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Measuring the Technical Efficiency of Municipal Water Suppliers: The Role of Environmental Factors

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Author Info
Steven Renzetti
Diane P. Dupont

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Abstract

This paper extends the multistage procedure set out by Fried, Schmidt, and Yaisawarng (1999) to examine the importance of environmental factors when assessing the technical efficiency of water agencies. However, following Simar and Wilson’s (2007) critique of multistage efficiency analyses, the paper uses a bootstrapping approach in order to have consistent inference. Data are from a cross-section of municipal water agencies in Ontario, Canada, during 1996. The main findings are that environmental factors explain some of the observed variation in efficiency scores and that water agencies’ relative efficiency scores are changed substantially after controlling for environmental factors.

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File URL: http://le.uwpress.org/cgi/reprint/85/4/627
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Publisher Info
Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 85 (2009)
Issue (Month): 4 ()
Pages: 627-636
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Handle: RePEc:uwp:landec:v:85:y:2009:i:4:p:627-636

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Find related papers by JEL classification:
H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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  1. Anwandter, Lars & Ozuna, Teofilo Jr., 2002. "Can public sector reforms improve the efficiency of public water utilities?," Environment and Development Economics, Cambridge University Press, vol. 7(04), pages 687-700, October. [Downloadable!]
  2. Pizer, William & Harrington, Winston & Shih, Jhih-Shyang & Gillingham, Kenneth, 2004. "Economies of Scale and Technical Efficiency in Community Water Systems," Discussion Papers dp-04-15, Resources For the Future. [Downloadable!]
  3. Steven Renzetti, 1999. "Municipal Water Supply and Sewage Treatment: Costs, Prices and Distortions," Canadian Journal of Economics, Canadian Economics Association, vol. 32(3), pages 688-704, May. [Downloadable!] (restricted)
  4. Yeti Nisha Madhoo, 2007. "International Trends In Water Utility Regimes," Annals of Public and Cooperative Economics, Blackwell Publishing, vol. 78(1), pages 87-135, 03. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. Byrnes, Patricia & Grosskopf, Shawna & Hayes, Kathy, 1986. "Efficiency and Ownership: Further Evidence," The Review of Economics and Statistics, MIT Press, vol. 68(2), pages 337-41, May. [Downloadable!] (restricted)
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This page was last updated on 2009-11-22.


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