IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i9p3709-d1133408.html
   My bibliography  Save this article

The Efficiency of Offshore Wind Energy Companies in the European Countries: A DEA Approach

Author

Listed:
  • Dario Maradin

    (Faculty of Economics and Business, University of Rijeka, Ivana Filipovića 4, 51000 Rijeka, Croatia)

  • Bojana Olgić Draženović

    (Faculty of Economics and Business, University of Rijeka, Ivana Filipovića 4, 51000 Rijeka, Croatia)

  • Saša Čegar

    (Faculty of Economics and Business, University of Rijeka, Ivana Filipovića 4, 51000 Rijeka, Croatia)

Abstract

Considering environmental issues such as greenhouse gas emissions associated with climate change and the depletion of fossil fuels, one of the possible solutions is the use of renewable energy sources. Wind energy is one of the most competitive and resilient energy sources in the world, which can play an important role in accelerating the global transition to green energy. The purpose of this study is to evaluate the allocative efficiency of 47 offshore wind energy companies in 9 European countries using the input-oriented BCC DEA model. The basic hypothesis is that by evaluating the relative efficiency of offshore wind energy companies in European countries, it is possible to determine a correlation between the results of efficiency between the two observed periods with slight deviations. The empirical results show no significant correlation between the score of relative efficiency and the country where the offshore wind energy company is located. On the other hand, the results are consistent with the basic hypothesis of this study. From the management perspective, significant improvements in all financial variables, i.e., tangible fixed assets, cash and cash equivalents, and current assets, are required to achieve relative efficiency. The model variables refer to the economic characteristics of offshore wind energy companies, indicating that only allocative efficiency was analysed, which is in contrast to previous studies.

Suggested Citation

  • Dario Maradin & Bojana Olgić Draženović & Saša Čegar, 2023. "The Efficiency of Offshore Wind Energy Companies in the European Countries: A DEA Approach," Energies, MDPI, vol. 16(9), pages 1-16, April.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:9:p:3709-:d:1133408
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/9/3709/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/9/3709/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Emily Cowin & Changlong Wang & Stuart D. C. Walsh, 2023. "Assessing Predictions of Australian Offshore Wind Energy Resources from Reanalysis Datasets," Energies, MDPI, vol. 16(8), pages 1-21, April.
    2. Pestana Barros, Carlos & Sequeira Antunes, Olinda, 2011. "Performance assessment of Portuguese wind farms: Ownership and managerial efficiency," Energy Policy, Elsevier, vol. 39(6), pages 3055-3063, June.
    3. Vasconcelos, Rafael Monteiro de & Silva, Lara Luana Cirilo & González, Mario Orestes Aguirre & Santiso, Andressa Medeiros & de Melo, David Cassimiro, 2022. "Environmental licensing for offshore wind farms: Guidelines and policy implications for new markets," Energy Policy, Elsevier, vol. 171(C).
    4. Ali Azadeh & Somayeh Ahmadi Movaghar, 2010. "An integrated multivariate approach for performance assessment and optimisation of electricity transmission systems," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 5(2), pages 226-248.
    5. Benini, Giacomo & Cattani, Gilles, 2022. "Measuring the long run technical efficiency of offshore wind farms," Applied Energy, Elsevier, vol. 308(C).
    6. Rentier, Gerrit & Lelieveldt, Herman & Kramer, Gert Jan, 2023. "Institutional constellations and policy instruments for offshore wind power around the North sea," Energy Policy, Elsevier, vol. 173(C).
    7. Abbott, Malcolm, 2006. "The productivity and efficiency of the Australian electricity supply industry," Energy Economics, Elsevier, vol. 28(4), pages 444-454, July.
    8. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    9. Yun Zhang & Robert Bartels, 1998. "The Effect of Sample Size on the Mean Efficiency in DEA with an Application to Electricity Distribution in Australia, Sweden and New Zealand," Journal of Productivity Analysis, Springer, vol. 9(3), pages 187-204, March.
    10. Ermando Petracca & Emilio Faraggiana & Alberto Ghigo & Massimo Sirigu & Giovanni Bracco & Giuliana Mattiazzo, 2022. "Design and Techno-Economic Analysis of a Novel Hybrid Offshore Wind and Wave Energy System," Energies, MDPI, vol. 15(8), pages 1-28, April.
    11. Akbari, Negar & Jones, Dylan & Treloar, Richard, 2020. "A cross-European efficiency assessment of offshore wind farms: A DEA approach," Renewable Energy, Elsevier, vol. 151(C), pages 1186-1195.
    12. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2006. "Introduction to Data Envelopment Analysis and Its Uses," Springer Books, Springer, number 978-0-387-29122-2, September.
    13. Abbas Mardani & Dalia Streimikiene & Tomas Balezentis & Muhamad Zameri Mat Saman & Khalil Md Nor & Seyed Meysam Khoshnava, 2018. "Data Envelopment Analysis in Energy and Environmental Economics: An Overview of the State-of-the-Art and Recent Development Trends," Energies, MDPI, vol. 11(8), pages 1-21, August.
    14. Yasar A. Ozcan, 2014. "Evaluation of Performance in Health Care," International Series in Operations Research & Management Science, in: Health Care Benchmarking and Performance Evaluation, edition 2, chapter 0, pages 3-14, Springer.
    15. Polatidis, Heracles & Haralambopoulos, Dias A., 2007. "Renewable energy systems: A societal and technological platform," Renewable Energy, Elsevier, vol. 32(2), pages 329-341.
    16. Bórawski, Piotr & Bełdycka-Bórawska, Aneta & Jankowski, Krzysztof Jóżef & Dubis, Bogdan & Dunn, James W., 2020. "Development of wind energy market in the European Union," Renewable Energy, Elsevier, vol. 161(C), pages 691-700.
    17. Iglesias, Guillermo & Castellanos, Pablo & Seijas, Amparo, 2010. "Measurement of productive efficiency with frontier methods: A case study for wind farms," Energy Economics, Elsevier, vol. 32(5), pages 1199-1208, September.
    18. deCastro, M. & Salvador, S. & Gómez-Gesteira, M. & Costoya, X. & Carvalho, D. & Sanz-Larruga, F.J. & Gimeno, L., 2019. "Europe, China and the United States: Three different approaches to the development of offshore wind energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 55-70.
    19. Fare, Rolf & Grosskopf, Shawna & Logan, James, 1983. "The relative efficiency of Illinois electric utilities," Resources and Energy, Elsevier, vol. 5(4), pages 349-367, December.
    20. Yasar A. Ozcan, 2014. "Health Care Benchmarking and Performance Evaluation," International Series in Operations Research and Management Science, Springer, edition 2, number 978-1-4899-7472-3, September.
    21. Dario Maradin, 2021. "Advantages and Disadvantages of Renewable Energy Sources Utilization," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 176-183.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Galina Chebotareva & Inna Čábelková & Wadim Strielkowski & Luboš Smutka & Anna Zielińska-Chmielewska & Stanislaw Bielski, 2023. "The Role of State in Managing the Wind Energy Projects: Risk Assessment and Justification of the Economic Efficiency," Energies, MDPI, vol. 16(12), pages 1-26, June.
    2. Ibrahim Yilmaz, 2023. "A Hybrid DEA–Fuzzy COPRAS Approach to the Evaluation of Renewable Energy: A Case of Wind Farms in Turkey," Sustainability, MDPI, vol. 15(14), pages 1-18, July.
    3. Nikolay Todorov Atanasov & Gabriela Lachezarova Atanasova & Daniel Adrian Gârdan & Iuliana Petronela Gârdan, 2023. "Experimental Assessment of Electromagnetic Fields Inside a Vehicle for Different Wireless Communication Scenarios: A New Alternative Source of Energy," Energies, MDPI, vol. 16(15), pages 1-22, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    2. Nikolaos Oikonomou & Yannis Tountas & Argiris Mariolis & Kyriakos Souliotis & Kostas Athanasakis & John Kyriopoulos, 2016. "Measuring the efficiency of the Greek rural primary health care using a restricted DEA model; the case of southern and western Greece," Health Care Management Science, Springer, vol. 19(4), pages 313-325, December.
    3. Blokhuis, Erik & Advokaat, Bart & Schaefer, Wim, 2012. "Assessing the performance of Dutch local energy companies," Energy Policy, Elsevier, vol. 45(C), pages 680-690.
    4. Benini, Giacomo & Cattani, Gilles, 2022. "Measuring the long run technical efficiency of offshore wind farms," Applied Energy, Elsevier, vol. 308(C).
    5. Aydın Özdemir & Hakan Kitapçı & Mehmet Şahin Gök & Erşan Ciğerim, 2021. "Efficiency Assessment of Operations Strategy Matrix in Healthcare Systems of US States Amid COVID-19: Implications for Sustainable Development Goals," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    6. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    7. H. Örkcü & Mehmet Ünsal & Hasan Bal, 2015. "A modification of a mixed integer linear programming (MILP) model to avoid the computational complexity," Annals of Operations Research, Springer, vol. 235(1), pages 599-623, December.
    8. Angeliki Flokou & Vassilis Aletras & Dimitris Niakas, 2017. "Decomposition of potential efficiency gains from hospital mergers in Greece," Health Care Management Science, Springer, vol. 20(4), pages 467-484, December.
    9. Wang, Yi-Shu & Xie, Bai-Chen & Shang, Li-Feng & Li, Wen-Hua, 2013. "Measures to improve the performance of China’s thermal power industry in view of cost efficiency," Applied Energy, Elsevier, vol. 112(C), pages 1078-1086.
    10. Andreas Eder & Bernhard Mahlberg & Bernhard Stürmer, 2021. "Measuring and explaining productivity growth of renewable energy producers: An empirical study of Austrian biogas plants," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(1), pages 37-63, February.
    11. Alexandre Marinho & Claudia Affonso Silva Araújo, 2021. "Using data envelopment analysis and the bootstrap method to evaluate organ transplantation efficiency in Brazil," Health Care Management Science, Springer, vol. 24(3), pages 569-581, September.
    12. Girma Jirata Duguma & Jiqin Han, 2021. "Effect of deposit mobilization on the technical efficiency of rural saving and credit cooperatives: Evidence from Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(4), pages 621-647, December.
    13. S P Santos & C A F Amado & J R Rosado, 2011. "Formative evaluation of electricity distribution utilities using data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(7), pages 1298-1319, July.
    14. Maradin Dario & Cerovic Ljerka, 2014. "Possibilities of Applying the DEA Method in the Assessment of Efficiency of Companies in the Electric Power Industry: Review of Wind Energy Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 320-326.
    15. Víctor Giménez & Jorge R. Keith & Diego Prior, 2019. "Do healthcare financing systems influence hospital efficiency? A metafrontier approach for the case of Mexico," Health Care Management Science, Springer, vol. 22(3), pages 549-559, September.
    16. Jinchao Li & Jinying Li & Fengting Zheng, 2014. "Unified Efficiency Measurement of Electric Power Supply Companies in China," Sustainability, MDPI, vol. 6(2), pages 1-15, February.
    17. Petridis, Konstantinos & Ünsal, Mehmet Güray & Dey, Prasanta Kumar & Örkcü, H. Hasan, 2019. "A novel network data envelopment analysis model for performance measurement of Turkish electric distribution companies," Energy, Elsevier, vol. 174(C), pages 985-998.
    18. Chih-Ching Yang, 2017. "Measuring health indicators and allocating health resources: a DEA-based approach," Health Care Management Science, Springer, vol. 20(3), pages 365-378, September.
    19. Mustafa Jahangoshai Rezaee & Abuzar Karimdadi & Hamidreza Izadbakhsh, 2019. "Road map for progress and attractiveness of Iranian hospitals by integrating self-organizing map and context-dependent DEA," Health Care Management Science, Springer, vol. 22(3), pages 410-436, September.
    20. Alejandro Arrieta & Jorge Guillén, 2017. "Output congestion leads to compromised care in Peruvian public hospital neonatal units," Health Care Management Science, Springer, vol. 20(2), pages 157-164, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:16:y:2023:i:9:p:3709-:d:1133408. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.