Improving energy efficiency has been widely regarded as one of the most cost-effective ways to improve sustainability and mitigate climate change. This paper presents a sequential slack-based efficiency measure (SSBM) application to model total-factor energy efficiency with undesirable outputs. This approach simultaneously takes into account the sequential environmental technology, total input ...

F€are and Grosskopf (2004) address the approach of Seiford and Zhu (2002) where undesirable input and output measures are treated in data envelopment analysis (DEA). One key feature of Seiford and Zhu s (2002) approach is that the bad outputs are treated as outputs in DEA model but are reduced when DEA efficiency is evaluated. F€are and Grosskopf (2004) suggest an alternative approach in treati...

In this article we examine the effects of undesirable outputs on the Malmquist TFP indices. Our empirical work uses an unbalanced panel which covers 796 utility and non-utility coal-fired power plants in China during 1996-2002. In order to meet the requirement of a balanced panel for calculating the Malmquist indices, an innovative fake unit approach has been introduced. Our final results show ...

Data envelopment analysis (DEA) literature has proposed alternative models for performance assessment in the presence of undesirable outputs, such as pollutant emissions, where increased outputs imply reduced performance. However, the case where global equilibrium of outputs should be imposed has not yet been considered. We propose that the zero sum gains DEA (ZSG-DEA) models look especially su...