In recent years, achieving the Sustainable Development Goals (SDGs) is becoming a major challenge for local governments. This research focuses on the role of Spanish local governments in the fulfillment of SDG-6, which aims to ensure the availability and sustainable management of water and sanitation for all citizens. Specifically, this study analyses the evolution of the efficiency of Spanish local governments, and its determining factors, in the achievement of the SDG-6. The results indicate that the taxes associated with water supply and sanitation services, the private management of these services, population density, local government budget revenues, the income of the inhabitants of the municipality and the fragmentation of local governments are factors that can improve the evolution of the efficiency of Spanish local governments in achieving the SDG-6.Sustainability 2020, 12, 3015 2 of 13 debate on the efficiency in the management of water resources, which has become even more relevant with Agenda 2030 and, in particular, in relation to SDG-6. In this regard, measuring the evolution of the efficiency in the provision of water supply and sanitation services, and identifying how it can be improved to achieve SDG-6, is a further step towards the prosperity of the planet and people. However, despite the relevance of the topic, previous studies have investigated the efficiency of local governments in the provision of drinking water through Data Envelopment Analysis (DEA) and regression models. These approaches do not allow the measurement of inter-annual efficiency. In light of this, there is a clear need for more advanced methodologies capable of enabling a better understanding of the phenomenon. In this regard, our study aims to fill this important gap by using a different approach, represented by the Malmquist index (inter-annual evolution of efficiency) and a truncated regression model. In fact, this methodology allows an assessment of the inter-annual evolution of the efficiency of Spanish local governments in relation to the resources used to achieve SDG-6.Regarding the analysis of the determinants, this study investigates the impact of the characteristics of the service and the demographic, economic, and political factors of the municipality represented by taxes, type of management, population density, level of tourism, citizens' income, political ideology and political strength of the government.The structure of this study is organized as follows. After this introduction, we review the literature analyzing the relevance of SDGs and the determinants of efficiency in water supply and sanitation. Section 3 presents the methodology, referring to the sample, variables, and econometric model. Section 4 presents the results and discussion. Finally, in Section 5, we draw the main conclusions and implications of our findings, the limitations of the study, and the directions for further research.
Literature Review