**Author details**

Specially, subsidies are significant with OE but not with DE. In other words, the subsidy is positively correlated with OE but negatively correlated with DE. Thus, H5a is supported and H5b is rejected. Some researchers have reached an opposing conclusion that subsidies and OE are positively correlated and that energy subsidy reform would produce positive re‐ sults. Promoting "subsidy" policies can reduce industrial production costs. However, if they are implemented inefficiently without carefully assessing the cost-efficiency and associated financial risks, a "free rider" phenomenon is created with consequent disadvantages; thus, the subsidies do not have a positive benefit. Therefore, renewable energy subsidies and DE

**Model Phase 1 Phase 2**

Endowment 3.131 -4.7 0.013\*\* -14.294 2.54 0.000\*\*

Population -0.004 4.43 0.006\*\* 0.13 -2.83 0.000\*\*

Capital 0.001 -3.3 0.018\*\* -0.007 2.4 0.001\*\*

GDP -2.3 0.39 0.961 0.001 -0.05 0.695

Subsidy 0.17 -0.26 0.017\*\* -0.029 2.42 0.797

r2 0.337 0.264

F-value 4.04 8.69

P-value 0.000\*\* 0.000\*\*

102. \*\* represents significant at 0.05 level and \* represents significant at 0.1 level.

**Table 7.** Estimated Results of the Tobit Regression Analysis

*Note*. Here is the efficiency scores derived from operating efficiency (OE) and density efficiency (DE). The observation is

Numerous DEA studies have incorporated the concept of production activities with multi‐ ple phases. They subsequently divided the DEA model into several sub-processes [60] [55] [33] [61] [62] [19]. Our first finding in this research is that there is a significant difference be‐ tween OE and DE. In other words, sub-process DEA model is suitable for measuring man‐ agement performance because of the characteristic of production activities in renewable

β-value coe. t-value p-value β-value t-value p-value

**Dependent Variables OE DE**

may be negatively correlated [59].

206 New Developments in Renewable Energy

Independent Variables

**5. Conclusion**

energy industries [61].

Tser-Yieth Chen1\*, Tsai-Lien Yeh2 and Yi Hsuan Ko1

\*Address all correspondence to: chenty@mail.ntpu.edu.tw

1 Graduate Institute of International Business, National Taipei University, New Taipei City, Taiwan, R.O.C.

2 Department of International Business, Ming Chuan University, Taipei, Taiwan, R.O.C.
