IDEAS home Printed from https://ideas.repec.org/p/ags/feemcl/142950.html
   My bibliography  Save this paper

Output Quality and Sources of Profit Change in the English and Welsh Water and Sewerage Companies

Author

Listed:
  • Maziotis, Alexandros
  • Saal, David S.
  • Thanassoulis, Emmanuel

Abstract

This paper investigates the determinants of profit change over the period 1991-2008 for the Water and Sewerage Companies (WaSCs) in the English and Welsh water and sewerage industry. We firstly apply an input oriented profit decomposition approach following the approach of De Witte & Saal (2010). Then, we make allowances for differences in the quality of output, by decomposing the output effect into high quality and low quality output effect. We decompose profit changes into various factors such as quantity and price effect, technical change, efficiency change, resource mix, product mix and scale effect, without and after controlling for quality. In both cases, the positive impact on profit changes came from substantial improvements in technical change, the cost efficient allocation of resources by substituting labour with capital and small improvements in efficiency gains. The input price and scale effect had a significant negative impact on profit changes. This technique is of great interest for regulators to evaluate the effectiveness of regulation and companies to identify the determinants of profit change and improve future performance, even if sample sizes are limited.

Suggested Citation

  • Maziotis, Alexandros & Saal, David S. & Thanassoulis, Emmanuel, 2012. "Output Quality and Sources of Profit Change in the English and Welsh Water and Sewerage Companies," Climate Change and Sustainable Development 142950, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemcl:142950
    DOI: 10.22004/ag.econ.142950
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/142950/files/NDL2012-085.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.142950?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Molinos-Senante, María & Maziotis, Alexandros & Sala-Garrido, Ramón, 2014. "The Luenberger productivity indicator in the water industry: An empirical analysis for England and Wales," Utilities Policy, Elsevier, vol. 30(C), pages 18-28.

    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:feemcl:142950. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/feemmit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.