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Total Factor Ecological Energy Efficiency and Total Factor Carbon Efficiency of Iranian Provinces: An Application of Data Envelopment Analysis and Tobit Model

Author

Listed:
  • Somayeh Azami

    (Associate Professor, Department of Economics, Razi University, Kermanshah, Iran)

  • Hawzhin Azhand

    (Master of Energy Economics, Department of Economics, Razi University, Kermanshah, Iran)

Abstract

Improving green efficiency as a pathway to sustainable development provides not only environmental benefits but also energy security. This study aims to examine the total factor ecological energy efficiency (ETFEE) and total factor carbon efficiency (TFCEE) of Iranian provinces over the period 2006–2018. To this end, CO2 emissions for Iranian provinces were calculated in accordance with the Intergovernmental Panel on Climate Change (IPCC) guidelines. Subsequently, total factor ecological energy efficiency (ETFEE) and total factor carbon efficiency (TFCEE) were estimated using Data Envelopment Analysis (DEA). The results indicate that the average ETFEE and TFCEE of Iranian provinces are 42.67% and 24.98%, respectively. Production has a positive influence on ETFEE and TFCEE in provinces with high and low GDP shares. However, due to heterogeneous results, it cannot be concluded that production has a positive effect on ETFEE and TFCEE in provinces with medium GDP shares. Tobit model estimates indicate that energy intensity has a significant negative impact on both ETFEE and TFCEE, while innovation has a positive and significant effect on these efficiency indicators. The industrial structure does not have a substantial impact on ETFEE or TFCEE. Policy recommendations include energy policy reforms, replacement of outdated equipment, and adoption of modern production technologies to reduce energy intensity. Additionally, support for research and development can substantially enhance energy and carbon efficiency.

Suggested Citation

  • Somayeh Azami & Hawzhin Azhand, 2025. "Total Factor Ecological Energy Efficiency and Total Factor Carbon Efficiency of Iranian Provinces: An Application of Data Envelopment Analysis and Tobit Model," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 12(3), pages 49-80.
    • Handle: RePEc:ris:qjatoe:023027
    DOI: 10.22034/ecoj.2025.66157.3409
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    Keywords

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    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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