Investigating the Environmental and Economic Performances of Energy Sector in OECD Countries via MCDM Approaches

Abstract

Sustainability is the most crucial aim that Organisation for Economic Co-operation and Development (OECD) countries strive for their long term targets. We aim at analysing environmental and energy economic performance of OECD countries via Multi Criteria Decision Making (MCDM) methods. The presented approach adopts Criteria Importance through Intercriteria Correlation (CRITIC) integrated Grey Relational Analysis (GRA) and Multi-Attribute Utility Theory (MAUT) approaches to weight the criteria and evaluate the performance of OECD countries over the 2013–2017 period. Initially, we compute weight criteria via CRITIC method. Then, we compare the results of GRA and MAUT method. According to results of these methods, Switzerland and Ireland perform better in terms of environmental and energy economic performance. As per to the empirical results, both methods have shown significant harmony in terms of performance figures. This paper intends to contribute energy performance literature by comparing different MCDM methods so as to evaluate environmental and energy economic performance of OECD countries.