Advanced Search
MyIDEAS: Login to save this paper or follow this series

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

Contents:

Author Info

  • Honma, Satoshi
  • Hu, Jin-Li

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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://mpra.ub.uni-muenchen.de/54304/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 54304.

as in new window
Length:
Date of creation: 10 Mar 2014
Date of revision:
Handle: RePEc:pra:mprapa:54304

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Stochastic frontier analysis (SFA); Data envelopment analysis (DEA); Total-factor energy efficiency (TFEE); Panel data; Shephard distance functions;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Peter Schmidt, 2011. "One-step and two-step estimation in SFA models," Journal of Productivity Analysis, Springer, Springer, vol. 36(2), pages 201-203, October.
  2. Massimo Filippini & Lester C. Hunt, 2011. "Energy Demand and Energy Efficiency in the OECD Countries: A Stochastic Demand Frontier Approach," The Energy Journal, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Number 2), pages 59-80.
  3. Willam Greene, 2005. "Fixed and Random Effects in Stochastic Frontier Models," Journal of Productivity Analysis, Springer, Springer, vol. 23(1), pages 7-32, 01.
  4. Peter Mulder & Henri Groot, 2007. "Sectoral Energy- and Labour-Productivity Convergence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 36(1), pages 85-112, January.
  5. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, Springer, vol. 20(2), pages 325-32.
  6. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, Elsevier, vol. 126(2), pages 269-303, June.
  7. Le Pen, Yannick & Sévi, Benoît, 2010. "On the non-convergence of energy intensities: Evidence from a pair-wise econometric approach," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/6801, Paris Dauphine University.
  8. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, INFORMS, vol. 30(9), pages 1078-1092, September.
  9. Iglesias, Guillermo & Castellanos, Pablo & Seijas, Amparo, 2010. "Measurement of productive efficiency with frontier methods: A case study for wind farms," Energy Economics, Elsevier, Elsevier, vol. 32(5), pages 1199-1208, September.
  10. Vivoda, Vlado, 2012. "Japan’s energy security predicament post-Fukushima," Energy Policy, Elsevier, Elsevier, vol. 46(C), pages 135-143.
  11. Honma, Satoshi & Hu, Jin-Li, 2008. "Total-factor energy efficiency of regions in Japan," Energy Policy, Elsevier, Elsevier, vol. 36(2), pages 821-833, February.
  12. Stern, David I., 2012. "Modeling international trends in energy efficiency," Energy Economics, Elsevier, Elsevier, vol. 34(6), pages 2200-2208.
  13. Miketa, Asami & Mulder, Peter, 2005. "Energy productivity across developed and developing countries in 10 manufacturing sectors: Patterns of growth and convergence," Energy Economics, Elsevier, Elsevier, vol. 27(3), pages 429-453, May.
  14. O. Olesen & N. Petersen, 2009. "Target and technical efficiency in DEA: controlling for environmental characteristics," Journal of Productivity Analysis, Springer, Springer, vol. 32(1), pages 27-40, August.
  15. Hu, Jin-Li & Kao, Chih-Hung, 2007. "Efficient energy-saving targets for APEC economies," Energy Policy, Elsevier, Elsevier, vol. 35(1), pages 373-382, January.
  16. Satoshi Honma & Jin-Li Hu, 2011. "Industry-level Total-factor Energy Efficiency in Developed Countries," Discussion Papers, Kyushu Sangyo University, Faculty of Economics 51, Kyushu Sangyo University, Faculty of Economics.
  17. Liddle, Brantley, 2010. "Revisiting world energy intensity convergence for regional differences," Applied Energy, Elsevier, Elsevier, vol. 87(10), pages 3218-3225, October.
  18. Zhou, P. & Ang, B.W. & Zhou, D.Q., 2012. "Measuring economy-wide energy efficiency performance: A parametric frontier approach," Applied Energy, Elsevier, Elsevier, vol. 90(1), pages 196-200.
  19. Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, Elsevier, vol. 34(17), pages 3206-3217, November.
  20. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, Springer, vol. 21(1), pages 91-103, January.
  21. Mukherjee, Kankana, 2008. "Energy use efficiency in U.S. manufacturing: A nonparametric analysis," Energy Economics, Elsevier, Elsevier, vol. 30(1), pages 76-96, January.
  22. Sözen, Adnan & Alp, Ihsan, 2009. "Comparison of Turkey's performance of greenhouse gas emissions and local/regional pollutants with EU countries," Energy Policy, Elsevier, Elsevier, vol. 37(12), pages 5007-5018, December.
  23. Nilsson, Lars J., 1993. "Energy intensity trends in 31 industrial and developing countries 1950–1988," Energy, Elsevier, Elsevier, vol. 18(4), pages 309-322.
  24. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, Elsevier, vol. 6(1), pages 21-37, July.
  25. MORIKAWA Masayuki, 2012. "The Effects of the Great East Japan Earthquake and Policy Priorities for Restoring Economic Growth: Evidence from a survey of Japanese firms (Japanese)," Policy Discussion Papers (Japanese), Research Institute of Economy, Trade and Industry (RIETI) 12010, Research Institute of Economy, Trade and Industry (RIETI).
  26. Lozano, Sebastián & Gutiérrez, Ester, 2008. "Non-parametric frontier approach to modelling the relationships among population, GDP, energy consumption and CO2 emissions," Ecological Economics, Elsevier, Elsevier, vol. 66(4), pages 687-699, July.
  27. Patterson, Murray G, 1996. "What is energy efficiency? : Concepts, indicators and methodological issues," Energy Policy, Elsevier, Elsevier, vol. 24(5), pages 377-390, May.
  28. Herrala, Risto & Goel, Rajeev K., 2012. "Global CO2 efficiency: Country-wise estimates using a stochastic cost frontier," Energy Policy, Elsevier, Elsevier, vol. 45(C), pages 762-770.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:54304. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.