Renewable energy and macroeconomic efficiency of OECD and non-OECD economies

Taichen Chien*, Jin-Li Hu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

180 Scopus citations


This article analyzes the effects of renewable energy on the technical efficiency of 45 economies during the 2001-2002 period through data envelopment analysis (DEA). In our DEA model, labor, capital stock, and energy consumption are the three inputs and real GDP is the single output. Increasing the use of renewable energy improves an economy's technical efficiency. Conversely, increasing the input of traditional energy decreases technical efficiency. Compared to non-OECD economies, OECD economies have higher technical efficiency and a higher share of geothermal, solar, tide, and wind fuels in renewable energy. However, non-OECD economies have a higher share of renewable energy in their total energy supply than OECD economies.

Original languageEnglish
Pages (from-to)3606-3615
Number of pages10
JournalEnergy Policy
Issue number7
StatePublished - 1 Jul 2007


  • Data envelopment analysis
  • Renewable energy
  • Technical efficiency

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