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Slacks-Based Efficiency Measurements with Undesirable Outputs in Data Envelopment Analysis

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  • Jie Wu

    (School of Management, University of Science and Technology of China, He Fei, An Hui 230026, P. R. China)

  • Xiang Lu

    (School of Management, University of Science and Technology of China, He Fei, An Hui 230026, P. R. China)

  • Dong Guo

    (School of Management, University of Science and Technology of China, He Fei, An Hui 230026, P. R. China†Department of Mathematics, Hefei Electronic Engineering Institute, 460 Huangshan Road, Hefei, Anhui 230037, P. R. China)

  • Liang Liang

    (School of Management, University of Science and Technology of China, He Fei, An Hui 230026, P. R. China)

Abstract

Data envelopment analysis (DEA) has recently gained great popularity in modeling environmental performance because it provides condensed information to decision makers when the production process includes undesirable outputs. In this paper, we develop a new slacks-based efficiency measurement for modeling environmental performance using the environmental DEA technology. The proposed index has more theoretical justification, and distinguishes among different decision making units (DMUs) better in practice. Then we further extend it to the nonoriented index with double aim of increasing desirable outputs and reducing undesirable outputs. Finally, we calculate the index for each of 25 OECD European countries in a model of CO2 emission performance from 2007 to 2009 and the results obtained are presented.

Suggested Citation

  • Jie Wu & Xiang Lu & Dong Guo & Liang Liang, 2017. "Slacks-Based Efficiency Measurements with Undesirable Outputs in Data Envelopment Analysis," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1005-1021, July.
  • Handle: RePEc:wsi:ijitdm:v:16:y:2017:i:04:n:s0219622014400021
    DOI: 10.1142/S0219622014400021
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    Cited by:

    1. Victor John M. Cantor & Kim Leng Poh, 2020. "Efficiency measurement for general network systems: a slacks-based measure model," Journal of Productivity Analysis, Springer, vol. 54(1), pages 43-57, August.

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