Water 2013, 5(4), 2058-2079; doi:10.3390/w5042058
Article

Are Public-Private Partnerships a Source of Greater Efficiency in Water Supply? Results of a Non-Parametric Performance Analysis Relating to the Italian Industry

Department of Industrial Engineering, University of Naples Federico II, Piazzale V. Tecchio n. 80, Naples 80125, Italy
Received: 27 September 2013; in revised form: 11 November 2013 / Accepted: 28 November 2013 / Published: 11 December 2013
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Abstract: This article reports the outcome of a performance study of the water service provision industry in Italy. The study evaluates the efficiency of 21 “private or public-private” equity and 32 “public” equity water service operators and investigates controlling factors. In particular, the influence that the operator typology and service management nature - private vs. public - has on efficiency is assessed. The study employed a two-stage Data Envelopment Analysis methodology. In the first stage, the operational efficiency of water supply operators is calculated by implementing a conventional BCC DEA model, that uses both physical infrastructure and financial input and output variables to explore economies of scale. In the second stage, bootstrapped DEA and Tobit regression are performed to estimate the influence that a number of environmental factors have on water supplier efficiency. The results show that the integrated water provision industry in Italy is characterized by operational inefficiencies of service operators, and scale and agglomeration economies may have a not negligible effect on efficiency. In addition, the operator typology and its geographical location affect efficiency.
Keywords: public-private partnership; performance analysis; water supply; public utilities; two-stage Data Envelopment Analysis; efficiency; environmental factors

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MDPI and ACS Style

lo Storto, C. Are Public-Private Partnerships a Source of Greater Efficiency in Water Supply? Results of a Non-Parametric Performance Analysis Relating to the Italian Industry. Water 2013, 5, 2058-2079.

AMA Style

lo Storto C. Are Public-Private Partnerships a Source of Greater Efficiency in Water Supply? Results of a Non-Parametric Performance Analysis Relating to the Italian Industry. Water. 2013; 5(4):2058-2079.

Chicago/Turabian Style

lo Storto, Corrado. 2013. "Are Public-Private Partnerships a Source of Greater Efficiency in Water Supply? Results of a Non-Parametric Performance Analysis Relating to the Italian Industry." Water 5, no. 4: 2058-2079.

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