Theory Of Undesirable Outputs Considered DEA Model (ICCR Model) And Its Application

The issue of energy has directly impacts on the existence and development of ourhuman beings, which becomes more and more important in our society. With thetightening supplies energy and deterioration of environment pollution in the global,how to improve energy efficiency is becoming an urgent problem which need solving.The main goal of this study is to propose an improved DEA model, based on DEAmodel, with which to do an empirical analysis. According to the evaluation of the newmodel based on the real situation of China, the strategic objectives of saving energyconsumption will be established. The essence is as follows.The paper firstly introduces the model of DEA from the aspect of the defining ofefficiency evaluation, with which we calculate efficiency of a production system.Secondly, the paper analyses the weakness of the basic DEA model particularly.Considering the disadvantages of basic DEA model, we propose an improved DEAmodel, called ICCR model, around which we complete the theory system. It includesproduction possibility sets, returns to scale, the proof of the existence of new model,and the relationship between ICCR efficient and the Pareto solution.Finally the new DEA model is utilized to study the development of China’senergy efficiency of21years period from1991to2011. Compared with the twooriginal models, the results of the new model are much more consistent with the realchange trend in China, which also indicate that the accuracy of the new DEA model ispromoted.The research results of this thesis provide some new methods for efficiencyevaluation and further extended DEA model. And the solution existence of ICCRmodel has also been proved. Meanwhile, we find the equivalence between DEAefficient DMU and the Pareto solution. Finally, the new DEA model is utilized tostudy the development of China’s energy efficiency, which reflects the combination oftheory and application.