Are water tariffs sufficient incentives to reduce water leakages? An empirical approach for Chile

Molinos-Senante, María; Villegas, Andrés; Maziotis, Alexandros

doi:10.1016/j.jup.2019.100971

Cited by 26 publications

(4 citation statements)

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“…Based on past studies and literature reviews on the water industry (e.g., Carvalho et al 2012;Pinto et al 2017;Molinos-Senante et al 2019;Cetrulo et al 2019;Goh and See 2021), we defined the following inputs and desirable and undesirable outputs. The first input was presented by the operating expenditure of services provided to customers excluding staff costs.…”

Section: Data Samplementioning

confidence: 99%

Eco-efficiency assessment under natural and managerial disposability: an empirical application for Chilean water companies

Sala-Garrido

Mocholí-Arce

Molinos-Senante

et al. 2022

Environ Sci Pollut Res

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Getting a good understanding regarding the economic and environmental performance of water utilities is of great importance to achieve the goal of an efficient and sustainable industry. In this study, we apply the range adjusted measure (RAM) data envelopment analysis (DEA) model to evaluate the integrated (production and environmental) efficiency of several water utilities located in Chile. Integrated efficiency is evaluated using the concepts of natural and managerial disposability. This approach further allows us to quantify the contribution of each input and undesirable product on efficiency scores. The results highlighted that the Chilean water industry showed high levels of production and environmental efficiency over time. Under natural disposability, water utilities could control production costs to reduce water leakage and unplanned water supply interruptions by 3.3% on average. Under managerial disposability, water utilities could further cut down undesirable outputs by 1.4% on average by adopting best managerial practices. On average, potential savings in operating costs, employment, water leakage, and unplanned water supply interruptions were higher for concessionary utilities as they showed slightly lower efficiency scores than full private utilities.

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Section: Data Samplementioning

confidence: 99%

Eco-efficiency assessment under natural and managerial disposability: an empirical application for Chilean water companies

Sala-Garrido

Mocholí-Arce

Molinos-Senante

et al. 2022

Environ Sci Pollut Res

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“…The second was the number of treatment works when water is taken from surface water resources [ 62 ]. Finally, population density was defined as the ratio of population to the length of water mains [ 65 , 66 ]. Table 1 depicts the descriptive statistics of the variables used in the study.…”

Section: Case Study Descriptionmentioning

confidence: 99%

Eco-Efficiency of the English and Welsh Water Companies: A Cross Performance Assessment

Sala-Garrido

Mocholí-Arce

Molinos-Senante

et al. 2021

IJERPH

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Analyzing costs and greenhouse gas (GHG) emissions could be of great importance for the water utilities to supply water services in a healthy and sustainable manner. In this study, we measured the eco-efficiency of several water utilities in England and Wales by incorporating GHG as an undesirable output. For the first time, we evaluated the eco-efficiency of the water production process using robust cross-efficiency data envelopment analysis (DEA) techniques. The further use of clustering and regression techniques allowed us to better understand the drivers of eco-efficiency. The results showed that the mean eco-efficiency of the water sector was 0.748, which indicates that costs and GHG emissions could be reduced by 25.2% to generate the same level of output. Large water companies with high energy costs and levels of GHG emissions belonged to the less eco-efficient group. Environmental factors related to density, topography, and treatment complexity further impacted eco-efficiency. Finally, we linked our results to the regulatory cycle and discuss some policy implications.

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“…In addition, the lack of laws for contemporary irrigated farms leads to an increase in under-cultivated land rather than a reduction in water usage 9 . Some decision-makers concluded that water tariff adjustment could be a powerful economic leverage to overcome the long-term challenges of water supply services, i.e., 10 , 11 . In contrast, independent studies indicated that the usefulness of water price adjustment is ambiguous.…”

Section: Introductionmentioning

confidence: 99%

A study of the required sustainability-driven institutional and behavioural mechanisms to tackle the anticipated implications of agricultural water price shocks: a system dynamics approach

Momeni,

Razavi,

Zahedi

et al. 2023

Sci Rep

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Economic policies for managing agricultural water use are often complicated by the challenge of using water prices as an efficient economic tool when other non-economic concerns are involved in the decision-making process. This study aims to analyse the impact of water pricing policies on preserving agricultural water resources in Iran. This study applies a system dynamics approach to simulate the system performance and behaviour of stakeholders and the economic implications. Our finding shows that water pricing policies will likely fail due to low water price elasticity and if there are lack of institutional and physical infrastructure, alternative professions, manufacturing technology, education, and training opportunities. The results also illustrate how agricultural water price increase (AWPI) fails to reduce water consumption in the absence of an adequate institutional arrangement. Also, it shows how the lack of advanced institutional infrastructure in the presence of physical infrastructure enhances pervasive overuse and destructive competition among stakeholders by increasing the area under cultivation. In the discussion, the paper portrays a way out of the decision-making body by following AWPI effects on water conservation in the agricultural sector as the most significant water consumer. It investigates the absence and subsequent presence of specific institutional conditions and evaluates training and enhancing farmers' skills and alternative career source with higher income and technology as the architecture of good environmental governance. Finally, it concludes that a series of inclusive measures must be considered to increase the elasticity of the water price. These measures must stimulate farmers towards pursuing the goals of global sustainable development and enhancing social welfare.

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Are water tariffs sufficient incentives to reduce water leakages? An empirical approach for Chile

Cited by 26 publications

References 50 publications

Eco-efficiency assessment under natural and managerial disposability: an empirical application for Chilean water companies

Eco-efficiency assessment under natural and managerial disposability: an empirical application for Chilean water companies

Eco-Efficiency of the English and Welsh Water Companies: A Cross Performance Assessment

A study of the required sustainability-driven institutional and behavioural mechanisms to tackle the anticipated implications of agricultural water price shocks: a system dynamics approach

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