The efficiency of post-reform water utilities in Mexico

The efficiency of Mexican water utilities was studied by applying double bootstrap data envelopment analysis (DEA). Efficiency scores were calculated and regressed against a set of explanatory variables to analyze the effect of type of management and reform policies on efficiency. Results indicate t...

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Bibliographic Details
Published in:Utilities policy 2021-02, Vol.68, p.101153, Article 101153
Main Author: Salazar-Adams, Alejandro
Format: Article
Language:English
Subjects:
Double bootstrap data envelopment analysis (DEA)
Local governments
Private management of water utilities
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Summary:The efficiency of Mexican water utilities was studied by applying double bootstrap data envelopment analysis (DEA). Efficiency scores were calculated and regressed against a set of explanatory variables to analyze the effect of type of management and reform policies on efficiency. Results indicate that the few privately managed utilities in the sample, which are subject to local regulation, may be more efficient than publicly managed utilities operating at different governmental levels. The creation of decentralized autonomous water utilities did not appear to increase efficiency, as was expected from the reform. The policy of cutting water service to non-paying customers, indicating a business orientation, was found to be positively correlated with efficiency. •Double bootstrap data envelopment analysis was used to estimate efficiency of Mexican water utilities.•Private water utilities are more efficient than public ones.•Cutting the water supply for non-payment is positively correlated to efficiency.
ISSN:0957-1787
1878-4356
DOI:10.1016/j.jup.2020.101153