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Efficiency Measurement in Australian Local Government: The Case of New South Wales Municipal Water Services

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  • Kim Woodbury
  • Brian Dollery

Abstract

Australian local government has experienced a series of reforms directed at increasing economic efficiency. An important element in the reform program has been the development of a number of partial indicators of local government service delivery in the states and territories. This paper attempts to augment this literature on performance measurement in Australian local government by using data envelopment analysis (DEA) with holistic indices of allocative and technical efficiency in New South Wales (NSW) municipal water services. It also seeks to incorporate qualitative indicators into efficiency measures. "Best-practice" councils are identified and the underlying causes of municipal water service efficiency are analyzed. Copyright 2004 by The Policy Studies Association.

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Bibliographic Info

Article provided by Policy Studies Organization in its journal Review of Policy Research.

Volume (Year): 21 (2004)
Issue (Month): 5 (09)
Pages: 615-636

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Handle: RePEc:bla:revpol:v:21:y:2004:i:5:p:615-636

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1541-1338
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Cited by:
  1. Villani, Salvatore, 2010. "Elementi ai fini della definizione della nozione di costo standard: una rassegna della letteratura e delle principali esperienze estere
    [Basic elements defining the standard cost concept. A survey
    ," MPRA Paper 29683, University Library of Munich, Germany.
  2. Romano, Giulia & Guerrini, Andrea, 2011. "Measuring and comparing the efficiency of water utility companies: A data envelopment analysis approach," Utilities Policy, Elsevier, vol. 19(3), pages 202-209.
  3. Fogarty, James Joseph & Mugera, Amin W., 2011. "Local Government Efficiency in Western Australia," Working Papers 117072, University of Western Australia, School of Agricultural and Resource Economics.
  4. Ferro, Gustavo & Lentini, Emilio J. & Mercadier, Augusto C. & Romero, Carlos A., 2013. "Eficiencia en la prestación de agua y saneamiento y su vinculación con regiones, propiedad e independencia de los prestadores en Brasil
    [Efficiency in water and sanitation providers and its links
    ," MPRA Paper 48247, University Library of Munich, Germany.
  5. Villani, Salvatore, 2010. "Per un giusto equilibrio tra efficacia ed efficienza nell’attuazione della legge delega sul federalismo fiscale: verso la definizione dei LEP e dei costi standard delle Regioni," MPRA Paper 29513, University Library of Munich, Germany.
  6. Theara Horn, 2011. "Incorporating water purification in efficiency evaluation: evidence from Japanese water utilities," Applied Economics Letters, Taylor & Francis Journals, vol. 18(18), pages 1789-1794, December.
  7. Abbott, Malcolm & Cohen, Bruce & Wang, Wei Chun, 2012. "The performance of the urban water and wastewater sectors in Australia," Utilities Policy, Elsevier, vol. 20(1), pages 52-63.
  8. Byrnes, Joel & Crase, Lin & Dollery, Brian & Villano, Renato, 2010. "The relative economic efficiency of urban water utilities in regional New South Wales and Victoria," Resource and Energy Economics, Elsevier, vol. 32(3), pages 439-455, August.
  9. Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, vol. 17(3-4), pages 233-244, September.
  10. Picazo-Tadeo, Andres J. & Saez-Fernandez, Francisco J. & Gonzalez-Gomez, Francisco, 2008. "Does service quality matter in measuring the performance of water utilities," Utilities Policy, Elsevier, vol. 16(1), pages 30-38, March.

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