Paper Title
Transient and Persistent Energy Efficiency in Thailand Provinces
Abstract
This study aims to estimate the level of energy efficiency in Thailand provinces from 2008–2018, during which the provincial energy efficiency is decomposed into short run and long run. The estimation of log-log aggregate energy demand frontier proposed by Filippini and Hunt (2011) is used. Estimates of short- and long-run provincial energy efficiency are employed by the KLH model specification for Thailand’s aggregate panel-data. Results show that Thailand has an overall inefficiency up to 42% of energy usage. By eliminating inefficiency, Thailand can save energy by up to 42%. Long-run inefficiency is higher than short-run inefficiency, resulting in an energy-base structural issue. The worst provincial energy efficiency classified originates from Rayong, which is in the non-progressive eastern region. The main policy implication is to regulate energy-intensive usage and energy-saving technology to improve long-run energy efficiency.
Keywords - Thailand Energy Demand, Stochastic Frontier Analysis, Provincial Energy Efficiency.