CERE Working Papers, CERE - the Center for Environmental and Resource Economics
Energy Efficiency in Swedish Industry - A Firm-level Data Envelopment Analysis
(), Shanshan Zhang
() and Wenchao Zhou
Abstract: This paper assesses energy efficiency in Swedish industry.
Using unique firm-level panel data covering the years 2001-2008, the
efficiency estimates are obtained for firms in 14 industrial sectors by
using data envelopment analysis (DEA). The analysis accounts for
multi-output technologies where undesirable outputs are produced alongside
with the desirable output. The results show that there was potential to
improve energy efficiency in all the sectors and relatively large energy
inefficiencies existed in small energy-use industries in the sample period.
Also, we assess how the EU ETS, the carbon dioxide (CO2) tax and the energy
tax affect energy efficiency by conducting a second-stage regression
analysis. To obtain consistent estimates for the regression model, we apply
a modified, input-oriented version of the double bootstrap procedure of
Simar and Wilson (Journal of Econometrics 136(1):31-64, 2007). The results
of the regression analysis reveal that the EU ETS and the CO2 tax did not
have significant influences on energy efficiency in the sample period.
However, the energy tax had a positive relation with the energy
Keywords: energy efficiency; EU ETS; data envelopment analysis; double bootstrap; (follow links to similar papers)
JEL-Codes: D22; D24; L60; Q41; (follow links to similar papers)
29 pages, February 18, 2015
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