Understanding water-energy-carbon nexus in English and Welsh water industry by assessing eco-productivity of water companies

Abstract

Understanding the water-energy-carbon nexus in water supply is essential for water regulators and utilities. This study employs a non-radial Data Envelopment Analysis (DEA) model to assess eco-productivity (ecoP) change, a synthetic indicator that integrates carbon emissions, energy costs, and water delivered. It also evaluates its components—eco-efficiency change and eco-technological change—across water companies in England and Wales from 2011 to 2018. The analysis reveals an annual improvement in ecoP of 1.1%, driven by a 2.1% gain in eco-efficiency but offset by a 1.0% decline in technological advancement. The reduction in GHG emissions emerged as the most significant positive contributor, enhancing ecoP by 3.22% annually, while energy costs detracted ecoP by –0.09%. The results underscore the negative impacts of increased water delivery (–1.74%) and the number of connected properties (–1.27%) on ecoP, highlighting the need for demand management policies.