Benchmarking the Performance of Productive Units Using Cross-Efficiency Techniques: An Empirical Approach for Water Companies

Ramon Sala-Garrido, Manuel Mocholi-Arce, Maria Molinos-Senante (), Michail Smyrnakis and Alexandros Maziotis
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Ramon Sala-Garrido: University of Valencia
Manuel Mocholi-Arce: University of Valencia
Maria Molinos-Senante: Centro de Derecho y Gestión del Agua UC
Michail Smyrnakis: Hartree Centre, Science and Technology Facility Council (STFC)
Alexandros Maziotis: Pontificia Universidad Católica de Chile, Avda. Vicuña Mackenna

Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), 2023, vol. 37, issue 14, No 4, 5459-5476

Abstract: Abstract Water companies provide essential services to society, such as drinking water and sanitation. Improving the management of these companies is fundamental for evaluating their performance. This study employs cross-efficiency data envelopment analysis techniques to assess a sample of water companies during the years 2010–2018. The assessment focuses on three main topics: i) the impact of service quality on water companies' performance; ii) the influence of environmental variables on efficiency and eco-efficiency in water companies and; iii) the effect of ownership on water company performance. The results reveal that service quality significantly influences water companies' performance. Additionally, it demonstrates that customer density and ownership of water companies impact economic and environmental efficiency, with public water companies showing the best performance. However, the quality of service of public water companies had deteriorated over time.

Keywords: Cross-efficiency; Data envelopment analysis; Cluster analysis; Water utilities; Quality of service (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s11269-023-03614-w

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