Assessing Energy Efficiency for Economic and Sustainable Development in the Region of European Union Countries

Abstract

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The objective of this research is to estimate the energy-saving intensities of nations within the European Union, applying varied equations of the DEA analysis, such as the DEA, modified radial equation, Russel dynamic envelope analysis, and the adjusted Russel Dynamic envelope Analysis, throughout the period of 2010–2018. Unlike other studies, this analysis seeks to unravel whether European nations are effective in increasing the EE finance of their respective economies. Because the European Union not only has geographical ties between regions, it is also a collection of interests of various sovereign states, its energy exhibits efficiency changes under the relationship of competition and cooperation under that economic effect. Regarding this circumstance, different dynamic envelope evaluations were formulated. One primary finding is that nations such as Germany, Sweden, or Austria attain robust ecological safeguard performance, seem to be using less energy, and are ecologically efficient relative to other nations such as Denmark, Belgium, Spain, France, or Ireland. Furthermore, a group of Eastern EU nations attained reduced efficiency marks, which could be categorized as anticipated, as a result of reduced technological implementation within the principal manufacturing sectors. The main result of this study is that few nations are performing in terms of efficiency. Additionally, RE (Renewable Energy) power production expands as nations’ dynamic envelope analysis marks and creates inefficient governments nearer to the efficiency frontline. Inversely, the presence of peak-time power consumption reduced the dynamic envelope analysis marks and increased the distance from the Frontier of efficiency (the optimal value of efficiency).

Keywords

• financial development
• data envelopment analysis
• European Union
• energy efficiency
• assessment