The necessity of distinguishing weak and strong disposability among undesirable outputs in DEA: Environmental performance of Chinese coal-fired power plants

Hongliang Yang () and Michael Pollitt

Energy Policy, 2010, vol. 38, issue 8, 4440-4444

Abstract: Different from previous efficiency researches, which normally assume a uniform disposability for all undesirable outputs in a production process, this paper proposes a model that distinguishes weak and strong disposability assumptions among various undesirable outputs based on their respective technical features. The paper illustrates the approach using a research sample covering 582 base-load Chinese coal-fired power plants in 2002. The final results show that imposing the technically correct disposability features on undesirable outputs makes a significant difference to the final efficiency evaluation. This suggests the necessity of properly distinguishing disposability features among undesirable outputs in a production process in efficiency models.

Keywords: Environment; Electricity; Nonparametric; modeling (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (90)

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