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Panel Data Parametric Frontier Technique for Measuring Total-factor Energy Efficiency: Application to Japanese Regions

Satoshi Honma () and Jin-Li Hu ()

MPRA Paper from University Library of Munich, Germany

Abstract: Using the stochastic frontier analysis (SFA) model, we estimate total-factor energy efficiency (TFEE) scores for 47 regions across Japan during 1996–2008. We extend the cross-sectional SFA model proposed by Zhou et al. (Applied Energy, 2012) to panel data models and add environmental variables. The results provide not only the TFEE scores, in which statistical noise is taken into account, but also the determinants of inefficiency. The three SFA TFEEs are compared with a TFEE derived from data envelopment analysis (DEA). The four TFEEs are highly correlated with one another. For the inefficiency estimates, the higher the manufacturing industry share and wholesale and retail trade share, the lower the TFEE score.

Keywords: Stochastic frontier analysis (SFA); Data envelopment analysis (DEA); Total-factor energy efficiency (TFEE); Panel data; Shephard distance functions (search for similar items in EconPapers)
JEL-codes: D24 Q4 R15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff and nep-ene
Date: 2014-03-10
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