Energy efficiency of selected OECD countries: A slacks based model with undesirable outputs

- We analyze the energy efficiency of selected OECD countries.
- SBM-Undesirable and MCMC-GLMM are combined for this purpose.
- Find that efficiency levels are high but declining over time.
- Analysis with contextual variables shows varying efficiency levels across groups.
- Capital-intensive countries are more energy efficient than labor-intensive countries.

This paper presents an efficiency assessment of selected OECD countries using a Slacks Based Model with undesirable or bad outputs (SBM-Undesirable). In this research, SBM-Undesirable is used first in a two-stage approach to assess the relative efficiency of OECD countries using the most frequent indicators adopted by the literature on energy efficiency. Besides, in the second stage, GLMM-MCMC methods are combined with SBM-Undesirable results as part of an attempt to produce a model for energy performance with effective predictive ability. The results reveal different impacts of contextual variables, such as economic blocks and capital-labor ratio, on energy efficiency levels.