Application of DEA and TOPSIS in Benchmarking Efficient Units of Energy Index of India

Abstract

The energy sector is perpetual in human development and economic development both. The purpose of this chapter is to provide an efficiency score to Indian firms (constituents of the NSE energy index) that are renowned for adopting best practices in carbon-emission control in the environment and then to rate such companies. The chapter is unique as it has attempted to identify efficient and benchmark units in the energy sector in India through an integrated model based on DEA-TOPSIS. The findings of the chapter have extensive implications for all these stakeholders along with companies belonging to the energy sector, investors, and academia. The managers taking strategic financial decisions in the target units need to consider the practices followed by benchmark companies for improving their financial viability.