DEA
DEA-ENV: Environmental DEA with Undesirable Outputs (EEI model)
Färe, R., Grosskopf, S., Lovell, C. A. K., Pasurka, C. · 1989
Method assistant
Grounded explanations: it explains the method, it does not compute.
Assumptions to verify
- •At least one undesirable output present (e.g. CO2, NOx)
- •Weak disposability appropriate: proportional reduction of good+bad is feasible
- •Null-jointness: zero undesirable output implies zero desirable output
- •All data strictly positive
When not to use
- •No undesirable outputs: use standard DEA (CCR/BCC)
- •Undesirable outputs can be freely disposed: use strong disposability model
How to cite
Färe, R.; Grosskopf, S.; Lovell, C. A. K.; Pasurka, C. (1989). Multilateral Productivity Comparisons When Some Outputs are Undesirable: A Nonparametric Approach. Review of Economics and Statistics. https://doi.org/10.2307/1928055