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Energy efficiency of selected OECD countries: A slacks based model with undesirable outputs

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  • Apergis, Nicholas
  • Aye, Goodness C.
  • Barros, Carlos Pestana
  • Gupta, Rangan
  • Wanke, Peter

Abstract

This paper presents an efficiency assessment of selected OECD countries using a Slacks Based Model with undesirable or bad outputs (SBM-Undesirable). In this research, SBM-Undesirable is used first in a two-stage approach to assess the relative efficiency of OECD countries using the most frequent indicators adopted by the literature on energy efficiency. Besides, in the second stage, GLMM–MCMC methods are combined with SBM-Undesirable results as part of an attempt to produce a model for energy performance with effective predictive ability. The results reveal different impacts of contextual variables, such as economic blocks and capital–labor ratio, on energy efficiency levels.

Suggested Citation

  • Apergis, Nicholas & Aye, Goodness C. & Barros, Carlos Pestana & Gupta, Rangan & Wanke, Peter, 2015. "Energy efficiency of selected OECD countries: A slacks based model with undesirable outputs," Energy Economics, Elsevier, vol. 51(C), pages 45-53.
    • Handle: RePEc:eee:eneeco:v:51:y:2015:i:c:p:45-53
    DOI: 10.1016/j.eneco.2015.05.022
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    More about this item

    Keywords

    Energy; OECD; SBM-Undesitable; Two-stage GLMM–MCMC;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D2 - Microeconomics - - Production and Organizations
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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