This draft chapter, prepared for inclusion in the (prospective) Handbook of Production Economics, Vol. 1 (Theory), edited by Subash Ray, Robert Chambers, and Subal Kumbhakar, analyses recent developments in the modeling of pollution-generating technologies. We first lay out the inadequacies of the traditional, single-equation representations of models of such technologies prominently associated...

Undesirable outputs are often produced together with desirable. This joint production of good and bad outputs bring about a difficulty for productivity measurement. Here we introduce a directional distance function and use it as a component in a new productivity index. This index, as an empirical example shows, seems to solve the problem caused by the joint production of good and bad outputs. P...

the problem of utilizing undesirable (bad) outputs in dea models often need replacing the assumption of free disposability of outputs by weak disposability of outputs. the kuosmanen technology is the only correct representation of the fully convex technology exhibiting weak disposability of bad and good outputs. also, there are some specific features of non-radial data envelopment analysis (dea...

data envelopment analysis (dea) has been long employed as a popular methodology to evaluate the performance of various production activities with multiple inputs and outputs. however, an important issue is that the production process in the real world inevitably generates undesirable outputs (like wastes and pollutants) along with desirable outputs. therefore, the undesirable outputs should be ...

The problem of utilizing undesirable (bad) outputs in DEA models often need replacing the assumption of free disposability of outputs by weak disposability of outputs. The Kuosmanen technology is the only correct representation of the fully convex technology exhibiting weak disposability of bad and good outputs. Also, there are some specific features of non-radial data envelopment analysis (DEA...

The production of desirable (good) outputs is frequently accompanied by unintended production of undesirable (bad) outputs. If two or more of these undesirable outputs are produced as byproducts, one may ask: ‘Which bad is worst?’ By worst we mean which bad inhibits the production of desirable outputs the most if it is regulated. We develop a model based on Leif Johansen’s capacity framework by...

In the majority of production processes, noticeable amounts of bad byproducts or bad outputs are produced. The negative effects of the bad outputs on efficiency cannot be handled by the standard Malmquist index to measure productivity change over time. Toward this end, the Malmquist–Luenberger index (MLI) has been introduced, when undesirable outputs are present. In this paper, we introduce a D...

this paper deals with the problem of optimizing two-stage structure decision making units (dmus) where the activity and the performance of two-stage dmu in one period effect on its efficiency in the next period. to evaluate such systems the effect of activities in one period on ones in the next term must be considered. to do so, we propose a dynamic dea approach to measure the performance of su...