Measuring the Efficiency of Investment in the Deployment and Technology Development of Renewable Energy in Korea Using the DEA

Hong-Hee Kim․Deok-Joo Lee․Kyung-Taek Kim ․Sung-Joon ParkDepartment of Industrial and Management Systems Engineering, Kyung Hee UniversityThe purpose of this paper is to analyze the efficiency of government investment in the deployment and technological development of three technological areas - wind power, photovoltaic and fuel cell - of renewable energy in Korea using the DEA (data envelopment analysis). The efficiencies of government investment in renewable energies are measured and compared among three kinds of technologies using the actual data during 2007~2009. In the present DEA model, R&D investment and government subsidies for renewable energy usage promotion are selected as input variables, and the number of patents, supply level, and the production cost as output variable. As a result, it is found that the wind power is the most efficient renewable energy in Korea in the perspective of the efficiency of government investment.

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