Abstract
This paper applies the context-dependent total-factor energy efficiency (CD-TFEE) to determine the multi-layer disaggregate energy efficiency frontiers of twenty administrative regions in Taiwan for the year of 2016. The CD-TFEE overcomes the shortcoming of conventional TFEE index that TFEE is not able to find the “closest target” for each inefficient region in the short run. Furthermore, the CD-TFEE scores here deal with four types of energy inputs (electricity for production, electricity for household and non-household lighting, diesel sales, and gasoline sales), illustrating that multi-layer TFEE frontiers for each energy input in the case of Taiwan can be computed. Empirical results indicate that there are three levels of TFEE frontiers for electricity for production and four levels for other types of energy inputs. In addition, New Taipei City, Taipei City, Keelung City, and Penghu County are at the top level of TFEE frontier for all four energy inputs. This paper also demonstrates that the CD-TFEE procedure generates results different from the CD-DEA introduced by Seiford and Zhu (2003).
Highlights
In order to categorize the regions by their energy efficiency, the efficiency measure of total-factor energy efficiency (TFEE) raised by Hu and Wang [5] is employed to sub-group regions into different efficiency levels
Notice that the target energy input should be always lower than the actual energy input, indicating that a TFEE score must be between zero and one
We suggest that context-dependent total-factor energy efficiency (CD-TFEE) should be more meaningful for forming the benchmarks of energy efficiency from policymakers’ perspectives
Summary
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. With imported energy accounting for 98% of Taiwan’s total energy supply in 2017 [1], the country is heavily dependent on its sources to support economic activities. The efficient use of energy is, an important issue for Taiwan in order to sustain economic development. Such efficient energy utilization must be effectively implemented at the regional level, in order to achieve economy-wide energy efficiency
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
