Unveiling the green transition and gender disparities in the energy industry: A value-based DEA cluster analysis approach

This study examines the association between the Green Transition and gender disparities in the European energy sector using Value-Based Data Envelopment Analysis (VBDEA) and cluster analysis. Using a static, cross-sectional dataset from 2019, countries were categorized by their Green Transition Index (GTI) and assessed across five gender gap dimensions: employment, working hours, wages, inventor positions, and senior management roles in the energy sector. These dimensions were transformed into value functions inspired by Kahneman and Tversky, emphasizing the heightened sensitivity to the negative effects of gender disparities compared to the benefits of gender parity. Cluster VBDEA analyzed how clustering affects efficiency scores, revealing that while greener countries generally rank higher on the GTI, this does not necessarily lead to improved gender equality. Findings show that Cluster 1 countries, with the highest average GTI (53.48), exhibit significant gender gaps in employment, working hours, and wages, despite better senior management representation. In contrast, Cluster 4 countries, with the lowest GTI (30.70), perform better in these areas but struggle with disparities in inventor positions and leadership roles. Efficiency scores indicate that countries with stronger gender balance, such as Belgium, and France—serve as benchmarks, whereas high-GTI countries like The Netherlands and Germany exhibit inefficiencies tied to wage gaps and the underrepresentation of women in senior roles. Therefore, a high GTI alone does not ensure gender equality, emphasizing the need for targeted policies to address structural imbalances and promote a more inclusive, sustainable energy sector.