Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Energy Efficiency in OECD Countries: A DEA Approach

Version 1 : Received: 22 January 2021 / Approved: 25 January 2021 / Online: 25 January 2021 (10:12:17 CET)

A peer-reviewed article of this Preprint also exists.

Fidanoski, F.; Simeonovski, K.; Cvetkoska, V. Energy Efficiency in OECD Countries: A DEA Approach. Energies 2021, 14, 1185. Fidanoski, F.; Simeonovski, K.; Cvetkoska, V. Energy Efficiency in OECD Countries: A DEA Approach. Energies 2021, 14, 1185.

Journal reference: Energies 2021, 14, 1185
DOI: 10.3390/en14041185

Abstract

This paper is about energy as viewed through an integrated model that links energy with environment, technology and urbanisation as related areas. Our goal is to empirically investigate the (in)efficient energy use across 30 developed OECD member states during the period from 2001 to 2018. For that purpose, we set up an output-oriented BCC data envelopment analysis that employs a set of input variables with non-negative values to calculate the efficiency scores on minimising energy use and losses as well as environmental emissions. We develop a couple of baseline models for primary energy and secondary energy (electricity) in which we find that countries have mean inefficiency margins of 16.1 per cent for primary energy and from 10.8 to 13.5 per cent for electricity. Then, we extend the baseline models by adding environment as an important closely related concept and confirm the consistency of the baseline findings. In the context of this analysis, however, the inefficiency scores, on the one hand, point out to a mismatch in the utilisation of the inputs to produce efficiency but, on the other hand, they uncover a hidden potential to increasy efficiency through re-allocation under constant inputs.

Subject Areas

energy efficiency; primary energy; electricity; DEA analysis

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