The cost of reducing unplanned water supply interruptions: A parametric shadow price approach

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

doi:10.1016/j.scitotenv.2020.137487

Cited by 24 publications

(10 citation statements)

References 38 publications

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“…The multiproduct Cobb–Douglas cost frontier in the case of L total outputs and z quality of service (environmental) variables is defined as follows (Jamasb et al. , 2012; Maziotis et al. , 2020b):where ln denotes logarithms, subscripts i and t denote water utility and time, respectively, a0 is the constant term, Ci,t is the observed (actual) cost, yi,t is the set of outputs to provide water and wastewater services, zi,t is the vector of quality of service variables that control for water utilities' heterogeneity and might affect their costs.…”

Section: Methodsmentioning

confidence: 99%

“…, 2017; Cetrulo et al. , 2019; Maziotis et al. , 2020b), two outputs were defined for the three methods employed (SFA, DEA and StoNED): (1) volume of water delivered measured in thousand cubic meters per year and; (2) annual number of customers receiving wastewater treatment.…”

Section: Data and Sample Selectionmentioning

confidence: 99%

“…Moreover, it is easy to estimate and has been widely used in the literature (Coelli et al, 2005). The multiproduct Cobb-Douglas cost frontier in the case of L total outputs and z quality of service (environmental) variables is defined as follows (Jamasb et al, 2012;Maziotis et al, 2020b): BIJ 29,10…”

Section: Efficiency Assessment Using Stochastic Frontier Analysis Met...mentioning

confidence: 99%

“…Following past studies (e.g. Berg and Marques, 2011;Carvalho et al, 2012;Ferro and Mercadier, 2016;Pinto et al, 2017;Cetrulo et al, 2019;Maziotis et al, 2020b), two outputs were defined for the three methods employed (SFA, DEA and StoNED): (1) volume of water delivered measured in thousand cubic meters per year and; (2) annual number of customers receiving wastewater treatment. Since the water companies in Chile have carried out several investment programs to improve the drinking water and wastewater quality standards (Molinos-Senante et al, 2018b), we adjusted outputs to reflect these changes.…”

Section: Data and Sample Selectionmentioning

confidence: 99%

See 3 more Smart Citations

Benchmarking the economic and environmental performance of water utilities: a comparison of frontier techniques

Molinos-Senante

Maziotis

Sala-Garrido

2021

BIJ

Self Cite

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PurposeThe purpose of this paper is to estimate and compare the efficiency of several water utilities using three frontier techniques. Moreover, this study estimates the impact of several qualities of service variables on water utilities’ performance.Design/methodology/approachThe paper utilizes three frontier techniques such as data envelopment analysis (DEA), stochastic frontier analysis (SFA) and stochastic non-parametric envelopment of data (StoNED) to estimate efficiency scores.FindingsEfficiency scores for each methodological approach were different being on average, 0.745, 0.857 and 0.933 for SFA, DEA and StoNED methods, respectively. Moreover, it was evidenced that water leakage had a statistically significant impact on water utilities’ costs.Research limitations/implicationsThe choice of an adequate and robust method for benchmarking the efficiency of water utilities is very relevant for water regulators because it affects decision making process such as water tariffs and design incentives to improve the performance and quality of service of water utilities.Originality/valueThis paper evaluates and compares the performance of a sample of water utilities using three different frontier methods. It has been revealed that the choice of the efficiency assessment method matters. Unlike SFA and DEA, a lower variability was shown in the efficiency scores obtained from the StoNED method.

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Section: Methodsmentioning

confidence: 99%

Section: Data and Sample Selectionmentioning

confidence: 99%

Section: Efficiency Assessment Using Stochastic Frontier Analysis Met...mentioning

confidence: 99%

Section: Data and Sample Selectionmentioning

confidence: 99%

See 2 more Smart Citations

Benchmarking the economic and environmental performance of water utilities: a comparison of frontier techniques

Molinos-Senante

Maziotis

Sala-Garrido

2021

BIJ

Self Cite

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“…First, we must select the indicators. Regarding the inputs, the literature on the subject has primarily focused on OPEX (see, e.g., Molinos-Senante et al [27], Maziotis et al [49]). Regarding the outputs, past research has paid attention to the volume of consumed water (see, e.g., Guerrini et al [50]) and the number of connections (see, e.g., Ananda [51]).…”

Section: Case Studymentioning

confidence: 99%

Technical and Scale Efficiency of the Brazilian Municipalities’ Water and Sanitation Services: A Two-Stage Data Envelopment Analysis

Pereira¹,

Marques²

2021

Sustainability

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Seeking to “ensure availability and sustainable management of water and sanitation for all” is an admirable Sustainable Development Goal and an honourable commitment of the United Nations and its Member States regarding the human right to safe drinking water and sanitation services (WSSs). However, the majority of countries are not on target to achieve this by 2030, with several of them moving away from the best practices. Brazil is one of these cases, given, for example, the existing asymmetries in the access to water supply and sanitation service networks. For this reason, we propose a benchmarking exercise using a two-stage Data Envelopment Analysis to measure the technical and scale efficiency of the Brazilian municipalities’ WSSs, noting their contextual environment. Our results point towards low mean efficiency scores, motivated by the existence of significant scale inefficiencies (the vast majority of municipalities are operating at a larger than optimal scale). Furthermore, the Water source was found to be a statistically significant efficiency predictor, with statistically significant differences found in terms of Ownership and Geography. Ultimately, we suggest policy-making and regulatory possibilities based on debureaucratization, the implementation of stricter expenditure control policies, and investment in the expansion of WSSs.

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Customer-Driven Water Supply Systems: Synergizing System Reliability and Customer Satisfaction with Bowtie Analysis

Haider

Alinizzi

Shafiquzzaman

et al. 2022

Water Resour Manage

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The cost of reducing unplanned water supply interruptions: A parametric shadow price approach

Cited by 24 publications

References 38 publications

Benchmarking the economic and environmental performance of water utilities: a comparison of frontier techniques

Benchmarking the economic and environmental performance of water utilities: a comparison of frontier techniques

Technical and Scale Efficiency of the Brazilian Municipalities’ Water and Sanitation Services: A Two-Stage Data Envelopment Analysis

Customer-Driven Water Supply Systems: Synergizing System Reliability and Customer Satisfaction with Bowtie Analysis

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