An AHP-DEA Approach for Evaluating Electricity Generation Firms of OECD Countries

Abstract

As the most important kind of energy needed in the world, electrical energy is one of the major means of contemporary civilization which has contributed to the economic, social, and cultural development of communities. Effective use of resources, environmentally friendly production, keeping up-to-date with technology, and demand are significant factors in electricity generation. In this respect, considering the influence of the existence and feasibility of fossil resources, new, and renewable resources on nations' energy policies, the aim of this study is to evaluate efficiency developments of the 13 largest electricity generation firms in the member countries of the Organization for Economic Co-operation and Development. In the study, the analytic hierarchy process and the data envelopment analysis-Malmquist productivity index approaches were integrated to assess qualitative and quantitative factors together. The efficient/inefficient firms in 2008 and 2009 were determined, and a development of 7.7% in 2009 due to technological change was found.