Performance Evaluating Energy, Economic and Environmental Performance with an Integrated Approach of Data Envelopment Analysis and Game Theory

Document Type : Original Article

Authors

Department of Industrial Engineering, Islamic Azad University, South Tehran Branch, Iran

Abstract

This research has been carried out with the aim of evaluating the energy, economic and environmental performance of selected countries that export energy resources with the integrated approach of data envelopment analysis (DEA) and game theory. The methodology of this research, including super-efficiency and cross-efficiency methods have also been used to rank efficient countries before the cooperation phase. Then, in the cooperation phase, each country is investigated using the method of cooperative games theory and Shapley's value. The resulting model was implemented and the rank of the efficient countries was compared with each other in the super-efficiency and cross-efficiency method (before cooperation) and the Shapley’s value method (after cooperation). The results showed that Qatar and Yemen have the highest, Lebanon and Jordan the lowest energy efficiency; Kuwait, Qatar and Turkmenistan have the highest economic efficiency, Iran and Turkey have the lowest economic efficiency; UAE and Qatar have the highest, Iran and Jordan the lowest environmental efficiency.

Graphical Abstract

Performance Evaluating Energy, Economic and Environmental Performance with an Integrated Approach of Data Envelopment Analysis and Game Theory

Keywords

Main Subjects

References

  1. Villa G, Lozano S, Redondo S. Data envelopment analysis approach to energy-saving projects selection in an energy service company. Mathematics. 2021;9(2):200.
  2. Wang C-N, Dang T-T, Wang J-W. A combined Data Envelopment Analysis (DEA) and Grey Based Multiple Criteria Decision Making (G-MCDM) for solar PV power plants site selection: A case study in Vietnam. Energy Reports. 2022;8:1124-42.
  3. Tsaples G, Papathanasiou J. Data envelopment analysis and the concept of sustainability: A review and analysis of the literature. Renewable and Sustainable Energy Reviews. 2021;138:110664. https://doi.org/10.1016/j.rser.2020.110664
  4. Arouri MEH, Youssef AB, M'henni H, Rault C. Energy consumption, economic growth and CO2 emissions in Middle East and North African countries. Energy policy. 2012;45:342-9. https://doi.org/10.1016/j.enpol.2012.02.042
  5. Singh G, Singh P, Sodhi G, Tiwari D. Energy auditing and data envelopment analysis (DEA) based optimization for increased energy use efficiency in wheat cultivation (Triticum aestium L.) in north-western India. Sustainable Energy Technologies and Assessments. 2021;47:101453. https://doi.org/10.1016/j.seta.2021.101453
  6. Bampatsou C, Papadopoulos S, Zervas E. Technical efficiency of economic systems of EU-15 countries based on energy consumption. Energy Policy. 2013;55:426-34. https://doi.org/10.1016/j.enpol.2012.12.021
  7. DeBenedictis LF, Giles DE, Policy P, Branch L. Diagnostic Testing in Econometrics: Variable Addition, RESET, and Fourier Approximations: Department of Economics, University of Victoria; 1996.
  8. Ren J, Gao B, Zhang J, Chen C. Measuring the energy and carbon emission efficiency of regional transportation systems in China: chance-constrained DEA models. Mathematical Problems in Engineering. 2020;2020:1-12. https://doi.org/10.1155/2020/9740704
  9. Chen C-K. CONSTRUCT MODEL OF THE KNOWLEDGE-BASED ECONOMY INDICATORS. Transformations in Business & Economics. 2008;7(2).
  10. Ito K. CO2 emissions, renewable and non-renewable energy consumption, and economic growth: Evidence from panel data for developing countries. International Economics. 2017;151:1-6. https://doi.org/10.1016/j.inteco.2017.02.001
  11. Chen CK. Causal modeling of knowledge‐based economy. Management Decision. 2008;46(3):501-14. https://doi.org/10.1108/00251740810863915
  12. Fukuyama H, Matousek R. Modelling bank performance: A network DEA approach. European Journal of Operational Research. 2017;259(2):721-32. https://doi.org/10.1016/j.ejor.2016.10.044
  13. Huang D, Li G, Chang Y, Sun C. Water, energy, and food nexus efficiency in China: a provincial assessment using a three-stage data envelopment analysis model. Energy. 2023;263:126007. https://doi.org/10.1016/j.energy.2022.126007
  14. Collard F, Fève P, Portier F. Electricity consumption and ICT in the French service sector. Energy Economics. 2005;27(3):541-50. https://doi.org/10.1016/j.eneco.2004.12.002
  15. Kamarudin F, Sufian F, Nassir AM, Anwar NAM, Hussain HI. Bank efficiency in Malaysia a DEA approach. Journal of Central Banking Theory and Practice. 2019. 10.2478/jcbtp-2019-0007
  16. Li F, Zhu Q, Liang L. Allocating a fixed cost based on a DEA-game cross efficiency approach. Expert Systems with Applications. 2018;96:196-207. https://doi.org/10.1016/j.eswa.2017.12.002
  17. Antonakakis N, Cunado J, Filis G, Gabauer D, de Gracia FP. Oil and asset classes implied volatilities: Investment strategies and hedging effectiveness. Energy Economics. 2020;91:104762. https://doi.org/10.1016/j.eneco.2020.104762
  18. Odhiambo NM. Energy consumption, prices and economic growth in three SSA countries: A comparative study. Energy policy. 2010;38(5):2463-9. https://doi.org/10.1016/j.enpol.2009.12.040
  19. Liu H, Zhang R, Zhou L, Li A. Evaluating the financial performance of companies from the perspective of fund procurement and application: New strategy cross efficiency network data envelopment analysis models. Energy. 2023;269:126739. https://doi.org/10.1016/j.energy.2023.126739
  20. Zhou W, Chen Q, Luo D, Jiang R, Chen J. Global energy consumption analysis based on the three-dimensional network model. IEEE Access. 2020;8:76313-32. 10.1109/ACCESS.2020.2989186
  21. Lu C-C, Lin I-F, Lin T-Y, Chiu Y-h. Two-stage dynamic data envelopment analysis measuring the overall efficiency and productivity changes of industry and agriculture in EU countries. Journal of Cleaner Production. 2023;382:135332.
  22. Narayan PK, Narayan S. Estimating income and price elasticities of imports for Fiji in a cointegration framework. Economic Modelling. 2005;22(3):423-38. https://doi.org/10.1016/j.econmod.2004.06.004
  23. Leng Y-J, Zhang H. Comprehensive evaluation of renewable energy development level based on game theory and TOPSIS. Computers & Industrial Engineering. 2023;175:108873. https://doi.org/10.1016/j.cie.2022.108873
  24. Toloo M, Nalchigar S, Sohrabi B. Selecting most efficient information system projects in presence of user subjective opinions: a DEA approach. Central European Journal of Operations Research. 2018;26:1027-51. https://doi.org/10.1007/s10100-018-0549-4
  25. Wu J, Liang L, Yang F, Yan H. Bargaining game model in the evaluation of decision making units. Expert Systems with Applications. 2009;36(3):4357-62. https://doi.org/10.1016/j.eswa.2009.05.001
  26. Shi X. Environmental efficiency evaluation of Chinese industry systems by using non-cooperative two-stage DEA model. Mathematical Problems in Engineering. 2019;2019:1-10. https://doi.org/10.1155/2019/9208367
  27. Halkos GE, Tzeremes NG. Oil consumption and economic efficiency: A comparative analysis of advanced, developing and emerging economies. Ecological Economics. 2011;70(7):1354-62.
  28. Yanqing X, Mingsheng X. A 3E Model on Energy Consumption, Environment Pollution and Economic Growth---An Empirical Research Based on Panel Data. Energy Procedia. 2012;16:2011-8. https://doi.org/10.1016/j.egypro.2012.01.306
  29. Zuo Y, Shi Y-l, Zhang Y-z. Research on the sustainable development of an economic-energy-environment (3E) system based on system dynamics (SD): A case study of the Beijing-Tianjin-Hebei Region in China. Sustainability. 2017;9(10):1727. https://doi.org/10.3390/su9101727
  30. Zhang X-P, Cheng X-M, Yuan J-H, Gao X-J. Total-factor energy efficiency in developing countries. Energy Policy. 2011;39(2):644-50. 10.1016/j.enpol.2010.10.03
  31. Zhou P, Ang B, Han J. Total factor carbon emission performance: a Malmquist index analysis. Energy Economics. 2010;32(1):194-201. https://doi.org/10.1016/j.eneco.2009.10.003
  32. Amani N, Bagherzadeh Valami H. Efficiency Evaluation of regional electronic companies in Iran by Network DEA: A based on the Conversion of the Structures into a uniform structure. Journal of decisions and operations research. 2018;3(3):249-80. https://doi.org/10.22105/dmor.2018.81213
  33. Wu Y, Li K, Fu X. An integrated zero-sum game and data envelopment analysis model for efficiency analysis and regional carbon emission allocation. Decision Analytics Journal. 2024;10:100387. https://doi.org/10.1016/j.dajour.2023.100387
International Journal of Engineering
Volume 37, Issue 5
TRANSACTIONS B: Applications
May 2024
Pages 959-973

Files

Share

How to cite

Statistics