Explaining the environmental efficiency of drinking water and wastewater utilities (original) (raw)

Malaysian Water Utilities Performance with the Presence of Undesirable Output: A Directional Distance Function Approach

Jurnal Teknologi, 2016

Non-Revenue Water (NRW) is water losses in the distribution process and it affects water supply management worldwide. Malaysia is not excluded and the authority has put a high priority on NRW as it affects the revenue collection. Consequently, NRW is established as one of the Key Performance Indicators (KPIs) to assess the efficiency of Malaysia water supply industry. However, the current policy is impractical; the assessment of all the water utilities is against a single NRW target. Moreover, NRW should be considered as an undesirable product in the water supply system. Therefore, an alternative to Data Envelopment Analysis (DEA)-based approach called Directional Distance Function (DDF) is applied to measure the performance of the integrated production of desirable and undesirable outputs. The result shows that the measurement of water technical efficiency is more explicit using DDF model, where the potential reduced level of NRW for each inefficient water utility can be determined...

Efficiency, Conflicting Goals and Trade-Offs: A Nonparametric Analysis of the Water and Wastewater Service Industry in Italy

This paper presents a benchmarking study of the water and wastewater industry in Italy. A three-stage modeling approach was implemented to measure the efficiency of 53 utility operators. This approach is based on the implementation of network and conventional data envelopment analysis (DEA) to model the production process of the water service utility operators. In comparison to the conventional black-box or one-stage production model generally adopted in previous studies, the proposed approach provides information relative to the different efficiency components of the stages and blocks of the water service production process and its overall efficiency. Further, by shifting the efficiency analysis to a two-dimensional performance space, i.e., resource and market-efficiency, it offers a more comprehensive view of the water service industry and allows accounting for different business goals at the same time and for an investigation of industry trade-offs. Results show that the operators' efficiencies in the Italian water service industry are generally variable and low. There are no water service utilities which are 100% efficient from the resource-efficiency perspective, and the maximum efficiency score is 0.545. Efficiency measurements suggest that there is a general orientation of the Italian water industry to not invest in upgrading and improving the infrastructure assets, and achieving an acceptable efficiency in the operations is critical to delivering water services to market in an efficient way. Only one utility operator is 100% efficient from the market-efficiency perspective. The low tariffs adopted by the water service operators do not allow the gaining of satisfactory service remuneration and the achievement of long-term business sustainability. The joint analysis of the resource and market efficiency scores indicates that there is a trade-off between the corresponding business goals. Recently, the sustainable management of water resources has become an important policy issue in Europe. The access to clean and good-quality drinking water and adequate sanitation service is of primary importance to ensure human well-being, protection of public health and ecosystems, energy production, industry and agriculture development, and economic growth. Hence, any disruption in the supply of water and wastewater services and scarcity of water resources have negative impacts on the quality of human life and economic activity [1]. The provision of water and wastewater services requires considerable investment to comply with the European Union Urban Waste Water Treatment and Drinking Water directives and the various national laws. Thus, in the near future, the main water management challenges in Europe will be the operations, maintenance, upgrading, and renovation of the infrastructure. This implies that water and wastewater services should be managed in an economically and environmentally sustainable fashion.

Evaluating the Eco-Efficiency of Wastewater Treatment Plants: Comparison of Optimistic and Pessimistic Approaches

Sustainability, 2020

The assessment of wastewater treatment plant (WWTP) performance has gained the interest of water utilities and water regulators. Eco-efficiency has been identified as a powerful indicator, as it integrates economic and environmental variables into a single index. Most previous studies have employed traditional data envelopment analysis (DEA) for the evaluation of WWTP eco-efficiency. However, DEA allows the selection of input and output weights for individual WWTPs for the calculation of eco-efficiency scores. To overcome this limitation, we employed the double-frontier and common set of weights methods to evaluate the eco-efficiency of a sample of 30 WWTPs in Spain. The WWTPs were ranked based on eco-efficiency scores derived under several scenarios including best- and worst-case scenarios; this approach to performance assessment is reliable and robust. Twenty-six of the 30 WWTPs were not classified as eco-efficient, even under the most favorable scenario, indicating that these fac...