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Is DEA useful in the regulation of water utilities? A dynamic efficiency evaluation (a dynamic efficiency evaluation of water utilities)

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  • M. A. Garcia-Valinas
  • M. A. Muniz

Abstract

The discussion about public utilities efficiency and its management has become increasingly important in the last decades. We focus on the distribution of water, which is one of the most important natural resources (Marshall, 1879). This research shows the relationship between efficiency and institutional factors such as management system. For this purpose, we have data about some Spanish water utilities under different provision systems, during the period 1985 to 2000. Using Data Envelopment Analysis (DEA), we estimate potential cost savings in this context. We will extend the results obtained by Thanassoulis (2000a, b), in attempt to guide the regulation of this sector.

Suggested Citation

  • M. A. Garcia-Valinas & M. A. Muniz, 2007. "Is DEA useful in the regulation of water utilities? A dynamic efficiency evaluation (a dynamic efficiency evaluation of water utilities)," Applied Economics, Taylor & Francis Journals, vol. 39(2), pages 245-252.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:245-252
    DOI: 10.1080/00036840500428054
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    References listed on IDEAS

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    Cited by:

    1. Michael Zschille & Matthias Walter, 2012. "The performance of German water utilities: a (semi)-parametric analysis," Applied Economics, Taylor & Francis Journals, vol. 44(29), pages 3749-3764, October.
    2. 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.
    3. Walter, Matthias & Cullmann, Astrid & von Hirschhausen, Christian & Wand, Robert & Zschille, Michael, 2009. "Quo vadis efficiency analysis of water distribution? A comparative literature review," Utilities Policy, Elsevier, vol. 17(3-4), pages 225-232, September.
    4. Michele Benvenuti & Elena Gennari, 2008. "Water services in Italy: implementation of the reform and efficiency of providers," Questioni di Economia e Finanza (Occasional Papers) 23, Bank of Italy, Economic Research and International Relations Area.
    5. José Antonio Palomero-González & Vicent Almenar-Llongo & Ramón Fuentes-Pascual, 2021. "Evaluating the Efficiency of Water Distribution Network Sectors Using the DEA-Weight Russell Directional Distance Model: The Case of the City of Valencia (Spain)," Sustainability, MDPI, vol. 13(19), pages 1-21, September.
    6. 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.
    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. 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.

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