Energy efficiency assessment in CPTPP countries through the three-stage SBM-DEA model

Purpose The purpose of this study is to evaluate and address the energy efficiency prevalent within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries, a diverse group that constitutes a significant portion of the global gross domestic product. By assessing energy efficiency, the study aims to inform strategies that foster sustainable economic growth and environmental sustainability within these nations. Design/methodology/approach This research uses a three-stage slacks-based measure data envelopment analysis (SBM-DEA) model, enhanced by stochastic frontier analysis (SFA), to assess the energy efficiency of CPTPP countries over the period from 2000 to 2015. The three-stage SBM-DEA model allows for a comprehensive analysis by first measuring energy efficiency, then adjusting for external environmental factors and statistical noise through SFA, and finally, reevaluating efficiency with adjusted inputs. Findings The analysis reveals significant disparities in energy efficiency among CPTPP nations, identifying both high-performing countries and those needing considerable improvements. Developed countries within the CPTPP generally exhibit higher energy efficiency levels, which can be attributed to their adoption of advanced technologies and strong policy frameworks. In contrast, developing nations demonstrate greater vulnerability to external environmental factors affecting their energy efficiency. Originality/value The research fills a gap in the literature by providing a nuanced and comprehensive evaluation of energy efficiency across a significant and economically diverse group of nations, offering valuable insights for sustainable development within the CPTPP framework.