Energy and Emission Efficiency of the Slovak Regions

Abstract

This paper examines changing regional patterns of energy and emission efficiency in the Slovak regions in the period of 2008–18. Firstly; we review literature on key approaches to evaluating energy and emission efficiency; followed by discussing the pros and cons of specific methods. A slacks-based model of data envelopment analysis is applied in order to investigate changing patterns of energy and emission efficiency in 79 Slovak regions (LAU 1). Thereafter; changes in energy and emission efficiency are associated with policy interventions supported by the European Structural and Cohesion Funds (ESCF) in the period of 2011–15. The evaluation found no support for the hypothesis with regard to the positive impact of the ESCF on the increase in energy and emission efficiency. Combined support from three ESCF policy measures (€606.44m) was substantial; but accounted for a mere 6.3% of the total firm expenditure on product and process innovations in the period of 2007–15 (€9,573m). Productivity-boosting technological innovations and structural changes in the Slovak economy (a shift towards industries with a lower consumption of energy but a higher production of gross value added GVA) were major drivers of trends in energy and emission efficiency. If an increase in energy (emission) efficiency; rather than energy savings (a decrease in pollution), is a major objective of sustainable development policies; then innovation-oriented policies and changes in the structure of economic activities should be preferred to schemes supporting simple energy-saving (emission-cutting) projects