Applying an Efficiency Measure of Desirable and Undesirable Outputs in DEA to U.S. Electric Utilities
14 Pages Posted: 23 Sep 2011 Last revised: 30 Oct 2012
Date Written: September 21, 2011
The measure proposed in this paper is a new nonparametric data envelopment analysis (DEA) scheme, the hybrid measure, for determining efficiency in the presence of radial and nonradial inputs or outputs. Further extension of the scheme occurred to address nonseparable desirable and undesirable outputs. Applying the model to measure the overall efficiency of U.S. electric utilities in the presence of both desirable and undesirable outputs indicated that the utilities had improved their overall management and environmental efficiency between 1996 and 2000.
Keywords: Hybrid measure, radial, nonradial, environmental factors, undesirable outputs, nonseparable outputs, U.S. electric utilities, DEA
JEL Classification: C67, D24, Q56
Suggested Citation: Suggested Citation