Total factor productivity change of Turkey’s energy intensity

ABSTRACT

The energy consumption per gross domestic product called “energy intensity” is used as a good measure of the energy efficiency of the economy. In this study, the total factor productivity changes of the energy intensity of Turkey are examined using data envelopment analysis and the Malmquist index approach, and a comparison analysis with the European Union (EU) countries is performed. In the study, basic energy indicators are taken as inputs and the energy intensity is taken as the output. Constant returns to scale and variable returns to scale models are used in the analyses. Efficiency analysis results which show the basic energy inputs of Turkey and the usage success of the country in decreasing the energy intensity are compared with the EU countries. Hence, as a candidate for becoming an EU member, a performance evaluation of Turkey’s energy sector will be performed to see the sector’s adaptation to the union.

KEYWORDS:

• Data envelopment analysis
• efficiency
• energy intensity
• malmquist index
• productivity growth
• Turkey