Measuring Energy-Specific Technical Efficiency Based on Input Distance Function

This paper develops a new model for measuring technical efficiency of energy based on the input distance function. This new model not only measures the technical efficiency levels of energy and other inputs simultaneously but also distinguishes the differences in technical efficiency levels among various inputs. Additionally, we have constructed a two-step Bayesian method to estimate this model. We applied the method proposed in this paper to study the technical efficiency of energy of Chinese provinces from 1997 to 2022. Among other findings, we observed that China’s technical efficiency of energy during this period exhibited an inverted U-shaped trend. The level of technical efficiency of energy was higher than that of capital and labor, and the differences in technical efficiency levels among different input factors did not diminish over time.