Efficiency Evaluation of Energy Companies with Data Envelopment Analysis

Abstract

The increasingly competitive environment in recent years has led businesses to use their resources more effectively. As in many other sectors, the efficient use of resources in the energy sector is essential for companies to ensure their sustainability. In recent years, disasters such as the COVID-19 global epidemic and the Russia-Ukraine war have adversely affected the energy and food sectors. The increase in energy and food prices and high inflation worldwide have revealed the necessity of using resources more efficiently and effectively. This study aims to measure the efficiency of companies operating in the energy sector in Turkey using the Data Envelopment Analysis (DEA) method. The efficiency analysis of fifteen energy companies was carried out using the input-oriented CCR model and Super Efficiency (SE)- CCR model. The number of personnel and total assets were used as input variables for the research, and net sales were used as output variables. As a result of the study, it has been determined that 4 of the energy companies were efficient and 11 were not. The most efficient company was determined according to the SE-CCR model efficiency results. According to these results, some suggestions have been put forward for inefficient businesses to be efficient.