Assessing the marginal cost of reducing greenhouse gas emissions in the English and Welsh water and sewerage industry: A parametric approach

Ramon Sala-Garrido, Manuel Mocholi-Arce, Maria Molinos-Senante and Alexandros Maziotis

Utilities Policy, 2021, vol. 70, issue C

Abstract: Reducing greenhouse gas (GHG) emissions involves effort from different sectors of the economy, including the water and sewerage industry. This study estimates the marginal cost of curtailing GHG emissions in the water and sewerage industry using stochastic frontier analysis techniques for a sample of ten English and Welsh water and sewerage companies over the 2010–2019 period. Results illustrated that the average marginal cost of reducing GHG emissions was 0.181 £/Kg CO2 equivalent. The marginal cost estimated notably differs across companies and over time. Findings further illustrate the impact of water companies' operating characteristics on the marginal cost of reducing carbon emissions.

Keywords: Urban water cycle; Cost function; Stochastic frontier analysis; Greenhouse gas emissions (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:70:y:2021:i:c:s0957178721000278

DOI: 10.1016/j.jup.2021.101193

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