6533b826fe1ef96bd1283a8c
RESEARCH PRODUCT
Changes in the total costs of the English and Welsh water and sewerage industry: The decomposed effect of price and quantity inputs on efficiency
Alexandros MaziotisAlexandros MaziotisMaría Molinos-senanteRamón Sala-garridosubject
Sociology and Political ScienceNatural resource economicsTotal cost020209 energySample (statistics)02 engineering and technology010501 environmental sciencesManagement Monitoring Policy and LawDevelopment01 natural scienceslanguage.human_languageTechnical progressWelshSewerage0202 electrical engineering electronic engineering information engineeringData envelopment analysislanguageBusinessBusiness and International ManagementInefficiencyProductivity0105 earth and related environmental sciencesdescription
Abstract Understanding what drives changes in regulated water companies' costs is of great relevance to water regulators. This study decomposes and estimates the change in total costs for a sample of ten water and sewerage companies in England and Wales from 1993 to 2016. The results demonstrate that companies' total costs increased over time due to increases in input prices and input quantity. Any gains obtained from the efficient allocation of resources and technical progress were lost due to mergers and technical inefficiency. Finally, we link our results with the regulatory cycle to evaluate the impact of the regulatory regime on companies' costs and discuss some policy implications.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2020-10-01 | Utilities Policy |