**3.3. Medial input/output variables: The medial outputs of phase I and also the medial inputs of phase II**


### **3.4. Output variables**

Phase II Output Variables in: The results of recent studies have contributed to energy effi‐ ciency or environment efficiency evaluation problems that consider total production activity factors. Ramanathan [53] proposed an overall efficiency index that combined energy inputs, desirable outputs and undesirable outputs using DEA to study the relationships among global GDP, energy consumption, and carbon dioxide emissions. The final outputs used in this research, are as follows:

**Input Variables (Phase I)**

3. Generating Capacity Dorian, 1998; Morey, 2001; Dugan et al., 2002

4. Operation Expenses Kannan and Pillai, 2000; Herman, 2002; AMEC, 2004

**Medial Input/Output Variables (Output Phase I and Input Phase II)**

3. CHP IEA; Renewable Information, 2011

1. TEPS/GDP ratio PPPs (www.OECD-iLibrary.org)

2. TEPS/Population ratio Renewable Information, 2011; PPPs

Note. Source from this study

**3.6. DEA model**

**Table 1.** Input and Output Variables

3. Grid Halcrow, 2005; Bedard et al., 2005

Data Envelopment Analysis (DEA) is a method for measuring the performance efficiency of decision units, characterizing by multiple input and output variables [8]. The DEA techni‐ que uses linear programming to estimate the maximum potential efficiency for various lev‐ els of inputs based on each firm's actual inputs and output. DEA includes two major models, the CCR model, and the BCC model. Charnes, Cooper and Rhodes [54] proposed a model under the assumption of constant return to scale (CRS), called the CCR model. This model is only appropriate when all DMUs are operating at an optimal scale. Banker, Charnes and Cooper [55] extended the CCR model to include the variable returns to scale named the BCC model, which can further decompose the TE into two components: pure technical efficiency (PTE) and scale efficiency (SE). The problem of calculating efficiency can

be formulated as a fractional linear programming problem as below:

**Output Variables (Phase II)**

1. Fuel IEA; Glaser, 1977; Thorpe, 1999; Boud and Thorpe, 2003; Schneider and

Comparative Analysis of Endowments Effect Renewable Energy Efficiency Among OECD Countries

2. Labor Buonafina, 1992; Adjaye, 2000; Morey, 2001; Ghosh, 2002; Dugan et al.,

1. EOP Olatubi and Dismukes, 2000; Lam and Shiu, 2001; Nag, 2006; Pombo and

2. HOP Agrell and Bogetoft, 2004; Renewables Information, 2011

McCarl, 2003;Owen, 2004; Bedard et al., 2005; Previsic et al., 2005; Dowaki and Mori, 2005; Caputo et al., 2005

http://dx.doi.org/10.5772/52020

201

2002;

Taborda, 2006; Sueyoshi and Goto, 2010; Renewables Information, 2011


We used the intermediation approach to view the energy industry as intermediaries, and summarized the major input and output variables in Table 1.

#### **3.5. Research resource and sample**

This research is based on DEA of operating procedures. Though data collection and litera‐ ture review on performance measurement of renewable power, we can understand the dif‐ ferences in renewable energy efficiency among 34 OECD countries (Table 2) and provide suggestions for Taiwan. The data obtained for this analysis were gathered from many rele‐ vant data resources, including the IEA, Renewable Information, World Bank, and other en‐ ergy indices of a representative sample from 2007 to 2009. However, the data obtained from Renewable Energy Information [48] are used account for the full range of statistics collected from the Annual Renewables and Waste Questionnaire. This database of annual statistics for OECD countries covers hydroelectricity, solid biofuels, geothermal, renewable municipal waste, wind, gas from biomass, liquid biofuels, solar photovoltaic, solar thermal, tide/wave/ ocean, non-renewable municipal waste and industrial waste. It includes EOP and HOP from renewable sources and supply/demand balances of renewable and waste products. The pri‐ mary data from this system are from IEA annual publications.


**Table 1.** Input and Output Variables
