Energy Efficiency in Electricity Production: A Data Envelopment Analysis (DEA) Approach for the G-20 Countries

Abstract

Factors such as global warming, increased energy prices, decreased security of energy supply and the vision of sustainable development have inspired researchers to focus on energy efficiency. In this context, this study adopts input oriented DEA based on the Charnes, Cooper and Rhodes (CCR) model and estimates technical and super efficiency scores of G-20 countries in terms of electricity production for the periods 1990, 1995, 2000, 2005 and 2011. Findings reveal that China and Russia appear at the top of energy efficiency rankings. On the other hand, France and the European Union are inefficient in four of five periods. Besides, the way that the United States follows for recent electricity production seems inefficient. This implies that the world has been experiencing an important transformation in terms of efficient electricity production and policy makers should be aware of this progress in order to avoid unexpected outcomes for the energy future. Keywords: Energy efficiency; Data Envelopment Analysis; G-20 countries JEL Classifications: C14; O13; O57