An interval‐valued composite indicator for energy efficiency and green entrepreneurship

Abstract

Promoting energy-efficient technologies can support green entrepreneurship via innovation creation. Energy efficiency policies and practices can promote cleaner productions and consumptions and environmental-friendly lifestyles in light of green growth goals. The foreseen strategy is twofold: it entails fostering energy-efficient technologies and supporting sustainable entrepreneurship. The work aims to measure energy efficiency by consistently constructing a new interval-based composite indicator using the World Bank's RISE database. The methodological approach employed is based on a Monte-Carlo simulation and offers the advantage of internalizing the variation of its outputs. Examining the sorting ranking, we find a positive relationship between energy efficiency and entrepreneurship by identifying some countries exhibiting high density in these two variables-e.g. Australia and the United Kingdom.We scrutinize innovative perspectives and propose policy recommendations projecting speculative scenarios based on different governance strategies to support sustainable entrepreneurial ecosystems. The prospects are worthy for depicting key industrial environmental strategies.

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