Transition Energy and Technical Efficiency of Energy Companies: DEA and Panel Evidence from Renewable and Traditional Energy Companies in Europe and North America

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides empirical evidence on the link between ESG and technical efficiency in the energy sector, useful for further research on transition dynamics.

🏢実務担当者:Highlights that renewable expansion must be paired with operational efficiency and financial resilience; useful for corporate strategy and investor relations.

🏛政策担当者:Suggests that long-term climate policy exposure may improve efficiency, informing regulatory design for energy transition.

This study examines the technical and operational efficiency of publicly listed energy companies operating in Europe, the United States, and Canada during the 2017–2024 energy transition period. The sample includes both traditional electricity utilities and renewable energy producers. Technical efficiency was estimated using output-oriented Data Envelopment Analysis (DEA), specifically the Charnes–Cooper–Rhodes (CCR) and Banker–Charnes–Cooper (BCC) models. Panel-data models were subsequently applied to identify the financial, organisational, regional, and environmental, social, and governance (ESG) factors associated with firm-level efficiency. The results indicate a moderate average level of technical efficiency, with a substantial share of inefficiency attributable to an inappropriate operating scale. Contrary to the initial hypothesis, renewable energy companies were, on average, less technically efficient than traditional utilities, despite achieving higher ESG and environmental scores. European companies exhibited higher efficiency than firms located in the United States and Canada, suggesting that long-term exposure to climate-policy and regulatory pressures may encourage more effective resource use. The panel-model results did not provide robust evidence that ESG performance directly improves technical efficiency. By contrast, profitability, leverage, and firm size were significantly associated with efficiency outcomes. These findings show that the energy transition depends on more than the expansion of renewable energy capacity. Effective resource allocation, financial resilience, organisational adjustment, and an appropriate operating scale are equally important. The study provides relevant implications for corporate managers, investors, and policymakers involved in energy-sector transformation.

• openalex https://doi.org/10.3390/en19143386first seen 2026-08-08 04:51:26