European energy industry faces urgent need for productivity improvement.
The European energy industry has room for improvement in productivity. By analyzing data from 2005 to 2016, researchers found that the industry was inefficient but showed some productivity growth. This growth was influenced by financial, economic, and technological factors. Efficiency gains were mainly due to scale efficiencies rather than human resource improvements. The industry needs to focus on technological innovation, optimal production scale, and future productivity to address challenges like decarbonisation and modernisation.