Efficiency and Sustainability of the Hydropower Industry in Colombia: A Data Envelopment Analysis of Stakeholders’ Perceptions

Abstract

Numerous sustainability studies often overlook the social dimension. This neglect arises from two main reasons: the scarcity of reliable social indicators and the qualitative nature of most of the available ones. This study offers a different perspective to address this gap by using data envelopment analysis (DEA), a method that can handle both quantitative and qualitative data. Unlike traditional DEA that aim to maximize output with minimal input, our approach aims to maximize positive perceptions of impacts (outputs) and the effectiveness of impact management strategies (inputs). We rely on data collected by our team, using Likert-scale surveys from 694 participants in two Colombian Andes river basins, representing the hydropower industry, policymakers, and local communities. DEA makes our analysis more objective, less influenced by biases of decision makers. Findings provide insights into the factors driving efficient sustainability perceptions and lay the groundwork for designing specific policies to improve sustainability while balancing social, economic, and environmental concerns, achieving a comprehensive approach to sustainability in Colombian hydropower.