Convergence analysis of technical, total factor energy, renewable energy and CO2 emissions efficiency. A global perspective

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Ζαρουτιέρη, Ευτυχία
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In this dissertation, an alternative approach of total factor efficiency in terms of performance analysis is investigated, founded on the study of Hu and Wang (2006). Energy efficiency has recently constituted an essential tool of energy management universally and the international organizations attempt to figure out energy efficiency trends over time. This study, at first stage, attempts to provide empirical estimations of countries’ total factor energy, renewable energy and carbon dioxide emissions efficiency, as well as of technical efficiency, over a global perspective and specifically of 127 countries over the period 1990-2013. The convergence hypothesis is examined in the second stage, based on the log-t regression test introduced by Phillips and Sul (2007), which accounts for individual heterogeneity across economies and on the club clustering algorithm which identifies possible convergence clubs. Founded on the estimation results, technical efficiency was shaped in low average levels across the countries, relative to the total factor energy, renewable energy and the carbon dioxide emissions efficiency. At a regional level, countries within Europe delineated the highest average performance, regarding the use of energy and renewable energy, as well as the carbon dioxide emissions. It was further inferred that members of OECD members demonstrated higher performance on average, founded on the distribution of technical, total factor energy and carbon dioxide emissions efficiency, whereas it is essential to declare that non- OECD members denoted higher performance, regarding the use of the renewables. The log-t regression test proposed by Phillips and Sul (2007) did not support the full panel convergence hypothesis of the efficiencies, but convergence clubs were identified. Founded on the club clustering algorithm, four convergence clubs of technical efficiency were identified, while both total factor energy and carbon dioxide emissions efficiency, finally converged to three clubs. As regards total factor renewable energy efficiency, six clubs were identified and one divergent club, as well.
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Technical efficiency, Total factor energy efficiency, Total factor renewable energy efficiency, Total factor carbon dioxide emissions efficiency, Convergence, Transitional heterogeneity, Transition, Convergence clubs, Log-t regression test, Club clustering algorithm
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