Energy Efficiency in Transition Economies: A Stochastic Frontier Approach

Antonio Carvalho ()

No 4, CEERP Working Paper Series from Centre for Energy Economics Research and Policy, Heriot-Watt University

Abstract: The paper outlines and estimates a measure of underlying efficiency in electricity consumption for an unbalanced panel of 28 transition economies and 5 Western European OECD countries in the period 1994-2007, by estimating a Bayesian Generalized True Random Effects (GTRE) stochastic frontier model that estimates both persistent and transient inefficiency. The properties of alternative GTRE estimation methods in small samples are explored to guide the estimation strategy. The paper analyses the behaviour of underlying efficiency in electricity consumption in these economies after accounting for time-invariant technological differences. After outlining the specific characteristics of the transition economies and their heterogeneous structural economic changes, an aggregate electricity demand function is estimated to obtain efficiency scores that give new insights for transition economies than a simple analysis of energy intensity. There is some evidence of convergence between the CIS countries and a block of Eastern European and selected OECD countries, although other country groups do not follow this tendency, such as the Balkans.

Keywords: Electricity Consumption; Transition Economies; Energy Efficiency; Stochastic Frontier (search for similar items in EconPapers)
JEL-codes: C23 P20 Q49 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2016-11
New Economics Papers: this item is included in nep-cwa, nep-eff, nep-ene and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://ceerp.hw.ac.uk/RePEc/hwc/wpaper/004.pdf First version, 2016 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hwc:wpaper:004

Access Statistics for this paper

More papers in CEERP Working Paper Series from Centre for Energy Economics Research and Policy, Heriot-Watt University
Bibliographic data for series maintained by Antonio Carvalho ( this e-mail address is bad, please contact ).