Assesing Performance in the Management of the Urban Water Cycle

Andres Picazo-Tadeo, Francisco J. Sáez-Fernández and Francisco González-Gómez

No 2008/01, Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG)

Abstract: This paper proposes the use of directional distance functions and Data Envelopment Analysis techniques to assess technical efficiency in the provision of the stages of the urban water cycle in Andalusia, a Southern Spanish region. Evaluating performance in the management of specific stages of the urban water cycle provides utility managers and regulating authorities with relevant information that could remain out of sight with more conventional approaches based on assessing performance at firm level. Among other results, we show that Andalusian water and sewage utilities could achieve important increases in the volume of water delivered without diminishing their production in the remaining services, and with the same quantities of inputs. Potential increases are also important for the volume of sewage collected, thus entailing significant environmental benefits in a territory where water scarcity has seen the efficient management of this natural resource become a pressing obligation.

Keywords: urban water cycle; water and sewage utilities; technical efficiency; Data Envelopment Analysis; directional distance functions (search for similar items in EconPapers)
Pages: 26
Date: 2008
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Citations: View citations in EconPapers (1)

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