Comparative analysis of the energy efficiency of Iran province's large industries using data envelopment analysis in the period 2008-2011

Document Type : Research Article

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Abstract

There are two well-known indicators used to study how energy inputs are efficiently used: One is energy intensity which measures the amount of energy consumption for every economic output produced in the economy, and the other is energy efficiency (or energy productivity) defined as economic output divided by energy input. These two indices only take energy into account as a single input to produce GDP output. In contrast, total-factor energy efficiency index (TFEEI) incorporates other key inputs such as capital and labor as multiple inputs so as to produce economic output. This article estimates TFEEI of Iranian provinces large industries using total-factor frameworks based on data envelopment analysis (DEA) in the period 1387-1390. Results indicate that Total average of TFEE in The Iranian provinces large industries is 0.4 percent. Furthermore Hormozgan, Tehran, Bushehr, Azerbayjan Sharghi and Kerman provinces have the greatest value of TFEE, while the lowest value of TFEE index considered in Khorasan Shomali, Chaharmohal Bakhtiari, Sistan and Baluchestan, Khorasan Jonubi and Lorestan provinces. Also, according to the computation results, the average of TFEE in large industries in Iran decreased during 1387-1389 and due to recent plan subsidies and energy price reform improved in 1390. 

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Journal of Applied Economics Studies in Iran
Volume 4, Issue 16 - Serial Number 16
February 2016
Pages 157-178

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