Data envelopment analysis in target setting of water utilities

Abstract

Past studies have linked goal difficulty, participation and acceptability to goal commitment and performance outcomes. This study pinpoints another frequently forgotten but important issue -the impact on implied technical efficiencies of decision making units (DMUs) involved in the goal setting process. The data envelopment analysis (DEA) technique is used to derive targets and technical efficiencies of 19 sub-utilities of the Uganda National Water and Sewerage Corporation and the DEA targets are compared with negotiated targets. Technical efficiencies for the two scenarios are also contrasted. The results indicate that, even if a goal setting process has incorporated tenets of participation, acceptability and goal difficulty, it may not necessarily guarantee improved technical efficiency of all DMUs.

On the Evolution of Water Use Efficiency among Spanish Regions and its Determinants

“…DEA is a well-known non-parametric technique aimed at comparing decision-making units, DMUs, (in our case, regions) to build a piecewise linear frontier in terms of inputs and outputs. Numerous authors have recently used DEA to study water use efficiency in different countries and regions, such as China (Hu et al, 2006, Deng et al 2016, Liu et al, 2013, Chen, 2015, Zhang 2020, India (Raju and Kumar 2006, 2013, Manjunatha et al, 2011, Veettil et al, 2013, Turkey (Yilmaz et al, 2009), Tunisia (Chemak et al, 2009), Kenya (Njiraini and Guthiga, 2013), Southern Alberta (Ali and Klein, 2014), and Australia (Azad et al, 2015). DEA has also been widely used in calculating water supply efficiency in Italy Guerrini, 2011, Guerrini et al, 2013), Germany (Zschille and Walter, 2012), France (Lannier and Porcher, 2014), Uganda (Mugisha, 2013) and Australia (Ananda, 2014, Azad andAncev, 2014).…”