Energy Use Efficiency in G20 Economies under Carbon Emissions Constraints: A Variable-Returns-to-Scale Allocative Luenberger Indicator Approach
Year: 2026
Type: preprint
Abstract: Energy-use efficiency is an important indicator of primary-energy performance, but it does not show whether energy, labor, and capital are moving toward a minimum-value feasible input mix. The objective of this study is to assess energy-use efficiency and factor-allocation change jointly for 18 Group of Twenty(G20) economies over 2008–2022. We develop a biennial variable-returns-to-scale Allocative Luenberger indicator that evaluates adjacent years against a common production technology while holding carbon emissions at observed levels. Using country-year valuation coefficients on a common purchasing-power-parity basis, the indicator decomposes full-input benchmark-value change into value-share-weighted technical and benchmark-relative allocation components; a matched energy-only direction measures change in the energy gap. Under the baseline input definitions, equal-country cumulative energy-use efficiency change is 0.0389. Full-input benchmark-value change is 0.0607, comprising a technicalLuenberger component of 0.0889 and an allocation component of −0.0282. These baseline results show improvements in energy-use efficiency and full-input technical performance over the sample period, whereas factor allocation moved away from the benchmark input mix. The allocation result is sensitive to input definitions, aggregation choices, and frontier composition.
Source: Research Square
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225661952
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