Standard DEA Models for Efficiency Measures: Perspectives from Energy Economics

Toshiyuki Sueyoshi and Mika Goto ()
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Toshiyuki Sueyoshi: Shandong University
Mika Goto: Institute of Science Tokyo

Chapter Chapter 3 in Environment and Sustainability for ESG and SDGs, 2025, pp 33-59 from Springer

Abstract: Abstract Chap. 2 has discussed the principles of ESG and SDGs. In the chapter, we propose the use of DEA-EA as a method to discuss and examine the level of ESG and SDGs achievements within the scope of sustainability development. Prior to our description on its applicability, this chapter needs to explain the standard use of DEA. Chap. 4 extends the standard model to DEA-EA after incorporating undesirable outputs (e.g., CO2), so incorporating ESG into an analytical framework of DEA-EA. We admit that DEA has many different formulations. This chapter starts from a description on “radial models” used for measurement of “energy” and “sustainability”. The DEA description considers the concept of Operational Efficiency (OE) and then extends its applicability from “Energy Economics” because the energy consumption is closely linked to ESG and SDGs. “Energy Intensity” and “Energy Efficiency” serve as very important concepts in energy economics, further for sustainability enhancement. This chapter discusses the two measures from the framework of standard DEA and OE measurement. The DEA standard models, discussed in this chapter, belong to the Debreu-Farrell type of efficiency measurement. They are usually classified into two categories under variable or constant Returns to Scale (RTS) from conceptual extensions. This chapter provides us with analytical linkages between two radial models and sustainability enhancement for ESG and SDGs.

Keywords: Radial measurement; Operational efficiency; Multiplier restriction; Cost analysis; Energy economics; Energy intensity; Energy efficiency (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-2464-5_3

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DOI: 10.1007/978-981-96-2464-5_3

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