Efficiency of pulp and paper industry in the production of pulp and bioelectricity in Brazil

We examine the efficiency of Brazilian pulp and paper companies in the production of pulp and bioelectricity using an output-oriented data envelopment analysis. We assume that pulpwood volume, energy consumption, installed capacity and number of workers are the inputs to generate pulp and bioelectricity. We conduct this analysis by first determining the traditional efficiency scores, and secondly calculating a composite index of efficiency to rank the performance of pulp and paper companies. We also conduct a post-efficiency analysis to gauge the impacts of externalities and other related variables on the efficiency in pulp and bioelectricity production. Our results suggest that pulp and paper companies are efficient in pulp and bioelectric production, reaching an average efficiency and composite index of efficiency of 0.9776 and 0.8291, respectively. The postefficiency analysis suggests that pulp and paper companies could minimally decrease their adjusted efficiencies by increasing the total forest area, power capacity, and outsourced employment. On the other hand, the adjusted efficiency in the production of pulp and bioelectricity might not be statistically impacted by higher socioeconomic levels.

Automated summary

The study found that Brazilian pulp and paper companies are efficient in pulp and bioelectricity production, with potential for further improvement by increasing forest area, power capacity, and outsourced employment. Higher socioeconomic levels may not have a statistically significant impact on the efficiency of production.