Decomposition of Cost Efficiency Into Persistent and Transient Efficiency in the Provision of Water Services: Evidence from England and Wales

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dc.contributor.authorMolinos-Senante, Maria
dc.contributor.authorMaziotis, Alexandros
dc.date.accessioned2025-01-20T21:11:06Z
dc.date.available2025-01-20T21:11:06Z
dc.date.issued2022
dc.description.abstractPerformance assessments of water utilities are essential to protect the interests of citizens, because utilities operate under natural monopolies and their costs are recovered from customers through water tariffs. In this study, a four-error component model was applied to estimate cost efficiency (CE), persistent efficiency (PE) and transient efficiency (TE) for a sample of English and Welsh water utilities over 25 years (1993-2018). This approach economies of scale and technical change of the water utilities to be estimated. The average estimated CE was 0.703, indicating that water utilities could reduce costs by almost 30% for the same production. Average PE and TE were 0.875 and 0.805, respectively, indicating that the privatization of the water industry positively impacted the efficiency of water utilities. The analysis also showed that the UK industry exhibited decreasing economies of scale, whereby mergers did not cause lower production costs. Technical regression was present, but minimal. Through linking, CE, TE and PE with the regulatory cycle, the impact of the different regulatory policies on the performance of water utilities in England and Wales was shown.
dc.fuente.origenWOS
dc.identifier.doi10.1007/s11269-022-03111-6
dc.identifier.eissn1573-1650
dc.identifier.issn0920-4741
dc.identifier.urihttps://doi.org/10.1007/s11269-022-03111-6
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/93609
dc.identifier.wosidWOS:000771854700002
dc.issue.numero6
dc.language.isoen
dc.pagina.final1862
dc.pagina.inicio1849
dc.revistaWater resources management
dc.rightsacceso restringido
dc.subjectPersistent cost efficiency
dc.subjectTransient cost efficiency
dc.subjectEconomies of scale
dc.subjectTtechnical change
dc.subjectRegulation
dc.subjectWater industry
dc.subject.ods09 Industry, Innovation and Infrastructure
dc.subject.odspa09 Industria, innovación e infraestructura
dc.titleDecomposition of Cost Efficiency Into Persistent and Transient Efficiency in the Provision of Water Services: Evidence from England and Wales
dc.typeartículo
dc.volumen36
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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