The performance of German water utilities: a (semi)-parametric analysis

Michael Zschille and Matthias Walter ()

Applied Economics, 2012, vol. 44, issue 29, 3749-3764

Abstract: Germany's water supply industry is characterized by a multitude of utilities and widely diverging prices, possibly resulting from structural differences beyond the control of firms’ management, but also from inefficiencies. In this article, we use Data Envelopment Analysis and Stochastic Frontier Analysis to determine the utilities’ Technical Efficiency (TE) scores based on cross-sectional data from 373 public and private water utilities in 2006. We find large differences in TE scores even after accounting for significant structural variables like network density, share of groundwater usage and water losses.

Date: 2012
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Working Paper: The Performance of German Water Utilities: A (Semi)-Parametric Analysis (2011)
Working Paper: The Performance of German Water Utilities: A (Semi)-Parametric Analysis (2011)
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DOI: 10.1080/00036846.2011.581215

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