Comparison of the Financial Standing of Companies Generating Electricity from Renewable Sources and Fossil Fuels: A New Hybrid Approach
Open Access
- 12 October 2019
- Vol. 12 (20), 3856
- https://doi.org/10.3390/en12203856
Abstract
Companies operating in the energy sector are under pressure to boost the level of green energy production. The use of renewable energy sources will have a positive impact on the environment, but the basic question is whether power plants that produce electricity using renewable energy sources are in better financial condition than those that use only traditional energy sources. We address the latter using a new hybrid approach that extends prior research by combining three analyses: ratio analysis with a large set of indicators, the Altman model and cluster analysis. To test the statistical significance of differences between groups, Student’s t-test is applied. The sample concerns companies from the Baltic States and Central Europe in the years 2008–2017. The results indicate that in most cases there is no statistical difference in the financial standing of companies that use renewable energy sources and those that generate only fossil fuel-based energy.This publication has 26 references indexed in Scilit:
- Analyzing the Greek renewable energy sector: A Data Envelopment Analysis approachRenewable and Sustainable Energy Reviews, 2012
- Data envelopment analysis for environmental assessment: Comparison between public and private ownership in petroleum industryEuropean Journal of Operational Research, 2012
- Does it really pay to be green? Determinants and consequences of proactive environmental strategiesJournal of Accounting and Public Policy, 2011
- A cluster analysis study based on profitability and financial indicators in the Italian gas retail marketEnergy Policy, 2010
- Can environmental investment and expenditure enhance financial performance of US electric utility firms under the clean air act amendment of 1990?Energy Policy, 2009
- Productivity and efficiency of US gas transmission companies: A European regulatory perspectiveEnergy Policy, 2008
- Oil prices and the stock prices of alternative energy companiesEnergy Economics, 2008
- “It Pays to be Green” – A Premature Conclusion?Environmental and Resource Economics, 2006
- Hierarchical Grouping to Optimize an Objective FunctionJournal of the American Statistical Association, 1963
- Hierarchical Grouping to Optimize an Objective FunctionJournal of the American Statistical Association, 1963