Measuring Energy Efficiency and Exploring the Determinants of Energy Efficiency in Selected Economies of Asia

Abstract

Purpose: There is widely recognition of the need to effectively consume the energy, particularly in energy deficient countries. The effective use of energy requires that one must know the current efficiency level, so appropriate measures may be taken to make the efficient use of energy. Present study in an attempt to measure the energy efficiency and determinants of energy efficiency in fourteen selected developing economies of Asia for the time period 2007 to 2013. DEA double bootstrap technique has been used for estimation purposes. The results of bias corrected energy efficiency indicate that there is not even a single economy that is fully energy efficient over the period under consideration. After measuring the energy efficiency, truncated regression analysis is utilized to find the determinants of energy efficiency. The results indicate that industrial share and per capita income have positive effect on energy efficiency, while corruption, political instability and voice and accountability have negative impact on energy efficiency. So there is dire need to control corruption, political stability needs to be resorted and voice and accountability system needs to be redefined.