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Efficiency measurement using nonparametric production analysis in the presence of undesirable outputs: An application to power plants

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Listed:
  • Alireza Amirteimoori
  • Mina Fooladvand
  • Sohrab Kordrostami

Abstract

In order to deal with undesirable products in models of performance analysis, we need to replace the assumption of free disposability by weak disposability and this assumption has been used to model undesirable products as outputs. The traditional axiom of weak disposability of Shephard (1970) is given in a multiplier form and, in this sense, the level of bad outputs is equal to zero if and only if the level of the desirable outputs is equal to zero. An alternative definition of the weak disposability of outputs in additive form has been proposed. An axiomatic foundation has been introduced to construct a new production technology space in the presence of undesirable outputs. The model is illustrated using real data from 92 coal fired power plants.

Suggested Citation

  • Alireza Amirteimoori & Mina Fooladvand & Sohrab Kordrostami, 2017. "Efficiency measurement using nonparametric production analysis in the presence of undesirable outputs: An application to power plants," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 27(3), pages 5-20.
    • Handle: RePEc:wut:journl:v:3:y:2017:p:5-20:id:1309
    DOI: 10.5277/ord170301
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    References listed on IDEAS

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    Cited by:

    1. Lucas Assunção & Andréa Cynthia Santos & Thiago F. Noronha & Rafael Andrade, 2021. "Improving logic-based Benders' algorithms for solving min-max regret problems," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 31(2), pages 23-57.

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