Incorporating nonrevenue water in the efficiency assessment of water supply utilities: A parametric enhanced hyperbolic distance function

Kim Huat Goh and Kok Fong See

Utilities Policy, 2023, vol. 81, issue C

Abstract: This study assesses the technical efficiency of water utilities incorporating an undesirable output, nonrevenue water, and allowing a proportional input reduction. A parametric enhanced hyperbolic distance function was applied to Malaysia's 14 state water utilities from 2000 to 2017. Overall, Malaysia's water utilities can increase the water volume delivered while decreasing nonrevenue water and making further input reductions. Water utilities, on average, experienced higher technical efficiency after the regulatory reform. Network density and regulatory reform significantly influenced the technical inefficiency of water utilities in Malaysia.

Keywords: Parametric frontier model; Water utilities; Undesirable output; Exogenous factors (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0957178722001473
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:81:y:2023:i:c:s0957178722001473

DOI: 10.1016/j.jup.2022.101483

Access Statistics for this article

Utilities Policy is currently edited by Beecher, Janice

More articles in Utilities Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().