ABSTRACT
Development of renewable energy (RE) is a priority for European Union (EU) in line with its target to be the first emission-free continent by 2050. Hydro, solar and wind are the most mature RE technologies. Research and development activities can lead to an incremental increase in their utilization. Our study analyzes the R&D efficiencies and innovation economic efficiencies of these sectors with two-stage data envelopment analysis (DEA) super-efficiency (SE) via an intermediate output of patent fillings and the final output of export values. Hydro sector is emerged as the most efficient one for both efficiency levels. The solar sector scores have improved from 2019 to 2020. The wind energy sector has a stable R&D efficiency but the economic returns (export levels) are far below the ideal scores. With regard to country scores, Germany ranks far above the other EU countries in all sectors for both efficiency levels. Poland was second in R&D efficiency whereas the Netherlands and Czech Republic followed Germany in innovation economic efficiency. EU countries’ individual performances on innovation economic efficiency are worrisome. SE levels are generally low except Czech Republic in hydro and Denmark in wind, and the EU countries need to take necessary steps to increase their exports. It may be concluded that these comparisons between renewable energy source (RES) sectors and the countries would aid in shaping their policies accordingly while taking lessons from the top performers. The industrial alliances to increase communication between the market players can be created and policymakers can stimulate the local manufacturing and export capabilities of the countries.
