Economics of energy and environmental efficiency: evidence from OECD countries

Abstract

The purpose of this research is to determine the efficiency of energy usage and its role in carbon dioxide emissions (CI) and economic-environmental efficiency (EEE) for some countries Organization for Economic Co-operation and Development (OECD) economies. For environment quality assessment, data envelopment analysis (DEA) is used to assess the data cover the period from 2013 to 2017. In this study, primary energy consumption (PEC) and population are two basic inputs along with gross domestic product (GDP) and carbon dioxide emissions that are desirable and undesirable outputs, respectively. The practical outcomes illustrate that Brunei, Australia, Singapore, and Hong Kong are the most effective and efficient states for the 5 years periods (2013-2017) in terms of energy efficiency and to reduce emission of carbon dioxide. In addition, other states in the OECD region shows greater economic proficiency than environmental proficiency. Furthermore, the results shows that energy efficiency has strong bonding with carbon emissions; however there is a weaker association between economic environmental efficiency. Thus, the attainment of optimal level of energy efficiency could be more pivotal than economic efficiency to improve environmental efficiency in countries from the OECD region.