Analysis of Ecological Total Factor Energy Efficiency (ETFEE) and Total Factor CO2 Emission Efficiency of Iranian Provinces: Application of Data Envelopment Analysis and Tobit Model

Document Type : Research Paper

Authors

Razi University

Abstract

Improving green efficiency as a way to achieve sustainable development brings not only environmental benefits but also energy security. The aim of this study is to investigate the ecological total factors energy efficiency and total factors carbon efficiency of Iranian provinces in the period 2006-2018. For this purpose, first, the carbon dioxide emissions of Iranian provinces are calculated according to the IPCC, and then ETFEE and TFCEE are calculated according to data envelopment analysis. The results show that the average ETFEE and TFCEE of Iranian provinces are 42.67% and 24.98%, respectively. GDP has a positive effect on ETFEE and TFCEE of provinces with high GDP share and low GDP share. Given the heterogeneity of the results, it cannot be claimed that GDP has a positive effect on ETFEE and TFCEE of provinces with medium GDP share. The results of the Tobit model estimation indicate that energy intensity and innovation lead to a significant decrease and increase in ETFEE and TFCEE, respectively. The share of industry value added in GDP does not have a significant impact on ETFEE and TFCEE. Reforming energy policies, replacing worn-out and outdated equipment, and using new production technology are recommended to reduce energy intensity. Also, supporting research and development will contribute significantly to improving energy and carbon efficiency.

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