Comparison of technology efficiency for CO₂ emissions reduction among European countries based on DEA with decomposed factors

For consistent and effective CO₂ reduction, many countries need to improve not only the technical efficiency of CO₂ mitigation, but also environmental responsibility. In this study, we examine both the technical efficiency and voluntary environmental consciousness (VEC) of 12 European countries using a two-stage data envelopment analysis (DEA). In the first stage, we measured the technical efficiency of green energy technologies (GET) associated with fossil fuels, renewable energy, and storage technologies of each country for energy generation with regard to CO₂ emissions by surveying GET-related patents. Using the logarithmic mean Divisia index (LMDI), we decomposed CO₂ emissions into the following technological factorsenergy intensity, fuel mix, and CO₂ emission coefficient. In the second stage, we quantified the VEC in each country by investigating GET patent changes via research and development (R&D) investment at given changes in CO₂ emissions. The results show different aspects for each country in terms of technical efficiency and VEC, suggesting potential levels of both efficient CO₂ reductions and desirable GET development by using reference countries as a benchmark. Our study methodology and results can contribute to establishing effective national technology policy and aid in calls for common responsibility and the active participation of nations in addressing climate change.