{"title":"Technical efficiency analysis of China's water sector: A technology heterogeneity perspective","authors":"Yuzhen Tian , Kim Huat Goh , Kok Fong See","doi":"10.1016/j.jup.2025.101896","DOIUrl":null,"url":null,"abstract":"<div><div>This study evaluates the efficiency of China's water companies using a nonoriented meta-frontier directional distance function while simultaneously considering group heterogeneities and incorporating water loss as an undesirable output. Additionally, it performs a sensitivity analysis using different directional vectors to compare water companies' efficiency. The results reveal that water-only companies have improved in closing the efficiency gap between the meta-frontier and within-group frontiers. Water-only companies are closer to the best possible production technology than are water and sewerage companies. The sensitivity analysis indicates efforts to improve input management and address the water loss within these companies. Policy implications are discussed for reducing water loss and improving China's water companies' efficiency.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"95 ","pages":"Article 101896"},"PeriodicalIF":4.4000,"publicationDate":"2025-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Utilities Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0957178725000116","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"2025/3/4 0:00:00","PubModel":"Epub","JCR":"Q3","JCRName":"ENERGY & FUELS","Score":null,"Total":0}
引用次数: 0
Abstract
This study evaluates the efficiency of China's water companies using a nonoriented meta-frontier directional distance function while simultaneously considering group heterogeneities and incorporating water loss as an undesirable output. Additionally, it performs a sensitivity analysis using different directional vectors to compare water companies' efficiency. The results reveal that water-only companies have improved in closing the efficiency gap between the meta-frontier and within-group frontiers. Water-only companies are closer to the best possible production technology than are water and sewerage companies. The sensitivity analysis indicates efforts to improve input management and address the water loss within these companies. Policy implications are discussed for reducing water loss and improving China's water companies' efficiency.
期刊介绍：
Utilities Policy is deliberately international, interdisciplinary, and intersectoral. Articles address utility trends and issues in both developed and developing economies. Authors and reviewers come from various disciplines, including economics, political science, sociology, law, finance, accounting, management, and engineering. Areas of focus include the utility and network industries providing essential electricity, natural gas, water and wastewater, solid waste, communications, broadband, postal, and public transportation services.
Utilities Policy invites submissions that apply various quantitative and qualitative methods. Contributions are welcome from both established and emerging scholars as well as accomplished practitioners. Interdisciplinary, comparative, and applied works are encouraged. Submissions to the journal should have a clear focus on governance, performance, and/or analysis of public utilities with an aim toward informing the policymaking process and providing recommendations as appropriate. Relevant topics and issues include but are not limited to industry structures and ownership, market design and dynamics, economic development, resource planning, system modeling, accounting and finance, infrastructure investment, supply and demand efficiency, strategic management and productivity, network operations and integration, supply chains, adaptation and flexibility, service-quality standards, benchmarking and metrics, benefit-cost analysis, behavior and incentives, pricing and demand response, economic and environmental regulation, regulatory performance and impact, restructuring and deregulation, and policy institutions.
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