Comparing regional differences in global energy performance

Liang-Han Ma, Jin-Chi Hsieh and Yung-Ho Chiu

Energy & Environment, 2020, vol. 31, issue 6, 943-960

Abstract: This study comprehensively considers any input and output that has a certain physical dimension, utilizes the super slacks-based measure directional distance function data envelopment analysis (DDF-DEA) model to measure global energy performance in the period 2010–2016, and compares regional differences in Americas, Europe and Asia. We employ contained directional, non-directional, and undesirable inputs and outputs, which include population number, fossil fuels energy consumption, gross capital formation, gross domestic product, renewable energy consumption, and carbon dioxide emission. From the full energy efficiency and ranking of the DDF-DEA approach herein, the empirical results show that Trinidad and Tobago exhibits the best efficiency (2.8194) and Uzbekistan has the worst efficiency (0.5734). The best regional energy performance is Americas, and the worst is Asia for 2010–2016, showing that regional energy policies have a significant impact. The Environmental Performance Index is an important sustainable environment index, and most Environmental Performance Index levels are quite consistent with the trend of energy efficiency and ranking with DDF-DEA in this study. The energy efficiencies of the higher Environmental Performance Index group and higher renewable energy consumption group are significantly larger than the lower Environmental Performance Index group and better than the lower renewable energy consumption group, respectively. Therefore, we suggest that all countries should adjust their future energy using a strategy based on annual Environmental Performance Index. Their goals can be to reduce fossil fuels energy consumption, increase renewable energy use, and reduce undesirable output of carbon dioxide. Doing so will help them to develop their economies while taking into account a sustainable environment, thus achieving sustainable economic development.

Keywords: Directional distance function; energy efficiency; regional difference; Environmental Performance Index (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:sae:engenv:v:31:y:2020:i:6:p:943-960

DOI: 10.1177/0958305X19882404

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