| The studies of performance and production efficiency have ignored additional products of most transformation processes classified as undesirable outputs. Without the inclusion of the undesirable outputs, the efficiency measurement is a purely technical measure, and it does not account for the interaction of the system with the environment and the impact of policy decisions on the system. Moreover, there are technological dependencies between the desirable and the undesirable outputs which have to be included in the analytical tools used to measure efficiency. The relationships between the desirable and the undesirable outputs motivate the exploration of new areas of the measurement of efficiency to incorporate policy decisions and address new issues. This... |
