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Analysis of Inter-Temporal Change in the Energy and CO 2 Emissions Efficiency of Economies: A Two Divisional Network DEA Approach

Khalid Mehmood (), Yaser Iftikhar (), Shouming Chen (), Shaheera Amin (), Alia Manzoor () and Jinlong Pan ()
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Khalid Mehmood: School of Economics and Management, Tongji University, Shanghai 20092, China
Yaser Iftikhar: Department of Business Administration, University of Sahiwal, Sahiwal 57000, Pakistan
Shouming Chen: School of Economics and Management, Tongji University, Shanghai 20092, China
Shaheera Amin: Department of Business Administration, University of Sahiwal, Sahiwal 57000, Pakistan
Alia Manzoor: Department of Business Administration, University of Sahiwal, Sahiwal 57000, Pakistan
Jinlong Pan: School of Business Administration, Fujian Jiangxia University, Fuzhou 350108, China

Energies, 2020, vol. 13, issue 13, 1-17

Abstract: Measuring changes in energy consumption and carbon dioxide emissions of various large economies is fundamental for analyzing the impact and effectiveness of various policies in this direction. This study analyzes intertemporal changes in energy and CO 2 emissions efficiency of economies by applying a network data envelopment analysis approach that takes into consideration the internal structure of the analysis units. We have applied two divisional network data envelopment analysis models for analysis of the economic and distributive efficiency of economies from 2001 to 2011. The results are very useful in analyzing the situation; we found that none of the economies was efficient in both aspects in the sample period, implying that none of the countries in the analysis was efficient in the production and distribution of economic outputs simultaneously. Brazil, Canada, China and Germany showed improvement in economic efficiency but the distribution efficiency of the most of the economies is low because of the increase in population and high-income class. Most of the countries had an increase in the high-income class but China performed better in the second division because it has managed to improve its middle-income class in the recent past by moving more people from low-income class to middle income class. It is suggested that countries should emphasize on economic restructuring and expansion of the middle-income class to improve their performance in the production and distribution of economic outputs.

Keywords: energy efficiency; CO 2 emissions efficiency; data envelopment analysis; network DEA; SBM (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
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