Total-factor energy efficiency and its extensions: Introduction, computation and application

Abstract

This chapter demonstrates how to use different types of DEA models to compute the total-factor energy efficiency (TFEE) scores, including CCR, Russell, QFI, SBM, DF, and DDF models. The TFEE is a disaggregate input efficiency index. Moreover, the TFEE framework which uses cross-section data can be extended to the total-factor energy productivity (TFEP) growth index by following Malmquist, Leunberger, and Malmquist-Leunberger models which use panel data. Finally, the regional data of Chinese regions during 2010-2011 with inputs and desirable as well as undesirable outputs are used for illustrating the computation of TFEE and TFEP scores.