Applying the energy productivity index that considers maximized energy reduction on SADC (Southern Africa Development Community) members

Abstract

Under the trend of global energy prices continuously going up, this paper considers the concept of maximized energy reduction to model the energy productivity index by decomposing it into energy technical change and energy efficiency change. The paper takes the eight SADC (Southern Africa Development Community ) members as an example to estimate their energy efficiency, energy productivity change, energy technical change, energy efficiency change, and rebound effect on energy use, as well as to test the Jevons Paradox. The time period of the data spans 2005 to 2009. The empirical result shows large energy performance differences among the eight SADC members. Not one country among the eight members is an energy technology innovator. After calculating the rebound effect and testing the Jevons Paradox, the result shows that there seems to be no obvious Jevons Paradox in this economic region.