Total-factor energy productivity growth of regions in Japan

Abstract

This article computes the energy productivity changes of regions in Japan using total-factor frameworks based on data envelopment analysis (DEA). Since the traditional DEA-Malmquist index cannot analyze changes in single-factor productivity changes under the total-factor framework, we apply a new index proposed by Hu and Chang [2009. Total-factor energy productivity growth of regions in China. Energy Policy, submitted for publication]: a total-factor energy productivity change index (TFEPI) that integrates the concept of the total-factor energy efficiency index into the Malmquist productivity index (MPI). Moreover, we separate TFEPI into change in relative energy efficiency, or the 'catching up effect,' and shift in the technology of energy use, or the 'innovation effect.' The data from 47 prefectures during the period of 1993-2003 are used to compute the TFEPI and its components for 4 kinds of energy. The TFEPI of electric power for commercial and industrial use changes -0.6% annually, which can be separated into a total-factor energy efficiency change of 0.2% and a technical change of -0.8%. The TFEPI for coal deteriorates by 1.0%/year, which is mostly caused by a decrease in relative energy efficiency change. We define and identify 'innovators' who cause the frontier to shift. Most regions identified as frontier shifters are located outside of Japan's four major industrial areas. (C) 2009 Elsevier Ltd. All rights reserved.