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A Target-Oriented Data Envelopment Analysis for Energy-Environment Efficiency Improvement in Japan

Author

Listed:
  • Soushi Suzuki

    (Hokkai-Gakuen University, Japan)

  • Peter Nijkamp

    (VU University Amsterdam)

  • Piet Rietveld

    (VU University Amsterdam)

Abstract

This paper offers a quantitative contribution to energy-environment policy in Japan in the aftermath of the Fukushima nuclear power accident. Since then, nuclear power energy supply has almost entirely been banned .There is no clear-cut direction for energy policy, as each option involves costs and CO2 consequences. A balanced energy-environment policy is difficult to achieve and there is an urgent need for a comprehensive efficiency and performance analysis of the Japanese energy sector. This paper presents a newly developed adjusted DEA model, emerging from a blend of the Euclidian Distance Minimization EDM method and the Target-Oriented (TO) approach based on a Super-Efficiency model, for generating an appropriate efficiency-improving projection model. The TO approach specifies a Target-Efficiency Score (TES) for inefficient DMUs. This approach can compute an input reduction value and an output increase value in order to achieve a higher TES. This model will be applied to an efficiency analysis of the energy-environment interface for ten regions in Japan. The focus is on two input cost criteria (viz. expenditures and CO2 emission) and two output performance criteria (viz. electricity generation and regional CO2 absorption). A comparative performance analysis of the ten Japan regions under consideration will be pursued.

Suggested Citation

  • Soushi Suzuki & Peter Nijkamp & Piet Rietveld, 2013. "A Target-Oriented Data Envelopment Analysis for Energy-Environment Efficiency Improvement in Japan," Tinbergen Institute Discussion Papers 13-137/VIII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20130137
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    References listed on IDEAS

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    1. Tarja Joro & Pekka Korhonen & Jyrki Wallenius, 1998. "Structural Comparison of Data Envelopment Analysis and Multiple Objective Linear Programming," Management Science, INFORMS, vol. 44(7), pages 962-970, July.
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    More about this item

    Keywords

    Data Envelopment Analysis (DEA); Euclidean Distance Minimisation (EDM); Target-Oriented (TO); Energy-Environment efficiency;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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