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Abstract:

Coal plays a significant role in the economies of many countries and serves as an energy source for numerous societies. However, its combustion causes various environmental problems and contributes to climate change. This article examines the efficiency of coal consumption in 26 European Union countries and its changes from 2014 to 2022. Data Envelopment Analysis (DEA) methodology was applied to measure the extent of overall technical, pure technical, and scale technical efficiency, based on data concerning three production factors (labour, fixed assets, and energy), with GDP as a desirable output and CO2 emissions as an undesirable output. The empirical findings revealed that Cyprus, Denmark, Luxembourg, and Poland were efficiency leaders throughout the entire study period. France, Germany, Italy, and the Netherlands managed energy and non-energy resources efficiently but were found inefficient in terms of operational scale. Countries that do not use their resources at optimal levels in the production of goods and services should provide greater technical and financial support to their production processes and improve the organisation and structure of labour.

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Coal Consumption Efficiency in the European Union - Trends and Challenges