IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v79y2022ics0038012121001312.html
   My bibliography  Save this article

Performance assessment of water services in Brazilian municipalities: An integrated view of efficiency and access

Author

Listed:
  • Tourinho, Marco
  • Santos, Paulo Rosa
  • Pinto, Francisco Taveira
  • Camanho, Ana S.

Abstract

This study proposes a benchmarking approach to assess water supply and sanitation services’ performance in Brazilian municipalities from an integrated perspective of efficiency and access. The regional differences and the impact of the governance models adopted by different municipalities (local public entities, regional public entities, and private entities) on efficiency levels are also explored. The results revealed significant heterogeneity in the efficiency levels of Brazilian municipalities, as the average efficiency score is relatively low (45%). The Southeast and Center-west regions stand out both in terms of efficiency and access dimensions. There is evidence that municipalities with services provided by local public entities have higher efficiency than those with regional providers. On the other hand, efficiency differences between municipalities with public and private providers are statistically significant. Finally, regulatory strategies are suggested based on the outcome of the integrated analysis.

Suggested Citation

  • Tourinho, Marco & Santos, Paulo Rosa & Pinto, Francisco Taveira & Camanho, Ana S., 2022. "Performance assessment of water services in Brazilian municipalities: An integrated view of efficiency and access," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
  • Handle: RePEc:eee:soceps:v:79:y:2022:i:c:s0038012121001312
    DOI: 10.1016/j.seps.2021.101139
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012121001312
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.seps.2021.101139?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anne-Kathrin Faust & Andrea Baranzini, 2014. "The economic performance of Swiss drinking water utilities," Journal of Productivity Analysis, Springer, vol. 41(3), pages 383-397, June.
    2. M C A S Portela & E Thanassoulis & A Horncastle & T Maugg, 2011. "Productivity change in the water industry in England and Wales: application of the meta-Malmquist index," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(12), pages 2173-2188, December.
    3. 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.
    4. E Thanassoulis, 2002. "Comparative performance measurement in regulation: the case of English and Welsh sewerage services," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(3), pages 292-302, March.
    5. Cinzia Daraio & Léopold Simar, 2005. "Introducing Environmental Variables in Nonparametric Frontier Models: a Probabilistic Approach," Journal of Productivity Analysis, Springer, vol. 24(1), pages 93-121, September.
    6. Andres Picazo-Tadeo & Francisco Saez-Fernandez & Francisco Gonzalez-Gomez, 2009. "The role of environmental factors in water utilities' technical efficiency. Empirical evidence from Spanish companies," Applied Economics, Taylor & Francis Journals, vol. 41(5), pages 615-628.
    7. Michael Zschille, 2015. "Consolidating the water industry: an analysis of the potential gains from horizontal integration in a conditional efficiency framework," Journal of Productivity Analysis, Springer, vol. 44(1), pages 97-114, August.
    8. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    9. Kristof De Witte & Rui Marques, 2010. "Designing performance incentives, an international benchmark study in the water sector," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(2), pages 189-220, June.
    10. Zschille, Michael, 2015. "Consolidating the Water Industry: an Analysis of the Potential Gains from Horizontal Integration in a Conditional Efficiency Framework," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 44(1), pages 97-114.
    11. Sampaio, P.R.P. & Sampaio, R.S.R, 2020. "The challenges of regulating water and sanitation tariffs under a three-level shared-authority federalism model: The case of Brazil," Utilities Policy, Elsevier, vol. 64(C).
    12. María Molinos-Senante & Manuel Mocholi-Arce & Ramón Sala-Garrido, 2016. "Efficiency Assessment of Water and Sewerage Companies: a Disaggregated Approach Accounting for Service Quality," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(12), pages 4311-4328, September.
    13. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    14. Ferro, Gustavo & Lentini, Emilio J. & Mercadier, Augusto C. & Romero, Carlos A., 2014. "Efficiency in Brazil's water and sanitation sector and its relationship with regional provision, property and the independence of operators," Utilities Policy, Elsevier, vol. 28(C), pages 42-51.
    15. Maziotis, Alexandros & Villegas, Andrés & Molinos-Senante, María & Sala-Garrido, Ramon, 2020. "Impact of external costs of unplanned supply interruptions on water company efficiency: Evidence from Chile," Utilities Policy, Elsevier, vol. 66(C).
    16. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    17. R. Allen & A. Athanassopoulos & R.G. Dyson & E. Thanassoulis, 1997. "Weights restrictions and value judgements in Data Envelopment Analysis: Evolution, development and future directions," Annals of Operations Research, Springer, vol. 73(0), pages 13-34, October.
    18. Barbosa, Alexandro & Lima, Severino Cesário de & Brusca, Isabel, 2016. "Governance and efficiency in the Brazilian water utilities: A dynamic analysis in the process of universal access," Utilities Policy, Elsevier, vol. 43(PA), pages 82-96.
    19. Cinzia Daraio & Léopold Simar, 2007. "Conditional nonparametric frontier models for convex and nonconvex technologies: a unifying approach," Journal of Productivity Analysis, Springer, vol. 28(1), pages 13-32, October.
    20. Tupper, Henrique Cesar & Resende, Marcelo, 2004. "Efficiency and regulatory issues in the Brazilian water and sewage sector: an empirical study," Utilities Policy, Elsevier, vol. 12(1), pages 29-40, March.
    21. Zanella, Andreia & Camanho, Ana S. & Dias, Teresa G., 2015. "Undesirable outputs and weighting schemes in composite indicators based on data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 245(2), pages 517-530.
    22. Guerrini, Andrea & Molinos-Senante, María & Romano, Giulia, 2018. "Italian regulatory reform and water utility performance: An impact analysis," Utilities Policy, Elsevier, vol. 52(C), pages 95-102.
    23. See, Kok Fong & Ma, Zhanxin, 2018. "Does non-revenue water affect Malaysia's water services industry productivity?," Utilities Policy, Elsevier, vol. 54(C), pages 125-131.
    24. Gabriella Y. Carolini & Prassanna Raman, 2021. "Why Detailing Spatial Equity Matters in Water and Sanitation Evaluations," Journal of the American Planning Association, Taylor & Francis Journals, vol. 87(1), pages 101-107, January.
    25. Andrea Guerrini & Giulia Romano & Bettina Campedelli, 2013. "Economies of Scale, Scope, and Density in the Italian Water Sector: A Two-Stage Data Envelopment Analysis Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(13), pages 4559-4578, October.
    26. Kristof Witte & Rui Marques, 2010. "Influential observations in frontier models, a robust non-oriented approach to the water sector," Annals of Operations Research, Springer, vol. 181(1), pages 377-392, December.
    27. Henriques, Alda A. & Camanho, Ana S. & Amorim, Pedro & Silva, Jaime G., 2020. "Performance benchmarking using composite indicators to support regulation of the Portuguese wastewater sector," Utilities Policy, Elsevier, vol. 66(C).
    28. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    29. Thompson, Russell G. & Langemeier, Larry N. & Lee, Chih-Tah & Lee, Euntaik & Thrall, Robert M., 1990. "The role of multiplier bounds in efficiency analysis with application to Kansas farming," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 93-108.
    30. Thanassoulis, Emmanuel, 2000. "The use of data envelopment analysis in the regulation of UK water utilities: Water distribution," European Journal of Operational Research, Elsevier, vol. 126(2), pages 436-453, October.
    31. Marques, Rui Cunha & De Witte, Kristof, 2011. "Is big better? On scale and scope economies in the Portuguese water sector," Economic Modelling, Elsevier, vol. 28(3), pages 1009-1016, May.
    32. Ramon Sala-Garrido & Manuel Mocholí-Arce & María Molinos-Senante, 2021. "Assessing the Quality of Service of Water Companies: a ‘Benefit of the Doubt’ Composite Indicator," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 371-387, May.
    33. Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
    34. Sabbioni, Guillermo, 2008. "Efficiency in the Brazilian sanitation sector," Utilities Policy, Elsevier, vol. 16(1), pages 11-20, March.
    35. Salazar-Adams, Alejandro, 2021. "The efficiency of post-reform water utilities in Mexico," Utilities Policy, Elsevier, vol. 68(C).
    36. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
    37. Seroa da Motta, Ronaldo & Moreira, Ajax, 2006. "Efficiency and regulation in the sanitation sector in Brazil," Utilities Policy, Elsevier, vol. 14(3), pages 185-195, September.
    38. Tito Belchior Moreira & Geraldo da Silva Souza & Ricardo Coelho Faria, 2005. "Public Versus Private Water Utilities: Empirical Evidence for Brazilian Companies," Economics Bulletin, AccessEcon, vol. 8(2), pages 1-7.
    39. Carvalho, Anne Emília Costa & Sampaio, Luciano Menezes Bezerra, 2015. "Paths to universalize water and sewage services in Brazil: The role of regulatory authorities in promoting efficient service," Utilities Policy, Elsevier, vol. 34(C), pages 1-10.
    40. repec:ebl:ecbull:v:8:y:2005:i:2:p:1-7 is not listed on IDEAS
    41. Paulo Caldas & Diogo Ferreira & Brian Dollery & Rui Marques, 2019. "Economies of scope in Portuguese local government using an augmented Hicks–Moorsteen approach," Regional Studies, Taylor & Francis Journals, vol. 53(7), pages 963-976, July.
    42. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vilarinho, Hermilio & D’Inverno, Giovanna & Nóvoa, Henriqueta & Camanho, Ana S., 2023. "The measurement of asset management performance of water companies," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    2. Vilarinho, Hermilio & D’Inverno, Giovanna & Nóvoa, Henriqueta & Camanho, Ana S., 2023. "Performance analytics for regulation in retail water utilities: Guiding asset management by identifying peers and targets," Utilities Policy, Elsevier, vol. 82(C).
    3. Carvalho, Anne Emília Costa & Sampaio, Raquel Menezes Bezerra & Sampaio, Luciano Menezes Bezerra, 2023. "The impact of regulation on the Brazilian water and sewerage companies’ efficiency," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Tourinho, Marco & Barbosa, Flávia & Santos, Paulo Rosa & Pinto, Francisco Taveira & Camanho, Ana S., 2023. "Productivity change in Brazilian water services: A benchmarking study of national and regional trends," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    3. Michael Zschille, 2014. "Nonparametric measures of returns to scale: an application to German water supply," Empirical Economics, Springer, vol. 47(3), pages 1029-1053, November.
    4. Vilarinho, Hermilio & D’Inverno, Giovanna & Nóvoa, Henriqueta & Camanho, Ana S., 2023. "The measurement of asset management performance of water companies," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    5. Pereira, Miguel Alves & Vilarinho, Hermilio & D’Inverno, Giovanna & Camanho, Ana S., 2023. "A regulatory robust conditional approach to measuring the efficiency of wholesale water supply and wastewater treatment services," Utilities Policy, Elsevier, vol. 83(C).
    6. Vilarinho, Hermilio & D’Inverno, Giovanna & Nóvoa, Henriqueta & Camanho, Ana S., 2023. "Performance analytics for regulation in retail water utilities: Guiding asset management by identifying peers and targets," Utilities Policy, Elsevier, vol. 82(C).
    7. Valentin Zelenyuk, 2019. "Data Envelopment Analysis and Business Analytics: The Big Data Challenges and Some Solutions," CEPA Working Papers Series WP072019, School of Economics, University of Queensland, Australia.
    8. Barbosa, Alexandro & Lima, Severino Cesário de & Brusca, Isabel, 2016. "Governance and efficiency in the Brazilian water utilities: A dynamic analysis in the process of universal access," Utilities Policy, Elsevier, vol. 43(PA), pages 82-96.
    9. Cordero, José Manuel & Alonso-Morán, Edurne & Nuño-Solinis, Roberto & Orueta, Juan F. & Arce, Regina Sauto, 2015. "Efficiency assessment of primary care providers: A conditional nonparametric approach," European Journal of Operational Research, Elsevier, vol. 240(1), pages 235-244.
    10. Bernardino Benito & José Solana & María-Rocío Moreno, 2014. "Explaining efficiency in municipal services providers," Journal of Productivity Analysis, Springer, vol. 42(3), pages 225-239, December.
    11. Alvaro Cavalcanti & Arthur Teixeira & Karen Pontes, 2020. "Evaluation of the Efficiency of Basic Sanitation Integrated Management in Brazilian Municipalities," IJERPH, MDPI, vol. 17(24), pages 1-29, December.
    12. Michael Zschille, 2015. "Consolidating the water industry: an analysis of the potential gains from horizontal integration in a conditional efficiency framework," Journal of Productivity Analysis, Springer, vol. 44(1), pages 97-114, August.
    13. Michael Zschille, 2012. "Consolidating the Water Industry: An Analysis of the Potential Gains from Horizontal Integration in a Conditional Efficiency Framework," Discussion Papers of DIW Berlin 1187, DIW Berlin, German Institute for Economic Research.
    14. Picazo-Tadeo, Andrés J. & Sáez-Fernández, Francisco J. & González-Gómez, Francisco, 2008. "Assesing Performance in the Management of the Urban Water Cycle," Efficiency Series Papers 2008/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    15. Zschille, Michael, 2012. "Consolidating the Water Industry: An Analysis of the Potential Gains from Horizontal Integration in a Conditional Efficiency Fr," CEPR Discussion Papers 8737, C.E.P.R. Discussion Papers.
    16. Carvalho, Anne Emília Costa & Sampaio, Luciano Menezes Bezerra, 2015. "Paths to universalize water and sewage services in Brazil: The role of regulatory authorities in promoting efficient service," Utilities Policy, Elsevier, vol. 34(C), pages 1-10.
    17. De Witte, Kristof & Schiltz, Fritz, 2018. "Measuring and explaining organizational effectiveness of school districts: Evidence from a robust and conditional Benefit-of-the-Doubt approach," European Journal of Operational Research, Elsevier, vol. 267(3), pages 1172-1181.
    18. Bădin, Luiza & Daraio, Cinzia & Simar, Léopold, 2019. "A bootstrap approach for bandwidth selection in estimating conditional efficiency measures," European Journal of Operational Research, Elsevier, vol. 277(2), pages 784-797.
    19. Léopold Simar & Paul W. Wilson, 2015. "Statistical Approaches for Non-parametric Frontier Models: A Guided Tour," International Statistical Review, International Statistical Institute, vol. 83(1), pages 77-110, April.
    20. Cordero Ferrera, Jose Manuel & Alonso Morán, Edurne & Nuño Solís, Roberto & Orueta, Juan F. & Souto Arce, Regina, 2013. "Efficiency assessment of primary care providers: A conditional nonparametric approach," MPRA Paper 51926, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceps:v:79:y:2022:i:c:s0038012121001312. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/seps .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.