Total-factor Energy Efficiency for Regions in Taiwan

Abstract This study applies data envelopment analysis (DEA) to compute the efficient energy-saving ratios for 23 administrative regions in Taiwan from 1999–2005. One output (total income) and seven inputs (local government expenditure, employment, processed trash, household and commercial electricity consumption, industrial electricity consumption, gasoline sales volume, and diesel sales volume) are considered in the DEA models. It is found that most of the 23 administrative regions do not efficiently use household and commercial electricity, industrial electricity, gasoline, and diesel, even with respect to Taiwan's own efficiency frontier. Our results suggest that improving energy efficiency in household and commercial electricity use is a priority for non-metropolitan regions. There is still much room to improve the efficiency of electricity use for industries, especially for regions where manufacturing and high-tech industries concentrate, by means of cleaner production, energy-saving technology and equipment, etc. Motor vehicle energy efficiency is the key factor for saving gasoline. The energy efficiency of farming machines and carrying equipment should be continuously improved, especially for rural regions.