Productive Performance Analysis in Taiwan Energy Companies: Application of DEA Malmquist Index

Taiwan has actively promoted the strategy of energy efficiency for all companies and organizations. The government has set a target of energy efficiency of 33% by 2025. This research applied DEA malmquist index to assess technical efficiency, and to reveal trends of productivity change in Taiwan energy companies. The DEA malmquist index is a distinguished research method using to measures productivity change over time period. The proposed method can be decomposed into two components, technical change and technological change. A panel data was collected from Taiwan Stock Exchange Market recorded 2008-2011. The research was illustrated with financial data of selected companies, and their productivity was carefully analyzed. The empirical results showed that the technical efficiency of five energy companies performed efficiently with the highest score of 1.000. An average technical efficiency score was pretty high with 0.938. Moreover, trend in productivity change regressed due lack of technological improvement.