Cost Efficiency Evaluation via Data Envelopment Analysis Approach for Undesirable Outputs based on the Weak Disposability Axiom (Case Study: 56 Electricity Producing Thermal Power Plants in Iran)

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KARAMI KHORRAMABADI M.; YARAHMADI M.; GHIYASI M.

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Journal: Journal of Operational Research in its Applications Year:2020 | Volume:16 | Issue:4 (63) Page(s): 109-131

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Title

Cost Efficiency Evaluation via Data Envelopment Analysis Approach for Undesirable Outputs based on the Weak Disposability Axiom (Case Study: 56 Electricity Producing Thermal Power Plants in Iran)

Author(s)

KARAMI KHORRAMABADI M. | YARAHMADI M. | GHIYASI M. | Issue Writer Certificate

Keywords

Cost efficiencyQ2

Undesirable OutputsQ1

Weak Disposability AxiomQ1

Data Envelopment AnalysisQ3

Abstract

Cost efficiency evaluation is a very important and applicable issue in Data Envelopment Analysis (DEA). In this paper, the classical Cost efficiency model in which all the input prices are known and fixed for each decision making unit is developed via Undesirable Outputs with the Weak Disposability Axiom. The proposed model is a nonlinear model under the variable returns to scale condition, which is linearized for the purposes of easy solving. In order to simulate the proposed model and demonstrate its advantages and application capabilities, 56 electricity producing thermal power plants were studied based on data set that is presented in 2015. According to the simulation results based on the present method, the combined cycle and steam power plants had the highest cost efficiencies under the both assumed conditions, i. e., the constant returns to scale and the variable returns to scale. Moreover, the average cost efficiencies of the power plants were 36% and 54% under the assumed conditions of constant returns to scale and variable returns to scale, respectively.

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APA: Copy

KARAMI KHORRAMABADI, M., YARAHMADI, M., & GHIYASI, M.. (2020). Cost Efficiency Evaluation via Data Envelopment Analysis Approach for Undesirable Outputs based on the Weak Disposability Axiom (Case Study: 56 Electricity Producing Thermal Power Plants in Iran). JOURNAL OF OPERATIONAL RESEARCH AND ITS APPLICATIONS (JOURNAL OF APPLIED MATHEMATICS), 16(4 (63) ), 109-131. SID. https://sid.ir/paper/164756/en

Vancouver: Copy

KARAMI KHORRAMABADI M., YARAHMADI M., GHIYASI M.. Cost Efficiency Evaluation via Data Envelopment Analysis Approach for Undesirable Outputs based on the Weak Disposability Axiom (Case Study: 56 Electricity Producing Thermal Power Plants in Iran). JOURNAL OF OPERATIONAL RESEARCH AND ITS APPLICATIONS (JOURNAL OF APPLIED MATHEMATICS)[Internet]. 2020;16(4 (63) ):109-131. Available from: https://sid.ir/paper/164756/en

IEEE: Copy

M. KARAMI KHORRAMABADI, M. YARAHMADI, and M. GHIYASI, “Cost Efficiency Evaluation via Data Envelopment Analysis Approach for Undesirable Outputs based on the Weak Disposability Axiom (Case Study: 56 Electricity Producing Thermal Power Plants in Iran),” JOURNAL OF OPERATIONAL RESEARCH AND ITS APPLICATIONS (JOURNAL OF APPLIED MATHEMATICS), vol. 16, no. 4 (63) , pp. 109–131, 2020, [Online]. Available: https://sid.ir/paper/164756/en

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