ARE Seminar by Associate Professor Francesc Hernandez-Sancho (University of Valencia)
9 August 2012
Tariffs and Efficient Performance by Water Suppliers: An Empirical Approach
Abstract: Water leaks are an environmental and sustainable issue as well as an economic issue. The objective of this paper is to analyze the efficiency of a sample of Spanish urban water systems by considering water leaks in the network as undesirable output. The analytical benchmarking methodology Data Envelopment Analysis (DEA) is used to calculate technical and economic efficiency. We also discuss the possible relationship between efficiency and tariffs charged to users. Results show that the possibilities for reducing water leaks in networks are high - thereby demonstrating that there is room for savings from an economic and environmental point of view. The assessment of the efficiency performance could usefully assist local authorities and water suppliers in the task of optimising urban water management.
Keywords: benchmarking methodology, cost efficiency, data envelopment analysis (DEA), urban water systems, water leaks.
Associate Professor Francesc Hernandez-Sancho is from the Department of Applied Economics, Faculty of Economics of the University of Valencia in Spain.
Everyone is welcome to attend.
Location: Room 109, RD Watt Building
Contact: Dr Todd Sanderson
Phone: 02 9351 2527