Dual Efficiency and Productivity Analysis of Renewable Energy Alternatives of OECD Countries

Sedef E. Kara, Mustapha D. Ibrahim and Sahand Daneshvar
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Sedef E. Kara: Department of Industrial Engineering, Faculty of Engineering, Eastern Mediterranean University, Via Mersin 10, Famagusta 99628, TRNC, Turkey
Mustapha D. Ibrahim: Industrial Engineering Technology, Engineering Technology & Science Faculty of Engineering, Higher Colleges of Technology, Sharjah P.O. Box 7947, United Arab Emirates
Sahand Daneshvar: Department of Industrial Engineering, Faculty of Engineering, Eastern Mediterranean University, Via Mersin 10, Famagusta 99628, TRNC, Turkey

Sustainability, 2021, vol. 13, issue 13, 1-14

Abstract: This paper examines the dual efficiency of bioenergy, renewable hydro energy, solar energy, wind energy, and geothermal energy for selected OECD countries through an integrated model with energy, economic, environmental, and social dimensions. Two questions are explored: Which renewable energy alternative is more dual efficient and productive? Which renewable energy alternative is best for a particular country? Data envelopment analysis (DEA) is used for the efficiency evaluation, and the global Malmquist productivity index is applied for productivity analysis. Results indicate bioenergy as the most efficient renewable energy alternative with a 20% increase in average efficiency in 2016 compared to 2012. Renewable hydro energy, wind energy, and solar energy show a 17.5%, 16%, and 11% increase, respectively. The average efficiency growth across all renewable energy alternatives signifies major advancement. Country performance in renewable energy is non-monolithic; therefore, they should customize their renewable energy portfolio accordingly to their strengths to enhance renewable energy efficiency. Renewable hydro appears to have the most positive productivity change in 2016 compared to 2012, while solar energy regressed in productivity due to its scale inefficiency. All renewable energy alternatives have relatively equal average pure efficiency change. The positive trend in efficiency and productivity provides an incentive for policy makers to pursue further development of renewable energy technologies with a focus on improving scale efficiency.

Keywords: efficiency; productivity; renewable energy; data envelopment analysis; Malmquist productivity index; OECD (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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