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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 () (Department of Economics, Brock University)
Diane Dupont () (Department of Economics, Brock University)

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Abstract

This 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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Publisher Info
Paper provided by Brock University, Department of Economics in its series Working Papers with number 0901.

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Length: 25 pages
Date of creation: Jan 2009
Date of revision: Jan 2009
Handle: RePEc:brk:wpaper:0901

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Related research
Keywords: Water utility; Efficiency; DEA Autoregression;

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Find related papers by JEL classification:
Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  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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