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European Industries’ Energy Efficiency under Different Technological Regimes: The Role of CO2 Emissions, Climate, Path Dependence and Energy Mix

Eirini Stergiou and Kostas Kounetas

Year: 2021
Volume: Volume 42
Number: Number 1
DOI: 10.5547/01956574.42.1.este
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Abstract:
The assessment of industrial-level energy efficiency's (EE) development is a critical research topic that has entrenched in the global battle against climate change. Under the Energy Efficiency Directives 2012/27/EU and 2018/2002/EU, European Commission sets specific industrial energy efficiency targets, rules and obligations for the 2020-2030 period aiming, among others, at specific energy intensity reduction and energy efficiency improvements. In this paper we use a balanced panel of fourteen European industries from twenty-seven countries for the period 1995-2011 under a metatechnology framework. The aim of this study is to evaluate, at a first stage, the industrial total factor energy efficiency (TFEE) at a national and European level by incorporating technological heterogeneity through a nonparametric approach. Reflecting the divergent views on the importance of desirable and undesirable outcomes in the pursuit of TFEE, we additionally estimate industrial performance by prioritizing either economic or environmental aspects. At the second stage of our analysis, econometric models are applied to investigate the main factors of industrial TFEE using sector specific and country characteristics while we further proceed with a β and σ-convergence analysis for our TFEE measures. The results of this study reveal that small-scale economies exhibit persistent high TFEE scores. At the same time, TFEE determinants suggest that path dependence phenomena have a strong presence, climatic characteristics occur while energy mix displays both linear and non-linear relationship. Either considering one desirable output or consolidating the undesirable output in the production function our results indicate a strong evidence of conditional and unconditional convergence in TFEE scores.



The Effects of The Multi-Target Policy on Green Productivity: Evidence from China’s Fossil Fuel Power Plants

Yu Zhao, Yunning Ma, Yongrok Choi, and Ning Zhang

Year: 2024
Volume: Volume 45
Number: Number 3
DOI: 10.5547/01956574.45.3.yzha
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Abstract:
We propose the non-radial meta-frontier global Luenberger productivity index, which addresses the issues of technology heterogeneity, slack variable, and linear programming infeasibility, and decompose it based on the technology perspective and factor perspective. With the dataset of China's power plants from 2005 to 2015, we identify the effects of the multi-targets, including energy-saving targets and SO2 reduction targets, in the 12th Five-Year Plan on green productivity encompassing all channels of effects. A 1% increase in the average energy-saving target cumulatively increases green productivity by 0.50%, while a 1% increase in the average SO2 reduction target cumulatively decreases that by 0.03%. In all channels, the technology leadership effect and generation efficiency exhibit sensitivity. Differential effects of the multi-targets on state-owned versus non-state-owned plants imply significant differences in observed production technology.





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