Introducing a new DEA methodology for environmental inputs

Norabajra Asava-vallobh, Timothy Gronberg () and Dennis Jansen

Applied Economics Letters, 2013, vol. 20, issue 17, 1592-1595

Abstract: Data envelopment analysis or DEA is a standard methodology for assessing technical efficiency. In many DEA applications, e.g. in the case of schools or hospitals, the issue arises of calculating efficiency in the presence of nondiscretionary/environmental inputs. We propose a three-stage DEA model to address the environmental input issue, and we provide a simulation analysis that illustrates the implementation and potential advantages of our approach relative to the leading existing multi-stage model of nondiscretionary inputs.

Date: 2013
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DOI: 10.1080/13504851.2013.826865

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