Measuring the Eco-efficiency of Brazilian Energy Companies using DEA and Directional Distance Function

• Published in: Revista IEEE América Latina Vol. 18; no. 11; pp. 1844 - 1852
• Main Authors: Goyannes Gusmao Caiado, Rodrigo, Caetano Heymann, Mozart, Luis Rey da Silveira, Celso, Angulo Meza, Lidia, Luiz Goncalves Quelhas, Osvaldo
• Format: Journal Article
• Language: English
• Published: Los Alamitos IEEE 01.11.2020; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• Subjects: Biological system modeling; Carbon footprint; Companies; Data envelopment analysis; Directional distance function; Eco-efficiency; Economic models; Efficiency; Energy measurement; Environment models; Gases; IEEE transactions; Laser radar; Optimization; Undesirable Outputs
• ISSN: 1548-0992; 1548-0992
• DOI: 10.1109/TLA.2020.9398625

This paper aims to measure the eco-efficiency of Brazilian energy companies in the period 2012-2017. Eco-efficiency is an indicator that reflects the maximization of economic returns and minimization of environmental impacts. The models that will be used are the classical data envelopment analysis (DEA) and the directional distance function (DDF) which has some advantages when including undesirable variables in efficiency calculations. The comparison between the results of the two models allows a comparative evaluation of the eco-efficiency of companies of the electric sector, combining desirable and undesirable outputs and shows that several companies have experienced significant changes in their efficiency scores as well as in their rankings considering the undesirable output. This indicates the importance of including the number of emissions as representative of the undesirable result in the calculation of the sustainable performance of the companies analyzed.