DEA Based Yardstick Competition in Natural Resource Management

Abstract

In this paper, we discuss the pros and cons of using Data Envelopment Analysis (DEA) to evaluate and enhance the efficiency of natural resource management. The need for a multi-dimensional production frontier approach is sketched, along with examples from other regulated multi-output industries. Also, reviews of the basic properties of DEA and DEA based yardstick competition are provided. Finally, we discuss the use of DEA based yardstick to evaluate bids in multi-dimensional procurement auctions.Regulation; Incentives; Performance Evaluation; Auctions; Yardstick Competition; Data Envelopment Analysis (DEA)