Measuring the Technical Efficiency of Municipal Water Suppliers: the Role of Environmental Factors
AbstractThis paper extends the multistage procedure set out in Fried et al (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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Bibliographic InfoPaper provided by Brock University, Department of Economics in its series Working Papers with number 0901.
Length: 25 pages
Date of creation: Jan 2009
Date of revision: Jan 2009
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Water utility; Efficiency; DEA Autoregression;
Other versions of this item:
- Steven Renzetti & Diane P. Dupont, 2009. "Measuring the Technical Efficiency of Municipal Water Suppliers: The Role of Environmental Factors," Land Economics, University of Wisconsin Press, vol. 85(4), pages 627-636.
- Steven Renzetti & Diane P. Dupont, 2008. "Measuring the Technical Efficiency of Municipal Water Suppliers: the Role of Environmental Factors," Working Papers 0802, Brock University, Department of Economics.
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
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