Environmental Decision Models With Joint Outputs
This paper critiques a recent attempt to model pollution prevention using data envelopment analysis (DEA). We contribute an alternative model which explicitly models joint provision of desirable and undesirable outputs (a la Shephard and Fare (1974)), using weak disposability of output. We also extend earlier work by Fare, Grosskopf, Lovell and Pasurka (1989) and Fare, Grosskopf and Pasurka (1986, 1989) to allow for expansion of desirable outputs and contraction of undesirable outputs at different rates.
|Date of creation:||27 Feb 1995|
|Date of revision:|
|Note:||13 pages; body is a binary WordPerfect 5.1 document. Each of 2 figures is in binary Word-for-Windows 6.0 and PostScript formats; the four files were FTPed in one PKZIP (2.04g) file. JEL classification: Q2|
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- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Fare, R. & Grosskopf, S. & Pasurka, C., 1986. "Effects on relative efficiency in electric power generation due to environmental controls," Resources and Energy, Elsevier, vol. 8(2), pages 167-184, June.
- Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
- Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
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