Undesirable outputs and weighting schemes in composite indicators based on data envelopment analysis
This paper explores DEA-based composite indicators with undesirable outputs. A new composite indicator model based on a directional distance function is proposed. The new CI is more suitable to accommodate undesirable outputs than other CI models. An enhanced specification of ARI weight restrictions is proposed. The models are illustrated with the assessment of Brazilian hydropower plans.
undesirable outputs composite indicator data envelopment analysis directional distance function weight restrictions