Performance measurement of gas companies with fixed-sum inputs: a DEA-based model

Abstract

PurposeThe paper analyzes the relative performance of provincial gas distribution companies with different types of inputs and outputs. A data envelopment analysis (DEA)-based model is developed to construct an equilibrium efficient frontier in the presence of multi-type input/output variables.Design/methodology/approachA DEA-based model is developed to construct an equilibrium efficient frontier in the presence of multi-type input/output variables.FindingsIt has been shown that using this single equilibrium efficient frontier, a trade-off is made between efficient and inefficient companies so as to make all companies as efficient.Originality/valueThe study analyzes the relative performance of provincial gas distribution companies with different types of inputs and outputs. A DEA-based model is developed to construct an equilibrium efficient frontier in the presence of multi-type input/output variables. It has been shown that using this single equilibrium efficient frontier, a trade-off is made between efficient and inefficient companies so as to make all companies as efficient.