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Eco-Efficiency of the English and Welsh Water Companies: A Cross Performance Assessment

Author

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  • Ramon Sala-Garrido

    (Department of Mathematics for Economics, University of Valencia, 46010 Valencia, Spain)

  • Manuel Mocholi-Arce

    (Department of Mathematics for Economics, University of Valencia, 46010 Valencia, Spain)

  • Maria Molinos-Senante

    (Departamento de Ingeniería Hidráulica y Ambiental, Pontificia Universidad Católica de Chile, 4860 Santiago, Chile)

  • Michail Smyrnakis

    (Hartree Centre, Science and Technology Facility Council (STFC), Daresbury, Warrington WA4 4AD, UK)

  • Alexandros Maziotis

    (Departamento de Ingeniería Hidráulica y Ambiental, Pontificia Universidad Católica de Chile, 4860 Santiago, Chile)

Abstract

Analyzing costs and greenhouse gas (GHG) emissions could be of great importance for the water utilities to supply water services in a healthy and sustainable manner. In this study, we measured the eco-efficiency of several water utilities in England and Wales by incorporating GHG as an undesirable output. For the first time, we evaluated the eco-efficiency of the water production process using robust cross-efficiency data envelopment analysis (DEA) techniques. The further use of clustering and regression techniques allowed us to better understand the drivers of eco-efficiency. The results showed that the mean eco-efficiency of the water sector was 0.748, which indicates that costs and GHG emissions could be reduced by 25.2% to generate the same level of output. Large water companies with high energy costs and levels of GHG emissions belonged to the less eco-efficient group. Environmental factors related to density, topography, and treatment complexity further impacted eco-efficiency. Finally, we linked our results to the regulatory cycle and discuss some policy implications.

Suggested Citation

  • Ramon Sala-Garrido & Manuel Mocholi-Arce & Maria Molinos-Senante & Michail Smyrnakis & Alexandros Maziotis, 2021. "Eco-Efficiency of the English and Welsh Water Companies: A Cross Performance Assessment," IJERPH, MDPI, vol. 18(6), pages 1-17, March.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:6:p:2831-:d:514516
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    References listed on IDEAS

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    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.

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