Cross-efficiency analysis of energy sector using stochastic DEA: Considering pollutant emissions.

Undesirable outputs can be challenging to avoid in the production of goods and services, often overlooked. Pollution is generally regarded as a negative externality and is taken into account during the production process. The novelty of this study lies in introducing CO2 as an economic "bad" in the energy sector's efficiency measure through a stochastic data envelopment analysis (DEA) cross-efficiency model.