Exploring the Determinants of Operational Performance in the Water Supply Sector: A PCA Analysis of Networks, Meters, Raw Water and Operating Costs

Octavia Moise (), George Banghiore () and Mari-Isabella Stan ()
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Octavia Moise: Romanian Academy, School of Advanced Studies of the Romanian Academy, Doctoral of Economic Sciences, "Costin C. Kirițescu" National Institute for Economic Research, Institute of National Economy, Romania
George Banghiore: Romanian Academy, School of Advanced Studies of the Romanian Academy, Doctoral of Economic Sciences, "Costin C. Kirițescu" National Institute for Economic Research, Institute of National Economy, Romania
Mari-Isabella Stan: „Ovidius” University of Constanta, Faculty of Law and Administrative Sciences, Romania

Ovidius University Annals, Economic Sciences Series, 2024, vol. XXIV, issue 2, 55-64

Abstract: The water sector is essential for sustainable development, but faces complex challenges arising from climate change, accelerated urbanization, and increasingly stringent economic and environmental demands. This study examines the determinants of operational performance in the water sector, using principal component analysis (PCA) to analyze key variables such as distribution networks, meter usage, raw water characteristics, and operational costs. Results highlight that infrastructure modernization, implementation of digital technologies, and use of circular economy principles are essential for sustainability. The analysis also underscores the link between infrastructure investments and water loss reduction, cost optimization, and service improvement. Temporal evolution reflects a transition from major operational difficulties to improved performance, thanks to effective investment strategies. The conclusions provide valuable insights for strategic decision-making and recommend integrated approaches that ensure the balance between economic sustainability, technological efficiency, and social responsibility, thereby contributing to the management of water resources for the benefit of future generations.

Keywords: principal component analysis (PCA); wastewater management; performance of water operators (search for similar items in EconPapers)
JEL-codes: C10 Q53 R10 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xxiv:y:2024:i:2:p:55-64

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