A Malmquist Productivity Index for Assessing Photovoltaic program in Belgium

Abstract

In recent years, solar energy from rooftop photovoltaic (PV) systems has significantly contributed to renewable energy in European Union (EU). On the other hand, the Belgian policy makers have lately decided to phase out nuclear power by 2025 because the ageing reactors of Tihange and Doel plants has brought the safety concerns on by Germany, the Netherlands and some Belgian citizens. Therefore, the investment and planning for PV systems in Belgium play a crucial role as a green way to make a smooth transition to this radical change in electricity generation. This study makes an attempt to apply the Malmquist productivity index to measure and decompose green productivity growth for 262 municipalities in the Wallonia region of Belgium. We take the environmental and socio-demographic factors into account and we classify the municipalities into ‘green’ and ‘yellow’ groups. The analysis also identifies the determinants of green productivity growth and delivers some useful policy implications.