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Radial and non-radial DEA models undesirable outputs: an application to OECD countries

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Data envelopment analysis (DEA) is an effective tool to measure the relative efficiency of decision-making units (DMUs) with multiple inputs and outputs. This study classifies the outputs into desirable and undesirable outputs, and then presents two DEA models, radial and non-radial models, to measure the environment efficiency for DMUs with undesirable outputs. Finally, two proposed DEA models are applied to evaluate the performance of 26 countries within OECD, in which two inputs (population and total energy consumption), two desirable outputs (GDP and total power generation) and one undesirable output (CO2 emission) are considered, and some managerial implications are demonstrated.

Keywords: DEA models, data envelopment analysis, ecological efficiency, undesirable outputs, environmental efficiency, decision making, OECD, population, total energy consumption, GDP, total power generation, CO2 emissions, carbon emissions, carbon dioxide

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