Environmental Assessment on Energy and Sustainability by Data Envelopment Analysis

6DESIRABLE PROPERTIES

6.1 INTRODUCTION

This chapter¹ compares radial and non‐radial models, discussed in Chapters 4 and 5, using nine desirable properties to measure the level of operational efficiency (OE). As discussed in those two chapters, RM(v) and RM(c) belong to the Debreu–Farrell measures (e.g., Farrell, 1957; Farrell and Fieldhouse, 1962) and non‐radial models belong to the Pareto–Koopmans measures (e.g., Koopmans, 1951; Russell, 1985) in OE‐based performance evaluation. As discussed in Chapter 5, Charnes et al. (1985) first proposed an additive model as a non‐radial model. Then, Charnes et al. (1982, 1983) linked the additive model to a multiplicative model by changing a data set by natural logarithm. Cooper et al. (1999) also proposed a non‐radial DEA model, referred to as “a range‐adjusted measure (RAM),” that was an extension of the additive model (Cooper et al., 2000, 2001). Aida et al. (1998) extended RAM by reorganizing it as a radial measure, so‐called “slack‐adjusted radial measure (SARM).” Meanwhile, Tone (2001) proposed another type of non‐radial model referred to as the “slacks‐based measure (SBM).” In a similar manner, Pastor et al. (1999) proposed the “enhanced Russell graph measure (ERGM),” as a non‐radial measure, that incorporated the analytical feature of the Russell measure into a framework of SBM. As discussed in Chapter 5, this chapter considers SBM = ERGM because both have the same analytical structure. In such a research trend for computational tractability, ...