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

  • Yang, Hongliang
  • Pollitt, Michael

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.

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Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 38 (2010)
Issue (Month): 8 (August)
Pages: 4440-4444

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Handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:4440-4444
Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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