The superefficiency direction distance function and total factor energy efficiency: Evidence from the comprehensive and progressive agreement for trans‐pacific partnership (CPTPP) member countries

Abstract

AbstractThis study used the superefficiency direction distance function and total factor energy efficiency to evaluate the changes in energy efficiency and total factor energy efficiency of 11 member countries of the Comprehensive and Progressive Agreement for Trans‐Pacific Partnership (CPTPP) from 2013 to 2017. Based on the results, we consider the policy implications for CPTPP members, and suggest approaches to improve the direction and range of the difference variable for aalyzing energy efficiency performance. In the selection of variables, input variables include labor force, energy consumption, and capital formation; undesirable output variables include the domestic production gross, life expectancy, and PM2.5. The results show that Canada, Japan, and Mexico have the best performance in terms of energy superefficiency and total factor energy efficiency; in contrast, Chile, Malaysia, Peru, and Vietnam would benefit from improved energy efficiency. Energy efficiency can be improved by reducing labor and final energy consumption, increasing gross domestic product, and reducing PM2.5. However, simultaneously improving all three factors is challenging. Countries should first focus on appropriately adjusting energy policies, actively developing new energy use, improving production technology, avoiding waste, reducing PM2.5, and accelerating urban development to achieve optimal energy efficiency.