Common weights analysis of renewable energy efficiency of OECD countries

Abstract

Arising from the recent COP26 climate change conference, many governments have emphasised carbon neutrality targets for environmental sustainability by increasing renewable energy efficiency. This study develops a common set of weights (CSW) model for the additive model in data envelopment analysis using goal programming to analyse the energy efficiency of the Organisation for Economic Co-operation and Development (OECD) countries. The CSW model, which has better discrimination power, places Iceland as the most renewable energy-efficient member country in the OECD, followed by Luxemburg and Norway. Our findings suggest that OECD countries should increase their renewable energy consumption and reduce municipal waste and CO2 emissions. Investment subsidies should be provided to support the development and adoption of energy-efficient technologies and promote awareness in the community and industry to improve the efficiency of renewable energy to combat climate change.