Turkey’s Energy Efficiency and Its Relative Position against OECD and BRICS Countries

Year 2020, Volume: 23 Issue: 2, 515 - 525, 01.06.2020

Fatih Karık Ümit İskender Cuma Kılınç

https://doi.org/10.2339/politeknik.671336

Abstract

The demand for energy is growing day by day, and at the same time economy is an important issue to be handled with this growing. In this respect, many countries are undertaking significant roles to decline their energy intensities (energy supply or consumption per unit of economic output) whereas this variable may be single factor for the international comparisons. This study including many factors with the energy intensity measures energy efficiency of countries and positions Turkey among them. Data envelopment analysis (DEA) using multiple input and outputs is a non-parametric technique for the efficiency evaluation of a set of decision making units (DMUs). In the analyzes, the OECD and BRICS (Brazil, Russia, India, Democratic People of China and South Africa) countries were used for 2009–2013 period. For this period, the Malmquist productivity index (MPI) method was also used to observe the dynamic progress of DEA analyzes. The efficiency analysis of OECD (Organization for Economic Cooperation and Development) and BRICS (Brazil, Russia, India, China and South Africa) countries is conducted from 2009 to 2013. According to the results, the efficient countries are members of the OECD group and MPI of an average country worsens 1.4% over the period. As a member of OECD, Turkey is not efficient country with the score of 0.048 and Turkey’s MPI also worsens 4.5% for the whole period. Because the energy imports have become a threat to Turkey’s economy in recent years, the findings will be helpful guidance in seeing its relative position and in taking precautions. As a result of this study, it is given some suggestions to increase the efficiency of Turkey in the model.

Keywords

Energy efficiency, data envelopment analysis, Malmquist productivity index

References

• Makridou, G., Andriosopoulos, K., Doumpos, M. and Zopounidis, C., “Measuring the efficiency of energy-intensive industries across European countries”, Energy Policy, 88: 573–583 (2016)
• IEA, 2015b. Available from: http://data.iea.org/ accessed: 07.07.2015.
• IEA, 2015a. Energy Balances of OECD Countries, 2015 edition.
• Sözen, A., Alp, İ. and İskender, Ü., “An Evaluation of Turkey's Energy Dependency” Energy Sources, Part B: Economics, Planning, and Policy, 9:4, 398–412 (2014)
• Republic of Turkey MENR, “Department of Nuclear Energy Project Implementation, Nuclear Power Plants and Turkey”, Publication No.2 (2015)
• Chang, M.-C., “Energy intensity, target level of energy intensity, and room for improvement in energy intensity: An application to the study of regions in the EU”, Energy Policy, 67: 648–655 (2014)
• Zhou, P., Ang, B.W. and Poh, K.L., “A survey of data envelopment analysis in energy and environmental studies”, European Journal of Operational Research, 189: 1–18 (2008)
• Hu, J.-L. and Wang, S.C., “Total-factor energy efficiency of regions in China”, Energy Policy, 34: 3206–3217 (2006)
• Hu, J.-L. and Kao, C.H., “Efficient energy-saving targets for APEC economies”, Energy Policy, 35: 373–382 (2007)
• Mukherjee, K., “Energy use efficiency in U.S. manufacturing: a nonparametric analysis”, Energy Economy, 30: 76–96 (2008)
• Fang, H., Wu, J. and Zeng, C., “Comparative study on efficiency performance of listed coal mining companies in China and the US”, Energy Policy, 37: 5140–5148 (2009)
• Oggioni, G., Riccardi, R. and Toninelli, R., “Eco-efficiency of the World cement in dustry: a data envelopment analysis”, Energy Policy, 39: 2842–2854 (2011)
• Blomberg, J., Henriksson, E., Lundmark, R., “Energy efficiency and policy in Swedish pulp and paper mills:a data envelopment analysis approach”, Energy Policy, 42: 569–579, (2012)
• Sueyoshi, T. and Goto, M., “Efficiency-based rank assessment for electric power industry: a combined use of Data Envelopment Analysis(DEA) and DEA Discriminant Analysis (DA)”, Energy Economy, 34(3): 634–644 (2012)
• Broeren, M.L.M., Saygin, D. and Patel, M.K., “Forecasting global developments in the basic chemical industry for environmental policy analysis”, Energy Policy, 64: 273–287 (2014)
• Zhou, G., Chung, W. and Zhang, Y., “Measuring energy efficiency performance of China's transport sector: a data envelopment analysis approach”, Expert Syst. Appl., 41(2): 709–722 (2014)
• Zhang, X.-P., Cheng, X.-M., Yuan, J.-H. and Gao, X.-J., “Total-factor energy efficiency in developing countries”, Energy Policy, 39: 644–650 (2011)
• Song, M.-L., Zhang, L.-L., Liu, W. and Fisher, R., “Bootstrap-DEA analysis of BRICS' energy efficiency based on small sample data”, Appl. Energy, 112: 1049–1055 (2013)
• Sözen, A., Alp, İ. and Kazancioğlu, Ş., “Turkey's Performance of Sectoral Energy Consumption”, Energy Sources, Part B: Economics, Planning, and Policy, 8:1, 94–105 (2013)
• Menegaki, A.N., “Growth and renewable energy in Europe: benchmarking with data envelopment analysis”, Renew. Energy, 60: 363–369 (2013)
• Xie, B.-C., Shang, L.-F., Yang, S.-B. and Yi, B.-W., “Dynamic environmental efficiency evaluation of electric power industries: evidence from OECD (Organization for Economic Cooperation and Development) and BRIC (Brazil, Russia, India and China) countries”, Energy, 74: 147–157 (2014)
• Woo, C., Chung Y., Chun, D., Seo, H. and Hong, S., “The static and dynamic environmental efficiency of renewable energy A Malmquist index analysis of OECD countries”, Renewable and Sustainable Energy Reviews, 47: 367–376 (2015)
• Camioto, F.C., Moralles, H.F., Mariano E.B. and Rebelatto D.A.N., “Energy efficiency analysis of G7 and BRICS considering total-factor structure”, Journal of Cleaner Production, Article in Press, 1–11 (2016)
• Charnes, A., Cooper, W.W. and Rhodes, E., “Measuring the efficiency of decision making units”, European Journal of Operational Research, 2: 429–444 (1978)
• Banker, R.D., Charnes, A. and Cooper, W.W., “Some models for estimating technical and scale inefficiencies in data envelopment analysis”, Management Science, 30: 1078–1092, (1984)
• Andersen, P. and Petersen, N.C., 1993., “A procedure for ranking efficient units in data envelopment analysis”, Management Science, 39: 1261–1264, (1993)
• Färe, R., Grosskopf, S., Lindgren, B. and Roos, P., “Productivity Developments in Swedish Hospitals: A Malmquist Output Index Approach”, Department of Economics Discussion Paper 89–3, Southern Illinois University, Carbondale, (1989)
• Caves, D.W., Christensen, L.R., and Diewert, W.E., “The economic theory of index numbers and the measurement of input, output and productivity”, Econometrica, 50: 1393–1414 (1982)
• Malmquist, S., “Index numbers and indifference surfaces”, Trabajos de Estadistica, 4: 209–242 (1953)
• Färe, R., Grosskopf, S., Lindgren, B. and Roos, P., “Productivity changes in Swedish pharamacies 1980–1989: a non-parametric Malmquist approach”, The Journal of Productivity Analysis, 3: 85–101 (1992)
• WB, 2015. Available from: http://databank.worldbank.org/data/home.aspx accessed: 08.08.2015.
• Coelli, T.J., “A Guide to DEAP Version 2.1: A Data Envelopment Analysis (Computer) Program”, CEPA Working Paper 96/08, Department of Econometrics, University of New England, Armidale NSW Australia , (1996)
• Scheel, H., “EMS Version 1.3: Efficiency Measurement System User’s Manual” (2000) Available from: http://www.holger-scheel.de/ems/ accessed: 02.02.2016.
• Jury, C., Rugani, B., Hild, P., May, M. and Benetto, E., “Analysis of complementary methodologies to assess the environmental impact of Luxembourg’s net consumption”, Environmental Science&Policy, 27: 68–80 (2013)
• Ministry of Economy, Luxembourg, “Third National Energy Efficiency Action Plan for Luxembourg”, National Report, (2014)
• Färe, R., Grosskopf, S., Norris, M. and Zhang, Z., “Productivity Growth, Technical Progress, and Efficiency Changes in Industrialised Countries” The American Economic Review, 84(1): 66–83 (1994)
• Chien, T. and Hu, J-L., “Renewable energy and macroeconomic efficiency of OECD and non-OECD economies”, Energy Policy, 35: 3606–3615 (2007)
• Energy Efficiency Strategy Paper 2012-2023, Official Paper No:28215 (2012)
• Republic of Turkey TCB (Turkish Central Bank), (2016)
• Energy Efficiency Law, Official Paper No:26510 (2007)
• Republic of Turkey MENR., “National Renewable Energy Action Plan For Turkey” (2014)
• European Commission (EC), “Directive 2012/27/EU of the European Parliament and of the Council on energy efficiency”, Official Journal of the European Union (EU), (2012)