Capturing the environment, a metafrontier approach to the drinking water sector
AbstractEnvironmental factors add complexity to the comparison between specific activities or entire entities. Decision making units with an inferior performance are tempted to invoke that their organization is different from the others in the data set. By reinterpreting and extending the metafrontier literature, we propose an all-embracing concept to fully capture the operational environment. We suggest the ‘Group Specific Technical Efficiency’ as a new measure to assess the overall efficiency of a utility while allowing for environmental differences. A real-world example of drinking water utilies out of 5 different countries illustrates the concept.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0804.
Date of creation: Mar 2008
Date of revision:
Free Disposal Hull; Efficiency Measurement; Environmental Variables; Metafrontier; Water Industry;
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-25 (All new papers)
- NEP-EFF-2008-03-25 (Efficiency & Productivity)
- NEP-ENV-2008-03-25 (Environmental Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- De Witte, K. & Maassen van den Brink, H. & Groot, W., 2010. "The efficiency of education in generating literacy: a stochastic frontier approach," Working Papers 30, Top Institute for Evidence Based Education Research.
- Steven Renzetti & Diane P. Dupont, 2009.
"Measuring the Technical Efficiency of Municipal Water Suppliers: The Role of Environmental Factors,"
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.
- Steven Renzetti & Diane Dupont, 2009. "Measuring the Technical Efficiency of Municipal Water Suppliers: the Role of Environmental Factors," Working Papers 0901, Brock University, Department of Economics, revised Jan 2009.
- Yane, Shinji & Berg, Sanford, 2011.
"Sensitivity analysis of efficiency rankings to distributional assumptions: applications to Japanese water utilities,"
32892, University Library of Munich, Germany.
- Shinji Yane & Sanford Berg, 2013. "Sensitivity analysis of efficiency rankings to distributional assumptions: applications to Japanese water utilities," Applied Economics, Taylor & Francis Journals, vol. 45(17), pages 2337-2348, June.
- Kristof De Witte & Wim Groot & Henri?tte Maassen van den Brink, 2012. "The Efficiency of Education in Generating Literacy: A Stochastic Frontier Approach," Review of Economics & Finance, Better Advances Press, Canada, vol. 2, pages 25-37, February.
- Kristof De Witte & David S. Saal, 2008.
"Is a little sunshine all we need? On the impact of sunshine regulation on profits, productivity and prices in the Dutch drinking water sector,"
Center for Economic Studies - Discussion papers
ces0828, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Kristof Witte & David Saal, 2010. "Is a little sunshine all we need? On the impact of sunshine regulation on profits, productivity and prices in the Dutch drinking water sector," Journal of Regulatory Economics, Springer, vol. 37(3), pages 219-242, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karla Vander Weyden).
If references are entirely missing, you can add them using this form.