Eco-efficiency assessment under natural and managerial disposability: an empirical application for Chilean water companies

TítuloEco-efficiency assessment under natural and managerial disposability: an empirical application for Chilean water companies
Autor(es)Ramón Sala-Garrido, Manuel Mocholi-Arce, Maria Molinos-Senante, Alexandros Maziotis
Línea(s)Recursos Críticos
Año de publicación2022
RevistaEnvironmental Science and Pollution Research
Palabras claves

Production efficiency; Environmental efficiency; Natural and managerial disposability; Undesirable outputs; RAM-DEA; Water utilities

ResumenGetting a good understanding regarding the economic and environmental performance of water utilities is of great importance to achieve the goal of an efficient and sustainable industry. In this study, we apply the range adjusted measure (RAM) data envelopment analysis (DEA) model to evaluate the integrated (production and environmental) efficiency of several water utilities located in Chile. Integrated efficiency is evaluated using the concepts of natural and managerial disposability. This approach further allows us to quantify the contribution of each input and undesirable product on efficiency scores. The results highlighted that the Chilean water industry showed high levels of production and environmental efficiency over time. Under natural disposability, water utilities could control production costs to reduce water leakage and unplanned water supply interruptions by 3.3% on average. Under managerial disposability, water utilities could further cut down undesirable outputs by 1.4% on average by adopting best managerial practices. On average, potential savings in operating costs, employment, water leakage, and unplanned water supply interruptions were higher for concessionary utilities as they showed slightly lower efficiency scores than full private utilities.
Doihttps://doi.org/10.1016/j.scs.2022.104075
Autor(es) de correspondenciaMaria Molinos-Senante, mmolinos@uc.cl