Assessing Environmental and Technical Efficiency of Power Plants: Insights for Policy and Sustainability

Data envelopment analysis (DEA), a reliable technique for evaluating performance and spotting inefficiencies, is used in this study to examine the technical and environmental efficiency of power plants in Iran. Although many power plants exhibit impressive efficiency, the study emphasizes that there is still much space for improvement in technical operations and environmental effect reduction. In contrast, we find 15 environmentally efficient power plants and six power plants that are technically efficient. We further find 53 percent of wasting resources on average for all power plants, considering technical performance, and 57 percent of wasting resources on average, considering environmental performance. The findings emphasize the need for targeted interventions to optimize energy production processes. Policymakers are encouraged to leverage these insights to design strategies that enhance operational efficiency, reduce emissions, and promote sustainable energy production.