Analyzing total-factor energy efficiency in Croatian counties: evidence from a non-parametric approach

Using energy efficiently has become top priority concern which requires an adequate policy reaction bearing in mind both energy conservation and efforts to combat adverse climate changes. The paper explored the total-factor energy efficiency and change trends in technical efficiency in the Croatian counties during the period 2001–2013. Employing data envelopment analysis, the overall technical, pure technical and scale efficiency are assessed. Considering the empirical results, we have concluded the following. Technical inefficiency is generated almost equally by the pure technical effect and an incorrect production scale. The overall geographical distribution of the technical efficiency scores points to the presence of spatial concentration, i.e., a dualistic pattern (centre vs. periphery) in the production process. The differences between the best practice and the worst technical efficiency scores indicate the presence of significant disparities among Croatian counties. The years with deteriorating electricity efficiency seem to coincide with the important economic/energy changes that happened in Croatia. Finally, subnational governments may play an important role in energy efficiency policies.

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