Evaluating the Water and Wastewater Enterprises in ‍Provincial Water Sector Using Mathematical Programming Model

Document Type : Original Article

Authors

1 M.A. in Economics, Faculty member of institue for trade studies & research

2 M.A. in Economics, Faculty member of allameh mohadese noori

3 - Ph.D. in Economics, Assistant professor the university of payame noor

4 M.A. in Economics, expert of deputy Ministry for planning and economic affairs

Abstract

According to definitions in economical literature, efficiency means maximum output with a definite amount of input or minimum input with a definite amount of output. In general, there are two main approches for measuring efficiency; Parametric method and Non-parametric method. In this paper, the performance efficiency of the Iranian Provincial Water and Wastewater Enterprises is evaluated using the Nonparametric method which is based on mathematical programming methods. The main advantage of data envelopment analysis in comparison with other methods is to evaluate the efficiency of  units that have several input and output. In this paper, according to output and input data for the Iranian year of 1385, the efficiency of Enterprises in different provinces were evaluated considering the constant return to scale and the variable return to scale. The results showed that, subject to the constant return to scale, the nine provinces of Hamedan, Markazi, Southern Khorasan, Sistan and Balochestan, Mazandaran, Zanjan, Kohgiloyeh and Boyerahmad, Qazvin, and Tehran have the highest efficiencies with the average of 79 percent. For the second assumption, Kerman, Fras, Semnan, and Ilam are the efficient provinces with the average efficiency of 86 percent. Finally, the operation of Hamedan Water and Wastewater Enterprise is considered  as a pattern that other inefficient enterprises should follow.    

Keywords

References

امامی میبدی، ع. (1379)، اصول اندازه گیری کارائی و بهره وری، تهران، انتشارات موسسه مطالعات و پژوهشهای بازرگانی.
Banker, R.D., Charnes, A. and Cooper, W.W. (1984), “Some Models For Estimating Technical Scale Efficiencies in Envelopment Analysis”, Management Science. Vol.30.No9 ,pp.1078-1092
Charnes, A., Cooper, W.W. and Rhodes, E. (1978), “Measuring the Efficiency of Decision Making Units” European Journal of operational Research2,pp.429-444.
Charnes, A., Cooper, W.W. and Lewin, A.Y. (1994), Data Envelopment Analysis: Theory,Methodology and Application, Kluwer Academic Publishers, Boston, MA.
Cooper, W., Seiford, L.M. and Tone, K. (1999), Data Envelopment Analysis – A ComprehensiveText with Models, Applications, References, Kluwer Academic Publishers, Boston, MA.
 
Farrell, M. (1957), ”the Measurement of Productive Efficiency” Journal of the Royal Statistics Society ,SeriesA,Vol.120,n.3,pp.253-281
Meimand, M., Cavana, R.Y. and Laking, R. (2002), “Using DEA and survival analysis formeasuring performance of branches in New Zealand’s accident compensation corporation”, Journal of the Operational Research Society, Vol. 33 No. 3, pp. 303-13.
Miller, G. (2001), The development of indicators for sustainable tourism: results of aDelphi survey of tourism researchers. Tourism Management. 22, pp.351-362.
Schmidt, P. and Sickles R.C. (1984), ”Production Frontiers and Panel Data”, Journal of Business  and Economics Statistics ,44,pp.367-374.
Solow, R. (1957), "Technical Change and The Aggregate Production Function", Review of Economics and Statistics, 39, pp. 312-320.
 
 
Iran-Water Resources Research
Volume 6, Issue 2
July 2010
Pages 74-82

Files

History

  • Receive Date: 27 February 2008
  • Accept Date: 20 June 2010

Share

How to cite

Statistics