Development of energy benchmarking protocol for commercial banks, Lagos state, Nigeria
No Thumbnail Available
Date
201-09-26
Authors
Akinbulire, T.O.
Oluseyi, P.O.
Babatunde, O.M.
Ayegbajeje, A.E.
Journal Title
Journal ISSN
Volume Title
Publisher
Routledge Taylor & Francis
Abstract
Energy consumption is a central factor taken into consideration as far as management decisions are concerned in any firm
and the same goes for the banking industry. More importantly is the extent to which firms consume energy efficiently. In the
light of this, this study investigates the energy benchmarking of 50 commercial bank branches in Lagos. With the aid of
questionnaires and by observation and consultation with the staff of the selected bank branches, data were collected on
the energy use as well as several other variables that influence energy use intensity. An energy use intensity model was
estimated using the fixed, random and pooled ordinary least square specifications and the predicted energy use intensity
was constructed. Armed with the observed and predicted energy use intensities, an absolute benchmarking was
conducted while a relative benchmarking was also conducted with the aid of the Data Envelopment Analysis (DEA)
technique. The results of the regression analysis revealed a maximum of 60% of the branches of banks are energy
efficient. However, the results of the DEA suggest that only a single branch of the 50 sampled branches was energy
efficient while the other banks fell below the energy efficiency frontier with some banks performing relatively poorer
than the others.
Description
Keywords
energy efficiency, energy benchmarking, regression analysis, data envelopment analysis