Total Factor Efficiency of Energy and Carbon Emissions in 18 Asian Countries: An Empirical Assessment

Abstract

Energy efficiency is crucial for reducing energy consumption and mitigating the negative impact of carbon dioxide emissions on the environment. The present study aims to evaluate the energy efficiency and emissions efficiency of 18 Asian countries using the undesirable slack-based data envelopment model and a total factor framework for the period 2001–2020. It has been observed that none of the countries had significantly improved energy efficiency. The total factor energy efficiency (TFEE) index shows that Asian countries have varying levels of energy efficiency, with some countries having high potential for improvement and others already performing well. Kazakhstan and Iran have the most room for improvement, while China and the UAE have seen fluctuations in their TFEE scores. The category with the highest number of countries includes Singapore, Hong Kong, Pakistan, India, Japan, Saudi Arabia, Israel, the Philippines, Bangladesh, and Indonesia, with some experiencing significant drops in TFEE scores over the years. Similar patterns can be seen in the total factor carbon emissions efficiency (TFCEE) Index, suggesting that no country is entirely efficient in reducing carbon emissions. Kazakhstan maintains its position at the bottom of the ranking for lowering carbon emissions, while Bangladesh has shown more success. Overall, there is a need for continued efforts to improve energy efficiency in these nations to reduce their carbon footprint and contribute to global sustainability goals.