Search results for "Water industry"
showing 10 items of 29 documents
Estimating Profit, Price, and Productivity Changes in Water Industry Using Bennet-Bowley Indicator
2019
AbstractThe assessment of profit, productivity, and price change over time is valuable for regulators and companies when setting tariffs. This paper innovates by comparing profit, price, and produc...
Economic effects of the consolidation of water utilities in Japan
2014
Water utilities are affected by economies of scale. However, in Japan most water utilities are small-scale water services. Therefore, they face enormous difficulties in terms of financial and personnel resources. To take advantage of economies of scale, the consolidation of water utilities has been promoted since 1965 by Japanese water authorities. The measure has been successful to some extent; nevertheless, consolidation has not progressed in recent years as was expected. This paper identifies the main barriers that hinder the consolidation of water utilities in Japan and describes the new promotion plan for the consolidation of water utilities developed by the Japan Water Works Associati…
Performance assessment of water companies: A metafrontier approach accounting for quality of service and group heterogeneities
2021
Abstract The assessment of water companies’ efficiency, productivity and quality of service is part of the process to set water tariffs and therefore, is relevant for regulators and customers. However, the water industry involves several heterogeneous water companies. Following a pioneering approach, this study estimates productivity change and its drivers considering the non-homogeneous nature of the water companies and incorporating quality of service variables as undesirable outputs. In doing so, the metafrontier Malmquist Luenberger productivity index was estimated for a sample of English and Welsh water and sewerage companies (WaSCs) and water only companies (WoCs) over the years 2001–…
The ‘social choice’ of privatising urban water services: A case study of Madrid in Spain
2015
Abstract In countries where privatisation is permitted by law, policymakers usually provide different reasons of general interest to allow private companies to manage water services. However, these decisions often provoke intense political debate and are at times opposed by citizens. We illustrate how the Analytic Hierarchy Process can be used to introduce a political analysis regarding the management of water services. We analyse the recent decision taken by the Regional Government of Madrid (Spain) to part-privatise the management of water services. Our main result suggests that policymakers should reconsider the importance of citizen participation in the management of water services.
The Luenberger productivity indicator in the water industry: An empirical analysis for England and Wales
2014
Abstract We innovate in the field of water companies' performance with an application of the directional distance function and the Luenberger productivity indicator (LPI) to the assessment of water companies' productivity growth. The advantage of our approach is that it takes into account both input contractions and output expansions. The analysis covered 22 water companies from England and Wales using data over the period 2001–2008. To the best of our knowledge, there are no prior studies applying the Luenberger productivity indicator to the water industry in England and Wales or other countries. For the sake of comparison, the traditional Malmquist productivity index (MPI) was also estima…
Marginal abatement cost of carbon dioxide emissions in the provision of urban drinking water
2021
Abstract Reducing greenhouse gas emissions is a major challenge faced by cities seeking to improve their environmental sustainability. Doing so requires a good understanding of the costs associated with lowering emissions and factors that may influence this cost. This study estimated the marginal abatement cost of reducing both direct and indirect CO2 emissions in the provision of drinking water by several water companies in England and Wales. The results indicated that during the years 2013–2018, the average cost to the English and Welsh water industry to prevent 1 kg of CO2 emissions was 0.264₤ which was equivalent to 61% of the price of the delivered drinking water The results of the Mor…
The role of environmental factors in water utilities' technical efficiency. Empirical evidence from Spanish companies.
2009
This article computes input-specific scores of technical efficiency for a sample of water utilities located in the southern Spanish region of Andalusia. In addition, differences in efficiency between different operating environments are investigated. Concerning the debate about ownership and efficiency, we find that privately owned companies outperform public utilities in their management of labour. Furthermore, technical efficiency is found to be greater among firms located in highly populated areas and for utilities providing water services to tourist municipalities. Finally, no empirical evidence supporting the greater technical efficiency of consortia of water utilities, a managerial st…
Is the price of water for residential use related to provider ownership? Empirical evidence from Spain
2013
Abstract This paper assesses the relationship between provider ownership and the price of water for residential use set by 386 Southern Spanish municipalities. Our main contribution to the previous literature is that we go much further than merely distinguishing between private and public ownership. First, we find that prices are lower when the urban water service is directly provided by town councils. Second, when water services are contracted out to external companies, the prices set by public utilities are higher than the prices of private utilities due to larger fixed quotas. Finally, water prices are also higher when the provision of the service has been privatised to an institutionali…
The dynamics of privatization and regulation of water services: a comparative study of two Spanish regions
2013
As in other economic activities, privatization of water delivery has not resulted in the retreat of the public sector, but rather a change in the way in which the government intervenes in the water industry. This paper illustrates this situation by comparing urban water services in two Spanish regions, Andalusia and Catalonia. Water service delivery is structured very differently in these two regions with respect to private involvement, the degree of market concentration and, as a result, problems in competition. The characteristics of the two regions' respective regulatory agencies reflect the different paths taken to privatization: in Catalonia private firms have much more tradition and o…
Eco-Efficiency of the English and Welsh Water Companies: A Cross Performance Assessment
2021
Analyzing costs and greenhouse gas (GHG) emissions could be of great importance for the water utilities to supply water services in a healthy and sustainable manner. In this study, we measured the eco-efficiency of several water utilities in England and Wales by incorporating GHG as an undesirable output. For the first time, we evaluated the eco-efficiency of the water production process using robust cross-efficiency data envelopment analysis (DEA) techniques. The further use of clustering and regression techniques allowed us to better understand the drivers of eco-efficiency. The results showed that the mean eco-efficiency of the water sector was 0.748, which indicates that costs and GHG e…