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Total-factor energy efficiency in the EU countries

Author

Listed:
  • Nela Vlahinic-Dizdarevic

    (University of Rijeka, Faculty of Economics, Rijeka, Croatia)

  • Alemka Segota

    (University of Rijeka, Faculty of Economics, Rijeka, Croatia)

Abstract

The purpose of this research is to examine the economy-wide energy efficiency changes in the EU countries in the period from 2000 to 2010 and to compare the results with the traditional energy efficiency indicator. The DEA CCR multiple input-oriented model is applied in order to analyse the efficiency of the use of three inputs (capital stock, labour and energy consumption) in producing GDP as the output. In order to obtain the dynamics of data as to avoid the use of only a single year in calculating energy efficiency the extended DEA method - window analysis - is adopted. The empirical results confirm that the traditional one-factor energy efficiency indicator is too simplifying and could be misleading. The findings on total-factor energy efficiency scores reflect the possibility of substitution among factors in a medium run and changes in the composition of energy use. Projection values of inputs on efficiency frontier identify the amounts of relative inefficiency and, in that context, suggest improvements for all inefficient countries. The results reveal that all inefficient countries could improve their efficiency by reducing some of the inputs.

Suggested Citation

  • Nela Vlahinic-Dizdarevic & Alemka Segota, 2012. "Total-factor energy efficiency in the EU countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 30(2), pages 247-265.
    • Handle: RePEc:rfe:zbefri:v:30:y:2012:i:2:p:247-265
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Borozan, Djula, 2018. "Technical and total factor energy efficiency of European regions: A two-stage approach," Energy, Elsevier, vol. 152(C), pages 521-532.
    2. Jebali, Eya & Essid, Hédi & Khraief, Naceur, 2017. "The analysis of energy efficiency of the Mediterranean countries: A two-stage double bootstrap DEA approach," Energy, Elsevier, vol. 134(C), pages 991-1000.
    3. Georgia Makridou, Kostas Andriosopoulos, Michael Doumpos, and Constantin Zopounidis, 2015. "A Two-stage approach for energy efficiency analysis in European Union countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    4. Maradin, Dario & Prohaska, Zdenko & Suljic Nikolaj, Stella, 2019. "The Productivity Of European Banking Sector: A Review Of The Post-2000 Literature," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 10(2), pages 249-257.
    5. Ä°brahim Murat BÄ°CÄ°L & Kumru TURKOZ, 2021. "Are European Union countries efficient or inefficient in energy use?," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12, pages 5-20, December.
    6. Djula Borozan, 2021. "Technical Efficiency and Productivity Change in the European Union with Undesirable Output Considered," Energies, MDPI, vol. 14(16), pages 1-15, August.

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    More about this item

    Keywords

    total-factor energy efficiency; EU countries; DEA; windows analysis;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other

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