Measuring energy-specific technical efficiency based on input distance function

The article addresses the challenge of measuring energy-specific technical efficiency by introducing a new method based on the input distance function. It argues that existing methods, such as stochastic frontier analysis and slack-based measures, have limitations in accurately capturing the technical efficiency of various inputs. The proposed method, using a two-step Bayesian procedure, offers a more reliable and stable estimation process. The authors demonstrate the applicability of their approach through an empirical study of China's provincial energy efficiency from 1997 to 2022, revealing significant differences in technical efficiency among energy, labor, and capital inputs. The study highlights the importance of considering input-specific technical efficiencies and their correlations in energy efficiency analysis, making the method a valuable tool for researchers and policymakers aiming to improve energy efficiency across diverse economic settings.