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Operational and environmental efficiency of U.S. oil and gas companies towards energy transition policies: A comparative empirical analysis

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  • Sami Jarboui

Abstract

Global warming and climate change have been critical global issues in recent years. The evaluation of environmental and operational efficiency would be an important first step towards sustainable development. Renewable energies are playing an increasingly important role in the energy sector. Following energy transition policies, oil and gas companies are gradually transforming into energy companies. First, this article measures the operational and environmental efficiency of 45 U.S. oil and gas companies over the period 2000–2018. Second, this research aims to assess the effect of renewable energies on the two types of efficiency. Two methods are used in this research: the true fixed‐ model applied for measuring the efficiency scores and evaluate the inefficiency determinants, and the system generalised method of moments approach to verify the effect of energy and environmental policy on both the types of efficiencies and to test the robustness of our results. The results reveal that the overall average operational efficiency (desirable output) of the U.S. oil and gas companies is 76% for a period of 19 years, while the overall average level of CO2 emissions efficiency (undesirable output) of the oil and gas companies is 79%. The results highlight that U.S. oil and gas companies have begun to transition to low CO2 emission in recent years. Furthermore, the biofuel, hydroelectric power, wind power and solar energy contribute to promote the environmental efficiency of oil and gas companies.

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  • Sami Jarboui, 2022. "Operational and environmental efficiency of U.S. oil and gas companies towards energy transition policies: A comparative empirical analysis," Australian Economic Papers, Wiley Blackwell, vol. 61(2), pages 234-257, June.
    • Handle: RePEc:bla:ausecp:v:61:y:2022:i:2:p:234-257
    DOI: 10.1111/1467-8454.12245
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    1. Kilinc-Ata, Nurcan & Proskuryakova, Liliana N., 2023. "Empirical analysis of the Russian power industry's transition to sustainability," Utilities Policy, Elsevier, vol. 82(C).

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