Total-factor energy efficiency in BRI countries: An estimation based on three-stage DEA model

Abstract

The Belt and Road Initiative (BRI) is showing its great influence and leadership on the international energy cooperation. Based on the three-stage DEA model, total-factor energy efficiency (TFEE) in 35 BRI countries in 2015 was measured in this article. It shows that the three-stage DEA model could eliminate errors of environment variable and random, which made the result better than traditional DEA model. When environment variable errors and random errors were eliminated, the mean value of TFEE was declined. It demonstrated that TFEE of the whole sample group was overestimated because of external environment impacts and random errors. The TFEE indicators of high-income countries like South Korea, Singapore, Israel and Turkey are 1, which is in the efficiency frontier. The TFEE indicators of Russia, Saudi Arabia, Poland and China are over 0.8. And the indicators of Uzbekistan, Ukraine, South Africa and Bulgaria are in a low level. The potential of energy-saving and emissions reduction is great in countries with low TFEE indicators. Because of the gap in energy efficiency, it is necessary to distinguish different countries in the energy technology options, development planning and regulation in BRI countries.