Evaluation of Energy-Environment Efficiency of European Transport Sectors: Non-Radial DEA and TOPSIS Approach

Abstract

Transport is recognized as a major energy consumer and environment pollutant. Recently scholars have paid considerable attention to the evaluation of transport energy and environmental efficiency (EEE). In this paper, the non-radial Data Envelopment Analysis (DEA) model was employed to evaluate EEE on a macro level—i.e., of European road, rail and air sectors. The evaluation was conducted under the joint production framework, which considers energy and non-energy inputs, and desirable and undesirable outputs for the last ten years period. To rank decision-making units and check the aptness of this non-radial DEA model in transport EEE evaluation, the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method has been proposed. An empirical study has been conducted for as many European countries as possible, depending on availability of data. Based on the non-radial DEA model, it could be said that the level of EEE is improving for the road sector, while many evaluated countries have low EEE for the rail transport sector. Additionally, results have indicated that the TOPSIS method is more suitable than the non-radial DEA model in transport EEE evaluation and for identification of best practices.