Evaluating the Impact of Energy–Cost Management on Financial and Environmental Performance Using an Exergy-Based Network DEA Framework.
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| Title: | Evaluating the Impact of Energy–Cost Management on Financial and Environmental Performance Using an Exergy-Based Network DEA Framework. |
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| Authors: | Hajishams, Maryam1 (AUTHOR), Rasekh, Shahed2 (AUTHOR), Robaina, Margarita1 (AUTHOR), Matias, João C. O.1,2 (AUTHOR) jmatias@ua.pt |
| Source: | Energies (19961073). Jun2026, Vol. 19 Issue 11, p2694. 43p. |
| Subject Terms: | *Exergy, *Data envelopment analysis, *Sustainability, *Evaluation research, *Energy industries, *Financial performance, *Economic efficiency, *Carbon dioxide mitigation |
| Abstract: | In the context of the energy transition and increasing environmental pressures, firms' competitiveness increasingly depends on effective energy–cost management and environmental performance. However, integrating energy, financial, and environmental dimensions into performance evaluation remains methodologically challenging. This study develops an exergy-based two-stage Network Data Envelopment Analysis (NDEA) framework linking energy and cost management in Stage 1 to financial performance under environmental constraints in Stage 2. Using Refinitiv/London Stock Exchange Group (LSEG) data for 45 firms across 18 industries in Portugal and Spain in 2023, the model integrates thermodynamic, financial, and environmental indicators within a unified efficiency framework. The Exergy-to-Sales ratio serves as a fixed intermediate link between thermodynamic and financial efficiency. Results show that incorporating environmental performance increases the number of fully efficient firms in overall efficiency from 3 to 5, while 27 firms move closer to the efficiency frontier. The environmental specification reduces the average improvement required for Return on Sales (ROS) and Return on Equity (ROE) but increases the adjustment needed for Return on Assets (ROA), indicating heterogeneous profitability responses. The study contributes to sustainable performance assessment literature by integrating exergy analysis and NDEA within a unified decision-support framework for managers and policymakers pursuing competitiveness and decarbonization objectives. [ABSTRACT FROM AUTHOR] |
| Database: | Energy & Power Source |
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| Abstract: | In the context of the energy transition and increasing environmental pressures, firms' competitiveness increasingly depends on effective energy–cost management and environmental performance. However, integrating energy, financial, and environmental dimensions into performance evaluation remains methodologically challenging. This study develops an exergy-based two-stage Network Data Envelopment Analysis (NDEA) framework linking energy and cost management in Stage 1 to financial performance under environmental constraints in Stage 2. Using Refinitiv/London Stock Exchange Group (LSEG) data for 45 firms across 18 industries in Portugal and Spain in 2023, the model integrates thermodynamic, financial, and environmental indicators within a unified efficiency framework. The Exergy-to-Sales ratio serves as a fixed intermediate link between thermodynamic and financial efficiency. Results show that incorporating environmental performance increases the number of fully efficient firms in overall efficiency from 3 to 5, while 27 firms move closer to the efficiency frontier. The environmental specification reduces the average improvement required for Return on Sales (ROS) and Return on Equity (ROE) but increases the adjustment needed for Return on Assets (ROA), indicating heterogeneous profitability responses. The study contributes to sustainable performance assessment literature by integrating exergy analysis and NDEA within a unified decision-support framework for managers and policymakers pursuing competitiveness and decarbonization objectives. [ABSTRACT FROM AUTHOR] |
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| ISSN: | 19961073 |
| DOI: | 10.3390/en19112694 |
