Abstract
For the purpose that energy use makes lots of pollution and does change the climate, promoting energy efficiency becomes a very important strategy to reduce the greenhouse gas. Energy productivity, the most often method we use to measure energy efficiency, will change depend on real GDP could not be an appropriate measurement. Otherwise, like stochastic frontier and DEA method, energy productivity could only measure the overall efficiency but could not measure the efficiency of individual energy use. In the thesis, we set up the energy efficiency indicator both on production and cost side, and called “loss of energy use by unit.” This indicator not only could measure the efficiency of individual energy use but also could apply in firm’s comparison. In addition, loss of energy use by unit could measure all kinds of study level no matter micro or macro level. Besides, we take emission standard and carbon tax into account and discussed how these policy effect energy efficiency. Furthermore, this thesis uses OLS, 2SLS, and stochastic production frontier function (STF) to do the empirical study. We found that energy productivity estimated by STF method was closer to actual situation of energy use. Keywords: energy efficiency, emission standard, carbon tax, stochastic production frontier function