EU's dynamic evaluation of energy efficiency: Combining data envelopment analysis and multicriteria decision making

Abstract

Purpose: This chapter applies an integrated methodology for energy efficiency evaluation and benchmarking, based on nonparametric techniques. The analysis is well suited to the multidimensional nature of energy efficiency. An up-to-date panel data set is used, consisting of countries from the European Union over the period 2000-2010. Approach; The analysis is based on a methodology combining data envelopment analysis for energy efficiency evaluation with a multicriteria classification technique for building an operational benchmarking evaluation model. Indicators on energy efficiency, environmental indicators, as well as economic and growth variables are aggregated to obtain a global evaluation of the countries. Findings: The energy efficiency of countries in the European Union has been affected by the recent economic crisis. This is verified through the developed models that consider a refined breakdown of input and output variables related to economic activity and the consumption of different energy sources. Except for energy intensity, the efficiency of the countries is also determined by factors related to their level of economic activity, competitiveness, and growth. Value: The proposed multidimensional framework for analyzing energy efficiency would be useful for policy makers and stakeholders in identifying trends over time as well as to perform benchmark comparisons across countries. © Springer-Verlag London 2013.