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This paper employs data envelopment analysis (DEA) of US Environmental Protection Agency Community WaterSystem Survey data (EPA, 2002) to compare the relative efficiencies of facility ownership type andnature of water source for potable water utilities. Three ownership types (private for-profit, privatenot-for-profit, and public) and two types of supply sources (ground and surface water sources) arecompared. Statistically significant results indicating the efficiency advantage of certain utility typesdepending on measurement variable selection were found, and clear trends towards certain utilitytypes were identified, notwithstanding the variable selections used for measurement. The findingsindicate that public utilities are most efficient overall, followed by private not-for-profit utilities,with private for profit utilities being least efficient. Except for a few cases of very large supplydemands, utilities employing groundwater sources were generally more efficient than those usingsurface water sources.A brief investigation into the marginal return on information obtained from using additionalmeasurement variables to measure utility performance is also presented. It is demonstrated thatadditional ranking information can be obtained by using more discrete measurement variables, butthat there are diminishing marginal returns. This efficiency evaluation of public water utilitiesshould prove useful as a tool for guiding ownership policy and water source development. Includes 19 references, figures.

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Edition: Vol. - No. Published: 03/01/2006 Number of Pages: 8File Size: 1 file , 340 KB