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2012 (Vol. 4, Issue: 12)
Article Information:

Measuring Efficiency of Water and Wastewater Company: A DEA Approach

Mohammad Javad Mahmoudi, Bahram Fathi, Hossein Sajadifar and Ali Shahsavari
Corresponding Author:  Hossein Sajadifar 

Key words:  Data envelopment analysis, efficiency, water and wastewater sector, , , ,
Vol. 4 , (12): 1642-1648
Submitted Accepted Published
August 15, 2011 October 15, 2011 June 15, 2012
Abstract:

The aim of this study is to measuring the efficiency of Water and Wastewater Company (WWC). Data Envelopment Analysis (DEA) is a body of research methodologies to evaluate overall efficiencies and identify the sources and estimate the amounts of inefficiencies in inputs and outputs. In DEA, the best performers are called DEA efficient and the efficiency score of a DEA efficient unit is denoted by a unity. It is possible to prevent wasting resources and unreasonable increase of costs by measuring efficiency of various sections of the economy, especially servicing and nonprofit units. This research attempts to measure and compare technical efficiency value of 17 municipalities of Markazi province (Iran) in urban Water and Wastewater Company (WWC) by using DEA. Data for 2006 were used to estimate efficiency scores. The results indicated less than 30% of municipalities were fully technically efficient that could be referred as inefficient units. Capital input and water losses were the major source of the inefficiency. Thus, the policy makers should focus on rebuilding the infrastructure of the water networks, beginning with the most DEA inefficient municipalities in order to minimize water losses and maximize efficiency of capital input.
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  Cite this Reference:
Mohammad Javad Mahmoudi, Bahram Fathi, Hossein Sajadifar and Ali Shahsavari, 2012. Measuring Efficiency of Water and Wastewater Company: A DEA Approach.  Research Journal of Applied Sciences, Engineering and Technology, 4(12): 1642-1648.
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ISSN (Online):  2040-7467
ISSN (Print):   2040-7459
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