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Technical efficiency of economic systems of EU-15 countries based on energy consumption

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  • Bampatsou, Christina
  • Papadopoulos, Savas
  • Zervas, Efthimios

Abstract

In the present study, Data Envelopment Analysis is used to determine the Technical Efficiency index of EU-15 countries from 1980 to 2008, using cross-country comparison. Technical Efficiency index represents the capacity of an economy to produce a higher level of Gross Domestic Product for a given level of total energy input. The level of the Technical Efficiency index is determined from the energy mix (fossil fuels, non-fossil fuels, nuclear energy) of each country and depends on the maximization level of the production of the Gross Domestic Product of the economic system, without waste of energy resources. The current study is applied in the case of the EU15 countries. Its scope is to highlight the differentiations of country classifications before and after the integration of nuclear energy in the energy mix of each country. The main result is that the integration of nuclear energy as an additional input in the energy mixture affects negatively the Technical Efficiency of countries. Also, when an economy achieves a decrease of the energy consumption produced from fossil fuels, and a better exploitation of renewable energy sources, clearly improves its capacity to produce more output with the given levels of inputs.

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  • Bampatsou, Christina & Papadopoulos, Savas & Zervas, Efthimios, 2013. "Technical efficiency of economic systems of EU-15 countries based on energy consumption," Energy Policy, Elsevier, vol. 55(C), pages 426-434.
    • Handle: RePEc:eee:enepol:v:55:y:2013:i:c:p:426-434
    DOI: 10.1016/j.enpol.2012.12.021
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    1. Lita Iulian & Stamule Tănase, 2018. "Using non-parametric technical data envelopment analysis - DEA, for measuring productive technical efficiency," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 12(1), pages 533-543, May.
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    8. Mardani, Abbas & Zavadskas, Edmundas Kazimieras & Streimikiene, Dalia & Jusoh, Ahmad & Khoshnoudi, Masoumeh, 2017. "A comprehensive review of data envelopment analysis (DEA) approach in energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1298-1322.
    9. Xiangyu Teng & Danting Lu & Yung-ho Chiu, 2019. "Emission Reduction and Energy Performance Improvement with Different Regional Treatment Intensity in China," Energies, MDPI, vol. 12(2), pages 1-18, January.
    10. Walheer, Barnabé, 2018. "Labour productivity growth and energy in Europe: A production-frontier approach," Energy, Elsevier, vol. 152(C), pages 129-143.
    11. Tao Xu & Jianxin You & Hui Li & Luning Shao, 2020. "Energy Efficiency Evaluation Based on Data Envelopment Analysis: A Literature Review," Energies, MDPI, vol. 13(14), pages 1-20, July.
    12. Patrick Gasser & Marco Cinelli & Anna Labijak & Matteo Spada & Peter Burgherr & Miłosz Kadziński & Božidar Stojadinović, 2020. "Quantifying Electricity Supply Resilience of Countries with Robust Efficiency Analysis," Energies, MDPI, vol. 13(7), pages 1-35, March.
    13. Makridou, Georgia & Andriosopoulos, Kostas & Doumpos, Michael & Zopounidis, Constantin, 2016. "Measuring the efficiency of energy-intensive industries across European countries," Energy Policy, Elsevier, vol. 88(C), pages 573-583.
    14. Gaigalis, Vygandas & Skema, Romualdas, 2014. "Sustainable economy development and transition of fuel and energy in Lithuania after integration into the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 719-733.
    15. Sueyoshi, Toshiyuki & Yuan, Yan & Li, Aijun & Wang, Daoping, 2017. "Methodological comparison among radial, non-radial and intermediate approaches for DEA environmental assessment," Energy Economics, Elsevier, vol. 67(C), pages 439-453.
    16. Walheer, Barnabé, 2018. "Economic growth and greenhouse gases in Europe: A non-radial multi-sector nonparametric production-frontier analysis," Energy Economics, Elsevier, vol. 74(C), pages 51-62.
    17. Sanz-Díaz, María Teresa & Velasco-Morente, Francisco & Yñiguez, Rocío & Díaz-Calleja, Emilio, 2017. "An analysis of Spain's global and environmental efficiency from a European Union perspective," Energy Policy, Elsevier, vol. 104(C), pages 183-193.
    18. Gökgöz, Fazıl & Güvercin, Mustafa Taylan, 2018. "Energy security and renewable energy efficiency in EU," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 226-239.
    19. Christina Bampatsou & George Halkos & Andreas Dimou, 2017. "Determining economic productivity under environmental and resource pressures: an empirical application," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-16, December.
    20. Sueyoshi, Toshiyuki & Yuan, Yan, 2016. "Marginal Rate of Transformation and Rate of Substitution measured by DEA environmental assessment: Comparison among European and North American nations," Energy Economics, Elsevier, vol. 56(C), pages 270-287.
    21. Xiaoheng Zhang & Keyu Bao & Zebin Liu & Li Yang, 2022. "Digital Finance, Industrial Structure, and Total Factor Energy Efficiency: A Study on Moderated Mediation Model with Resource Dependence," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    22. Halkos, George & Bampatsou, Christina, 2016. "Investigating the effect of efficiency and technical changes on productivity," MPRA Paper 76287, University Library of Munich, Germany.
    23. Barnabé Walheer, 2019. "Scale, congestion, and technical efficiency of European countries: a sector-based nonparametric approach," Empirical Economics, Springer, vol. 56(6), pages 2025-2078, June.
    24. Zurano-Cervelló, Patricia & Pozo, Carlos & Mateo-Sanz, Josep María & Jiménez, Laureano & Guillén-Gosálbez, Gonzalo, 2019. "Sustainability efficiency assessment of the electricity mix of the 28 EU member countries combining data envelopment analysis and optimized projections," Energy Policy, Elsevier, vol. 134(C).

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