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Efficiency Measurement in Spanish Local Government: The Case of Municipal Water Services

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  • Isabel M. García‐Sánchez

Abstract

In this work, we established a procedure for evaluation of the efficiency of the water supply. This procedure has allowed us to find that the proposed indicators have a discriminating capability in the analysis of the service, and to reject criticisms traditionally assigned to the sensitivity of the data envelopment analysis (DEA) technique in relation to degrees of freedom. The results obtained show that the population density, as a factor that defines one of the particular characteristics of the surroundings of each municipality, has a statistically significant impact on the indexes of efficiency, this affirmation not being extended to the public or private ownership of the service. The scale inefficiency is higher than the technical inefficiency. These typologies of efficiency are, principally, motivated by the supply side of the service, which is specially linked with the necessary infrastructure. The demand of the citizens is satisfied with a behavior close to optimal.

Suggested Citation

  • Isabel M. García‐Sánchez, 2006. "Efficiency Measurement in Spanish Local Government: The Case of Municipal Water Services," Review of Policy Research, Policy Studies Organization, vol. 23(2), pages 355-372, March.
    • Handle: RePEc:bla:revpol:v:23:y:2006:i:2:p:355-372
    DOI: 10.1111/j.1541-1338.2006.00205.x
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    Cited by:

    1. Byrnes, Joel & Crase, Lin & Dollery, Brian & Villano, Renato, 2010. "The relative economic efficiency of urban water utilities in regional New South Wales and Victoria," Resource and Energy Economics, Elsevier, vol. 32(3), pages 439-455, August.
    2. Manuel Mocholi-Arce & Ramon Sala-Garrido & Maria Molinos-Senante & Alexandros Maziotis, 2022. "Measuring the eco-efficiency of the provision of drinking water by two-stage network data envelopment analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12883-12899, November.
    3. Fabio De Matteis & Alessandra Tafuro & Fabrizio Striani & Daniela Preite, 2023. "Totally Publicly-Owned (TPO) Utilities and Financial Performance: What is the role of some aspects of governance?," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2023(3), pages 89-111.
    4. Aude Le Lannier & Simon Porcher, 2014. "Efficiency in the public and private French water utilities: prospects for benchmarking," Applied Economics, Taylor & Francis Journals, vol. 46(5), pages 556-572, February.
    5. Ruester, Sophia & Zschille, Michael, 2010. "The impact of governance structure on firm performance: An application to the German water distribution sector," Utilities Policy, Elsevier, vol. 18(3), pages 154-162, September.
    6. Herrala, Maila Elina & Huotari, Heikki & Haapasalo, Harri Jouni Olavi, 2012. "Governance of Finnish waterworks – A DEA comparison of selected models," Utilities Policy, Elsevier, vol. 20(1), pages 64-70.
    7. Mocholi-Arce, Manuel & Sala-Garrido, Ramon & Molinos-Senante, Maria & Maziotis, Alexandros, 2022. "Performance assessment of the Chilean water sector: A network data envelopment analysis approach," Utilities Policy, Elsevier, vol. 75(C).
    8. Thomas E. Lambert & Arun Kumar Srinivasan & Uric B. Dufrene & Hokey Min, 2010. "Urban Location And The Success Of Casinos In Five States," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 3(3), pages 1-16.
    9. Abbott, Malcolm & Cohen, Bruce & Wang, Wei Chun, 2012. "The performance of the urban water and wastewater sectors in Australia," Utilities Policy, Elsevier, vol. 20(1), pages 52-63.
    10. Mande Buafua, Patrick, 2015. "Efficiency of urban water supply in Sub-Saharan Africa: Do organization and regulation matter?," Utilities Policy, Elsevier, vol. 37(C), pages 13-22.
    11. Lambert, Thomas & Srinivasan, Arun & Dufrene, Uric & Min, Hokey, 2010. "Urban Location and the Success of Casinos in Five States: A Data Envelopment Analysis Approach," MPRA Paper 69740, University Library of Munich, Germany.
    12. Bettina Campedelli & Andrea Guerrina & Giulia Romano & Chiara Leardini, 2014. "La performance della rete ospedaliera pubblica della regione Veneto. L?impatto delle variabili ambientali e operative sull?efficienza," MECOSAN, FrancoAngeli Editore, vol. 2014(92), pages 119-142.
    13. Cuadrado-Ballesteros, Beatriz & García-Sánchez, Isabel-María & Prado-Lorenzo, José-Manuel, 2013. "Effect of modes of public services delivery on the efficiency of local governments: A two-stage approach," Utilities Policy, Elsevier, vol. 26(C), pages 23-35.
    14. Malcolm Abbott & Bruce Cohen, 2010. "Industry Structure Issues in the Water and Wastewater Sectors in Australia," Economic Papers, The Economic Society of Australia, vol. 29(1), pages 48-63, March.
    15. Roberto Martínez-Espiñeira & Maria A. García-Valiñas & Francisco González-Gómez, 2007. "Does Private Management Of Water Supply Services Really Increase Prices? An Empirical Analysis," FEG Working Paper Series 07/05, Faculty of Economics and Business (University of Granada).
    16. Min, Hokey & Lambert, Thomas, 2013. "An Exploratory Evaluation of State Road Provision to Commuters and Shippers using Data Envelopment Analysis and Tobit Regression," MPRA Paper 47196, University Library of Munich, Germany.
    17. Romano, Giulia & Guerrini, Andrea, 2011. "Measuring and comparing the efficiency of water utility companies: A data envelopment analysis approach," Utilities Policy, Elsevier, vol. 19(3), pages 202-209.
    18. Andrés J. Picazo-Tadeo & Francisco González-Gómez & Francisco J. Sáez-Fernández, 2006. "Accounting for operating environments in measuring water utilities’ managerial efficiency," The Service Industries Journal, Taylor & Francis Journals, vol. 29(6), pages 761-773, July.
    19. Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, vol. 17(3-4), pages 233-244, September.
    20. Andrea Guerrini & Giulia Romano & Bettina Campedelli, 2013. "Economies of Scale, Scope, and Density in the Italian Water Sector: A Two-Stage Data Envelopment Analysis Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(13), pages 4559-4578, October.
    21. Mukherjee, Maitreyee & Jensen, Olivia, 2022. "Open Water: Impacts of Retail Competition on Service Performance and Water-Use Efficiency in England," Utilities Policy, Elsevier, vol. 79(C).

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