Progressive time-weighted dynamic energy efficiency, energy decoupling rate, and decarbonization: An empirical study on G7 and BRICS

Abstract

Energy is a critical factor of economic growth, but the overuse of it results in global warming and climate change. Hence, energy efficiency improvement can help mitigate climate change and prevent economic losses or even ecological extinction. The data envelopment analysis (DEA) approach has been extensively applied for energy efficiency estimation, but past studies of this estimation employ a static mode that does not consider consecutive periods and the carry-over effect. This study estimates energy efficiency under a weight-restricted dynamic DEA (WrD-DEA) model, creates a weight-restricted dynamic energy efficiency (WrD-EE) indicator, and discusses issues concerning the energy decoupling rate and decarbonization. We utilize members in the Group of Seven (G7) and BRICS (Brazil, China, India, Russia, and South Africa) for our experimental observations. The main results herein are: (1) BRICS has larger room for improvement to achieve the standard ratio of the energy decoupling rate than the G7; (2) the G7 and BRICS do not converge to decarbonization; and (3) BRICS exhibits more rapid improvement on energy efficiency than the G7.