Document Type : Research Paper

Authors

1 Assistant Professor, Department of Economic Development and Planning, University of Tabriz, Tabriz, Iran

2 Full Professor, Department of Economic Development and Planning, University of Tabriz, Tabriz, Iran

Abstract

This study evaluates the energy-economic efficiency of 11 emerging countries using a three-stage DEA-SBM approach with undesirable outputs. Gross capital formation, labor force participation, and energy use are considered as inputs, while gross domestic product is treated as the desirable output and carbon dioxide emissions from the energy sector as the undesirable output. In the first stage, initial efficiency scores are estimated using the SBM model. In the second stage, the effects of environmental conditions and statistical noise on input slacks are examined through a stochastic frontier model incorporating government effectiveness, GDP per capita, urbanization, and the share of renewable energy. In the third stage, efficiency is re-estimated based on adjusted inputs. The findings reveal substantial cross-country heterogeneity in energy efficiency. After controlling for environmental effects, Türkiye, Egypt, and Brazil appear among the most efficient countries, whereas Iran, Vietnam, and South Africa record the lowest efficiency levels. The results also indicate that a higher share of renewable energy reduces excess energy use, while in most countries productivity changes are driven more by efficiency change than by technological change. Overall, improving energy performance in emerging economies requires more efficient use of inputs, wider deployment of renewable energy, and faster technological transformation.

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