Assessing Renewable Energy Production Capabilities Using DEA Window and Fuzzy TOPSIS Model

Abstract

Climate change and air pollution are among the key drivers of energy transition worldwide. The adoption of renewable resources can act as a peacemaker and give stability regarding the damaging effects of fossil fuels challenging public health as well as the tension made between countries in global prices of oil and gas. Understanding the potential and capabilities to produce renewable energy resources is a crucial pre-requisite for countries to utilize them and to scale up clean and stable sources of electricity generation. This paper presents a hybrid methodology that combines the data envelopment analysis (DEA) Window model, and fuzzy technique for order of preference by similarity to ideal solution (FTOPSIS) in order to evaluate the capabilities of 42 countries in terms of renewable energy production potential. Based on three inputs (population, total energy consumption, and total renewable energy capacity) and two outputs (gross domestic product and total energy production), DEA window analysis chose the list of potential countries, including Norway, United Kingdom, Kuwait, Australia, Netherlands, United Arab Emirates, United States, Japan, Colombia, and Italy. Following that, the FTOPSIS model pointed out the top three countries (United States, Japan, and Australia) that have the greatest capabilities in producing renewable energies based on five main criteria, which are available resources, energy security, technological infrastructure, economic stability, and social acceptance. This paper aims to offer an evaluation method for countries to understand their potential of renewable energy production in designing stimulus packages for a cleaner energy future, thereby accelerating sustainable development.