Energy and environmental performance in the European Union: A DEA-based benchmarking study

This study evaluates the efficiency of European Union (EU) countries in terms of energy use and environmental performance by employing an input-oriented Data Envelopment Analysis (DEA) framework. The analysis incorporates energy consumption and CO₂ emissions as inputs, and GDP per capita and environmental performance index as outputs, providing an integrated assessment of eco-efficiency. The findings reveal that only a limited number of countries, namely Ireland and Malta, operate on the efficiency frontier, while most countries exhibit varying degrees of inefficiency. The results further indicate that many countries need to significantly reduce energy use and carbon emissions to achieve efficient performance, although the required improvement levels differ considerably across countries. Reference set analysis highlights the dominant role of Malta as a benchmark unit, suggesting that efficient resource allocation is a key determinant of performance. By combining economic and environmental indicators within a single DEA framework, this study contributes to the literature and offers policy-relevant insights for improving energy efficiency and environmental sustainability across EU countries and provides policy implications for sustainable development strategies aligned with EU climate and energy targets, supporting evidence-based decision-making for resource efficiency improvements.