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Cost efficiency in the UK water and sewerage industry

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  • John Ashton

Abstract

The paper quantifies the relative efficiency of the ten privatized water and sewerage companies between 1987 and 1997. A one-component fixed-effects panel data model is used to estimate a cost function from which distribution-free firm-specific estimates of operational cost efficiency are derived. The study differs from previous studies through the use of differing econometric techniques and by considering the water and sewerage companies as integrated firms. Overall, a moderate level of dispersion in operational cost efficiency is recorded.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 7 (2000)
Issue (Month): 7 ()
Pages: 455-458

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Handle: RePEc:taf:apeclt:v:7:y:2000:i:7:p:455-458

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Cited by:
  1. Rita Martins & Fernando Coelho & Adelino Fortunato, 2012. "Water losses and hydrographical regions influence on the cost structure of the Portuguese water industry," Journal of Productivity Analysis, Springer, vol. 38(1), pages 81-94, August.
  2. Graziano Abrate & Fabrizio Erbetta & Giovanni Fraquelli, 2011. "Public utility planning and cost efficiency in a decentralized regulation context: the case of the Italian integrated water service," Journal of Productivity Analysis, Springer, vol. 35(3), pages 227-242, June.
  3. Bottasso, Anna & Conti, Maurizio, 2009. "Scale economies, technology and technical change in the water industry: Evidence from the English water only sector," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 138-147, March.
  4. Ronaldo Seroa da Motta & Ajax R.B. Moreira, 2004. "Efficiency and Regulation in the Sanitation Sector in Brazil," Discussion Papers 1059, Instituto de Pesquisa Econômica Aplicada - IPEA.
  5. 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.
  6. Rita Martins & Adelino Fortunato & Fernando Coelho, 2006. "Cost Structure of the Portuguese Water Industry: a Cubic Cost Function Application," GEMF Working Papers 2006-09, GEMF - Faculdade de Economia, Universidade de Coimbra.
  7. Miguel A. García-Rubio & Francisco González-Gómez & Jorge Guardiola, 2009. "Performance and ownership in the governance of urban water," FEG Working Paper Series 09/03, Faculty of Economics and Business (University of Granada).
  8. Angel Prieto & José L. Zofio & Inmaculada Alvarez, 2009. "Economías de escala, densidad y alcance en la provisión pública de infraestructura básica municipal," Hacienda Pública Española, IEF, vol. 190(3), pages 59-94, September.
  9. Andrés J. Picazo-Tadeo & Francisco J. Sáez-Fernández & Francisco González-Gómez, 2007. "Does Service Quality Matter In Measuring Performance Of Water Utilities?," FEG Working Paper Series 07/04, Faculty of Economics and Business (University of Granada).
  10. Peter Haug, 2007. "Local Government Control and Efficiency of the Water Industry: An Empirical Analysis of Water Suppliers in East Germany," IWH Discussion Papers 3, Halle Institute for Economic Research.
  11. Chen Lin & Sanford Berg, 2008. "Incorporating Service Quality into Yardstick Regulation: An Application to the Peru Water Sector," Review of Industrial Organization, Springer, vol. 32(1), pages 53-75, February.
  12. Kristof De Witte & Rui C. Marcques, 2008. "Big and beautiful? On non-parametrically measuring scale economies in non-convex technologies," Center for Economic Studies - Discussion papers ces0822, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  13. Alessandro Marra, 2006. "Mixed Public-Private Enterprises in Europe: Economic Theory and an Empirical Analysis of Italian Water Utilities," Bruges European Economic Research Papers 4, European Economic Studies Department, College of Europe.
  14. Germ� Bel & Xavier Fageda & Mildred E. Warner, 2010. "Is private production of public services cheaper than public production? A meta-regression analysis of solid waste and water services," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(3), pages 553-577.
  15. Tim Coelli & Shannon Walding, 2005. "Performance Measurement in the Australian Water Supply Industry," CEPA Working Papers Series WP012005, School of Economics, University of Queensland, Australia.
  16. Estache, Antonio & Kouassi, Eugene, 2002. "Sector organization, governance, and the inefficiency of African water utilities," Policy Research Working Paper Series 2890, The World Bank.
  17. Massimo Filippini & Nevenka Hrovatin & Jelena Zoric, 2010. "Productivity growth and price regulation of Slovenian water distribution utilities," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics, vol. 28(1), pages 89-112.
  18. 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.
  19. Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, vol. 17(3-4), pages 233-244, September.
  20. Lourens Broersma & Arjen Edzes & Jouke van Dijk, 2011. "Have Dutch Municipalities Become More Efficient in Managing the Costs of Social Assistance Dependency? (refereed paper)," ERSA conference papers ersa10p177, European Regional Science Association.

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