Asymmetries in energy consumption: Efficiency of public spending across Portuguese municipalities

The efficient allocation of public financial resources to energy consumption in Portuguese municipalities is one of the most discussed topics in public finance, given the growing relevance of sustainability and energy efficiency. The study analyzes how public spending affects energy efficiency throu...

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Main Authors: Ricardo de Moraes e Soares, Alexandre Morais Nunes, Pedro Pinheiro, Ana Catarina Kaizeler, Vanda Martins
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2024-11-01
Series:Public and Municipal Finance
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Online Access:https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21093/PMF_2024_02_Soares.pdf
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author Ricardo de Moraes e Soares
Alexandre Morais Nunes
Pedro Pinheiro
Ana Catarina Kaizeler
Vanda Martins
author_facet Ricardo de Moraes e Soares
Alexandre Morais Nunes
Pedro Pinheiro
Ana Catarina Kaizeler
Vanda Martins
author_sort Ricardo de Moraes e Soares
collection DOAJ
description The efficient allocation of public financial resources to energy consumption in Portuguese municipalities is one of the most discussed topics in public finance, given the growing relevance of sustainability and energy efficiency. The study analyzes how public spending affects energy efficiency through a combination of data analysis and hypotheses testing to assess the relationship between public spending and energy consumption. The methodology includes DEA analysis of the financial data and energy consumption of the municipalities, as well as the definition of hypotheses to determine the possible correlations between investment and efficiency. The results suggest that, in general, municipalities with higher levels of public spending have lower levels of energy efficiency. Meanwhile, municipalities with smaller budgets and fewer resources tend to be more efficient. The DEA analysis of the data suggests that energy efficiency is not directly related to the size and/or economic aptitude of municipalities but rather to their ability to adopt new technologies and more efficient budgetary and financial management practices. The hypotheses tested show varying levels of efficiency in public spending in relation to energy consumption. The study also concludes that public policies should focus on technological innovation and benchmarking to improve energy efficiency. The analysis suggests that collaboration between municipalities and the adoption of best practices are essential to tackle regional disparities and promote energy sustainability. AcknowledgmentsThis article is financed by Instituto Politécnico de Lisboa [Polytechnic Institute of Lisbon].
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publishDate 2024-11-01
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spelling doaj-art-e43d01d1e767405590b02c7333fd0ca42025-08-20T02:27:15ZengLLC "CPC "Business Perspectives"Public and Municipal Finance2222-18672222-18752024-11-0113211012810.21511/pmf.13(2).2024.1021093Asymmetries in energy consumption: Efficiency of public spending across Portuguese municipalitiesRicardo de Moraes e Soares0https://orcid.org/0000-0002-7840-7340Alexandre Morais Nunes1https://orcid.org/0000-0002-6808-7769Pedro Pinheiro2https://orcid.org/0000-0003-3210-3963Ana Catarina Kaizeler3https://orcid.org/0000-0002-4974-5105Vanda Martins4https://orcid.org/0009-0000-0993-8677Ph.D. in Public Administration, Professor, Lisbon Accounting and Business School, Department of Finance, Polytechnic Institute of Lisbon, PortugalPh.D. in Public Administration, Professor, Higher Institute of Social and Political Sciences, Department of Public Administration, University of Lisbon, PortugalPh.D. in Management, Professor, Lisbon Accounting and Business School, Accounting Department, Polytechnic Institute of LisbonPh.D. in Development Studies, Professor, Lisbon Accounting and Business School, Department of Accounting, Polytechnic Institute of Lisbon, PortugalSpecialist in Accounting and Taxation, Professor, Accounting and Finance Department, Higher School of Business Sciences, Polytechnic Institute of Setúbal, PortugalThe efficient allocation of public financial resources to energy consumption in Portuguese municipalities is one of the most discussed topics in public finance, given the growing relevance of sustainability and energy efficiency. The study analyzes how public spending affects energy efficiency through a combination of data analysis and hypotheses testing to assess the relationship between public spending and energy consumption. The methodology includes DEA analysis of the financial data and energy consumption of the municipalities, as well as the definition of hypotheses to determine the possible correlations between investment and efficiency. The results suggest that, in general, municipalities with higher levels of public spending have lower levels of energy efficiency. Meanwhile, municipalities with smaller budgets and fewer resources tend to be more efficient. The DEA analysis of the data suggests that energy efficiency is not directly related to the size and/or economic aptitude of municipalities but rather to their ability to adopt new technologies and more efficient budgetary and financial management practices. The hypotheses tested show varying levels of efficiency in public spending in relation to energy consumption. The study also concludes that public policies should focus on technological innovation and benchmarking to improve energy efficiency. The analysis suggests that collaboration between municipalities and the adoption of best practices are essential to tackle regional disparities and promote energy sustainability. AcknowledgmentsThis article is financed by Instituto Politécnico de Lisboa [Polytechnic Institute of Lisbon].https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21093/PMF_2024_02_Soares.pdfbenchmarking practicesenergy efficiencypublic spendingregional disparitiesresource allocation
spellingShingle Ricardo de Moraes e Soares
Alexandre Morais Nunes
Pedro Pinheiro
Ana Catarina Kaizeler
Vanda Martins
Asymmetries in energy consumption: Efficiency of public spending across Portuguese municipalities
Public and Municipal Finance
benchmarking practices
energy efficiency
public spending
regional disparities
resource allocation
title Asymmetries in energy consumption: Efficiency of public spending across Portuguese municipalities
title_full Asymmetries in energy consumption: Efficiency of public spending across Portuguese municipalities
title_fullStr Asymmetries in energy consumption: Efficiency of public spending across Portuguese municipalities
title_full_unstemmed Asymmetries in energy consumption: Efficiency of public spending across Portuguese municipalities
title_short Asymmetries in energy consumption: Efficiency of public spending across Portuguese municipalities
title_sort asymmetries in energy consumption efficiency of public spending across portuguese municipalities
topic benchmarking practices
energy efficiency
public spending
regional disparities
resource allocation
url https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21093/PMF_2024_02_Soares.pdf
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AT pedropinheiro asymmetriesinenergyconsumptionefficiencyofpublicspendingacrossportuguesemunicipalities
AT anacatarinakaizeler asymmetriesinenergyconsumptionefficiencyofpublicspendingacrossportuguesemunicipalities
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