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Performance Measurement in the Australian Water Supply Industry

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Abstract

Various government-owned businesses provide water supply services to Australian residents. With the advent of recent competition and regulatory reforms in infrastructure industries in Australia, more and more of these businesses are now facing new types of incentive-based regulatory regimes. This has led to a desire for more information on the performance of these businesses, both relative to each other and over time. In this study we use panel data on the 18 largest Australian water services businesses, observed over an eight-year period from 1995/6 to 2002/3, to measure the relative efficiency and productivity growth of these businesses. Data envelopment analysis (DEA) methods are used to obtain estimates of the multi-input, multi-output production technology. The potential use of these performance measures in price-cap regulation is discussed, where the effects of variable selection and data quality upon empirical results is emphasised.

Suggested Citation

  • Tim Coelli & Shannon Walding, 2005. "Performance Measurement in the Australian Water Supply Industry," CEPA Working Papers Series WP012005, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uqcepa:19
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    File URL: http://www.uq.edu.au/economics/cepa/docs/WP/WP012005.pdf
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    Cited by:

    1. Peeter Peda & Giuseppe Grossi & Margo Liik, 2013. "Do ownership and size affect the performance of water utilities? Evidence from Estonian municipalities," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(2), pages 237-259, May.
    2. 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.
    3. Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, vol. 17(3-4), pages 233-244, September.
    4. 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.
    5. Carvalho, Anne Emília Costa & Sampaio, Luciano Menezes Bezerra, 2015. "Paths to universalize water and sewage services in Brazil: The role of regulatory authorities in promoting efficient service," Utilities Policy, Elsevier, vol. 34(C), pages 1-10.
    6. 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.
    7. repec:eee:juipol:v:49:y:2017:i:c:p:127-136 is not listed on IDEAS
    8. Derek D. Headey & Dirk Bezemer, 2006. "Something of a Paradox: The Curious Neglect of Agriculture in Development," CEPA Working Papers Series WP012006, School of Economics, University of Queensland, Australia.

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