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Abstract The main aim of this paper is to analyse whether the adoption of sustainable energy systems improves corporate financial performance. To this end, we obtained data from a sample of 574 multinational companies from 36 countries in the 2008–2013 period. On this data we implement a dynamic system panel data method. Our findings show that the adoption of sustainable energy systems allows firms to improve their short-term corporate financial performance while not leading them to reduce their corporate financial performance in the long term. Specifically, our results indicate that an increase in energy efficiency and the use of renewable energy sources do not significantly affect corporate financial performance. Neither does the integration of energy efficiency systems and renewable energy sources have any significant influence on corporate financial performance, while the level of implementation of sustainable energy management systems has a significant effect on short-term, but not long-term, corporate financial performance. Furthermore, other control variables, such as research and development expenditure and year, are also relevant in explaining firms’ financial performance. The adoption of sustainable energy systems helps to improve corporate financial performance in the short-term but has no affect in the long-term. This might be because the monitoring of energy efficiency using key performance indicators allows firms to detect and correct failures in the production process and hence improve short-term financial performance. However, this measure does not generate competitive advantages for firms and therefore has no effect on long-term corporate financial performance. From a scientific perspective of energy, this paper contributes to the literature by providing a detailed explanation of how the adoption of sustainable energy systems proposed by Peura (2013) influences corporate financial performance on the basis of new empirical evidence. These explanations provide a strong rationale for improving the efficient use of energy and harvesting low hanging fruits in the short term from a managerial perspective. Policymakers should encourage firms to align sustainable energy systems with their core business strategy by developing green technologies that allow them to acquire rare and valuable capabilities and abilities, which generate competitive advantage, and therefore allow firms to increase their long-term corporate financial performance.

Abstract Herein a novel path is analysed for its economic viability to synergize the production of biomethane and dimethyl ether from biogas. We conduct a profitability analysis based on the discounted cash flow method. The results revealed an unprofitable process with high cost/revenues ratios. Profitable scenarios would be reached by setting prohibitive DME prices (1983–5566 €/t) or very high feed-in tariffs subsidies (95.22 €/MWh in the best case scenario). From the cost reduction side, the analysis revealed the need of reducing investment costs. For this purpose, we propose a percentage of investment as incentive scheme. Although the size increase benefits cost/revenues ratio, only the 1000 m3/h biogas plant size will reach profitability if 90% of the investment is subsidized. A sensitivity analysis to check the influence of some important economical parameters is also included. Overall this study evidences the big challenge that our society faces in the way towards a circular economy.

Abstract Several articles have confirmed the social and environmental consequences of opencast coal mining. The main purpose of this study is to simulate the optimal extraction policy of coal mining with and without the internalization of the environmental and social monetary costs that occur in the Mining District (located in the central part of the Department of El Cesar) using discrete dynamic programming (backward recursion, discrete state Markov decision model and Bellman equation). Results indicate that the private optimal of the overproduction policy for the terminal phase of the resource extraction program can be reduced once the negative externalities produced by mining practices are internalized into the cost function of the mining investment companies in Colombia. This means that if there is an increase in the total cost of extraction to offset the environmental and social impacts generated, the negative externalities would be less than or equal to the current level. Likewise, profits would continue being positive for the mining firms at the Mining District.

Abstract This paper analyses the effect of price regulation on the accounting policy of Spanish electricity companies over the period 1991–2001. As predicted by the political costs hypothesis ( Watts and Zimmerman, 1986 ) [Watts, R.L., Zimmerman, J.L. 1986. Positive accounting theory, Prentice Hall, Englewood Cliffs, NJ], managers artificially reduce reported earnings when the government establishes tariff increases. In this way, companies attempt to diminish their political visibility and counteract social outcry arising from the government's decision. Several abnormal accruals models existent in the literature are used to obtain a proxy for managerial accounting discretion on earnings.

Electricity prices have risen sharply in Spain in recent years, to the point where they are now among the highest in the EU. The scant competition between power utilities, changes in the law, and the tariff deficit (accumulated debt in favour, mainly, of the electricity firms), have driven up the cost of electricity, affecting numerous other industries such as irrigated agriculture, a sector that has significantly increased its electricity consumption as a result of modernization processes over the past twenty-five years. We examine these issues through a case study of an irrigation scheme in Spain that provides irrigation water and infrastructure to 58 farming communities in north-eastern Spain, and is highly representative of the Ebro Valley. Based on the results of direct estimations and simulations of different tariffs, we propose the lowering of capacity-based tariffs to reduce sector problems and cut energy costs, especially for farmers. We also raise the possibility of increasing self-consumption, a complementary measure for many farmers and for medium-size firms.

Abstract Considering residential per capita electricity consumption as one of the most suitable economic welfare indicators, the aim of this paper is to explore worldwide differences on this variable over the period 1980–2007. The paper adds to the standard practice of σ and β convergence analysis by tracking the external shape and time evolution of the entire distribution, applying nonparametric techniques (density functions and stochastic kernels) to a sample of 98 countries. The main finding is that a weak process of electricity consumption convergence has taken place. This reduction of disparities is clearly related to at least three issues: firstly, the rapid economic changes experienced by some developing countries; secondly, the energy conservation policies implemented by most developed countries following the first oil shock; and, thirdly, the growing awareness on energy issues in rich countries. Notwithstanding this, the ergodic distribution on per capita electricity consumption indicates that large cross-country disparities will persist in the long-run.

Abstract This paper describes the construction and analysis of a disaggregated input-output model and its extension to a social accounting matrix (SAM) for the Spanish economy in 2013. Our focus is the specific disaggregation of the electricity industry into the generating, transmission, distribution and marketing businesses, which were decoupled in 1997 under legislation prohibiting any single company from conducting more than one of them. The multi-sectoral framework also allows disaggregation of electricity generating by production technologies (wind, nuclear, conventional thermal, hydropower, solar and other technologies). To the best of our knowledge, this is the first paper in which this information is presented in a multi-sectoral framework for the Spanish economy, which is enormously dependent on the electricity industry. The structural analysis reveals the industry's role in Spain and the importance of its activities. None of the electricity generating businesses is a Rasmussen key sector, and generating and distribution are both capital-intensive activities. Meanwhile, conventional thermal and hydropower generating together make up more than 50% of total output in value terms, while nuclear power accounts for only around 7%. Finally, imports and exports of electricity are small, and almost all demand is covered by domestic production.

Abstract By considering spatial relationships, this study aims to analyse to what extent per capita CO2 emissions are determined by renewable energy consumption, the share of the services sector in GDP, energy intensity and real per capita income. A panel data set composed of 173 countries over the 1990–2014 period is used to estimate an environmental Kuznets curve (EKC) augmented by neighbouring per capita income and energy intensity. Both standard and spatial forms are estimated for seven different sets of countries to assess the robustness of the results. Finally, several forecasts are performed to verify global sustainability and to provide some policy suggestions for the period 2015–2100. The empirical results indicate that (i) most areas support the standard EKC, (ii) there seems to be an inverted U-shaped relationship between neighbouring per capita income and national per capita emissions in Europe, Asia and the World as a whole, (iii) neighbouring energy intensity increases national per capita emissions, and (iv) forecasts show that economic growth will accelerate climate change. However, a steady annual growth in renewable energy consumption and a steady decrease in energy intensity, both close to 2.5%, may guarantee environmental sustainability prior to 2100.

Abstract This study analyses the measures used to promote renewable energy for electricity generation in the 18 Latin American countries that signed the Paris Agreement, in an electricity demand growth context. The Latin American countries have had a remarkable growth in the use of renewable energy for electricity generation. Biomass, wind and solar energy have experienced strong growth, however, their participation in the energy mix remains small. All the studied countries have established renewable energy targets, 16 having adopted at least one promotion measure. The most used measures are tax incentives, mainly through exemptions in income tax, value added or sales tax and on tariffs. Also, most countries are using auction systems, which are replacing the Feed-In Tariff system. The net metering system adoption is also growing in the region. The results of the study show a positive relationship between the most active countries in renewable energy promotion and the performance achieved in the studied years. Therefore active policies are considered necessary for the future development of renewable energies.