Measuring physical efficiency of domestic airports in Taiwan with undesirable outputs and environmental factors

The aim of the paper is to assist administrators ascertain the efficient future growth in passenger and aircraft movements when making use of currently available airport resources and at the same time embracing undesirable outputs and environmental factors. Three types of airport efficiency measures are considered using output-oriented data envelopment analysis (DEA). The conventional efficiency, environment-adjusted efficiency, and environment/undesirability-adjusted efficiency embodied in the DEA models indicate that existing airports can process more passengers and aircraft movements than they did in 2000. In other words, expanding facilities at some of the domestic airports in Taiwan may not be necessary.