Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case

Benchmarking the dynamic performance of water companies is a powerful tool to develop sound policies. However, it requires the use of reliable and robust methods and quality of data. In this study, the stochastic nonparametric envelopment of data (StoNED) method was employed to assess productivity change and eco-productivity change of a sample of Chilean water companies over the period 2010–2018. The StoNED approach overcomes the main limitations of stochastic frontier analysis and data envelopment analysis techniques which are the most commonly used to evaluate performance of water companies. Productivity change metric focused on the economic performance, whereas eco-productivity change evaluated economic and quality of service performance by including non-revenue water and unplanned water supply interruptions. Hence, this study analyzed the impact of quality of service variables on the dynamic eco-efficiency of water companies. The annual average productivity change and eco-productivity change estimations were 0.18% and −0.14%, respectively. It was evidenced that on average the Chilean water companies have put as priority to reduce operational costs than to improve quality of service. In both performance metrics, efficiency change was the main contributor to performance changes, whereas the role of technical change was negligible. It was illustrated that full private water companies performed better than concessionary companies and the public company. Reducing non-revenue water and unplanned water supply interruptions was particularly costly for concessionary water companies. The methodology and conclusions of this study are of great interest for water regulators and water utilities to improve the benchmarking process in the provision of drinking water services.

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Pricing of water and sewerage charge rates of a selected water management company in the Czech Republic – a case study

Obloukova,

Vitkova

2024

E3S Web of Conf.

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The article deals with water and sewerage charge rates issues in the Czech Republic over the last 4 years. This article is focused only on part of the research. Research is based on data collection. The data were obtained from the internet portal eAGRI.cz. The aim of the article is to describe the development of water and sewerage charge rates in the Czech Republic during the last 4 years (2018-2021) and to analyse the pricing of a selected company in the Czech Republic. First, analyse the average water and sewerage charge rates system in the Czech Republic in the monitored period, then define the average water and sewerage charge rates system for the individual regions in which the selected water management company operates. The goal of the research is the analysis of the individual components of the calculation formula of the selected water supply and sewerage operator in the Czech Republic, namely the joint-stock company Brněnské vodarny a kanalizace, a.s. The vertical analysis methodology is chosen for data evaluation. The analysed operator has the largest representation in other direct costs and material in the calculation formula.

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Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case

Cited by 7 publications

References 51 publications

Impact of the FLEGT license on Indonesian plywood competitiveness in the European Union

Impact of the FLEGT license on Indonesian plywood competitiveness in the European Union

Evaluation of dynamic eco-efficiency of water companies: the influence of non-revenue water and water supply interruptions

Pricing of water and sewerage charge rates of a selected water management company in the Czech Republic – a case study

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