Comparing Operational, Environmental and Eco-Efficiency of Water Companies in England and Wales

Ramón Sala-Garrido, Manuel Mocholí-Arce, María Molinos-Senante and Alexandros Maziotis
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Ramón Sala-Garrido: Departamento de Matemáticas para la Economía y la Empresa, Universidad de Valencia, 46071 Valencia, Spain
Manuel Mocholí-Arce: Departamento de Matemáticas para la Economía y la Empresa, Universidad de Valencia, 46071 Valencia, Spain
María Molinos-Senante: Departamento de Ingeniería Hidráulica y Ambiental, Pontificia Universidad Católica de Chile, Santiago 4860, Chile
Alexandros Maziotis: Departamento de Ingeniería Hidráulica y Ambiental, Pontificia Universidad Católica de Chile, Santiago 4860, Chile

Energies, 2021, vol. 14, issue 12, 1-14

Abstract: The assessment of performance of water companies is essential for their regulation. In doing so, several variables and models can be employed. This study evaluates and compares the performance of a sample of English and Welsh water companies from the operational, environmental and eco-efficiency perspectives by applying the non-radial data envelopment analysis range adjusted measure model. This methodological approach allows integrating greenhouse gas emissions as undesirable output. The results indicated that the water industry performed well from an operational perspective. However, environmental inefficiency considerably exists which illustrates the difficulties of the water companies in reducing greenhouse gas emissions. The average eco-efficiency was 0.783 which means that while expanding water services, water companies could further reduce costs and carbon emissions by 11.7% on average. Other factors such as water treatment complexity and population density significantly affect water companies’ eco-efficiency. Several policy implications are finally discussed.

Keywords: eco-efficiency; greenhouse gas emissions; non-radial DEA; water treatment and supply; water utilities; sustainability (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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