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Water scarcity reduces the efficiency of the manufacturing industry in the valley of Mexico Basin: DEA-based two-stage efficiency analysis

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  • Daniel Alfredo Revollo-Fernández
  • Lilia Rodríguez-Tapia

Abstract

This study analysed the impact of a series of socioeconomic variables on the efficiency of production processes used by different economic units belonging to the manufacturing industry in a hydrological basin with water scarcity problems. The main finding is that the economic units that used water from overexploited aquifers had lower efficiency scores than those that used water from non-exploited aquifers. Thus, the design of public policies for this sector, which is highly dependent on this natural resource, should take into account that actions to conserve water supply sources greatly affect the efficiency of the manufacturing industry.

Suggested Citation

  • Daniel Alfredo Revollo-Fernández & Lilia Rodríguez-Tapia, 2022. "Water scarcity reduces the efficiency of the manufacturing industry in the valley of Mexico Basin: DEA-based two-stage efficiency analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 29(13), pages 1193-1198, July.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:13:p:1193-1198
    DOI: 10.1080/13504851.2021.1918623
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