Total Factor Ecological Energy Efficiency and Total Factor Carbon Efficiency of Iranian Provinces: An Application of Data Envelopment Analysis and Tobit Model

Document Type : Research Paper

Authors

1 Associate Professor, Department of Economics, Faculty of Social and Educational Sciences, Razi University, Kermanshah, Iran

2 Master of Energy Economics, Department of Economics, Faculty of Social and Educational Sciences, Razi University, Kermanshah, Iran

Abstract

Improving green efficiency as a pathway to sustainable development provides not only environmental benefits but also energy security. This study aims to examine the total factor ecological energy efficiency (ETFEE) and total factor carbon efficiency (TFCEE) of Iranian provinces over the period 2006–2018. To this end, CO2 emissions for Iranian provinces were calculated in accordance with the Intergovernmental Panel on Climate Change (IPCC) guidelines. Subsequently, total factor ecological energy efficiency (ETFEE) and total factor carbon efficiency (TFCEE) were estimated using Data Envelopment Analysis (DEA). The results indicate that the average ETFEE and TFCEE of Iranian provinces are 42.67% and 24.98%, respectively. Production has a positive influence on ETFEE and TFCEE in provinces with high and low GDP shares. However, due to heterogeneous results, it cannot be concluded that production has a positive effect on ETFEE and TFCEE in provinces with medium GDP shares. Tobit model estimates indicate that energy intensity has a significant negative impact on both ETFEE and TFCEE, while innovation has a positive and significant effect on these efficiency indicators. The industrial structure does not have a substantial impact on ETFEE or TFCEE. Policy recommendations include energy policy reforms, replacement of outdated equipment, and adoption of modern production technologies to reduce energy intensity. Additionally, support for research and development can substantially enhance energy and carbon efficiency

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Main Subjects

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