Incorporating Both Undesirable Outputs and Uncontrollable Variables into DEA: the Performance of Chinese Coal-Fired Power Plants
AbstractThere are two difficulties in doing an objective evaluation of the performance of decision-making units (DMUs). The first one is how to treat undesirable outputs jointly produced with the desirable outputs, and the second one is how to treat uncontrollable variables, which often capture the impact of the operating environment. Given difficulties in both model construction and data availability, very few published papers simultaneously consider the above two problems. This article attempts to do so by proposing six DEA-based performance evaluation models based on a research sample of the Chinese coal-fired power plants. The finding of this paper not only contributes for the performance measurement methodology, but also has policy implications for the Chinese coal-fired power sector.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0733.
Date of creation: Jul 2007
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Web page: http://www.econ.cam.ac.uk/index.htm
Data envelopment analysis; performance measurement; technical efficiency; electricity;
Other versions of this item:
- Yang, Hongliang & Pollitt, Michael, 2009. "Incorporating both undesirable outputs and uncontrollable variables into DEA: The performance of Chinese coal-fired power plants," European Journal of Operational Research, Elsevier, vol. 197(3), pages 1095-1105, September.
- NEP-ALL-2007-07-27 (All new papers)
- NEP-BEC-2007-07-27 (Business Economics)
- NEP-CNA-2007-07-27 (China)
- NEP-ECM-2007-07-27 (Econometrics)
- NEP-EFF-2007-07-27 (Efficiency & Productivity)
- NEP-ENE-2007-07-27 (Energy Economics)
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