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Drivers of productivity change in water companies: an empirical approach for England and Wales

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  • María Molinos-Senante
  • Alexandros Maziotis

Abstract

In this study, a normalized quadratic cost function was employed to estimate total factor productivity for the water sector in England and Wales over the period 1993–2016. Productivity was then decomposed into technical change and scale effect. Technical change is further broken down into pure technical change, non-neutral technical change, and effects due to scale-augmenting technical change. The water industry increased its productivity annually by 6.1%, with 1.5% corresponding to technical change and 4.5% attributed to the scale effect. Lastly, we discuss some policy implications by linking the productivity results with the regulatory cycle.

Suggested Citation

  • María Molinos-Senante & Alexandros Maziotis, 2020. "Drivers of productivity change in water companies: an empirical approach for England and Wales," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 36(6), pages 972-991, November.
    • Handle: RePEc:taf:cijwxx:v:36:y:2020:i:6:p:972-991
    DOI: 10.1080/07900627.2019.1702000
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    Cited by:

    1. Wasi Ul Hassan Shah & Yuting Lu & Gang Hao & Hong Yan & Rizwana Yasmeen, 2022. "Impact of “Three Red Lines” Water Policy (2011) on Water Usage Efficiency, Production Technology Heterogeneity, and Determinant of Water Productivity Change in China," IJERPH, MDPI, vol. 19(24), pages 1-23, December.
    2. Walker, Nathan L. & Styles, David & Williams, A. Prysor, 2023. "Water sector resilience in the United Kingdom and Ireland: The COVID-19 challenge," Utilities Policy, Elsevier, vol. 82(C).
    3. Ramón Sala-Garrido & Manuel Mocholí-Arce & María Molinos-Senante & Alexandros Maziotis, 2021. "Comparing Operational, Environmental and Eco-Efficiency of Water Companies in England and Wales," Energies, MDPI, vol. 14(12), pages 1-14, June.
    4. Goh, Kim Huat & See, Kok Fong, 2021. "Measuring the productivity growth of Malaysia's water sector: Implications for regulatory reform," Utilities Policy, Elsevier, vol. 71(C).
    5. 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.
    6. Molinos-Senante, María & Maziotis, Alexandros & Sala-Garrido, Ramón, 2020. "Changes in the total costs of the English and Welsh water and sewerage industry: The decomposed effect of price and quantity inputs on efficiency," Utilities Policy, Elsevier, vol. 66(C).
    7. Maria Molinos-Senante & Alexandros Maziotis, 2021. "Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-16, May.
    8. Sala-Garrido, Ramon & Mocholi-Arce, Manuel & Molinos-Senante, Maria & Maziotis, Alexandros, 2021. "Assessing the marginal cost of reducing greenhouse gas emissions in the English and Welsh water and sewerage industry: A parametric approach," Utilities Policy, Elsevier, vol. 70(C).

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