Measurement of Energy Efficiency For the Reduction of Greenhouse Gases

The purpose of the paper is to estimate the functions of the energy input efficiency and the energy intensity efficiency, and measure their energy efficiencies for the reduction of greenhouse gases focusing on OECD countries. The efficiency of the traditional energy intensity was rarely connected with the energy efficiencies of the stochastic frontier function. It seems that the energy efficiency by the function of energy input efficiency sensitively responds to the order of GDP, capital stock, labor, and energy input quantity as explanatory variables. In the future, we need to reduce energy quantities by the optimal mix of inputs, and pursuit low-carbon economic growth through the production of the goods consuming small energy. ❙Keywords❙ Stochastic Frontier Function, Energy Efficiency, Energy Efficiency Function, Intensity Efficiency Function