A Cross-Country Analysis of Energy Efficient Development

Maximizing energy efficiency, producing as much as possible with as little energy as possible, is something every country should be working toward. This study measures the efficiency of specific countries by examining the interrelationships that exist among each country’s energy consumption and such measures of development as health, education, income, access to essentials and CO2 emissions. It then analyses why certain countries are more efficient than others and how these inefficient countries can improve. Data Envelopment Analysis (DEA) is used to generate a cross country comparison of energy efficiency scores over multiple dimensions of development. Pairs of inefficient countries and their efficient role models are examined in detail to understand which factors contribute to their relative efficiencies. The paper hypothesizes that countries which have made significant commitments to renewable energy sources will have higher levels of sustainable development than those that have not. Furthermore those countries which have invested in health, education, jobs and access to essential services such as water and sanitation will have higher efficiency scores than those that have not. This study’s ultimate goal is to provide policy recommendations for improving energy efficiency