Background: The increase of industrialized activities (as the most important sector of economy) leads to the higher use of energy which is one of the most important factors in production. Considering the increasing importance of energy sources and the issues toward fossil fuels, optimal use of these sources is very essential.
Aim: This study aims at measuring the total factor energy efficiency of ten and more employee industrial workplaces in the provinces of Iran from 1996 to 2014.
Methodology: Conventional energy efficiency indicators, consider energy the only input in producing output. But the total-factor energy efficiency, includes substituted effects between energy and other inputs. This study measured the total factor energy efficiency of ten and more employee industrial workplaces in the provinces of Iran from 1996 to 2014 by using the Data Envelopment Analysis and Stochastic Frontier Analysis models.
Results: In the DEA model assuming variable returns to scale (VRS), the industrial workplaces in Tehran are the only industrial workplaces which have the energy efficiency of unity in all years of study. In the SFA models, the highest number in energy efficiency is 84% and belongs to Tehran province. Conclusion: according to the findings of the study, the score of total factor energy efficiency in ten and more Employee Industrial Workplaces in the Provinces of the country by two models, is in a low level, in other words these Industrial Workplaces do not consume energy efficiently. Besides, the amount of energy efficiency which was calculated by different methods such as DEA and SFA is different.