Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Gini and Entropy Based Spread Indexes for Primary Energy Consumption Efficiency and CO2 Emission

Version 1 : Received: 15 February 2020 / Approved: 16 February 2020 / Online: 16 February 2020 (15:20:21 CET)

How to cite: Takada, H.H.; Ribeiro, C.O.; Costa, O.L.V.; Stern, J.M. Gini and Entropy Based Spread Indexes for Primary Energy Consumption Efficiency and CO2 Emission. Preprints 2020, 2020020223 (doi: 10.20944/preprints202002.0223.v1). Takada, H.H.; Ribeiro, C.O.; Costa, O.L.V.; Stern, J.M. Gini and Entropy Based Spread Indexes for Primary Energy Consumption Efficiency and CO2 Emission. Preprints 2020, 2020020223 (doi: 10.20944/preprints202002.0223.v1).

Abstract

Primary energy consumption is one of the key drivers of global CO2 emissions that, in turn, heavily depend on the efficiency of involved technologies. Either the improvement in technology efficiency or the expansion of non-fossil fuel consumption require large investments. The planning and financing of such investments, by policy makers or global energy firms, require, in turn, reliable measures of associated global spreads and their evolution in time. In this paper, our main contribution is the introduction of index measures for accessing global spreads (that is, measures of inequality or inhomogeneity in the statistical distribution of a related quantity of interest) of technology efficiency and CO2 emission in primary energy consumption. These indexes are based on the Gini index, as used in economical sciences, and generalised entropy measures. Regarding primary energy sources, we consider petroleum, coal, natural gas and non-fossil fuels. Between our findings, we attest some stable relations in the evolution of global spreads of technology efficiency and CO2 emission, and a positive relation between changes in global spreads of technology efficiency and use of non-fossil fuel.

Subject Areas

carbon emissions; energy consumption; technology efficiency; Gini index; generalised entropy index; fossil fuels; non-fossil fuels; petroleum; coal; natural gas

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