Measuring the Technical Efficiency of Municipal Water Suppliers: the Role of Environmental Factors

Steven Renzetti and Diane Dupont

No 802, Working Papers from Brock University, Department of Economics

Abstract: This paper extends the multistage procedure set out in Fried et al (1999) to examine the importance of environmental factors when assessing the technical efficiency of water agencies. However, following Simar and Wilson’s (2007) critique of multistage efficiency analyses, the paper uses a bootstrapping approach in order to have consistent inference. Data are from a cross-section of municipal water agencies in Ontario, Canada during 1996. The main findings are that environmental factors explain some of the observed variation in efficiency scores and that water agencies’ relative efficiency scores are changed substantially after controlling for environmental factors.

Keywords: Water Utility; Data Envelopment Analysis; Technical Efficiency (search for similar items in EconPapers)
JEL-codes: H42 Q25 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2008-07
New Economics Papers: this item is included in nep-eff and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Measuring the Technical Efficiency of Municipal Water Suppliers: The Role of Environmental Factors (2009)
Working Paper: Measuring the Technical Efficiency of Municipal Water Suppliers: the Role of Environmental Factors (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:brk:wpaper:0802

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