Balanced Scorecard-Based Evaluation of Sustainable Energy Investment Projects with IT2 Fuzzy Hybrid Decision Making Approach

Pengran Zhou, Pengfei Zhou, Serhat Yüksel, Hasan Dinçer and Gülsüm Sena Uluer
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Pengran Zhou: Faculty of Education, Tianjin Normal University, Tianjin 300387, China
Pengfei Zhou: School of Economics and Management, Chongqing Normal University, Chongqing 401331, China
Serhat Yüksel: School of Business, Istanbul Medipol University, Kavacık South Campus, 34810 Istanbul, Turkey
Hasan Dinçer: School of Business, Istanbul Medipol University, Kavacık South Campus, 34810 Istanbul, Turkey
Gülsüm Sena Uluer: School of Business, Istanbul Medipol University, Kavacık South Campus, 34810 Istanbul, Turkey

Energies, 2019, vol. 13, issue 1, 1-20

Abstract: The purpose of this study is to determine the issues that financial institutions should pay attention to in their decision to provide financing to large scale energy projects. Within this framework, taking into account the Balanced Scorecard (BSC) approach, 4 dimensions and 8 criteria that can be effective in these decisions of financial institutions were determined. After that, the importance weights of these dimensions and criteria were determined by interval type-2 (IT2) fuzzy DEMATEL method. In addition, 3 different types of banks (public, private, foreign) are listed for their performance in financing energy projects. According to the results of the analysis, the technological and financial adequacy of the company that will invest in energy is the issue that financial institutions should pay the most attention to in their credit decision. Therefore, it is important for financial institutions to visit the customer's location and pay attention to the technological adequacy in the process of evaluating the customer's demand for credit for a large-scale energy project. In addition, it would be appropriate not to provide this fund to the energy companies with high indebtedness and insufficient liquidity. Another result of the study is that state banks have the lowest performance in financing these large-scale energy projects. When this result is taken into consideration, state banks need to pay more attention in evaluating large-scale energy projects in order to avoid major losses.

Keywords: energy finance; sustainability; Balanced Scorecard; IT2 Fuzzy DEMATEL; IT2 Fuzzy QUALIFLEX (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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