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Incorporating Both Undesirable Outputs and Uncontrollable Variables into DEA: the Performance of Chinese Coal-Fired Power Plants

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Author Info

  • Yang, H.
  • Pollitt, M.

Abstract

There 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 Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0733.

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Length: 29
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:cam:camdae:0733

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Web page: http://www.econ.cam.ac.uk/index.htm

Related research

Keywords: Data envelopment analysis; performance measurement; technical efficiency; electricity;

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