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Energy efficiency and environmental degradation

In: Handbook on Energy and Economic Growth

Author

Listed:
  • Karla Arias

Abstract

This chapter aims to contribute to the literature on the efficiency and sustainability of oil extraction in developing countries. Based on a sample of 14 countries in Africa and Latin America from 2006-2020, this research applies an SBM-DEA model that maximizes the benefits of oil extraction and minimizes undesirable outputs. The results from the SBM-DEA model indicate that countries such as Equatorial Guinea, Gabon, Peru, and Bolivia have higher energy efficiency than their counterparts in Angola, Algeria, Mexico, Ecuador, and Colombia. These results suggest that countries with higher oil extraction levels have lower energy efficiency levels. In addition, the results of Malmquist productivity index for Africa and Latin America show that most countries have an energy efficiency level lower than 1. This implies that no country showed improvements in terms of productivity in the period analyzed. These results evidence the significant lag of these countries in terms of productive and technological capabilities.

Suggested Citation

  • Karla Arias, 2024. "Energy efficiency and environmental degradation," Chapters, in: Mohamed Arouri & Mathieu Gomes (ed.), Handbook on Energy and Economic Growth, chapter 11, pages 230-253, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:21169_11
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    File URL: https://www.elgaronline.com/doi/10.4337/9781802204803.00019
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