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Efficiency Measurement in Australian Local Government: The Case of New South Wales Municipal Water Services

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  • Kim Woodbury
  • Brian Dollery

Abstract

Australian local government has experienced a series of reforms directed at increasing economic efficiency. An important element in the reform program has been the development of a number of partial indicators of local government service delivery in the states and territories. This paper attempts to augment this literature on performance measurement in Australian local government by using data envelopment analysis (DEA) with holistic indices of allocative and technical efficiency in New South Wales (NSW) municipal water services. It also seeks to incorporate qualitative indicators into efficiency measures. "Best-practice" councils are identified and the underlying causes of municipal water service efficiency are analyzed. Copyright 2004 by The Policy Studies Association.

Suggested Citation

  • Kim Woodbury & Brian Dollery, 2004. "Efficiency Measurement in Australian Local Government: The Case of New South Wales Municipal Water Services," Review of Policy Research, Policy Studies Organization, vol. 21(5), pages 615-636, September.
  • Handle: RePEc:bla:revpol:v:21:y:2004:i:5:p:615-636
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    Cited by:

    1. Abbott, Malcolm & Cohen, Bruce & Wang, Wei Chun, 2012. "The performance of the urban water and wastewater sectors in Australia," Utilities Policy, Elsevier, vol. 20(1), pages 52-63.
    2. repec:eee:juipol:v:45:y:2017:i:c:p:97-108 is not listed on IDEAS
    3. Worthington, Andrew C. & Higgs, Helen, 2014. "Economies of scale and scope in Australian urban water utilities," Utilities Policy, Elsevier, vol. 31(C), pages 52-62.
    4. Theara Horn, 2011. "Incorporating water purification in efficiency evaluation: evidence from Japanese water utilities," Applied Economics Letters, Taylor & Francis Journals, vol. 18(18), pages 1789-1794, December.
    5. Carolin Fritzsche, 2018. "Analyzing the Efficiency of County Road Provision - Evidence from Eastern German Counties," ifo Working Paper Series 249, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    6. Picazo-Tadeo, Andres J. & Saez-Fernandez, Francisco J. & Gonzalez-Gomez, Francisco, 2008. "Does service quality matter in measuring the performance of water utilities," Utilities Policy, Elsevier, vol. 16(1), pages 30-38, March.
    7. Picazo-Tadeo, Andrés J. & Sáez-Fernández, Francisco J. & González-Gómez, Francisco, 2008. "Assesing Performance in the Management of the Urban Water Cycle," Efficiency Series Papers 2008/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    8. Byrnes, Joel & Crase, Lin & Dollery, Brian & Villano, Renato, 2010. "The relative economic efficiency of urban water utilities in regional New South Wales and Victoria," Resource and Energy Economics, Elsevier, vol. 32(3), pages 439-455, August.
    9. Ferro, Gustavo & Lentini, Emilio J. & Mercadier, Augusto C. & Romero, Carlos A., 2013. "Eficiencia en la prestación de agua y saneamiento y su vinculación con regiones, propiedad e independencia de los prestadores en Brasil
      [Efficiency in water and sanitation providers and its links w
      ," MPRA Paper 48247, University Library of Munich, Germany.
    10. Villani, Salvatore, 2010. "Per un giusto equilibrio tra efficacia ed efficienza nell’attuazione della legge delega sul federalismo fiscale: verso la definizione dei LEP e dei costi standard delle Regioni," MPRA Paper 29513, University Library of Munich, Germany.
    11. James Fogarty & Amin Mugera, 2013. "Local Government Efficiency: Evidence from Western Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(3), pages 300-311, September.
    12. Villani, Salvatore, 2010. "Elementi ai fini della definizione della nozione di costo standard: una rassegna della letteratura e delle principali esperienze estere
      [Basic elements defining the standard cost concept. A survey
      ," MPRA Paper 29683, University Library of Munich, Germany.
    13. Fogarty, James Joseph & Mugera, Amin W., 2011. "Local Government Efficiency in Western Australia," Working Papers 117072, University of Western Australia, School of Agricultural and Resource Economics.
    14. Romano, Giulia & Guerrini, Andrea, 2011. "Measuring and comparing the efficiency of water utility companies: A data envelopment analysis approach," Utilities Policy, Elsevier, vol. 19(3), pages 202-209.
    15. Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, vol. 17(3-4), pages 233-244, September.

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