Assessing productivity changes in water companies: a comparison of the Luenberger and Luenberger-Hicks-Moorsteen productivity indicators

ABSTRACT

Interest in evaluating productivity changes in water companies has increased in recent years. In this paper, for the first time, we employ the Luenberger-Hicks-Moorsteen Productivity Indicator (LHMPI) to evaluate productivity changes in a sample of Chilean water companies from 2010 to 2016. Productivity change estimations obtained by both the Luenberger Productivity Indicator (LPI) and the LHMPI are compared. Moreover, both indicators were computed assuming constant and variable returns to scale technologies. The LHMPI estimates illustrate that productivity in Chilean water companies has slightly improved over the period studied due to the positive trend of outputs, whereas the inputs negatively contributed to productivity changes. Results from the empirical analysis enabled us to verify that the LHMPI and LPI (and their drivers) are statistically different. This conclusion illustrates that water regulators need to pay attention to the indicators used when assessing productivity changes in water companies.     

Measuring and comparing the efficiency of water utility companies: A data envelopment analysis approach

This study provides an analysis of Italian water utilities to determine the effects on their efficiency of certain relevant variables that have been broadly discussed in the existing literature. We reviewed the annual financial statements of 43 Italian water utility companies and obtained other technical data from Co.n.vi.r.i., the Italian national authority for water. Using data envelopment analysis we assessed their cost efficiencies and, using non-parametric statistic methods, we discuss the significant differences among clusters.We found that ownership structure, size and geographical location had an impact on the performance of water utilities, although with different degrees of significance.     

The new Italian water tariff method: A launching point for novel infrastructures or a backwards step?

In Italy recently the regulatory authority for electricity, gas and the water industry was mandated to design a new tariff method more consistent with EU standards of ‘full cost recovery’ and the ‘polluter pays’ rules. This paper attempts to highlight the strengths and limitations of this new method, its actual effects on tariffs, financial plans and utilities' investment policy, compared to the previous method, with a focus on the effects of the tariff method for both users and utilities. A case study was selected and this included the biggest water utility controlled by the local water authority in Verona province.     

How committed are swiss utilities to energy saving without being obligated to do so?

In Switzerland, where utilities are not subject to energy savings obligations, their performance in improving their clients' energy efficiency (EE) differs strongly. We established four groups of utilities and analyzed their incentives and constraints for promoting EE. Their perceptions varied in many aspects, including the profitability of EE programs and the role of leadership. However, the majority favors collaboration and does not see the lack of an adequate policy framework as a constraint. We hypothesize about the underlying reasons and conclude that collaborations among utilities can help with knowledge sharing, EE program design, and common measurement and verification methods.     

市政公用事业改革构想

阐述了市政公用事业,从具有完备的法制保障体系、推行特许经营、实现政企分离、强化政府监管、完善现行价格机制等方面对市政公用事业的改革提出了一些构想,从而实现高效率、高质量的提供公共产品和公共服务的目标。     

Productivity and efficiency in the water industry

Over the past twenty years there has been increasing interest in the productivity and efficiency of, and the optimal structures for, the water supply and wastewater industries. In part this interest has manifested itself in the increased use of numerous statistical techniques to determine the productivity and efficiency of the water sector in a variety of countries. The purpose of this paper is threefold. First it briefly reviews the various measures that have been used to gauge the levels of productivity and efficiency in the water sector, with particular reference to input and output data requirements of these measures. Second it summarises the key structural findings that have been determined from this research, particularly with respect to economies of scale and scope, public versus private ownership and the impact of regulation. Third, it considers potential areas for potential future research, such as the effect of environmental management activities (including water conservation) and regulation on productivity and efficiency, the role of wastewater as a potential source of potable or ‘fit-for-purpose’ water and the relationship between water supply and urban planning.