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Measuring energy efficiency under heterogeneous technologies using a latent class stochastic frontier approach: An application to Chinese energy economy

Boqiang Lin () and Kerui Du

Energy, 2014, vol. 76, issue C, 884-890

Abstract: The importance of technology heterogeneity in estimating economy-wide energy efficiency has been emphasized by recent literature. Some studies use the metafrontier analysis approach to estimate energy efficiency. However, for such studies, some reliable priori information is needed to divide the sample observations properly, which causes a difficulty in unbiased estimation of energy efficiency. Moreover, separately estimating group-specific frontiers might lose some common information across different groups. In order to overcome these weaknesses, this paper introduces a latent class stochastic frontier approach to measure energy efficiency under heterogeneous technologies. An application of the proposed model to Chinese energy economy is presented. Results show that the overall energy efficiency of China's provinces is not high, with an average score of 0.632 during the period from 1997 to 2010.

Keywords: Latent class analysis; Stochastic frontier analysis; Energy efficiency; Technology heterogeneity (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:76:y:2014:i:c:p:884-890

DOI: 10.1016/j.energy.2014.08.089

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