Performance of Water Utilities Evaluated from Different Stakeholders Perspectives: An Application to the Ivorian Sector

Jean-Philippe Boussemart, Daouda Diakité (daouda.diakite@univ-reunion.fr) and Raluca Parvulescu

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Abstract: In this paper, we model a performance measure of water utilities, considering an undesirable output: the amount of water lost within the network during distribution. We improve three methodological approaches in traditional production technology modeling with an undesirable output. We first adapt the model to the specificities of water production and distribution network. We then extend the analysis to include the economic objectives of three different stakeholders - a regulator that seeks to preserve this natural resource, the operator who wants to maximize his profit, and the consumer who seeks maximum consumption - in the context of a developing country with unfulfilled water demand. Finally, using our model, we estimate the economic value of lost water by its shadow marginal cost, which enables us to evaluate the cost of loss on the water grid in each of the scenarios. We then propose an empirical application for water production in Côte d'Ivoire.

Date: 2023-04-29
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Published in Journal of Productivity Analysis, 2023, ⟨10.1007/s11123-023-00676-1⟩

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Journal Article: Performance of Water Utilities Evaluated from Different Stakeholders Perspectives: An Application to the Ivorian Sector (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04126130

DOI: 10.1007/s11123-023-00676-1

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