Measuring the efficiency of energy-intensive industries across European countries

Georgia Makridou, Kostas Andriosopoulos, Michael Doumpos and Constantin Zopounidis

Energy Policy, 2016, vol. 88, issue C, 573-583

Abstract: This study evaluates the energy efficiency trends of five energy-intensive industries in 23 European Union (EU) countries over the period 2000–2009. In particular, the performance of the construction, electricity, manufacturing, mining and quarrying, and transport sectors is examined. The analysis is based on Data Envelopment Analysis (DEA) combined with the Malmquist Productivity Index (MPI), which allows for distinctions between efficiency and technology changes over time. At the second stage of the analysis, cross-classified multilevel modelling is applied to analyse the main drivers behind efficiency performance using a number of sector and country characteristics. Based on DEA results, an overall improvement in efficiency is observed in all sectors over the period. The decomposition of the MPI indicates that technology change is primarily responsible for the improvements achieved in most sectors. The results obtained by the cross-classified model show, among other things, that the high electricity prices, energy taxes, and market share of the largest generator in the electricity market have a negative effect on industrial energy efficiency.

Keywords: Energy efficiency; Data Envelopment Analysis; Malmquist Productivity Index; Cross-classified modelling; Energy-intensive industries (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:88:y:2016:i:c:p:573-583

DOI: 10.1016/j.enpol.2015.06.042

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