Economics at your fingertips  

Semi-disposability of undesirable outputs in data envelopment analysis for environmental assessments

Lei Chen, Ying-Ming Wang and Fujun Lai

European Journal of Operational Research, 2017, vol. 260, issue 2, 655-664

Abstract: The assumptions of strong and weak disposability for undesirable outputs have long dominated studies of data envelopment analysis for environmental assessments. Unfortunately, these assumptions cannot describe the diverse technical features of different undesirable outputs during the actual production process. Thus, we introduce a non-disposal degree to develop a new semi-disposability assumption, which can replace the assumptions of strong and weak disposability in environmental assessments. This assumption ensures that decision makers can address undesirable outputs freely within the scope of current production technology; otherwise, they have to reduce desirable outputs in the same proportion to decrease undesirable outputs. A reference point comparison method is proposed for determining the non-disposal degree from an objective perspective. The assumption of semi-disposability is extended to uncertain circumstances by using the interval non-disposal degree. Finally, two empirical examples are provided to illustrate the effectiveness of the semi-disposability assumption.

Keywords: Data envelopment analysis; Efficiency; Reference point comparison; Return to scale; Semi-disposability (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Series data maintained by Dana Niculescu ().

Page updated 2017-11-11
Handle: RePEc:eee:ejores:v:260:y:2017:i:2:p:655-664