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This study focuses on sewage sludge treatment and applies the Bad Output model to deal with desirable and undesirable outputs independently. This approach provides an objective way to assess the technical efficiency of wastewater treatment plants in eastern China and provides a reference for the development of the Midwest. The efficiency score results of 518 plants show some volatility the average efficiency score is 0.29; 27 plants’ efficiency scores are close to 1; 146 plants have an efficiency score of between 1 and the average efficiency score. The higher efficiency score regions are Hainan, Guangdong, Fujian, and Beijing, while by contrast, Hebei, Shanghai, and Tianjin have average efficiency scores lower than the other regions. The results of the adjustment ratio in wastewater treatment or sewage sludge water contents illustrate that most regions exhibit efficiency volatility, and some regions can no longer can support wastewater treatment or sewage sludge water contents.

UNDESIRABLE OUTPUT IN EFFICIENCY: EVIDENCE FROM WASTEWATER TREATMENT PLANTS IN CHINA