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Energy Efficiency: Indicator, Estimation, and a New Idea

Author

Listed:
  • Ku-Hsieh Chen

    (Department of Applied Economics and Management, National Ilan University, Yilan City, Yilan County 260, Taiwan)

  • Jen-Chi Cheng

    (Department of Economics, Wichita State University, Wichita, KS 67260, USA)

  • Joe-Ming Lee

    (Department of Applied Economics, Fo-Guang University, Jiaoxi Township, Yilan County 262, Taiwan)

  • Liou-Yuan Li

    (Department of International Business Administration, Rajamangala University of Technology Thanyaburi Pathum Thani 12110, Thailand)

  • Sheng-Yu Peng

    (Investment Office of Yilan Science Park, Hsinchu Science Park Bureau, Ministry of Science and Technology Hsinchu City, Hsinchu City 300, Taiwan)

Abstract

Energy efficiency has long been an important issue to the global economic and political theaters; however, searching for an effective and concise measure for efficiency remains a contentious and intriguing topic. There are two obvious flaws with the commonly used metrics in existing literature. First, there is a sense of confusion and misunderstanding between the definitions of energy efficiency and efficacy. As a result, the formulae and methods for measuring efficiency are often the subject of criticism. Second, even if the definition of efficiency is clear, the method of estimation can be quite cumbersome, making it difficult to comprehend or implement. This study attempts to address these two issues. With an OECD comparative dataset, it first presents the contradiction between efficiency and efficacy, explains the loss of effectiveness with the existing measurements, and then proposes a new and easy-to-use method for gauging energy efficiency, so that the succinctness and robustness of the measurement can be re-established. The paper serves as a guide to those who are interested in the controversial issues related to measuring energy efficiency. Both practitioners and policy makers will find an easy and reliable tool from this paper for measuring energy efficiency.

Suggested Citation

  • Ku-Hsieh Chen & Jen-Chi Cheng & Joe-Ming Lee & Liou-Yuan Li & Sheng-Yu Peng, 2020. "Energy Efficiency: Indicator, Estimation, and a New Idea," Sustainability, MDPI, vol. 12(12), pages 1-19, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:12:p:4944-:d:372784
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    References listed on IDEAS

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    2. Le Thanh Tiep & Ngo Quang Huan & Tran Thi Thuy Hong, 2021. "Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 7-22.
    3. Daniela Cristina Momete, 2023. "Salient Insights on the Performance of EU Member States on the Road towards an Energy-Efficient Future," Energies, MDPI, vol. 16(2), pages 1-17, January.
    4. Nguyen Dat Minh & Duong Trung Kien, 2021. "Assessment of the Impact of Managing Large Energy-Using Users on National Energy Efficiency of Vietnam," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 519-530.

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