Water, Energy, and Food Nexus in Pakistan: Parametric and Non-Parametric Analysis

Abstract

Analyzing the efficiency of the water, energy, and food (WEF) nexus is critical for effective governance strategies. Therefore, three-stage data envelopment analysis (DEA) was used to measure the efficiency level of WEF in the 36 districts of Punjab, Pakistan, for the period from 2015 to 2021. Furthermore, the stochastic frontier was used to analyze the effect of external environmental factors on these efficiency scores of the WEF nexus. The results of the DEA showed that the number of frontier efficiency districts decreased, and most districts experienced rank change over time. Overall, the performance of 50% of the districts declined over time. The relative decline in efficiency was found to be higher in districts Bahwalnaghar and Rahim Yar Khan. The performance of districts Multan and Sheikhupura increased over time, while districts Vehari and Sargodha were the most complete and efficient in actual performance. According to the SFA’s findings, the WEF nexus efficiency of South Punjab districts was negatively impacted by external environmental factors (urbanization rate, manufactured industry output, population), leading to severe stress across WEF sectors. Districts in central and southern Punjab, however, were more likely to have lower rankings because of the positive impact of external environmental factors on the efficiency of the WEF nexus. The substantial rise of external environmental variables focused on scale expansion rather than quality improvement, which created a wide gap in WEF inputs and, hence, reduced the efficiency of the WEF nexus in the districts. The findings of this study provide valuable insights for developing governance strategies based on external environmental factors and WEF resource endowment, and they complement the efficiency calculation of WEF nexus research. Future research should focus on the Baluchistan region, the most deprived area in terms of water, energy, and food.