Environmental Performance Assessment of Energy-Consuming Sectors Through Novel Data Envelopment Analysis

This study evaluates the role of information in the environmental performance index (EPI) in different energy-consuming sectors in Pakistan through a novel slack-based data envelopment analysis (DEA). The index combines energy consumption as the primary input and gross domestic product (GDP) as the...

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Main Authors: Yangang Xue, Muhammad Mohsin, Farhad Taghizadeh-Hesary, Nadeem Iqbal
Format: Article
Language:English
Published: Frontiers Media S.A. 2022-01-01
Series:Frontiers in Energy Research
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fenrg.2021.713546/full
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author Yangang Xue
Muhammad Mohsin
Farhad Taghizadeh-Hesary
Nadeem Iqbal
author_facet Yangang Xue
Muhammad Mohsin
Farhad Taghizadeh-Hesary
Nadeem Iqbal
author_sort Yangang Xue
collection DOAJ
description This study evaluates the role of information in the environmental performance index (EPI) in different energy-consuming sectors in Pakistan through a novel slack-based data envelopment analysis (DEA). The index combines energy consumption as the primary input and gross domestic product (GDP) as the desirable output and CO2 emissions as the undesirable output. Yale’s EPI measures the efficiency of the sectoral level environmental performance of primary energy consumption in the country. Performance analysis was conducted from 2009 to 2018. The sectors were assigned scores between one and zero, with zero indicating maximum decision-making unit (DMU) inefficiency and one indicating maximum DMU efficiency. Despite being in the top-performing sector, agriculture scored only 0.51 in 2018, and the electricity sector obtained 0.412. Results also show that even the best-performing sector operates below the efficiency level. The mining and quarrying sector ranked second by obtaining 0.623 EPI and 0.035 SBEPI. Results also show that much of the energy supply of Pakistan (60.17%) is focused on fossil fuels, supplemented by hydropower (33%), while nuclear, wind, biogas, and solar power account for 5.15%, 0.47%, 0.32%, and 0.03%, respectively. Nonetheless, the overall results for both measures remained reasonably consistent. According to the literature and the energy crisis and climate instability dilemma, the authors conclude that changes to a diverse green power network are a possibility and an imminent need. Similarly, the government should penalize companies with poor performance. Furthermore, to ensure the capacity development and stability of environmental management and associated actions in the country, providing access to knowledge and training to groom human resources and achieve the highest performance is crucial.
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spelling doaj.art-52f9172a8ae64d6eb4f122ebdb8064262022-12-22T04:12:20ZengFrontiers Media S.A.Frontiers in Energy Research2296-598X2022-01-01910.3389/fenrg.2021.713546713546Environmental Performance Assessment of Energy-Consuming Sectors Through Novel Data Envelopment AnalysisYangang Xue0Muhammad Mohsin1Farhad Taghizadeh-Hesary2Nadeem Iqbal3School of Electrical Engineering, Lanzhou Institute of Technology, Lanzhou, ChinaSchool of Finance and Economics, Jiangsu University, Zhenjiang, ChinaSocial Science Research Institute, Tokai University, Hiratsuka-shi, JapanAir University School of Management, Air University, Islamabad, PakistanThis study evaluates the role of information in the environmental performance index (EPI) in different energy-consuming sectors in Pakistan through a novel slack-based data envelopment analysis (DEA). The index combines energy consumption as the primary input and gross domestic product (GDP) as the desirable output and CO2 emissions as the undesirable output. Yale’s EPI measures the efficiency of the sectoral level environmental performance of primary energy consumption in the country. Performance analysis was conducted from 2009 to 2018. The sectors were assigned scores between one and zero, with zero indicating maximum decision-making unit (DMU) inefficiency and one indicating maximum DMU efficiency. Despite being in the top-performing sector, agriculture scored only 0.51 in 2018, and the electricity sector obtained 0.412. Results also show that even the best-performing sector operates below the efficiency level. The mining and quarrying sector ranked second by obtaining 0.623 EPI and 0.035 SBEPI. Results also show that much of the energy supply of Pakistan (60.17%) is focused on fossil fuels, supplemented by hydropower (33%), while nuclear, wind, biogas, and solar power account for 5.15%, 0.47%, 0.32%, and 0.03%, respectively. Nonetheless, the overall results for both measures remained reasonably consistent. According to the literature and the energy crisis and climate instability dilemma, the authors conclude that changes to a diverse green power network are a possibility and an imminent need. Similarly, the government should penalize companies with poor performance. Furthermore, to ensure the capacity development and stability of environmental management and associated actions in the country, providing access to knowledge and training to groom human resources and achieve the highest performance is crucial.https://www.frontiersin.org/articles/10.3389/fenrg.2021.713546/fullCO2 emissiongreen energyelectricityenergy consumingenvironmental performance index
spellingShingle Yangang Xue
Muhammad Mohsin
Farhad Taghizadeh-Hesary
Nadeem Iqbal
Environmental Performance Assessment of Energy-Consuming Sectors Through Novel Data Envelopment Analysis
Frontiers in Energy Research
CO2 emission
green energy
electricity
energy consuming
environmental performance index
title Environmental Performance Assessment of Energy-Consuming Sectors Through Novel Data Envelopment Analysis
title_full Environmental Performance Assessment of Energy-Consuming Sectors Through Novel Data Envelopment Analysis
title_fullStr Environmental Performance Assessment of Energy-Consuming Sectors Through Novel Data Envelopment Analysis
title_full_unstemmed Environmental Performance Assessment of Energy-Consuming Sectors Through Novel Data Envelopment Analysis
title_short Environmental Performance Assessment of Energy-Consuming Sectors Through Novel Data Envelopment Analysis
title_sort environmental performance assessment of energy consuming sectors through novel data envelopment analysis
topic CO2 emission
green energy
electricity
energy consuming
environmental performance index
url https://www.frontiersin.org/articles/10.3389/fenrg.2021.713546/full
work_keys_str_mv AT yangangxue environmentalperformanceassessmentofenergyconsumingsectorsthroughnoveldataenvelopmentanalysis
AT muhammadmohsin environmentalperformanceassessmentofenergyconsumingsectorsthroughnoveldataenvelopmentanalysis
AT farhadtaghizadehhesary environmentalperformanceassessmentofenergyconsumingsectorsthroughnoveldataenvelopmentanalysis
AT nadeemiqbal environmentalperformanceassessmentofenergyconsumingsectorsthroughnoveldataenvelopmentanalysis