Total-factor energy efficiency in developing countries

This paper uses a total-factor framework to investigate energy efficiency in 23 developing countries during the period of 1980–2005. We explore the total-factor energy efficiency and change trends by applying data envelopment analysis (DEA) window, which is capable of measuring efficiency in cross-sectional and time-varying data. The empirical results indicate that Botswana, Mexico and Panama perform the best in terms of energy efficiency, whereas Kenya, Sri Lanka, Syria and the Philippines perform the worst during the entire research period. Seven countries show little change in energy efficiency over time. Eleven countries experienced continuous decreases in energy efficiency. Among five countries witnessing continuous increase in total-factor energy efficiency, China experienced the most rapid rise. Practice in China indicates that effective energy policies play a crucial role in improving energy efficiency. Tobit regression analysis indicates that a U-shaped relationship exists between total-factor energy efficiency and income per capita.