Assessing Asian Economies Renewable Energy Consumption Efficiency Using DEA with Undesirable Output

Abstract

Along with vast non-fossil potential and significant expertise, there is a question of whether Asian nations are attaining efficient consumption and exploitation of renewable resources. From this perspective, the paper aims to evaluate the efficiency of 14 potential Asia countries in renewable energy consumption during the six-year periods (2014)(2015)(2016)(2017)(2018)(2019). In analyzing the performance of the renewable energy sector, the data envelopment analysis (DEA) with an undesirable output model approach has been widely utilized to measure the efficiency of peer units compared with the best practice frontier. We consider four inputs and two outputs to a DEA-based efficiency model. Labor force, total energy consumption, share of renewable energy, and total renewable energy capacity are inputs. The outputs consist of CO 2 emissions as an undesirable output and gross domestic product as a desirable output. The results show that United Arab Emirates, Saudi Arabia, Japan, and South Korea consistently outperform in the evaluation, achieving perfect efficiency scores during the research period. Uzbekistan is found to have the lowest average efficiency of renewable energy utilization.

Article Exploring Economic and Environmental Efficiency in Renewable Energy Utilization: A Case Study in The Organization for Economic Cooperation and Development Countries

“…The methodology was proposed to measure the total factor productivity by Malmquist Index incorporating DEA-SBM to obtain the technical e ciency. The e ciency of renewable energy utilization in the Asian economies was investigated by Wang et al (2022) considering the DEA with undesirable output. In this investigation, the labor force, total energy consumption, the share of renewable energy, and total renewable energy capacity of 14 countries were compared to GDP as a desirable goal and CO 2 emission as an undesirable goal.…”

“…During the review, the most related work on the perspective was the investigation of Wang et al (2022) which examined the e ciency of renewable energy utilization in the Asian economies regarding the environmental impacts with DEA undesirable output. However, the economic value was not considered in this paper.…”

“…Similarly, the capital was also a favorable factor regarding the eco-e ciency (Moutinho, Madaleno and Robaina, 2017;Wang et al, 2020;Demiral and Sağlam, 2021). Meanwhile, the total renewable energy capacity gained the interest of renewable energy utilization(Wang et al, 2021(Wang et al, , 2022. About the outcomes, the GDP was desirable for all cases(Moutinho, Madaleno and Robaina, 2017;Wang et al, 2020,…”

“…Table 3 to determine this study's input and output. In terms of input, labor force and share of renewable energy were considered in most studies of either eco-e ciency(Moutinho, Madaleno and Robaina, 2017;Wang et al, 2020) or renewable energy utilization(Wang et al, 2022). Similarly, the capital was also a favorable factor regarding the eco-e ciency (Moutinho, Madaleno and Robaina, 2017;Wang et al, 2020;Demiral and Sağlam, 2021).…”

Exploring economic and environmental efficiency in renewable energy utilization: a case study in the Organization for Economic Cooperation and Development countries

“…Regardless of the topic, more complex DEA methodologies have been explored in existing literature. For instance, DEA-SBM has been applied by Chang et al ( 2013 ), Wang et al ( 2020 ), Demiral and Sağlam ( 2021 ), and Sharma ( 2022 ), while DEA undesirable output was used in assessing renewable energy utilization by Wang et al ( 2022 ). Although DEA has been utilized in many aspects of renewables, only a few approaches have investigated the efficiency of renewable energy utilization.…”