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Is DEA useful in the regulation of water utilities? A dynamic efficiency evaluation

[journal article]

Garcia-Valiñas, Maria A.; Muñiz, Manuel A.

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Abstract The discussion about public utilities efficiency and its management has become increasingly important in the last decades. We focus on the distribution of water, which is one of the most important natural resources (Marshall, 1879). This research shows the relationship between efficiency and institutional factors such as management system. For this purpose, we have data about some Spanish water utilities under different provision systems, during the 1985-2000 period. Using Data Envelopment Analysis (DEA), we estimate potential cost savings in this context. We will extend the results obtained by Thanassoulis (2000), in attempt to guide the regulation of this sector.
Classification Special areas of Departmental Policy; Economic Sectors
Free Keywords water supply; efficiency; Data Envelopment Analysis; price regulation
Document language English
Publication Year 2006
Page/Pages p. 245-252
Journal Applied Economics, 39 (2006) 2
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)