Value Added and Capital Efficiency in Green and Brown Bulgarian Energy Companies
Abstract
The paper explores the problem of the creation of value added created by companies in the energy sector in Bulgaria. Nuclear, coal, water, solar, wind, oil and gas energy companies are studied. The study covers 2019 and 2020. for some companies, an estimate has been made for 2018. From the point of view of the economic conjuncture, it covers the pre-covid crisis and the covid crisis manifestation. These years allow comparisons to be made about the performance of different enterprises – from the "green" and "brown" energy kinds in terms of value creation. The basic research method is the original VAICtm. The primary data is the data from the financial statements of the enterprises. Through the VAICtm methodology, the value added created by the capitals of each of the enterprises is measured. The VAIC coefficient is accepted as the indicator reflecting the "total efficiency" of the company or its "intellectual abilities". The effectiveness of the structural (physical) and intellectual capital in different types of energy enterprises has been established and a comparative analysis has been made. Based on the results obtained from VAICtm, the analysis of enterprise performance is extended using correlation analysis and cluster analysis. The relationship between the value added of intellectual capital and the carbon emissions of "brown" coal plants was calculated; the water footprint of hydropower plants was assessed. The cluster analysis shows results for the possibility of a smooth transition to sustainable green energy by combining brown and green energy. The measurement the water footprint raises the question of the proper and fair distribution of water resources between "green” hydropower enterprises, other industrial enterprises, agriculture and households. With the cessation of activities of non-environmental energy enterprises, the efficiency of Brown energy's intellectual capital will cease to be used. In this perspective, partial conclusions have been drawn (only for the surveyed enterprises) about the cost of losing the intellectual capital of brown energy.
Copyright (c) 2022 Ninel Nesheva-Kiosseva
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