Energy demand and energy efficiency in 26 Latin-American and The Caribbean countries: a stochastic demand frontier approach

• In Event: Structures of Resource Extraction

Abstract

This paper estimated a panel frontier whole economy aggregate energy demand function for 26 Latin-American countries over the period 1970-2010 using stochastic frontier analysis. The energy efficiency of each country is also modeled. This paper shows that energy intensity is not necessarily a good indicator of energy efficiency, whereas by controlling for a range of economic and other factors, the measure of energy efficiency obtained via this approach is. The results show that although for a number of countries the change in energy intensity over time might give a reasonable indication of efficient improvements; this is not always the case. Finally, the paper estimated the ideal energy demand and the potential of energy save and CO2 emission, very relevant to the policy makers.

Author

• Jose Somoza Cabrera, Instituto Nacional de Investigaciones Economicas