Measuring Energy Efficiency in GCC Countries Using Data Envelopment Analysis

Abstract

Energy efficiency is a key issue in determining the direction of global concern about preserving the environment. The Gulf Cooperation Council (GCC) is an emerging economic block of six countries with abundant oil reserves and high energy consumption. However, satisfying high levels of energy efficiency in GCC countries might hinder their fast growing economies. Therefore, it is important to measure energy efficiency of GCC countries in order to set the appropriate policies without adverse effects on their economic development strategies. This paper is the first attempt to measure energy efficiency in GCC countries using two models of Data Envelopment Analysis (DEA). As a complementary step, energy intensity for GCC countries and causality of the relationship between energy consumption and economic growth have been tested. The results indicate several policy implications with regard to energy conservation and efficient use of energy.