Environment-adjusted total-factor energy efficiency of Taiwan's service sectors

Chin-Yi Fang, Jin Li Hu, Tze Kai Lou

Research output: Contribution to journalArticle

21 Citations (Scopus)

Abstract

This study computes the pure technical efficiency (PTE) and energy-saving target of Taiwan's service sectors during 2001-2008 by using the input-oriented data envelopment analysis (DEA) approach with the assumption of a variable returns-to-scale (VRS) situation. This paper further investigates the effects of industry characteristics on the energy-saving target by applying the four-stage DEA proposed by Fried et al. (1999). We also calculate the pre-adjusted and environment-adjusted total-factor energy efficiency (TFEE) scores in these service sectors. There are three inputs (labor, capital stock, and energy consumption) and a single output (real GDP) in the DEA model. The most energy efficient service sector is finance, insurance and real estate, which has an average TFEE of 0.994 and an environment-adjusted TFEE (EATFEE) of 0.807. The study utilizes the panel-data, random-effects Tobit regression model with the energy-saving target (EST) as the dependent variable. Those service industries with a larger GDP output have greater excess use of energy. The capital-labor ratio has a significantly positive effect while the time trend variable has a significantly negative impact on the EST, suggesting that future new capital investment should also be accompanied with energy-saving technology in the service sectors.

Original languageEnglish
Pages (from-to)1160-1168
Number of pages9
JournalEnergy Policy
Volume63
DOIs
Publication statusPublished - 2013 Dec 1

Fingerprint

service sector
energy efficiency
Energy efficiency
Energy conservation
data envelopment analysis
Data envelopment analysis
Gross Domestic Product
labor
Personnel
returns to scale
technical efficiency
industry
panel data
Insurance
Finance
finance
energy
Industry
Energy utilization
energy saving

Keywords

  • Data envelopment analysis
  • Environment-adjusted total-factor energy efficiency (EATFEE)
  • Panel random-effects Tobit regression

ASJC Scopus subject areas

  • Energy(all)
  • Management, Monitoring, Policy and Law

Cite this

Environment-adjusted total-factor energy efficiency of Taiwan's service sectors. / Fang, Chin-Yi; Hu, Jin Li; Lou, Tze Kai.

In: Energy Policy, Vol. 63, 01.12.2013, p. 1160-1168.

Research output: Contribution to journalArticle

Fang, Chin-Yi ; Hu, Jin Li ; Lou, Tze Kai. / Environment-adjusted total-factor energy efficiency of Taiwan's service sectors. In: Energy Policy. 2013 ; Vol. 63. pp. 1160-1168.
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