Measuring and comparing the efficiency of water utility companies: A data envelopment analysis approach

This study provides an analysis of Italianwater utilities to determine the effects on their efficiency of certain relevant variables that have been broadly discussed in the existing literature. We reviewed the annual financial statements of 43 Italianwater utility companies and obtained other technical data from Co.n.vi.r.i., the Italian national authority forwater. Using data envelopment analysis we assessed their cost efficiencies and, using non-parametric statistic methods, we discuss the significant differences among clusters. We found that ownership structure, size and geographical location had an impact on the performance of water utilities, although with different degrees of significance.