. https://doi.org/10.1016/j.rser.2014.07.128

  • Lin, B., Omoju, O. E., & Okonkwo, J. U. (2015). Factors influencing renewable electricity consumption in China. Renewable and Sustainable Energy Reviews, 55, 687-696. https://doi.org/10.1016/j.rser.2015.11.003

  • Levy, J. P., & Belaid, F. (2017). The determinants of domestic energy consumption in France: Energy modes, habitat, households and life cycles. Renewable and Sustainable Energy Reviews, 81(2), 2104-2114. http://dx.doi.org/10.1016/j.rser.2017.06.022

  • Mahalik, M. K., Babu, M. S., Nanthakumar, L., & Shahbaz, M. M. (2016). Does financial development intensify energy consumption in Saudi Arabia? Renewable and Sustainable Energy Reviews, 75, 1022-1034. https://doi.org/10.1016/j.rser.2016.11.081

  • Mehrara, M., Rezaei, S., & Razi, D. H. (2015). Determinants of renewable energy consumption among ECO countries; Based on Bayesian Model Averaging and Weighted Average Least Square. International Letters of Social and Humanistic Sciences, 54, 96-109. https://doi.org/10.18052/www.scipress.com/ILSHS.54.96

  • Meyer, A. D., Cattrysse, D., Rasinmäki, J., & Orshoven, J. V. (2013). Methods to optimize the design and management of biomass-for-bioenergy supply chains: A review. Renewable and Sustainable Energy Reviews, 31, 657-670. https://doi.org/10.1016/j.rser.2013.12.036

  • Meyer, M. A., & Priess, J. A. (2014). Indicators of bioenergy-related certification schemes - An analysis of the quality and comprehensiveness for assessing local/regional environmental impacts. Biomass and Bioenergy, 65, 151-169. https://doi.org/10.1016/j.biombioe.2014.03.041

  • Mileva, E. (2007). Using Arellano – Bond Dynamic Panel GMM Estimators in Stata: Tutorial with examples using Stata 9.0. Economics Department, Fordham University.

  • Nybakk, E., & Lunnan, A. (2013). Introduction to special issue on bioenergy markets. Biomass and Bioenergy, 57, 1-3. https://doi.org/10.1016/j.biombioe.2013.04.001

  • Omri, A., & Nguyen, D. K. (2014). On the determinants of renewable energy consumption: International Evidence. Energy, 72, 554-560. https://doi.org/10.1016/j.energy.2014.05.081

  • Raitano, M., Romano, E., & Zoppoli, P. (2017). Renewable energy sources in Italy: Sectorial intensity and effects on earnings. Renewable and Sustainable Energy Reviews, 72, 117-127. https://doi.org/10.1016/j.rser.2017.01.042

  • Samuel, Y. A., Manu, O., & Wereko, T. B. (2013). Determinants of energy consumption: A review. International Journal of Management Sciences, 1(12), 482-487.

  • Salim, R., Yao, Y., & Chen, G. (2017). Does human capital matter for energy consumption in China? Energy Economics, 67, 49-59. https://doi.org/10.1016/j.eneco.2017.05.016

  • Scowcroft, J., & Nies, S. (2011). Biomass 2020: Opportunities, challenges and solutions. Eurelectric.

  • Snieskiene, G., & Cibinskiene, A. (2015). Export price: How to make it more competitive. Procedia-Social and Behavioral Sciences, 213, 9-98. https://doi.org/10.1016/j.sbspro.2015.11.409

  • Sulaiman, C., Abdul-Rahim, A. S., Chin, L., & Mohd-Shahwahid, H. O. (2016). Wood fuel consumption, institutional quality, and forest degradation in sub-Saharan Africa: Evidence from a dynamic panel framework. Ecological Indicators, 74, 414-419. https://doi.org/10.1016/j.ecolind.2016.11.045

  • Sulaiman, C., Abdul-Rahim, A. S., Chin, L., & Mohd-Shahwahid, H. O. (2017). Wood fuel consumption and mortality rates in Sub-Saharan Africa: Evidence from a dynamic panel study. Chemosphere, 177, 224-231. https://doi.org/10.1016/j.chemosphere.2017.03.019

  • Susaeta, A., Lal, P., Carter, D. R., & Alavalapati, J. (2012). Modeling nonindustrial private forest landowner behavior in face of woody bioenergy markets. Biomass and Bioenergy, 46, 419-428. https://doi.org/10.1016/j.biombioe.2012.07.018

  • Tewathia, N. (2014). Determinants of the household electricity consumption: A case study of Delhi. International Journal of Energy Economics and Policy, 4(3), 337-348. https://www.econjournals.com/index.php/ijeep/article/view/796/456

  • Tromborg, E., Ranta, T., Schweinle, J., Solberg, B., Skjevrak, G., & Tiffany, D. G. (2013). Economic sustainability for wood pellets production - A comparative study between Finland, Germany, Norway, Sweden and the US. Biomass and Bioenergy, 57, 68-77. https://doi.org/10.1016/j.biombioe.2013.01.030

  • Tye, Y. Y., Lee, K. T., Abdullah, W. N. N. W., & Leh, C. P. (2011). Second-generation bioethanol as a sustainable energy source in Malaysia transportation sector: Status, potential and future prospects. Renewable and Sustainable Energy Reviews, 15(9), 4521-4536. https://doi.org/10.1016/j.rser.2011.07.099

  • World Bioenergy Association. (2014). The future contribution of Bioenergy to the European Energy System: How to reduce the dependence on fossil energy imports and improve the climate mitigation policy.

  • Yuxiang, K., & Chen, Z. (2009). Government expenditure and energy intensity in China. Energy Policy, 38(2), 691-694. https://doi.org/10.1016/j.enpol.2009.10.031

  • Zhang, S., Gilless, J. K., & Stewart, W. (2013). Modeling price-driven interactions between wood bioenergy and global wood product markets. Biomass and Bioenergy, 60, 68-78. https://doi.org/10.1016/j.biombioe.2013.10.027

  • Zhang, R., Wei, T., Glomsrod, S., & Shi, Q. (2014). Bioenergy consumption in rural China: Evidence from a survey in three provinces. Energy Policy, 75, 136-145. http://dx.doi.org/10.1016/j.enpol.2014.08.036

ISSN 1511-3701

e-ISSN 2231-8542

Article ID

JSSH-4704-2019

Download Full Article PDF

Share this article

Recent Articles