An Empirical Analysis for Technical Efficiency of Bioenergy Industry in EU28 Region Based on Data Envelopment Analysis Method

Mohd Alsaleh, A.S. Abdul-Rahim, H.O. Mohd-Shahwahid, Lee Chin, Fakarudin Kamarudin

Abstract


Over the last few years concerns have enhanced about the bioenergy industry as main source for renewable and sustainable energy in many countries. These concerns have been major magnitude for countries with joint green energy legislation such as European Union (EU) member states. A significant aspect to be considered when selecting a provided bioenergy is the efficiency involved in its production. In this context, the current study analyzes the technical efficiency components in bioenergy industry in EU28 region between 1990 and 2013. To this end, parametric and non-parametric frontier models are applied, where both are particularly appropriate in this special context due to their treatment of undesirable outputs. Results are presenting higher means for technical efficiency and pure technical efficiency in developing countries in compare with developed countries. In the other hand, scale efficiency mean presenting high value in developed countries in compare with developing ones.

Keywords: Bioenergy industry; technical efficiency; EU28 Region

JEL Classifications: Q4, D61


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