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Energy Efficiency of Selected OECD Countries: A Slacks Based Model with Undesirable Outputs

Author

Listed:
  • Nicholas Apergis

    (School of Economics and Finance , Curtin University, Perth, Australia)

  • Goodness C. Aye

    (Department of Economics, University of Pretoria)

  • Carlos P. Barros

    (ISEG, University of Lisbon. Rua Miguel Lupi, 20. 1247-978 Lisbon.)

  • Rangan Gupta

    (Department of Economics, University of Pretoria)

  • Peter Wanke

    (COPPEAD Graduate Business School, Federal University of Rio de Janeiro Rua Paschoal Lemme, 355, Rio de Janeiro, Brazil CEP 21949-900.)

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

  • Nicholas Apergis & Goodness C. Aye & Carlos P. Barros & Rangan Gupta & Peter Wanke, 2014. "Energy Efficiency of Selected OECD Countries: A Slacks Based Model with Undesirable Outputs," Working Papers 201477, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:201477
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    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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