Water company productivity change: A disaggregated approach accounting for changes in inputs and outputs |
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| Affiliation: | 1. Higher School of Digital Economy & Business School of Tunis, Manouba University, Campus Universitaire de Manouba, 2010, Tunisia;2. Higher School of Digital Economy, Manouba University, Campus Universitaire de Manouba, 2010, Tunisia;1. Departamento de Ingeniería Hidráulica y Ambiental, Pontificia Universidad Católica de Chile, Av. Vicuña Mackenna 4860, Santiago, Chile;2. Facultad de Arquitectura e Instituto de Estudios Urbanos, Pontificia Universidad Católica de Chile, El Comendador 1916, Santiago, Chile;3. Centro de Desarrollo Urbano Sustentable CONICYT/FONDAP/15110020, Av. Vicuña Mackenna 4860, Santiago, Chile;4. Departamento de Economía Agraria, Pontificia Universidad Católica de Chile, Casilla 306-22, Santiago, Chile;5. Centro de Derecho y Gestión del Agua, Pontificia Universidad Católica de Chile, Casilla 306-22, Santiago, Chile;6. Departamento de Matemáticas para la Economía y la Empresa, Universidad de Valencia, Avd. Tarongers S/N, Valencia, Spain;1. Center of Operations Research, University Miguel Hernandez of Elche, Av.de la Universidad s/n, 03202 Elche, Spain;2. Department of Economics and Business, University of Alcalá, Plaza de la Victoria, 2, 28802 Alcalá de Henares, Spain;3. Department of Applied, Political and Public Economics, Complutense University of Madrid, Campus de Somosaguas, 28223 Madrid, Spain |
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| Abstract: | The assessment of the productivity change of water utilities provides essential information to sector managers and regulators. This study uses the Luenberger-Hicks-Moorsteen Productivity Indicator (LHMPI) to evaluate productivity change as it can be further decomposed into three components namely technical change (TC), technical efficiency change (TEC), and scale efficiency change (SEC). This study evaluates the productivity of several water companies in England and Wales from 2001 to 2018. We found that productivity declined 1.2% per year due to the use of inputs that increased by 1.4% per year relative to outputs that increased by 0.2% per year. |
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| Keywords: | Luenberger-hicks-moorsteen Productivity change Water utilities |
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