Perspectives of Ukrainian bioenergy development: estimation by means of cluster analysis and marketing approach

Economic Annals-ХХI: Volume 187, Issue 1-2, Pages: 63-74

Citation information:
Galchynska, J., Larina, Ya., Varchenko, O., Struk, N., & Gryshchenko, O. (2021). Perspectives of Ukrainian bioenergy development estimation by means of cluster analysis and marketing approach. Economic Annals-XXI, 187(1-2), 63-74. doi: https://doi.org/10.21003/ea.V187-06


Julia Galchynska
D.Sc. (Economics),
Associate Professor of the
Department of Marketing and International Trade,
National University of Life and Environmental Sciences of Ukraine
11 Heroyiv Oborony Str., Kyiv, 03041, Ukraine
galchynskaya@gmail.com
ORCID ID: https://orcid.org/0000-0003-4260-3072

Yaroslava Larina
D.Sc. (Economics),
Professor of the
Department of Marketing named after A. F. Pavlenko,
Kyiv National Economic University named after Vadym Hetman
54/1 Peremohy Ave., Kyiv, 03057, Ukraine
larin.sla@gmail.com
ORCID ID: https://orcid.org/0000-0002-2712-7824

Olga Varchenko
D.Sc. (Economics),
Professor of the
Department of Finance, Banking and Insurance,
Bila Tserkva National Agrarian University
8/1 Soborna Sq., Bila Tserkva, 09117, Kyiv region, Ukraine
omvarchenko@ukr.net
ORCID ID: https://orcid.org/0000-0002-9090-0605

Nataliya Struk
D.Sc. (Economics),
Associate Professor of the
Department of Accounting and Audit,
Ivan Franko National University of Lviv
18 Svobody Ave., Lviv, 79007, Ukraine
nstruk@econom.lnu.edu.ua
ORCID ID: https://orcid.org/0000-0002-1933-265X

Olena Gryshchenko
PhD (Economics),
Senior Researcher,
National Science Center «Institute of Agrarian Economics»
10 Heroyiv Oborony Str., Kyiv, 03041, Ukraine
lena@iae.kiev.ua
ORCID ID: https://orcid.org/0000-0003-2271-3629

Perspectives of Ukrainian bioenergy development: estimation by means of cluster analysis and marketing approach

Abstract. Development of the world economy requires energy supply, which under stable growth must be based on alternative energy resources. Bioenergy is an integral part of energy security supply in volatile countries. It can satisfy a considerable part of energy demand of agribusinesses and other companies as well as facilitate problem-shooting in energy, ecological and social sectors in some regions. Enhancing bioenergy in Ukraine is one of the strategic ways in the development of the alternative energy sector, taking into account high volatility of the country and significant potential of biomass available for energy production.

This research intends to determine conditions and mechanisms of development and functioning of bioenergy clusters based on preliminary specification of the bioenergy potential of the territories, taking into account modern marketing approaches.

This article contains evaluation of the bioenergy production growth in countries such as China, Germany, France, the USA, Canada, Brazil and Ukraine. The feasibility of the cluster approach for Ukrainian bioenergy development has been proved. In order to combine Ukrainian regions according to all types of energy resources the authors applied the method of clustering analysis. The key point of the method implies that, based on the given set of indicators which are defined as the main characteristics of the object, every object of the population belongs to a similar class. Therefore, in order to study the efficiency of usage of bioenergy resources in a particular region, it is necessary to classify a set of indicators to identify standard forms. To systemize Ukrainian regions, the Isodata algorithm Isodata, based on the types of the economic and energy potential of biomass, is taken into account. To implement the analysis, the following indicators are considered: the biomass energy potential of primary cell waste, the biomass energy potential of trimming, the biomass energy potential of refining, the energy potential of wooden biomass, the mold biomass potential, the energy potential of bioenergy crops, the corn energy potential (biogas).

Market players organize groups with regard to their industries, territories and other factors, namely clusters which are likely to become effective tools in while carrying out scale projects under tough competition. In the minor energy sector cooperation between research and manufacturing enterprises, which satisfies energy needs both of cities and individual customers, is growing. This approach perfectly meets all requirements of the regional development of Ukrainian bioenergy.

The main goal of bioenergy clusters is to develop competitive advantages of regions by increasing all types of biomass and biofuel production. This implies the following priorities: creation of a database of agribusiness enterprises, which potentially are members of the cluster and corresponding infrastructure, establishment of marketing communications in order to inform members and potential investors about bioenergy advantages, introduction of regional databases by means of webpages, newsletters, public discussions etc., enhanced vocational training of bioenergy industry employees and investment attraction to finance bioenergy projects.

As a result, the authors of the paper propose a classification of Ukrainian regions based on the indicators of the economic energy potential of wastes and energy crops in agribusinesses, which is the basis for cluster formation. Vinnytsia, Kyiv, Poltava, Sumy, Khmelnitsky and Chernihiv regions refer to the first type with the biggest bioenergy potential, which makes it possible to create 2 energy clusters by combining central-west and north-east regions. Such a methodology gives an opportunity to satisfy the needs of the regions and districts which need additional energy resources taken from own biomass.

Priority tasks of the bioenergy cluster include: development of the database of agribusiness entities which potentially are the cluster members and corresponding infrastructure, informing members and investors about bioenergy benefits, creation of the regional information database identifying the resources, capacity and the transport system, vocational training, investment attraction in order to implement bioenergy projects.

Based on clusters, economic relations build up a competitive and sound investment climate to support the economy, which, in turn, provides high living standards. The authors have defined the procedure for exercising the cluster initiative and determined the structure of marketing support for cluster projects.

Keywords: Bioenergy; Biomass Capacity; Cluster Analysis; Classification of Regions; Bioenergy Cluster; Cluster Initiative

JEL Сlassіfіcatіon: С38; M31; Р28; Q16; Q42

Acknowledgments and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V187-06

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Received 14.11.2020
Received in revised form 29.11.2020
Accepted 2.12.2020
Available online 28.02.2021