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Evaluating the Dynamic Energy Production Efficiency in APEC Economies

Author

Listed:
  • Dan Wu

    (Teaching Center, Zhejiang Open University, 42 Jiaogong Road, Hangzhou 310012, China)

  • Ching-Cheng Lu

    (Department of Economics, Soochow University, No. 56, Section 1, Kueiyang Street, Chungcheng District, Taipei City 100, Taiwan)

  • Xiang Chen

    (China Academy of Financial Research, Zhejiang University of Finance and Economics, No. 18, Xueyuan Street, Xiasha Higher Education Park, Hangzhou 310018, China)

  • Pei-Chieh Tu

    (Department of Applied Economics, Fo Guang University, No. 160, Linwei Rd., Jiaosi, Yilan County 262307, Taiwan)

  • An-Chi Yang

    (Department of Economics, Soochow University, No. 56, Section 1, Kueiyang Street, Chungcheng District, Taipei City 100, Taiwan)

  • Chih-Yu Yang

    (Department of Economics, Soochow University, No. 56, Section 1, Kueiyang Street, Chungcheng District, Taipei City 100, Taiwan)

Abstract

This study introduces the translation adjustment model of Seiford and Zhu (2002) into dynamic DEA models to measure and analyze the dynamic energy efficiency of Asia-Pacific Economic Cooperation (APEC) economies from 2010 to 2014. The APEC economies are divided into annual energy and overall energy efficiency ratings, and improvement directions are proposed for the different variables. With the proposal of magnitude, this study discusses the changes in intertemporal conversion variables and proposes suggestions for improvement. Finally, this study analyzes the implications of energy investment and the efficiency policies of APEC economies. The results show that economies with the lowest overall energy efficiency ratings have great potential for improvement. Reducing capital stock, labor, fossil fuel consumption, and CO 2 emissions while increasing GDP can increase energy efficiency ratings. However, economies do not want to reduce the state’s capital stock, and labor and population birth adjustments are difficult. Energy efficiency can only start by adjusting the consumption of fossil fuels, CO 2 emissions, and GDP. The results indicate that to improve energy efficiency and reduce fossil fuel consumption and CO 2 emissions, economies are expected to increase their GDP unless they enact cuts through policy and technical approaches, appropriately adjust their energy policies, and actively develop new energy technologies to effectively reduce CO 2 emissions and achieve optimal energy efficiency.

Suggested Citation

  • Dan Wu & Ching-Cheng Lu & Xiang Chen & Pei-Chieh Tu & An-Chi Yang & Chih-Yu Yang, 2021. "Evaluating the Dynamic Energy Production Efficiency in APEC Economies," Energies, MDPI, vol. 14(14), pages 1-20, July.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:14:p:4343-:d:596927
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