Progressive Time-Weighted Dynamic Energy Efficiency, Energy Decoupling Rate, and Decarbonization: An Empirical Study on G7 and BRICS

Chia-Jung Tu, Ming-Chung Chang () and Chiang-Ping Chen
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Chia-Jung Tu: Department of Banking and Finance, Kainan University, No. 1 Kainan Rd., Luchu, Taoyuan City 33857, Taiwan
Chiang-Ping Chen: Department of Hotel Management, Taiwan Shoufu University, No. 168, Nanshi Li, Madou District, Tainan City 72153, Taiwan

Sustainability, 2016, vol. 8, issue 9, 1-17

Abstract: Energy is a critical factor of economic growth, but the overuse of it results in global warming and climate change. Hence, energy efficiency improvement can help mitigate climate change and prevent economic losses or even ecological extinction. The data envelopment analysis (DEA) approach has been extensively applied for energy efficiency estimation, but past studies of this estimation employ a static mode that does not consider consecutive periods and the carry-over effect. This study estimates energy efficiency under a weight-restricted dynamic DEA (WrD-DEA) model, creates a weight-restricted dynamic energy efficiency (WrD-EE) indicator, and discusses issues concerning the energy decoupling rate and decarbonization. We utilize members in the Group of Seven (G7) and BRICS (Brazil, China, India, Russia, and South Africa) for our experimental observations. The main results herein are: (1) BRICS has larger room for improvement to achieve the standard ratio of the energy decoupling rate than the G7; (2) the G7 and BRICS do not converge to decarbonization; and (3) BRICS exhibits more rapid improvement on energy efficiency than the G7.

Keywords: carry-over effect; weight-restricted; energy decoupling; decarbonization (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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