Assessing the Renewable Energy Efficiency Levels of BRICS Countries and Turkey Using Stochastic Frontier Analysis and Information Complexity Criteria

Abstract

Renewable energy is a sustainable energy source that can be produced repeatedly by using the resources that exist in nature's own evolution. Renewable energy sources occupy an important place in the world and our country due to their renewability, minimal environmental impact, low operating and maintenance costs, and their national qualifications, and reliable energy supply features. In this study renewable energy efficiency levels for the BRICS countries and Turkey were examined. In the study covering the period 2006-2015, we used the SFA method for efficiency analysis in input selection. We used information complexity criteria to decide which input set is the best on renewable energy efficiency process. The selection results pointed out to the CO₂ emission and Energy intensity as the most explanatory inputs. We observed that the selected inputs have significant effect on the renewable energy efficiencies. According to results, the renewable energy efficiency values follow approximately the same pattern for each country and do not vary significantly between the years. When comparing the renewable energy efficiencies among the countries, Brazil has the best performance with approximately 97% efficiency level, and Russia has the worst one. The efficiency level of Turkey is rather weak, but it is not the worst and the average efficiency is very close to China.

Keywords

• Renewable energy
• Stochastic frontier analysis
• Information complexity criteria
• BRICS
• Turkey

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