Energy efficiency and environmental productivity: Analysis of Ecuadorian oil companies

Resumen

Promoting energy efficiency and environmental productivity in the oil sector is one of the key points to reduce greenhouse gas emissions produced by this sector. This paper study the main drivers of efficiency and productivity in private oil companies in Ecuador. Moreover, the prominent sources of pollution-adjusted productivity variation are provided by considering polluting and no polluting parts of the productivity variation. A sample of 18 Ecuadorian oil companies from 2012-2020 is selected. A non-parametric model and Malmquist index were developed to evaluate the energy efficiency and productivity of private oil companies in Ecuador in two scenarios . The results showed that polluting and non-polluting factors affected the efficiency scores during the period analysed. Specifically, size, and technological change impact to a greater extent those companies that use more polluting inputs in their production process. In the analysed period, on average, the companies do not show positive changes in their efficiency and productivity. These results suggest the need to promote public policies aimed at reducing the energy consumption of this type of companies, as well as a possible elimination of electricity subsidies that would encourage more efficient and conscious consumption.