Energy efficiency evaluation of oil producing economies in Africa: DEA, malmquist and multiple regression approaches

Abstract

Achieving and improving energy efficiency are at the heart of sustainable environmental development. Prioritizing energy efficiency, particularly in Africa, is urgent as the continent is experiencing the consequences of climate change expressed in climate events such as droughts and floods. Accordingly, this paper assesses the energy efficiency, energy productivity improvement, and the determinants of energy efficiency of 14 oil-producing countries in Africa during 2010-2017. Firstly, the energy efficiency is evaluated using the DEA-SMB approach. Secondly, the Malmquist Productivity Index approach is implemented to estimate the energy productivity improvement. Thirdly, the determinants of energy efficiency and the EKC theory are investigated using the random effect model. The results demonstrate that the 14 sampled countries are, on average, 98% energy efficient. Again, Angola, Tunisia, and Cote d' Ivoire achieved improved energy productivity during 2010-2017. Trade liberalization, and population positively influenced energy efficiency in African oilproducing countries. However, there is no U-shape relationship between energy efficiency and GDP, suggesting that energy efficiency does not eventually improve with economic growth. African countries are advised to adopt the development pathway that embraces energy efficiency and productivity improvement . • Energy efficiency, productivity improvement and determinants are examined. • The sampled countries, on average, are 98% energy efficient. • In almost all the sampled countries, energy productivity has not improved markedly. • Trade liberalization and population are established as the efficiency determinants. • The Environmental Kuznets Curve hypothesis is examined and found to be absent.