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By-Production Technology DEA
By-Production Technology DEA is a variant of Data Envelopment Analysis designed for production systems that generate both desirable outputs and undesirable by-products or emissions. Rather than ignoring or arbitrarily penalizing undesirable outputs, this method explicitly models them as joint products of the production process. It evaluates efficiency while accounting for the trade-off between desired production and environmental impact.
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Sources
- Scheel, H. (2001). Undesirable outputs in efficiency valuations. European Journal of Operational Research, 132(2), 400-410. DOI: 10.1016/S0377-2217(00)00160-1 ↗
- Färe, R., Grosskopf, S., Noh, D. W., & Weber, W. (2005). Characteristics of a polluting technology: Theory and practice. Journal of Econometrics, 126(2), 469-492. DOI: 10.1016/j.jeconom.2004.05.010 ↗