2. Treating undesirable effects as inputs (costs): Dyckhoff and Allen (2001) consider DEA as a multicriteria approach, modelling the undesirable output as an input. The model is applied to measure the environmental efficiency of the Dutch dairy farms (Reinhard et al, 2000), and compare it against the permissible quota of CO2emissions stipulated in the Kyoto Protocol (Paul, 2005). However, as regards Indian dry ports, treating undesirable outputs as inputs fails to reflect true production. Also, the present regulations do not impose apenalty to encourage the minimization of carbon emissions by way of a carbon tax or usage of better fuels. In general, there is a lack of political will to implement suitable policies to reduce carbon emissions. Hence, it is difficult to consider carbon emissions as an input which the dry port operator would naturally try to minimize in an effort to improve operational efficiency. On the contrary, when a dry port tries to improve efficiency by increasing throughput, it is also increasing the quantity of emitted CO2.