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Reprint of: Dynamic efficiency in the English and Welsh water and sewerage industry

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  • Pointon, Charlotte
  • Matthews, Kent

Abstract

The English and Welsh water and sewerage industry is characterised by indivisible capital which has a long service life. Previous studies of efficiency for the English and Welsh water and sewerage industry take a static framework, assuming all inputs can be adjusted instantaneously. This paper measures dynamic efficiency by incorporating intertemporal links of capital within the production function for the English and Welsh water and sewerage industry for the period 1997–2011. Dynamic Data Envelopment Analysis (DEA) considers capital as a quasi-fixed input and is modelled as a contemporaneous output into current production and an input from past production. The results show that the inadequate intertemporal allocation of quasi-fixed inputs is the largest contributor of inefficiency.

Suggested Citation

  • Pointon, Charlotte & Matthews, Kent, 2016. "Reprint of: Dynamic efficiency in the English and Welsh water and sewerage industry," Omega, Elsevier, vol. 60(C), pages 98-108.
  • Handle: RePEc:eee:jomega:v:60:y:2016:i:c:p:98-108
    DOI: 10.1016/j.omega.2015.12.007
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    References listed on IDEAS

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    1. repec:gam:jsusta:v:10:y:2018:i:2:p:568-:d:133066 is not listed on IDEAS
    2. Pinto, F.S. & Costa, A.S. & Figueira, J.R. & Marques, R.C., 2017. "The quality of service: An overall performance assessment for water utilities," Omega, Elsevier, vol. 69(C), pages 115-125.
    3. Alexandr Akimov & Paul Simshauser, 2018. "Performance measurement in Australian water utilities: Current state and future directions," Discussion Papers in Finance finance:201802, Griffith University, Department of Accounting, Finance and Economics.

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