Estimating potential economic savings of water utilities due to improvements on technical and allocative inefficiencies

IF 6.2 2区经济学 Q1 ECONOMICS

Socio-economic Planning Sciences Pub Date : 2024-12-16 DOI:10.1016/j.seps.2024.102142

Alexandros Maziotis , Ramon Sala-Garrido , Manuel Mocholi-Arce , Maria Molinos-Senante

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引用次数: 0

Abstract

This research investigated both technical and allocative inefficiencies in water utilities, and its impact on production costs. Using the stochastic frontier analysis (SFA) primal system, the study delved into the Chilean water sector between 2010 and 2017. Results showed an average technical inefficiency (TI) of 0.507 and allocative inefficiency (AI) of −0.417, indicating an overemphasis on capital over operational expenditures. The economic consequences of TI and AI were approximately US$ 1297 million and US$ 237 million per annum, respectively. On an individual scale, the increase on production costs due to TI and AI were estimated at 0.390 US$/m³, 0.471 US$/m³ and 0.038 US$/m³ for full private utilities, concessionary utilities and the public utility, respectively. The results of the study evidence the need for holistic efficiency assessments to avoid biased policymaking, illuminating the prevailing trend of favoring capital expenditures, and revealing potential economic benefits for consumers.

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这项研究调查了水务公司的技术和配置效率低下及其对生产成本的影响。该研究使用随机前沿分析（SFA）原始系统，深入研究了2010年至2017年智利水务部门。结果显示，平均技术效率低下（TI）为0.507，分配效率低下（AI）为- 0.417，表明过度强调资本而不是运营支出。人工智能和人工智能的经济后果分别约为每年1.97亿美元和2.37亿美元。在个人规模上，对于完全私人公用事业、优惠公用事业和公用事业，TI和AI造成的生产成本增加估计分别为0.390美元/立方米、0.471美元/立方米和0.038美元/立方米。研究结果表明，需要进行全面的效率评估，以避免有偏见的政策制定，阐明支持资本支出的普遍趋势，并揭示消费者的潜在经济利益。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Socio-economic Planning Sciences OPERATIONS RESEARCH & MANAGEMENT SCIENCE-

CiteScore

9.40

自引率

13.10%

发文量

294

审稿时长

58 days

期刊介绍： Studies directed toward the more effective utilization of existing resources, e.g. mathematical programming models of health care delivery systems with relevance to more effective program design; systems analysis of fire outbreaks and its relevance to the location of fire stations; statistical analysis of the efficiency of a developing country economy or industry. Studies relating to the interaction of various segments of society and technology, e.g. the effects of government health policies on the utilization and design of hospital facilities; the relationship between housing density and the demands on public transportation or other service facilities: patterns and implications of urban development and air or water pollution. Studies devoted to the anticipations of and response to future needs for social, health and other human services, e.g. the relationship between industrial growth and the development of educational resources in affected areas; investigation of future demands for material and child health resources in a developing country; design of effective recycling in an urban setting.