Assesing the Impact of Quality of Service on the Productivity of Water Industry: a Malmquist-Luenberger Approach for England and Wales

Assessing productivity change over time and identifying its determinants is a valuable tool for water regulators when setting water tariffs. However, in a price cap regulatory framework such as in England and Wales policy makers should give attention to quality of service issues. Previous studies th...

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Autores: Maziotis, Alexandros, Molinos Senante, María, Sala Garrido, Ramón
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2016
País:España
Institución:Universidad de Valladolid
Repositorio:UVaDOC. Repositorio Documental de la Universidad de Valladolid
OAI Identifier:oai:uvadoc.uva.es:10324/64552
Acceso en línea:https://doi.org/10.1007/s11269-016-1395-6
https://uvadoc.uva.es/handle/10324/64552
Access Level:acceso abierto
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spelling Assesing the Impact of Quality of Service on the Productivity of Water Industry: a Malmquist-Luenberger Approach for England and WalesMaziotis, AlexandrosMolinos Senante, MaríaSala Garrido, RamónAssessing productivity change over time and identifying its determinants is a valuable tool for water regulators when setting water tariffs. However, in a price cap regulatory framework such as in England and Wales policy makers should give attention to quality of service issues. Previous studies that assessed the productivity change of the English and Welsh water industry did not include the lack of quality of service to customers as undesirable outputs. To overcome this limitation, and as a pioneering approach, we estimated the Malmquist-Luenberger Productivity Indicator and its components, efficiency and technical change, for the 10 water and sewerage companies and the 12 water only companies over the period 2001–2008. To explore the role of quality of service to customers on the productivity change over time, we contrasted our results with a conventional measure of productivity change namely the Luenberger productivity indicator. The findings suggest that from 2001 to 2004 water companies made significant efforts to improve the quality of the service provided to customers, whereas after 2005 companies’ performance regarding customer services was considered as poor. Results excluding quality of service variables illustrated that productivity declined during all years evaluated. However, when the quality of service was introduced in the assessment, productivity improved by 4.13 % from 2000 to 2004 whereas it declined by 16.96 % in the following years. From a policy perspective, water utility regulators need to pay attention to quality of service issues when assessing companies’ performance and setting water tariffs under comparative yardstick regimes,2016info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://doi.org/10.1007/s11269-016-1395-6https://uvadoc.uva.es/handle/10324/64552reponame:UVaDOC. Repositorio Documental de la Universidad de Valladolidinstname:Universidad de ValladolidEspañolinfo:eu-repo/semantics/openAccessoai:uvadoc.uva.es:10324/645522026-06-13T12:44:47Z
dc.title.none.fl_str_mv Assesing the Impact of Quality of Service on the Productivity of Water Industry: a Malmquist-Luenberger Approach for England and Wales
title Assesing the Impact of Quality of Service on the Productivity of Water Industry: a Malmquist-Luenberger Approach for England and Wales
spellingShingle Assesing the Impact of Quality of Service on the Productivity of Water Industry: a Malmquist-Luenberger Approach for England and Wales
Maziotis, Alexandros
title_short Assesing the Impact of Quality of Service on the Productivity of Water Industry: a Malmquist-Luenberger Approach for England and Wales
title_full Assesing the Impact of Quality of Service on the Productivity of Water Industry: a Malmquist-Luenberger Approach for England and Wales
title_fullStr Assesing the Impact of Quality of Service on the Productivity of Water Industry: a Malmquist-Luenberger Approach for England and Wales
title_full_unstemmed Assesing the Impact of Quality of Service on the Productivity of Water Industry: a Malmquist-Luenberger Approach for England and Wales
title_sort Assesing the Impact of Quality of Service on the Productivity of Water Industry: a Malmquist-Luenberger Approach for England and Wales
dc.creator.none.fl_str_mv Maziotis, Alexandros
Molinos Senante, María
Sala Garrido, Ramón
author Maziotis, Alexandros
author_facet Maziotis, Alexandros
Molinos Senante, María
Sala Garrido, Ramón
author_role author
author2 Molinos Senante, María
Sala Garrido, Ramón
author2_role author
author
description Assessing productivity change over time and identifying its determinants is a valuable tool for water regulators when setting water tariffs. However, in a price cap regulatory framework such as in England and Wales policy makers should give attention to quality of service issues. Previous studies that assessed the productivity change of the English and Welsh water industry did not include the lack of quality of service to customers as undesirable outputs. To overcome this limitation, and as a pioneering approach, we estimated the Malmquist-Luenberger Productivity Indicator and its components, efficiency and technical change, for the 10 water and sewerage companies and the 12 water only companies over the period 2001–2008. To explore the role of quality of service to customers on the productivity change over time, we contrasted our results with a conventional measure of productivity change namely the Luenberger productivity indicator. The findings suggest that from 2001 to 2004 water companies made significant efforts to improve the quality of the service provided to customers, whereas after 2005 companies’ performance regarding customer services was considered as poor. Results excluding quality of service variables illustrated that productivity declined during all years evaluated. However, when the quality of service was introduced in the assessment, productivity improved by 4.13 % from 2000 to 2004 whereas it declined by 16.96 % in the following years. From a policy perspective, water utility regulators need to pay attention to quality of service issues when assessing companies’ performance and setting water tariffs under comparative yardstick regimes,
publishDate 2016
dc.date.none.fl_str_mv 2016
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https://uvadoc.uva.es/handle/10324/64552
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https://uvadoc.uva.es/handle/10324/64552
dc.language.none.fl_str_mv Español
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