Impact of external costs of unplanned supply interruptions on water company efficiency: Evidence from Chile

Alexandros Maziotis, Andrés Villegas, María Molinos-Senante and Ramon Sala-Garrido

Utilities Policy, 2020, vol. 66, issue C

Abstract: Conventional performance assessments of water companies ignore the external costs due to water supply outages. To overcome this gap, we evaluate the impact of external costs of unplanned supply interruptions on the efficiency of water companies. Two efficiency metrics, internal technical efficiency (ITE), and total technical efficiency (TTE), were estimated based on data envelopment analysis (DEA). The results evidence that the external costs of unplanned water supply interruptions impact, on average, 7.9% of the efficiency of water companies. We also explored the impact of a set of environmental variables on water company efficiency.

Keywords: Water supply interruptions; Water industry; Benchmarking (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:66:y:2020:i:c:s0957178720300825

DOI: 10.1016/j.jup.2020.101087

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