Energy Efficiency in Iran Provinces: DEA Approach

The main aim of this paper is to evaluate the energy efficiency in 30 provinces of Iran by applying the different methods of DEA and Anderson and Peterson during the period of 2009-2013. Also, since classical analysis models do not differentiate efficient cases, the AP method (Anderson-Peterson) was used to rank efficient units for evaluating efficiency correctly. So that combination of input variables (including total energy consumption, labor, capital stock, fossil fuel consumption and renewables consumption) and economic outputs (including GDP, Industry, value-added and services), has been used. The main empirical results of present study indicate that efficiency scores for models that consider total energy consumption and economic outputs in a comprehensive manner ((model M4) compared to simpler models that consider only aggregate energy and GDP data) are higher. In addition, assessment Malmquist index (MI) among Iranian provinces indicate that the efficiency in the Isfahan, Tehran, Bushehr, Ilam, Khorasan Razavi, Khuzestan, Qazvin, Markazi, Kohgiluyeh and Boyer Ahmad and Hormozgan provinces is improved.In addition, the results of this study can significantly help policymakers in decision-making process, for example, observations indicating that the change in the economic structure leads to efficiency improvement or the fact that the use of renewable resources should be gradually replaced the fossil fuel consumption, can lead to the adjustment of the Supportive policies from specific economic sectors or the expansion of specific energy sources.