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Modelling undesirable outputs in multiple objective data envelopment analysis

journal contribution
posted on 2018-01-01, 00:00 authored by Mahdi Mahdiloo, A H Jafarzadeh, R F Saen, Y Wu, J Rice
Recent empirical and conceptual work in data envelopment analysis (DEA) have emphasised its potential importance in highlighting the environmental performance of economic entities. Initial work in this emerging research area has focused on the separation of output factors into desirable and undesirable ones. In this paper, we describe recent developments in the modelling undesirable outputs. In particular, the modelling of undesirable outputs in the range adjusted measure (RAM) is investigated. We discuss some of the difficulties of RAM in assessing the environmental efficiency of decision-making units (DMUs) and develop a multiple objective DEA model to overcome these difficulties. The proposed multiple objective model is solved as a linear programming and its applicability as a mechanism for assessing environmental efficiency is demonstrated by evaluating the technical, ecological and process environmental quality efficiency scores of China’s provinces.

History

Journal

Journal of the Operational Research Society

Volume

69

Issue

12

Pagination

1903 - 1919

Publisher

Taylor & Francis

Location

London, Eng.

ISSN

0160-5682

Language

eng

Publication classification

C Journal article; C1 Refereed article in a scholarly journal

Copyright notice

2018, Operational Research Society