11 research outputs found
Efficiency measurement using nonparametric production analysis in the presence of undesirable outputs : an application to power plants
In order to deal with undesirable products in models of performance analysis, we need to replace
the assumption of free disposability by weak disposability and this assumption has been used to model
undesirable products as outputs. The traditional axiom of weak disposability of Shephard (1970) is
given in a multiplier form and, in this sense, the level of bad outputs is equal to zero if and only if the
level of the desirable outputs is equal to zero. An alternative definition of the weak disposability of
outputs in additive form has been proposed. An axiomatic foundation has been introduced to construct
a new production technology space in the presence of undesirable outputs. The model is illustrated
using real data from 92 coal fired power plants