Integrating equity into energy efficiency assessment: a metafrontier Malmquist-Luenberger analysis of energy poverty

This study assesses energy productivity changes in 26 European countries from 2005 to 2019 using a Metafrontier Malmquist-Luenberger Productivity Index (MML), incorporating both desirable outputs and undesirable outputs. By distinguishing between European regions, the analysis reveals structural heterogeneity in energy transitions. The inclusion of energy poverty offers a more equitable framework to evaluate not only technical efficiency but also social performance. Results show mixed productivity trends: while some countries achieve efficiency and technological gains, others display stagnation or regression when equity dimensions are included. Eastern Europe, despite lower average productivity under the joint orientation (MML = 0.9899), demonstrates improvement when the focus shifts to energy poverty (MML = 1.0351), suggesting that equity-focused policies can yield meaningful outcomes even in less efficient systems. In contrast, Western Europe shows relatively lower productivity under the baseline joint orientation (MML = 0.9049), with only a slight improvement when energy poverty is prioritized (MML = 0.9164), highlighting persistent challenges in addressing distributive aspects despite stronger technological capabilities. Overall, the findings underscore the importance of integrating equity considerations into energy efficiency assessments, showing that technological progress alone does not guarantee socially inclusive energy transitions.