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Progressive Time-Weighted Dynamic Energy Efficiency, Energy Decoupling Rate, and Decarbonization: An Empirical Study on G7 and BRICS

Author

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  • Chia-Jung Tu

    (Department of Banking and Finance, Kainan University, No. 1 Kainan Rd., Luchu, Taoyuan City 33857, Taiwan)

  • Ming-Chung Chang

    (Department of Marketing, Kainan University, No. 1 Kainan Rd., Luchu, Taoyuan City 33857, Taiwan)

  • Chiang-Ping Chen

    (Department of Hotel Management, Taiwan Shoufu University, No. 168, Nanshi Li, Madou District, Tainan City 72153, Taiwan)

Abstract

Energy is a critical factor of economic growth, but the overuse of it results in global warming and climate change. Hence, energy efficiency improvement can help mitigate climate change and prevent economic losses or even ecological extinction. The data envelopment analysis (DEA) approach has been extensively applied for energy efficiency estimation, but past studies of this estimation employ a static mode that does not consider consecutive periods and the carry-over effect. This study estimates energy efficiency under a weight-restricted dynamic DEA (WrD-DEA) model, creates a weight-restricted dynamic energy efficiency (WrD-EE) indicator, and discusses issues concerning the energy decoupling rate and decarbonization. We utilize members in the Group of Seven (G7) and BRICS (Brazil, China, India, Russia, and South Africa) for our experimental observations. The main results herein are: (1) BRICS has larger room for improvement to achieve the standard ratio of the energy decoupling rate than the G7; (2) the G7 and BRICS do not converge to decarbonization; and (3) BRICS exhibits more rapid improvement on energy efficiency than the G7.

Suggested Citation

  • Chia-Jung Tu & Ming-Chung Chang & Chiang-Ping Chen, 2016. "Progressive Time-Weighted Dynamic Energy Efficiency, Energy Decoupling Rate, and Decarbonization: An Empirical Study on G7 and BRICS," Sustainability, MDPI, vol. 8(9), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:9:p:928-:d:77975
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    3. Chiang-Ping Chen & Ming-Chung Chang & Wei-Che Tsai, 2021. "Dynamic Energy Efficiency, Energy Decoupling Rate, and Decarbonization: Evidence from ASEAN+6," SAGE Open, , vol. 11(3), pages 21582440211, September.

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