Estimating operational costs for enhanced continuity in water supply and sanitation services: An inverse data envelopment analysis approach in Chilean utilities

Study region: The largest 23 water utilities in Chile providing water and sanitation services to 97.9 % of total urban customers. Study focus: This study introduces an innovative methodological framework based on inverse data envelopment analysis technique to quantify the additional operational cost...

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Main Authors: Manuel Mocholi-Arce, Alexandros Maziotis, Ramón Sala-Garrido, María Molinos-Senante
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Journal of Hydrology: Regional Studies
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Online Access:http://www.sciencedirect.com/science/article/pii/S2214581824003574
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author Manuel Mocholi-Arce
Alexandros Maziotis
Ramón Sala-Garrido
María Molinos-Senante
author_facet Manuel Mocholi-Arce
Alexandros Maziotis
Ramón Sala-Garrido
María Molinos-Senante
author_sort Manuel Mocholi-Arce
collection DOAJ
description Study region: The largest 23 water utilities in Chile providing water and sanitation services to 97.9 % of total urban customers. Study focus: This study introduces an innovative methodological framework based on inverse data envelopment analysis technique to quantify the additional operational costs required for water utilities to enhance their water supply and sanitation continuity while maintaining their techno-economic efficiency. This framework is pivotal for setting realistic continuity targets and assessing potential impacts on water and sanitation tariffs, thereby aiding in policy and operational planning within the water sector. New hydrological insights for the region: The analysis was performed across four distinct continuity scenarios revealing substantial cost variability contingent on continuity targets, current service levels, and the efficiency of each utility. Results showed a median operational cost increase that varied from 28.41 % in the most stringent scenario to just 0.27 % in the most lenient. The financial implications of meeting these costs through water and sanitation tariffs would necessitate a median monthly increase in water bills, ranging from $17.24 per household in the most demanding scenarios to only $0.01 per household in the more lenient scenarios. This research provides a valuable tool for water sector regulators and managers, enabling informed decision-making by balancing service improvement objectives with economic considerations and customer willingness to pay for enhanced service continuity.
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publishDate 2024-12-01
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spelling doaj-art-c218e915766141b69efb6f6cd5044a392025-08-20T02:21:07ZengElsevierJournal of Hydrology: Regional Studies2214-58182024-12-015610200810.1016/j.ejrh.2024.102008Estimating operational costs for enhanced continuity in water supply and sanitation services: An inverse data envelopment analysis approach in Chilean utilitiesManuel Mocholi-Arce0Alexandros Maziotis1Ramón Sala-Garrido2María Molinos-Senante3Department of Mathematics for Economics, University of Valencia, Avd. Tarongers S/N, Valencia, SpainDepartment of Business, New York College, Leof. Vasilisis Amalias 38, Athina 105 58, GreeceDepartment of Mathematics for Economics, University of Valencia, Avd. Tarongers S/N, Valencia, SpainInstitute of Sustainable Processes, University of Valladolid, C/ Mergelina, S/N, Valladolid 47007, Spain; Department of Chemical Engineering and Environmental Technology, University of Valladolid, C/ Mergelina, S/N, Valladolid 47007, Spain; Corresponding author at: Institute of Sustainable Processes, University of Valladolid, C/ Mergelina, S/N, Valladolid 47007, Spain.Study region: The largest 23 water utilities in Chile providing water and sanitation services to 97.9 % of total urban customers. Study focus: This study introduces an innovative methodological framework based on inverse data envelopment analysis technique to quantify the additional operational costs required for water utilities to enhance their water supply and sanitation continuity while maintaining their techno-economic efficiency. This framework is pivotal for setting realistic continuity targets and assessing potential impacts on water and sanitation tariffs, thereby aiding in policy and operational planning within the water sector. New hydrological insights for the region: The analysis was performed across four distinct continuity scenarios revealing substantial cost variability contingent on continuity targets, current service levels, and the efficiency of each utility. Results showed a median operational cost increase that varied from 28.41 % in the most stringent scenario to just 0.27 % in the most lenient. The financial implications of meeting these costs through water and sanitation tariffs would necessitate a median monthly increase in water bills, ranging from $17.24 per household in the most demanding scenarios to only $0.01 per household in the more lenient scenarios. This research provides a valuable tool for water sector regulators and managers, enabling informed decision-making by balancing service improvement objectives with economic considerations and customer willingness to pay for enhanced service continuity.http://www.sciencedirect.com/science/article/pii/S2214581824003574Water supply and sanitation continuityQuality of serviceWater utilitiesInverse data envelopment analysisEconomicsOperational costs
spellingShingle Manuel Mocholi-Arce
Alexandros Maziotis
Ramón Sala-Garrido
María Molinos-Senante
Estimating operational costs for enhanced continuity in water supply and sanitation services: An inverse data envelopment analysis approach in Chilean utilities
Journal of Hydrology: Regional Studies
Water supply and sanitation continuity
Quality of service
Water utilities
Inverse data envelopment analysis
Economics
Operational costs
title Estimating operational costs for enhanced continuity in water supply and sanitation services: An inverse data envelopment analysis approach in Chilean utilities
title_full Estimating operational costs for enhanced continuity in water supply and sanitation services: An inverse data envelopment analysis approach in Chilean utilities
title_fullStr Estimating operational costs for enhanced continuity in water supply and sanitation services: An inverse data envelopment analysis approach in Chilean utilities
title_full_unstemmed Estimating operational costs for enhanced continuity in water supply and sanitation services: An inverse data envelopment analysis approach in Chilean utilities
title_short Estimating operational costs for enhanced continuity in water supply and sanitation services: An inverse data envelopment analysis approach in Chilean utilities
title_sort estimating operational costs for enhanced continuity in water supply and sanitation services an inverse data envelopment analysis approach in chilean utilities
topic Water supply and sanitation continuity
Quality of service
Water utilities
Inverse data envelopment analysis
Economics
Operational costs
url http://www.sciencedirect.com/science/article/pii/S2214581824003574
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