Measuring the environmental efficiency of the investment for offshore wind power site in Taiwan

Abstract

Many of the studies is based on parameters with the requirement of pre-estimation and huge function clause format. But in the proposed method, no pre-estimation is required and there is no need to establish a functional relationship between the described and dependent variables. This research investigates the environmental performance and the factors affecting the environmental performance of offshore wind energy companies in Taiwan using super-efficiency data envelopment analysis (SE-DEA) and Tobit regression model, respectively. SE-DEA model was theoretically used in the first step of analysis, followed by Tobit model in the second step. The study was based on 2019 cross-sectional data obtained from seven locations of Taiwan including Songshan, Taoyuan, Nantou, Zhongzheng, Xinyu, and Changhua. It was found that offshore wind power companies in Taiwan had an average environmental efficiency score of 1.8953, which was very high. Moreover, this performance score could be further increased by improving the factors that affected the efficiency. Such factors included age of company, numbers of internal boards, number of shareholders, research and development, ISO 45,001, government policy, personnel quality, and wind speed. Increase in number of shareholders resulted in higher technical efficiency by a significant level at 1%. When the number of internal boards increased 2.20 %, the efficiency score increased up to 100 %. Amount of research and development factors increased by 12.16 %, the effective score was 100 %, with a 5% prioritization with a positive coefficient front sign. This shows how much the company has research and development relating to offshore wind power. Higher amount of research and development resulted in higher technical efficiency. When I.S.O 45,001 factor increased by 41.94 %, the effective score was 100 %, with a 1% significant level and a positive coefficient front mark. The government policy increased the technical efficiency by a significant level at 1%. When government policy increased to 36.54 %, the efficient score enhanced up to 100 %. The factor quality personnel showed positive signs. Increasing number of qualified personnel enhanced the technical efficiency, with the efficiency level at 25.23 %. The factor wind speed had a positive coefficient, corresponded with the hypothesis. Increase in wind speed leaded to higher technical performance score, with a focus of 5%. When wind speed rose to 2.98 %, the efficiency score increased up to 100 %. The best environmental performance was of Wpd Taiwan Energy Co., Ltd company which had the highest score of 3.2521, while the Copenhagen Infrastructure Partners Association company had the lowest score of 0.9136, indicating the worst environmental efficiency. Inefficient companies can improve their environmental efficiency based on their efficiency scores and ratings in order to be a leading offshore wind power facility in Taiwan.