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Exploring the Determinants of Operational Performance in the Water Supply Sector: A PCA Analysis of Networks, Meters, Raw Water and Operating Costs

Author

Listed:
  • Octavia Moise

    (Romanian Academy, School of Advanced Studies of the Romanian Academy, Doctoral of Economic Sciences, "Costin C. Kirițescu" National Institute for Economic Research, Institute of National Economy, Romania)

  • George Banghiore

    (Romanian Academy, School of Advanced Studies of the Romanian Academy, Doctoral of Economic Sciences, "Costin C. Kirițescu" National Institute for Economic Research, Institute of National Economy, Romania)

  • Mari-Isabella Stan

    („Ovidius” University of Constanta, Faculty of Law and Administrative Sciences, Romania)

Abstract

The water sector is essential for sustainable development, but faces complex challenges arising from climate change, accelerated urbanization, and increasingly stringent economic and environmental demands. This study examines the determinants of operational performance in the water sector, using principal component analysis (PCA) to analyze key variables such as distribution networks, meter usage, raw water characteristics, and operational costs. Results highlight that infrastructure modernization, implementation of digital technologies, and use of circular economy principles are essential for sustainability. The analysis also underscores the link between infrastructure investments and water loss reduction, cost optimization, and service improvement. Temporal evolution reflects a transition from major operational difficulties to improved performance, thanks to effective investment strategies. The conclusions provide valuable insights for strategic decision-making and recommend integrated approaches that ensure the balance between economic sustainability, technological efficiency, and social responsibility, thereby contributing to the management of water resources for the benefit of future generations.

Suggested Citation

  • Octavia Moise & George Banghiore & Mari-Isabella Stan, 2024. "Exploring the Determinants of Operational Performance in the Water Supply Sector: A PCA Analysis of Networks, Meters, Raw Water and Operating Costs," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 55-64, December.
  • Handle: RePEc:ovi:oviste:v:xxiv:y:2024:i:2:p:55-64
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    More about this item

    Keywords

    principal component analysis (PCA); wastewater management; performance of water operators;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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