Pillai N., Vijayamohanan and AM, Narayanan (2019): Energy Efficiency Indicators: Estimation Methods.
This is the latest version of this item.

PDF
MPRA_paper_97744.pdf Download (322kB)  Preview 
Abstract
Traditionally, there are two basically reciprocal energy efficiency indicators: one, in terms of energy intensity, that is, energy use per unit of activity output, and the other, in terms of energy productivity, that is, activity output per unit of energy use. A number of approaches characterize the efforts to measure these indicators. The present paper attempts at a a comprehensive documentation of some of the analytical methods of such measurement. We start with a comprehensive list of the estimation methods of energy productivity indicators. Note that the methods fall under three heads: traditional single factor productivity analysis, decomposition analysis and multifactor productivity analysis. The paper takes up each of these in detail, starting with the traditional indicators identified by Patterson to monitor changes in energy efficiency in terms of thermodynamic, physicalthermodynamic, economicthermodynamic and economic indicators. When we analyze the indicator in terms of energy intensity changes, the corresponding index falls under two major decomposition methods, namely, structural decomposition analysis and index decomposition analysis. The structural decomposition analysis is discussed in terms of its two approaches, viz., inputoutput method and neoclassical production function method; and the index decomposition analysis in terms of Laspeyres’ and Divisia indices. In the multifactor productivity approach, we consider the parametric and nonparametric methods, viz., stochastic frontier model and data envelopment analysis respectively.
Item Type:  MPRA Paper 

Original Title:  Energy Efficiency Indicators: Estimation Methods 
Language:  English 
Keywords:  Energy efficiency, measures, index decomposition, Divisia index, stocastic frontier, data envelopment 
Subjects:  C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General > C13  Estimation: General Q  Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4  Energy > Q40  General Q  Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4  Energy > Q49  Other 
Item ID:  97744 
Depositing User:  Vijayamohanan Pillai N 
Date Deposited:  27 Dec 2019 17:56 
Last Modified:  27 Dec 2019 17:56 
References:  Afriat, S.N. (1972), "Efficiency Estimation of Production Functions", International Economic Review, 13, 568598. Ali, A. I. and L. M. Seiford (1993), ‘The Mathematical Programming Approach to Efficiency Analysis’, in Fried, H.O., C.A.K. Lovell and S.S. Schmidt (eds), The Measurement of Productive Efficiency, Oxford University Press, New York, 120159. Ang, B.W., (2004). ‘Decomposition analysis for policymaking in energy: which is the preferred method?’, Energy Policy, 32, pp. 1131–1139. Ang, B.W. (2006). ‘Monitoring changes in economywide energy efficiency: From energy–GDP ratio to composite efficiency index’, Energy Policy (2006), Volume: 34, Issue: 5, Pages: 574582. Banker, R.D., A. Chames and W.W. Cooper (1984), "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis", Management Science, 30, 10781092. Bauer, P. W. (1990), ‘Recent Developments in the Econometric Estimation of Frontiers’, Journal of Econometrics 46, 3956. Baumgärtner, S. 2004. Thermodynamic models. In Modelling in Ecological Economics. P.Safonov and J. Proops, Eds.: 102129. Edward Elgar. Cheltenham. Boles, J.N. (1966), "Efficiency Squared  Efficient Computation of Efficiency Proceedings of the 39th Annual Meeting of the Western Farm Economic Association, pp 137142. Bossanyi, E. (1979). UK primary energy consumption and the changing structure of final demand. Energy Policy 7(6): 489495 Boulding K. 1966. The economics of the coming spaceship Earth. In Environmental Quality in a Growing Economy. H. Jarett, Ed. Johns Hopkins University Press. Baltimore, MD. Boyd, Gale; McDonald, John; Ross, M. and Hansont, D. A. (1987) “Separating the Changing Composition of U.S. Manufacturing Production from Energy Efficiency Improvements: A Divisia Index Approach”. The Energy Journal, Volume 8, issue Number 2, 7796 Brown, M. (1980), ‘The Measurement of Capital Aggregates: A Postreswitching Problem’, in D. Usher (ed.), The Measurement of Capital, Chicago, IL: University of Chicago Press. Coelli, T.J., Rao D.S.P., O’Donnell C.J. and Battese G.E. (2005). An introduction to efficiency and productivity analysis. Springer Cooper, W.W., Seiford L.M. and Tone K. (2006). Introduction to Data Envelopment Analysis and its uses. Springer. Charnes, A., W.W. Cooper and E. Rhodes (1978), "Measuring the Efficiency of Decision Making Units", European Journal of Operational Research, 2, 429444. Cohen, A. and Harcourt, G.C. (2003), ‘Retrospectives: Whatever Happened to the Cambridge Capital Theory Controversies?’, Journal of Economic Perspectives, vol. 17(1), pp. 199–214. Cohen, A. and Harcourt, G.C. (2005), ‘Introduction, Capital Theory Controversy: Scarcity, Production, Equilibrium and Time’, in C. Bliss, A. Cohen and G.C. Harcourt (eds), Capital Theory, 3 volumes, Cheltenham, UK and Northampton, MA, USA: Edward Elgar. Daly, H.E. and A.F. Umana (eds.). 1981. Energy, Economics, and the Environment: Conflictillg Views of all Essential Interrelationship, American Association for the Advancement of Science, Washington, D.C. Divisia, F. 1925. "L'indice monétaire et la théorie de la monnaie." Revue d'écon. polit., XXXIX, Nos. 4, 5, 6: 84261, 9801008, 112151. Divisia, F. 1926. "L'indice monétaire et la théorie de la monnaie." Revue d'écon. polit., LX, No. 1: 4981. Farrell, M.J. (1957), "The Measurement of Productive Efficiency", Journal of the Royal Statistical Society, Series A, CXX, Part 3, 253290. Forsund, F. R., Lovell, C. A. K. and Schmidt P. (1 980), ‘A Survey of Frontier Production Functions and of their Relationship to Efficiency Measurement’, Journal of Econometrics 13, 525. Friend, A., and Rapport, D. (1979). Towards a comprehensive framework for environment statistics: a stressresponse approach. Ottawa: Statistics Canada. Gales, B., A. Kander, P. Malanima, and M. Rubio. 2007. North versus South: Energy transition and energy intensity in Europe over 200 years. European Review of Economic History 11: 219253. Greene, W. H. (1993), ‘The Econometric Approach to Efficiency Analysis’, in H. O. Fried, C. A. K. Lovell and S. S. Schmidt (eds), The Measurement of Productive Efficiency, Oxford University Press, New York, 681 19. Hoover, K.D. (2012), Intermediate Applied Macroeconomics, Cambridge: Cambridge University Press. Ji, Y.B. and Lee C. (2010). Data envelopment analysis. The Stata Journal, 10(2), 267280. Kerry Du, 2017. "LMDI: Stata module to compute Logarithmic Mean Divisia Index (LMDI) Decomposition," Statistical Software Components S458435, Boston College Department of Economics, revised 01 Jan 2018. Kumbhakar, S. C., and Lovell. C. A. K. (2000). Stochastic Frontier Analysis. Cambridge: Cambridge University Press. Lermit, J. and Jollands, N. (2001) Monitoring Energy Efficiency Performance in New Zealand: A Conceptual and Methodological Framework, National Energy Efficiency and Conservation Authority, Wellington. Lermit, Jonathan and Jollands, Nigel (2001) Monitoring Energy efficiency Performance in New Zealand: A Conceptual and Methodological Framework, Energy Efficiency and Conservation Authority, New Zealand. Lovell, C. A. K. (1993), ‘Production Frontiers and Productive Efficiency’, in H. 0. Fried, C. A. K. Lovell and S. S. Schmidt (eds), The Measurement of Productive Efficiency, Oxford University Press, New York, 367. Mankiw, N.G (2010), Macroeconomics (7th edition), New York: Worth. Myers, J. and Nakamura L. (1978). Saving energy in manufacturing. Cambridge, MA: Ballinger, 1978. Miller, R.E. and Blair P.D. (2009). Inputoutput analysis: Foundations and extensions, 2nd edition, Cambridge University Press, New York Munasinghe M, Schramm G (1983) Chapter 6: Energy conservation and efficiency. In: Energy economics, demand management and conservation policy. Von Nostrand Reinhold Company, New York. Niessen, L.W., Rotmans, J., de Vries, H.J.M. and Weterings, R. (1995). Scanning the Global Environment: A framework and methodology for integrated environmental reporting and assessment. Environmental Assessment SubProgramme, UNEP, Nairob NRCAN, (1996). Energy Efficiency Trends in Canada. Office of Energy Efficiency, Natural Resources Canada, Ottawa. Patterson M. G., (1993). ‘An accounting framework for decomposing the energytoGDP ratio into its structural components of change’, Energy, Volume 18, Issue 7, July, Pages 741761. Pillai, N. Vijayamohanan (1992): Seasonal Time of Day Pricing of Electricity Under Uncertainty: A Marginalist Approach to Kerala Power System. PhD Thesis submitted to the University of Madras, Chennai. Rosenquist, G., McNeil, M., Lyer, M., Meyers, S., and McMahon, J. 2004. Energy Efficiency Standards for Residential and Commercial Equipment: Additional Opportunities, Lawrence Berkeley National Laboratory. Schipper, Lee; Unander, Fridtjof; Murtishaw, Scott and Ting, Mike (2001) Annual Review of Energy and the Environment Vol. 26:4981 (Volume publication date November https://doi.org/10.1146/annurev.energy.26.1.49 Schipper, L.J., Meyers, S., Howarth, R., and Steiner, R. , 1992, Energy Efficiency and Human Activity: Past Trends, Future Prospects, Cambridge Studies in Energy and the Environment, ed. C. Hope and J. Skea. Cambridge University Press, Cambridge, UK (1992). Schurr, S. and B. Netschert. 1960. Energy and the American Economy, 18501975. Johns Hopkins University Press, Baltimore. Seiford, L. M. and Thrall, R. M. (1990), ‘Recent Developments in DEA: The Mathematical Approach to Frontier Analysis’, Journal of Econometrics 46, 738. SheinbaumPardo, C., MoraPérez S. and RoblesMorales, G. (2012). Decomposition of energy consumption and CO2 emissions in Mexican manufacturing industries: Trends between 1990 and 2008. Energy for Sustainable Development, 16(1), 5767. Schmidt, P. (1986), ‘Frontier Production Functions’, Econometric Reviews 4,289328. Schmidt, P. and Sickles, R. C. (1984), ‘Production Frontier and Panel Data’, Journal of Business and Economic Statistics 2.367374. Tryon, F. G. (1927). “An index of consumption of fuels and water power”. Journal of American Statistical Association. Vol. 22:271–282. Wang, W.W., Liu X., Zhang M. and Song X.F. (2014). Using a new generalized LMDI (logarithmic mean Divisia index) method to analyze China’s energy consumption. Energy, 67, 617622. 
URI:  https://mpra.ub.unimuenchen.de/id/eprint/97744 
Available Versions of this Item

Energy Efficiency Indicators: Estimation Methods. (deposited 19 Dec 2019 10:49)

Energy Efficiency Indicators: Estimation Methods. (deposited 23 Dec 2019 16:47)
 Energy Efficiency Indicators: Estimation Methods. (deposited 27 Dec 2019 17:56) [Currently Displayed]

Energy Efficiency Indicators: Estimation Methods. (deposited 23 Dec 2019 16:47)