Energy Efficiency Measurement: A VO TFEE Approach and Its Application

Energy efficiency is crucial to the 2030 UN Sustainable Development Goals (SDGs), but its widely measured indicator, energy intensity, still insufficient. For this reason, in 2006, total factor (TFEE) was proposed with capital, labor, and as inputs GDP desirable output. The later TFEE approach further incorporated pollution undesirable However, it problematic regard (the value of final products) output, because does not include intermediate consumption, which accounts for a large part production activities may even be larger than GDP. more suitable measuring distribution, while VO (value output) appropriate sustainable analysis. Therefore, we propose that takes output instead correspondingly incorporates other materials services except into inputs. Finally, empirical analysis textile industry EU member states during 2011–2017 indicates stable convergent efficiency, helping policymakers achieve SDGs saving, emissions reduction, economic development.