Abstract The present study combines eco-efficiency performance measurement for the green energy transition with club convergence. This is achieved by applying hybrid window data envelopment analysis (hybrid WDEA) and club convergence analysis. The decision-making units (DMUs) are the 45 emissions-intensive trade-exposed (EITE) economies categorized into three geopolitical entities (OECD, European Union (EU), and BRICS) during 1995–2022. The energy mix of each DMU is examined based on three models: (i) non-renewable energy sources (NRES), (ii) renewable (RES), and (iii) mix (NRES + RES). The models’ inputs are gross fixed capital formation (GFCF), electricity generation, and labor, whereas the desirable output is gross domestic product (GDP), and undesirable outputs are carbon (CO 2 ) and methane (CH 4 ) emissions. The empirical results of the club convergence analysis identify the countries with the best scores (club 1) in all three models of eco-efficiency, which can serve as benchmarks for improving the eco-efficiency of the other economies. Furthermore, the results of the convergence tests show that countries exhibit conditional convergence, meaning that they do not converge to a common steady state. The analysis employs an ordered logit analysis in order to inspect how different economic, environmental, and institutional factors influence the club formation. The paper therefore calls for the harmonization of national and international energy standards as part of the green energy transition in order to increase eco-efficiency in the energy sectors.
Halkos et al. (Wed,) studied this question.