The effect of energy consumption on countries’ economic efficiency: a conditional robust non parametric approach

This paper investigates the effect of energy consumption on countries’ economic efficiency. By using a sample of 18 EU countries for three census years (1980, 1990 and 2000) the paper employs conditional and unconditional robust nonparametric frontiers in order to establish such a relationship. By using probabilistic approaches it conditions the effect of energy consumption on the obtained countries’ economic efficiencies. With the use of nonparametric regressions the paper calculates the effect of energy consumption. The results reveal that lower levels of energy consumption increase countries’ economic efficiencies to a point where the effect of energy consumption on countries’ economic efficiency is neutral.