Measurement of Meta-Environmental Intensity Efficiency Based on the SFDA Model and the Impact of Greenhouse Gases, Fossil Energy, and GDP

The Intergovernmental Panel on Climate Change (IPCC) has warned of the severity of global warming and pointed out that efforts by various countries to reduce greenhouse gas (GHG) emissions are insufficient. The transition from fossil energy to renewable energy is essential for reducing GHG emissions, but a rapid transition can incur economic costs. Therefore, it is necessary to consider both environmental efficiency and economic efficiency simultaneously through Environmental Intensity Efficiency (EIE). The purpose of this study is to measure the Meta-Environmental Intensity Efficiency (MEIE) of different countries using the Stochastic Frontier Distance Approach (SFDA) and analyze the impact of changes in greenhouse gas (GHG) emissions, fossil fuel (FF) consumption, and gross domestic product (GDP). MEIE is decomposed into group efficiency and technological gap efficiency (TG), and the analysis results indicate that the high-income group (G1) exhibits the highest MEIE. This suggests that the G1 group is leading technological innovation. Policy scenario analysis shows that, individually, reducing GHG emissions or increasing GDP is more effective in improving TG than reducing fossil fuel consumption. In particular, a policy combination that simultaneously promotes GHG reduction, fossil fuel reduction, and GDP growth is the most advantageous for improving TG, highlighting the importance of maximizing synergies between policies. While reducing fossil fuel consumption contributes to lower intensity, it may also lead to a decrease in TG, necessitating a parallel focus on GDP growth. Additionally, a phased approach is required, where short-term efforts prioritize GHG reduction and GDP growth, while long-term strategies carefully promote energy transition. For South Korea, it is important to establish realistic reduction targets, gradually increase those targets, and promote customized policies that consider the industrial structure and technological level.