Structural breaks and energy efficiency in Fiji

This paper examines how energy-output ratios (EYRs) in Fiji have responded to the major energy crises and in particular if these ratios have declined after the energy shocks. The expectation is that energy efficiency should improve after an energy crisis. For this purpose we have used at first a few simpler procedures and then a recently developed more powerful tests for structural breaks by Bai and Perron [Bai, J., Perron, P., 1998. Estimating and testing linear models with multiple structural changes. Econometrica 66, 47–78; Bai, J., Perron, P., 2003a. Computation and analysis of multiple structural change models. Journal of Applied Econometrics 18, 1–22; Bai, J., Perron, P., 2003b. Critical values for multiple structural change tests. Econometrics Journal 6, 72–78]. Policy implications of our results are discussed.