Nontransferable Water Rights and Technical Inefficiency in the Japanese Water Supply Industry
AbstractThis study examines whether the Japanese scheme of nontransferable water rights results in technical inefficiency. Using data on 1,263 Japanese retail water suppliers for 2008, their technical efficiency is measured employing data envelopment analysis. Next, a bootstrapped truncated regression model is specified to examine the determinants of technical efficiency. The estimation results reveal that the nontransferability of water rights leads to technical inefficiency of retail water suppliers. Furthermore, the costs of this efficiency amount to about 462 billion yen. This result suggests the government should reallocate water rights flexibly in order to ensure efficiency.
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Bibliographic InfoPaper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd11-211.
Date of creation: Dec 2011
Date of revision:
Bootstrapped Truncated Regression; Data Envelopment Analysis; Technical Eï¬ƒciency; Water Rights;
Find related papers by JEL classification:
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-02-01 (Agricultural Economics)
- NEP-ALL-2012-02-01 (All new papers)
- NEP-EFF-2012-02-01 (Efficiency & Productivity)
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