Productive Performance Analysis in Taiwan Energy Companies: Application of DEA Malmquist Index

Abstract

Taiwan has actively promoted the strategy of energy efficiency for all companies and organizations. The government has set a target of energy efficiency of 33% by 2025. This research applied DEA malmquist index to assess technical efficiency, and to reveal trends of productivity change in Taiwan energy companies. The DEA malmquist index is a distinguished research method using to measures productivity change over time period. The proposed method can be decomposed into two components, technical change and technological change. A panel data was collected from Taiwan Stock Exchange Market recorded 2008-2011. The research was illustrated with financial data of selected companies, and their productivity was carefully analyzed. The empirical results showed that the technical efficiency of five energy companies performed efficiently with the highest score of 1.000. An average technical efficiency score was pretty high with 0.938. Moreover, trend in productivity change regressed due lack of technological improvement.

Analysing the Pattern of Productivity Change in the European Energy Industry

“…Productivity in the energy industry has mostly been studied at the country level. For example, Abbot [26] studied multifactor productivity in the Australian electric utility industry, Ramos-Real et al [27] analysed productivity changes in Brazilian electric utilities, and Liu et al [11] studied technical efficiency and productivity in Taiwanese energy companies. Specifically, country-level studies tend to be conducted in China (e.g., Song et al [28], who measured productivity in the Chinese thermal power industry, Lu et al [12], who analysed and predicted total factor productivity for Chinese petroleum companies, and Zhang et al [29], who studied multifactor productivity in the Chinese coal industry).…”

“…Additionally, it leads to an increase in multifactor productivity (hereafter referred to as productivity), which is commonly defined as the ratio between aggregate outputs and aggregate inputs used in the production process. In the last decade, there have been few studies on the efficiency and productivity of the energy industry worldwide [10][11][12]. However, to the best of our knowledge, there have been no studies analysing productivity changes in the European energy industry.…”