119
Views
1
CrossRef citations to date
0
Altmetric
Research Articles

Estimation and evaluation of productivity change and its drivers in the English and Welsh water sector: a stochastic cost frontier approach

&
Pages 625-633 | Received 27 Jul 2019, Accepted 05 Jan 2020, Published online: 13 Jan 2020

References

  • Ananda, J. 2014. “Evaluating the Performance of Urban Water Utilities: Robust Nonparametric Approach.” Journal of Water Resources Planning and Management 140 (9): 04014021. doi:10.1061/(ASCE)WR.1943-5452.0000387.
  • Antonioli, B., and M. Filippini. 2001. “The Use of a Variable Cost Function in the Regulation of the Italian Water Industry.” Utilities Policy 10: 181–187. doi:10.1016/S0957-1787(02)00065-6.
  • Ashton, J. K. 2000. “Cost Efficiency in the UK Water and Sewerage Industry.” Applied Economics Letters 7: 455–458. doi:10.1080/135048500351177.
  • Banfi, S., and M. Filippini. 2010. “Resource Rent Taxation and Benchmarking —A New Perspective for the Swiss Hydropower Sector.” Energy Policy 38 (5): 2302–2308. doi:10.1016/j.enpol.2009.12.017.
  • Bauer, P. W. 1990. “Decomposing TFP Growth in the Presence of Cost Inefficiency, Nonconstant Returns to Scale, and Technological Progress.” Journal of Productivity Analysis 1: 287–299. doi:10.1007/BF00160047.
  • Bottasso, A., and M. Conti. 2009. “Price Cap Regulation and the Ratchet Effect: A Generalised Index Approach.” Journal of Productivity Analysis 32 (3): 191–201. doi:10.1007/s11123-009-0140-z.
  • Brea-Solis, H., S. Perelman, and D. Saal. 2017. “Regulatory Incentives to Water Losses Reduction: The Case of England and Wales.” Journal of Productivity Analysis 47 (3): 259–276. doi:10.1007/s11123-017-0496-4.
  • Carvalho, P., and R. C. Marques. 2011. “The Influence of the Operational Environment on the Efficiency of Water Utilities.” Journal of Environmental Management 92: 2698–2707. doi:10.1016/j.jenvman.2011.06.008.
  • Carvalho, P., and R. C. Marques. 2014. “Computing Economies of Vertical Integration, Economies of Scope and Economies of Scale Using Partial Frontier Nonparametric Methods.” European Journal of Operational Research 234 (1): 292–307. doi:10.1016/j.ejor.2013.09.022.
  • Carvalho, P., R. C. Marques, and S. Berg. 2012. “A Meta-regression Analysis of Benchmarking Studies on Water Utilities Market Structure.” Utilities Policy 21: 40–49. doi:10.1016/j.jup.2011.12.005.
  • Cetrulo, T. B., R. C. Marques, and T. F. Malheiros. 2019. “An Analytical Review of the Efficiency of Water and Sanitation Utilities in Developing Countries.” Water Research 161: 372–380. doi:10.1016/j.watres.2019.05.044.
  • Coelli, T. J., D. S. Prasada Rao, C. J. O’Donnell, and G. E. Battese. 2005. An Introduction to Efficiency and Productivity Analysis. Springer. http://www.springerlink.com/openurl.asp?genre=book&isbn=978-0-387-24265-1.
  • De Witte, K., and R. C. Marques. 2012. “Gaming in A Benchmarking Environment. A Non-parametric Analysis of Benchmarking in the Water Sector.” Water Policy 14: 45–66. doi:10.2166/wp.2011.087.
  • Erbetta, F., and M. Cave. 2007. “Regulation and Efficiency Incentives: Evidence from the England and Wales Water and Sewerage Industry.” Review of Network Economics 6 (4): 425–452. doi:10.2202/1446-9022.1128.
  • Farsi, M., M. Filippini, and W. Greene. 2005. “Efficiency Measurement in Network Industries: Application to the Swiss Railway Companies.” Journal of Regulatory Economics 28 (1): 69–90. doi:10.1007/s11149-005-2356-9.
  • Filippini, M., N. Hrovatin, and J. Zoric. 2010. “Productivity Growth and Price Regulation of Slovenian Water Distribution Utilities.” Zbornik Radova Ekonomskog Fakulteta U Rijeci 28 (1): 89–112.
  • Greene, W. H. 2005a. “Reconsidering Heterogeneity in Panel Data Estimators of the Stochastic Frontier Model.” Journal of Econometrics 126: 269–303. doi:10.1016/j.jeconom.2004.05.003.
  • Greene, W. H. 2005b. “Fixed and Random Effects in Stochastic Frontier Models.” Journal of Productivity Analysis 23 (1): 7–32. doi:10.1007/s11123-004-8545-1.
  • Guerrini, A., G. Romano, and B. Campedelli. 2013. “Economies of Scale, Scope, and Density in the Italian Water Sector: A Two-stage Data Envelopment Analysis Approach.” Water Resources Management 27: 4559–4578. doi:10.1007/s11269-013-0426-9.
  • Jorgenson, D. W., and Z. Griliches. 1967. “The Explanation of Productivity Change.” Review of Economic Studies 34 (3): 249–280. doi:10.2307/2296675.
  • Kumbhakar, S. C., and C. A. K. Lovell. 2000. Stochastic Frontier Analysis. Cambridge: Cambridge University Press.
  • Lawrence, D., W. E. Diewert, and K. J. Fox. 2006. “The Contributions of Productivity, Price Changes and Firm Size to Profitability.” Journal of Productivity Analysis 26 (1): 1–13. doi:10.1007/s11123-006-0001-y.
  • Marques, R. C. 2010. Regulation of Water and Wastewater Services: An International Comparison. London, UK: IWA Publishing.
  • Marques, R. C., P. Simoes, and J. S. Pires. 2011. “Performance Benchmarking in Utility Regulation: The Worldwide Experience.” Polish Journal of Environmental Studies 20 (1): 125–132.
  • Marques, R. C., S. Berg, and S. Yane. 2014. “Nonparametric Benchmarking of Japanese Water Utilities: Institutional and Environmental Factors Affecting Efficiency.” Journal of Water Resources Planning and Management 140 (5): 562–571. doi:10.1061/(ASCE)WR.1943-5452.0000366.
  • Maziotis, A., D. S. Saal, E. Thanassoulis, and M. Molinos-Senante. 2015a. “Profit, Productivity and Price Performance Changes in the Water and Sewerage Industry: An Empirical Application for England and Wales.” Clean Technologies and Environmental Policy 17 (4): 1005–1018. doi:10.1007/s10098-014-0852-2.
  • Maziotis, A., D. S. Saal, E. Thanassoulis, and M. Molinos-Senante. 2015b. “Profit Change and Its Drivers in the English and Welsh Water Industry: Is Output Quality Important?” Water Policy 20 (5): 995–1012.
  • Maziotis, A., D. S. Saal, E. Thanassoulis, and M. Molinos-Senante. 2016a. “Price Cap Regulation in the English and Welsh Water Industry: A Proposal for Measuring Performance.” Utilities Policy 41: 22–30. doi:10.1016/j.jup.2016.04.002.
  • Maziotis, A., M. Molinos-Senante, and R. Sala-Garrido. 2016b. “Assessing the Impact of Quality of Service on the Productivity of Water Industry: A Malmquist-Luenberger Approach for England and Wales.” Water Resources Management 31: 2407–2427. doi:10.1007/s11269-016-1395-6.
  • Molinos-Senante, M., and A. Maziotis. 2017. “Estimating Economies of Scale and Scope in the English and Welsh Water Industry Using Flexible Technology.” Journal of Water Resources Planning and Management 143 (10): 04017060. doi:10.1061/(ASCE)WR.1943-5452.0000833.
  • Molinos-Senante, M., and A. Maziotis. 2018a. “Flexible versus Common Technology to Estimate Economies of Scale and Scope in the Water and Sewerage Industry: An Application to England and Wales.” Environmental Science and Pollution Research 25 (14): 14158–14170. doi:10.1007/s11356-018-1638-6.
  • Molinos-Senante, M., and A. Maziotis. 2018b. “Assessing the Influence of Exogenous and Quality of Service Variables on Water Companies´ Performance Using a True-fixed Stochastic Frontier Approach.” Urban Water Journal 15 (7): 682–691. doi:10.1080/1573062X.2018.1539502.
  • Molinos-Senante, M., A. Maziotis, and R. Sala-Garrido. 2014. “The Luenberger Productivity Indicator in the Water Industry: An Empirical Analysis for England and Wales.” Utilities Policy 30: 18–28. doi:10.1016/j.jup.2014.07.001.
  • Molinos-Senante, M., A. Maziotis, and S. Sala-Garrido. 2017b. “Assessment of the Total Factor Productivity Change in the English and Welsh Water Industry: A Fare-Primont Productivity Index Approach.” Water Resources Management 31 (8): 2389–2405. doi:10.1007/s11269-016-1346-2.
  • Molinos-Senante, M., A. Maziotis, and S. Sala-Garrido. 2019. “Estimating Profit, Price, and Productivity Changes in Water Industry Using Bennet-Bowley Indicator.” Journal of Water Resources Planning and Management 145 (5): 04019011. doi:10.1061/(ASCE)WR.1943-5452.0001065.
  • Molinos-Senante, M., S. Porcher, and A. Maziotis. 2017a. “Impact of Regulation on English and Welsh Water-Only Companies: An Input Distance Function Approach.” Environmental Science and Pollution Research 24 (20): 16994–17005. doi:10.1007/s11356-017-9345-2.
  • Pinto, F. S., P. Simoes, and R. C. Marques. 2017. “Water Services Performance: Do Operational Environment and Quality Factors Count?” Urban Water Journal 14 (8): 773–781. doi:10.1080/1573062X.2016.1254254.
  • Porcher, S., A. Maziotis, and M. Molinos-Senante. 2017. “The Welfare Costs of Non-marginal Water Pricing: Evidence from the Water Only Companies in England and Wales.” Urban Water Journal 14 (9): 947–953. doi:10.1080/1573062X.2017.1325494.
  • Portela, C. A. S., E. Thanassoulis, A. Horncastle, and T. Maugg. 2011. “Productivity Change in the Water Industry in England and Wales: Application of the Meta-malmquist Index.” Journal of the Operational Research Society 62 (12): 2173–2188. doi:10.1057/jors.2011.17.
  • Saal, D. S., and D. Parker. 2006. “Assessing the Performance of Water Operations in the English and Welsh Water Industry: A Lesson in the Implications of Inappropriately Assuming a Common Frontier.” In Performance Measurement and Regulation of Network Utilities, edited by T. Coelli and D. Lawrence, 297–328. Cheltenham: Edward Elgar.
  • Saal, D. S., and D. Parker. 2001. “Productivity and Price Performance in the Privatized Water and Sewerage Companies in England and Wales.” Journal of Regulatory Economics 20 (1): 61–90. doi:10.1023/A:1011162214995.
  • Saal, D. S., D. Parker, and T. Weyman-Jones. 2007. “Determining the Contribution of Technical Efficiency, and Scale Change to Productivity Growth in the Privatized English and Welsh Water and Sewerage Industry: 1985–2000.” Journal of Productivity Analysis 28 (1): 127–139. doi:10.1007/s11123-007-0040-z.
  • See, K. F. 2015. “Exploring and Analyzing Sources of Technical Efficiency in Water Supply Services: Some Evidence from Southeast Asian Public Water Utilities.” Water Resources Economics 9: 23–44. doi:10.1016/j.wre.2014.11.002.
  • Shephard, R. W. 1953. Cost and Production Functions. Princeton: Princeton University Press.
  • Villegas, A., M. Molinos-Senante, and A. Maziotis. 2019. “Impact of Environmental Variables on the Efficiency of Water Companies in England and Wales: A Double-bootstrap Approach.” Environmental Science and Pollution Research 26 (30): 31014–31025. doi: 10.1007/s11356-019-06238-z.
  • Worthington, A. C. 2014. “A Review of Frontier Approaches to Efficiency and Productivity Measurement in Urban Water Utilities.” Urban Water Journal 11 (1): 55–73. doi:10.1080/1573062X.2013.765488.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.