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Energy efficiency development in the German and Colombian Energy Intensive Sectors: A non-parametric analysis

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  • Clara Inés Pardo Martínez

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Abstract

This study approaches the measurement of energy efficiency development in the German and Colombian energy intensive sectors (EISs) at three levels of aggregation from a production-theoretic structure, using of the method of Data Envelopment Analysis (DEA). The results show considerable variation in energy efficiency performance in the EISs of both countries. Comparing the results across models, it was found that, in the German industrial sector, the three measures of energy efficiency were similar, indicating that an appropriate combination of technical efficiency and cost minimisation are necessary for energy efficiency improvement. In the Colombian industrial sector, the highest energy efficiency measured was from the cost minimisation model, suggesting that the relative energy prices have not generated the right incentives to improve energy efficiency. A second-stage regression and correlation analysis reveals that, in German EISs, energy costs and investments have played an important role in energy efficiency performance and decrease CO2 emissions. In Colombian EISs, inter-fuel substitution was the most significant variable. Finally, the results of DEA models show a significant correlation with the traditional energy efficiency measure, indicating that the energy efficiency measured through DEA could be complementary to the energy intensity in analysing other key elements of energy efficiency performance in the industrial sector.

Suggested Citation

  • Clara Inés Pardo Martínez, 2008. "Energy efficiency development in the German and Colombian Energy Intensive Sectors: A non-parametric analysis," SERIE DE DOCUMENTOS EN ECONOMÍA Y VIOLENCIA 006317, CENTRO DE INVESTIGACIONES EN VIOLENCIA, INSTITUCIONES Y DESARROLLO ECONÓMICO (VIDE).
  • Handle: RePEc:col:000137:006317
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    References listed on IDEAS

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    1. Mukherjee, Kankana, 2008. "Energy use efficiency in the Indian manufacturing sector: An interstate analysis," Energy Policy, Elsevier, vol. 36(2), pages 662-672, February.
    2. Zhou, P. & Ang, B.W., 2008. "Linear programming models for measuring economy-wide energy efficiency performance," Energy Policy, Elsevier, vol. 36(8), pages 2901-2906, August.
    3. Boyd, Gale A. & Pang, Joseph X., 2000. "Estimating the linkage between energy efficiency and productivity," Energy Policy, Elsevier, vol. 28(5), pages 289-296, May.
    4. Mukherjee, Kankana, 2008. "Energy use efficiency in U.S. manufacturing: A nonparametric analysis," Energy Economics, Elsevier, vol. 30(1), pages 76-96, January.
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    More about this item

    Keywords

    DEA; Energy efficiency; energy intensive sectors;

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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