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A panel data parametric frontier technique for measuring total-factor energy efficiency: An application to Japanese regions

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  • Honma, Satoshi
  • Hu, Jin-Li

Abstract

Using the stochastic frontier analysis model, we estimate TFEE (total-factor energy efficiency) scores for 47 regions across Japan during the years 1996–2008. We extend the cross-sectional stochastic frontier model proposed by Zhou et al. (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 stochastic TFEE scores are compared with a TFEE score derived using data envelopment analysis. The four TFEE scores are highly correlated with one another. For the inefficiency estimates, higher manufacturing industry shares and wholesale and retail trade shares correspond to lower TFEE scores.

Suggested Citation

  • Honma, Satoshi & Hu, Jin-Li, 2014. "A panel data parametric frontier technique for measuring total-factor energy efficiency: An application to Japanese regions," Energy, Elsevier, vol. 78(C), pages 732-739.
  • Handle: RePEc:eee:energy:v:78:y:2014:i:c:p:732-739
    DOI: 10.1016/j.energy.2014.10.066
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    Citations

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    Cited by:

    1. Özkara, Yücel & Atak, Mehmet, 2015. "Regional total-factor energy efficiency and electricity saving potential of manufacturing industry in Turkey," Energy, Elsevier, vol. 93(P1), pages 495-510.
    2. Lin, Boqiang & Du, Kerui, 2015. "Modeling the dynamics of carbon emission performance in China: A parametric Malmquist index approach," Energy Economics, Elsevier, vol. 49(C), pages 550-557.
    3. Makridou, Georgia & Andriosopoulos, Kostas & Doumpos, Michael & Zopounidis, Constantin, 2016. "Measuring the efficiency of energy-intensive industries across European countries," Energy Policy, Elsevier, vol. 88(C), pages 573-583.
    4. Jianglong Li & Boqiang Lin, 2016. "Green Economy Performance and Green Productivity Growth in China’s Cities: Measures and Policy Implication," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-21, September.
    5. Wang, Jian & Lv, Kangjuan & Bian, Yiwen & Cheng, Yu, 2017. "Energy efficiency and marginal carbon dioxide emission abatement cost in urban China," Energy Policy, Elsevier, vol. 105(C), pages 246-255.
    6. Ruiz-Fuensanta, María J., 2016. "The region matters: A comparative analysis of regional energy efficiency in Spain," Energy, Elsevier, vol. 101(C), pages 325-331.
    7. repec:eee:energy:v:128:y:2017:i:c:p:575-585 is not listed on IDEAS
    8. Du, Kerui & Lin, Boqiang, 2017. "International comparison of total-factor energy productivity growth: A parametric Malmquist index approach," Energy, Elsevier, vol. 118(C), pages 481-488.
    9. repec:eee:energy:v:147:y:2018:i:c:p:197-207 is not listed on IDEAS
    10. repec:spr:annopr:v:255:y:2017:i:1:d:10.1007_s10479-015-2053-8 is not listed on IDEAS

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