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Analyse économétrique des coûts des services d’eau potable et qualité des prestations offertes aux usagers

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Author Info

  • Helene Bouscasse

    (Laboratoire GSP, UMR Cemagref-Engees)

  • François Destandau

    (Laboratoire GSP, UMR Cemagref-Engees)

  • Serge Garcia

    ()
    (Laboratoire d'Economie Forestière, INRA - AgroParisTech)

Abstract

Issues on service quality are crucial for water utility management and regulation. Omitting these aspects can lead to possible bias in estimating the efficiency of services. We integrate in a Translog cost function variables proxying this multi-dimensionality. Empirical results show that taking into account the level of quality of the delivered services has a significant impact on the measure of the efficiency computed from a stochastic frontier. Moreover we highlight that efficiency depends on ownership (public vs. private) and level of quality. Institute of Forestry, Agricultural and Environmental Engineering (ENGREF) and the National Institute of Agronomic research (INRA). The mission of the LEF is to conceive, develop, and transfer methods and tools of economic analysis to improve the management of the goods, services and products of the forest and the forestry sector. The aim of this issue of the “Cahiers du LEF” is to present the results of the researchs of the forest economics laobratory between 2003 and 2007.

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Bibliographic Info

Paper provided by Laboratoire d'Economie Forestiere, AgroParisTech-INRA in its series Working Papers - Cahiers du LEF with number 2008-02.

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Length: 27 pages
Date of creation: Apr 2008
Date of revision:
Handle: RePEc:lef:wpaper:2008-02

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Related research

Keywords: Service quality; cost; stochastic frontier; efficiency; water supply;

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References

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  1. Garcia, Serge & Moreaux, Michel & Reynaud, Arnaud, 2004. "Measuring Economies of Vertical Integration in Network Industries: an Application to the Water Sector," IDEI Working Papers 255, Institut d'Économie Industrielle (IDEI), Toulouse.
  2. Tim Coelli & Antonio Estache & Sergio Perelman & Lourdes Trujillo, 2003. "A Primer on Efficiency Measurement for Utilities and Transport Regulators," World Bank Publications, The World Bank, number 15149.
  3. Serge Garcia & Alban Thomas, 2001. "The Structure of Municipal Water Supply Costs: Application to a Panel of French Local Communities," Journal of Productivity Analysis, Springer, vol. 16(1), pages 5-29, July.
  4. Saal, David S & Parker, David, 2001. "Productivity and Price Performance in the Privatized Water and Sewerage Companies of England and Wales," Journal of Regulatory Economics, Springer, vol. 20(1), pages 61-90, July.
  5. Hunt, Lester C & Lynk, Edward L, 1995. "Privatisation and Efficiency in the UK Water Industry: An Empirical Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(3), pages 371-88, August.
  6. Lin, Chen, 2005. "Service quality and prospects for benchmarking: Evidence from the Peru water sector," Utilities Policy, Elsevier, vol. 13(3), pages 230-239, September.
  7. Serge Garcia & Marcel Boyer, 2008. "Régulation et mode de gestion : une étude économétrique sur les prix et la performance dans le secteur de l'eau potable," Working Papers - Cahiers du LEF 2008-03, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
  8. Eshien Chong & Freddy Huet & Stéphane Saussier & Faye Steiner, 2006. "Public-Private Partnerships and Prices: Evidence from Water Distribution in France," Review of Industrial Organization, Springer, vol. 29(1), pages 149-169, September.
  9. Paola Fabbri & Giovanni Fraquelli, 2000. "Costs and Structure of Technology in the Italian Water Industry," Empirica, Springer, vol. 27(1), pages 65-82, March.
  10. Feigenbaum, Susan & Teeples, Ronald, 1983. "Public versus Private Water Delivery: A Hedonic Cost Approach," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 672-78, November.
  11. Fumitoshi Mizutani & Takuya Urakami, 2001. "articles: Identifying network density and scale economies for Japanese water supply organizations," Papers in Regional Science, Springer, vol. 80(2), pages 211-230.
  12. Ronald R. Braeutigam & Mark V. Pauly, 1986. "Cost Function Estimation and Quality Bias: The Regulated Automobile Insurance Industry," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 606-617, Winter.
  13. Bhattacharyya, Arunava & Harris, Thomas R. & Narayanan, Rangesan & Raffiee, Kambiz, 1995. "Specification and estimation of the effect of ownership on the economic efficiency of the water utilities," Regional Science and Urban Economics, Elsevier, vol. 25(6), pages 759-784, December.
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