Energy efficiency evaluation, technology gap ratio, and determinants of energy productivity change in developed and developing G20 economies: DEA super-SBM and MLI approaches

Abstract

This study employed Slack-based measure (SBM), Meta-frontier analysis, and Malmquist–Luenberger index (MLI) approaches to measure energy efficiency (EE), production technology heterogeneity, and energy productivity variation and its main determinants in developed and developing G20 countries for the period 1995–2020. The study's findings are: (i) Average EE for G20 countries is 0.8577, but still has an improvement potential of 14.23 percent. (ii) Developed countries have a higher average EE than developing (0.8927 > 0.8290). Results further revealed that energy efficiency scores in Argentina, Australia, Brazil, France, Saudi Arabia, South Africa, the US, the UK, and Korea are>1. (iii) Technology gap ratio (TGR) value in developed countries is higher than in developing (0.9869 > 0.6801), indicating that developed countries have advanced energy technologies superiority. The average MLI is less than one, showing a decline in energy productivity mainly due to a decline in technical efficiency, as EC < TC. (iv) Developed G20 countries get 0.64 percent aggregate growth in energy productivity as their MLI score is 1.0064, mainly due to technological growth (TC = 1.0161). Developing G20 countries, on the other hand, witnessed a decline in their energy productivity during 1995–2020, as MLI = 0.9925 > 1, designating that, on average, there is a 0.75 % decline in MLI.