Comparison of Energy Efficiency by Production Frontier Approach: Based on OECD Countries

생산 프론티어 접근을 통한 에너지효율 비교: OECD 국가를 중심으로

  • Received : 2010.11.10
  • Accepted : 2011.03.02
  • Published : 2011.03.31

Abstract

The purpose of the article is to compare the impacts of energy efficiency and economic growth for energy demand through production frontier approach in OECD countries. We compared the traditional energy intensity with energy efficiencies of production frontier approach, slack efficiency on the frontier, and estimated elasticity of energy demand for GDP growth. First, the energy intensity has a low relationship with energy efficiency by radial approach, but has constant correlations with slack energy efficiency, slack-adjusted efficiency by non-radial approach, and energy efficiency by horizon approach. If we measure energy efficiency only with energy elasticity, it may make a mistake. Especially the energy efficiency by radial approach has a tendency to overestimate most OECD countries. Second, as many countries have excess energy consumption of 17.3% even on the points of the frontier, reduction of energy consumption is necessary in addition. Third, the average energy elasticity of OECD countries is 1.1 close to elasticity 1. There exists the difference of elasticity among countries and the energy demands are also high in countries with high elasticity.

Acknowledgement

Supported by : 한국연구재단