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Energy efficiency evaluation of construction projects using data envelopment analysis and Tobit regression.

Muzaffar Iqbal1,2, Junhai Ma2, Zulqarnain Mushtaq3

  • 1School of Maritime Economics and Management, Dalian Maritime University, Dalian, People's Republic of China.

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|April 3, 2025
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Summary

This study evaluated energy efficiency (EE) in Pakistan's construction sector using Data Envelopment Analysis (DEA) and Tobit regression. Findings reveal significant inefficiencies and identify contractor training and financing as key improvement factors.

Keywords:
Construction industryDEA-Tobit regressionEnergy efficiencyPure technical efficiencyScale efficiencyTechnical efficiency

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Area of Science:

  • Construction Management
  • Sustainable Development
  • Econometrics

Background:

  • Energy efficiency (EE) is vital for sustainable development, especially in Pakistan's construction sector, a major energy consumer.
  • The sector faces significant energy use inefficiencies, lacking comprehensive assessments for improvement.

Purpose of the Study:

  • To evaluate and enhance EE in Pakistan's construction projects using an integrated approach.
  • To identify key factors influencing EE in the construction industry.

Main Methods:

  • Employed Data Envelopment Analysis (DEA) to assess technical efficiency (TE), pure technical efficiency (PTE), and scale efficiency (SE).
  • Utilized Tobit regression to analyze factors impacting EE.
  • Collected data from 120 construction firms.

Main Results:

  • Average TE was 84.4%, PTE 93.2%, and SE 90.4%, indicating room for improvement.
  • Contractor training, access to loans, experience, and project site distance were significant factors influencing EE.

Conclusions:

  • The integrated DEA-Tobit framework provides actionable insights for improving construction EE.
  • Targeted interventions like financing and training are crucial for promoting energy-efficient practices in Pakistan and other developing economies.