Measuring Residential Energy Efficiency Improvements with DEA

24 Pages Posted: 8 Oct 2008

See all articles by Peter Grösche

Peter Grösche

Rhine-Westphalia Institute for Economic Research (RWI-Essen)

Date Written: August 1, 2008

Abstract

This paper measures energy efficiency improvements of US single-family homes between 1997 and 2001 using a two-stage procedure. In the first stage, an indicator of energy efficiency is derived by means of Data Envelopment Analysis (DEA), and the analogy between the DEA estimator and traditional measures of energy efficiency is demonstrated. The second stage employs a bootstrapped truncated regression technique to decompose the variation in the obtained efficiency estimates into a climatic component and factors attributed to efficiency improvements. Results indicate a small but significant improvement of energy efficiency over the studied time interval, mainly accounted for by fuel oil and natural gas users.

Keywords: Energy efficiency, household production, data envelopment analysis, bootstrap

JEL Classification: C14, C61, D13, Q4

Suggested Citation

Grösche, Peter, Measuring Residential Energy Efficiency Improvements with DEA (August 1, 2008). Ruhr Economic Paper No. 60, Available at SSRN: https://ssrn.com/abstract=1280878 or http://dx.doi.org/10.2139/ssrn.1280878

Peter Grösche (Contact Author)

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

HOME PAGE: http://www.rwi-essen.de/groesche

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