International Journal of Science, Engineering and TechnologyAuthors: D. Pavan Kumar
Abstract: The transition toward a low-carbon global economy requires not only increased investment in green technologies but also improvements in the efficiency with which such innovations contribute to decarbonization. This study evaluates the efficiency of green technology innovation in promoting global decarbonization using the BCC Data Envelopment Analysis (DEA) model, which assumes variable returns to scale (VRS). The BCC model measures the relative efficiency of decision-making units (DMUs)—in this case, countries—by comparing multiple inputs and outputs simultaneously. Unlike the CCR model, which assumes constant returns to scale, the BCC framework distinguishes between pure technical efficiency and scale efficiency, making it more suitable for cross-country analysis where production scales vary substantially. The findings provide important policy implications. First, merely increasing green innovation investment does not guarantee proportional decarbonization gains; improving innovation efficiency is equally critical. Second, countries can benefit from benchmarking against frontier economies to optimize resource allocation and institutional support mechanisms. Overall, this study contributes to the growing literature on climate policy and sustainable development by offering an efficiency-based perspective on the role of green technological innovation in achieving global decarbonization targets.
