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Does non-revenue water affect Malaysia's water services industry productivity?

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  • See, Kok Fong
  • Ma, Zhanxin

Abstract

This study examines the total factor productivity (TFP) changes in the Malaysian water services industry from 1999 to 2012 using a global Malmquist Luenberger index method incorporating an undesirable output, namely non-revenue water. The results show that the Malaysian water services industry experienced a declining TFP of 0.72 percent per year, with technology regression being the primary cause of the annual TFP decrease. Several initiatives are suggested to reduce non-revenue water in Malaysia. The findings provide useful insights that can be incorporated into future reforms of the industry.

Suggested Citation

  • See, Kok Fong & Ma, Zhanxin, 2018. "Does non-revenue water affect Malaysia's water services industry productivity?," Utilities Policy, Elsevier, vol. 54(C), pages 125-131.
    • Handle: RePEc:eee:juipol:v:54:y:2018:i:c:p:125-131
    DOI: 10.1016/j.jup.2018.04.006
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    2. Mocholi-Arce, Manuel & Sala-Garrido, Ramon & Molinos-Senante, Maria & Maziotis, Alexandros, 2023. "Profit productivity change in the English and Welsh water sector: Impact of the price reviews," Utilities Policy, Elsevier, vol. 82(C).
    3. Goh, Kim Huat & See, Kok Fong, 2021. "Measuring the productivity growth of Malaysia's water sector: Implications for regulatory reform," Utilities Policy, Elsevier, vol. 71(C).
    4. Şişman, Eyüp & Kızılöz, Burak, 2020. "Trend-risk model for predicting non-revenue water: An application in Turkey," Utilities Policy, Elsevier, vol. 67(C).
    5. Goh, Kim Huat & See, Kok Fong, 2023. "Incorporating nonrevenue water in the efficiency assessment of water supply utilities: A parametric enhanced hyperbolic distance function," Utilities Policy, Elsevier, vol. 81(C).
    6. Tourinho, Marco & Santos, Paulo Rosa & Pinto, Francisco Taveira & Camanho, Ana S., 2022. "Performance assessment of water services in Brazilian municipalities: An integrated view of efficiency and access," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).

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