Efficiency analysis of China's urban water supply utilities using a dynamic multiactivity network DEA model

Changjun Yin, Bo Hsiao and Kok Fong See

Structural Change and Economic Dynamics, 2024, vol. 71, issue C, 387-404

Abstract: Urban water scarcity and severe consumption challenges are crucial for improving performance in the urban water supply industry. Urban Water Supply Utilities (UWSUs) perform the primary task of providing tap water to city residents, and regulators use benchmarks to monitor UWSU operations. To assess the efficiency of UWSUs in detail, this study introduces a dynamic two-stage network data envelopment analysis (DEA) model with shared inputs and shared carryover. This model decomposes UWSU operations into water production (WP) and water distribution (WD) subprocesses. By combining dynamic features with network DEA, the study extends the static network DEA to a more general case for evaluating UWSU efficiency. The study sample includes 246 UWSUs from 24 provinces in China over the period 2016–2018. The analysis covers overall efficiency, period efficiency, subprocess efficiency, and regional disparities among the sampled water utilities. The findings indicate that the average efficiency of the UWSUs was 0.643 during 2016–2018, with slightly lower efficiency in the WP subprocess. UWSUs in the eastern provinces outperformed those in the central and western provinces, which require significant improvements. To enhance the performance of China's water supply sector, accelerated market competition and infrastructure improvements are necessary.

Keywords: Urban water supply utilities; Dynamic; Network DEA; Efficiency evaluation (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0954349X24000961
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:streco:v:71:y:2024:i:c:p:387-404

DOI: 10.1016/j.strueco.2024.07.001

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().