The Palestinian Water Law 2014 calls for the amalgamation of the current water service providers into large regional utilities that are financially independent and have separate legal entities. This research, evaluates whether there are significant differences in the performance of the Palestinian water service providers based on their institutional structure and ownership. Thereafter, calculating the efficiency scores, in which the water providers may maximize the output for given level of input consumption. The multivariate analysis shows significant differences in non-revenue water, average price, and water consumption based on the structure. The water utilities perform better than municipalities when examining working ratio, gross profit, and collection efficiency. Wherein the Joint Service Councils have high sales price than utilities and municipalities; therefore, they are more profitable, more efficient in non-revenue water, and better in staff productivity. The results show more efficiency can be achieved during aggregation current water service providers into regional utilities. Amalgamating the providers into only four main water regional utilities – one in the north, middle, south, and Gaza will deliver less than current efficiency; and will double the cost or diminish half of overall output. Therefore, changing the current large and medium providers into regional utilities, and merging the current small providers into medium or large regional utilities will have more efficiency and capacity for improvement. Implications of these findings case by case through conducting further studies will add value for better merging efficiency and reforming process.
| Published in | American Journal of Environmental and Resource Economics (Volume 2, Issue 4) |
| DOI | 10.11648/j.ajere.20170204.13 |
| Page(s) | 162-174 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Efficiency, Palestinian Water Law 2014, Performance, Regional Utilities, Structure
| [1] | Abdullah Murrar. (2017) The Determinants of Non-Revenue Water in Balkan Countries. American Journal of Water Science and Engineering. Vol. 3, No. 2, 2017, pp. 18-27. doi: 10.11648/j.ajwse.20170302.11 |
| [2] | Abdullah Murrar, Abdelrahman Tamim, Subhi Samhan. (2017). The Determinants of Non-Revenue Water & Financial Viability for the Palestinian Water Service Providers. Journal of Water Resources and Ocean Science. Vol. 6, No. 2, 2017, pp. 35-45. doi: 10.11648/j.wros.20170602.12 |
| [3] | Abrate et al., (2016). Efficiency in the Consolidation of the Italian Water Sector. Water Resour Manage. Springer Science+Business Media Dordrecht 2016. DOI: 10.1007/s11269-016-1376-9 |
| [4] | Andey, S. P. & Kelkar, P. S. (2009). Influence of Intermittent and Continuous Modes of Water Supply on Domestic Water Consumption. Water Resour Manage. Volume 23, Issue 12, pp 2555–2566. 23: 2555. doi: 10.1007/s11269-008-9396-8 |
| [5] | Andrea et al., (2015). The Effects of Operational and Environmental Variables on Efficiency of Danish Water and Wastewater Utilities. Water 2015, ISSN 2073-4441 www.mdpi.com/journal/water.7, 3263-3282; doi: 10.3390/w7073263 |
| [6] | Balaguer-Coll, M. T., Prior, D., and Tortosa-Ausina, E. (2013). Output Complexity, Environmental Conditions, and the Efficiency of Municipalities. Journal of Productivity Analysis, 39(3): 303–324. |
| [7] | Charnes, A., Cooper, W. W., and Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6): 429–444 |
| [8] | De Witte, K.; Marques. (2010). Influential observations in frontier models, a robust non-oriented approach to the water sector. Ann. Oper. Res. 2010, 181, 377–392 |
| [9] | Fethi, M. D. and Pasiouras, F. (2010). Assessing Bank Efficiency and Performance with Operational Research and Artificial Intelligence Techniques: A Survey. European Journal of Operational Research, 204(2): 189–198. DOI: 10.1016/j.ejor.2009.08.003 |
| [10] | Grice J, Iwasaki. M. (2007). A TRULY MULTIVARIATE APPROACH TO MANOVA. Applied Multivariate Research, Volume 12, No. 3, 2007, 199-226. DOI: 10.22329/amr.v12i3.660 |
| [11] | Guerrini, Romano, & Campedelli. (2010). Factors affecting the performance of water utility companies. International Journal of Public Sector Management Vol. 24 No. 6, 2011 pp. 543-566 q Emerald Group Publishing Limited 0951-3558 DOI: 10.1108/09513551111163657 |
| [12] | Gupta, Kumar & Sarangi, (2012). Measuring the performance of water service providers in urban India: implications for managing water utilities. Water Policy 14 (2012) 391–408. IWA Publishing 2012. doi: 10.2166/wp.2011.109 |
| [13] | Haase, R. and Ellis, M. (1987) Multivariate Analysis of Variance. Journal of Cou nseling Psychology, 34, 404-413. https://doi.org/10.1037/0022-0167.34.4.404 |
| [14] | Hossian, Sobhan & Sultana, (2016). Application of DEA Methodology in Measuring Efficiency of Some Selected Commercial Banks in Bangladesh. JUJSS. ISSN 1022-4734. Vol. 33, 2016, pp. 57-64. |
| [15] | Anil Ghash. (2007). Applied MANOVA and discriminant analysis. Journal of the American Statistical Association 102(479): 1075-1076 September 2007. DOI: 10.1198/jasa. 2007.s203 |
| [16] | Jerusalem Water Undertaking (2016) Foundation of JWU. Historical Background. Published on May 23, 2016. http://www.jwu.org/jwu/?p=1698&lang=en. June 30, 2017. |
| [17] | Johan Willner and David Parker. (2007). The Performance of Public and Private Enterprise under Conditions of Active and Passive Ownership and Competition and Monopoly. Journal of Economics. Springer-Verlag 2007. Vol. 90 (2007), No 3, pp. 221–253. DOI 10.1007/s00712-006-0230-6 |
| [18] | Khaki, Najafi, Rashidi. (2012). Improving efficiency of decision making units through BSC-DEA technique. Management Science Letters 2 (2012) 245–252. 2012 Growing Science Ltd. All rights reserved. doi: 10.5267/j.msl.2011.08.016 |
| [19] | Lledó Castellet & María Molinos (2016). Efficiency assessment of wastewater treatment plants: A data envelopment analysis approach integrating technical, economic, and environmental issues. Journal of Environmental Management. Volume 167, 1 February 2016, Pages 160-166. doi: 10.1016/j.jenvman.2015.11.037 |
| [20] | Makaya & Hensel. (2014). Water Distribution Systems Efficiency Assessment Indicators – Concepts and Application. International Journal of Science and Research (IJSR) ISSN (Online): 2319-7064. Volume 3 Issue 7, July 2014. Paper ID: 02014259. |
| [21] | Marta et al., (2016). Ownership and Performance in Water Services Revisited: Does Private Management Really Outperform Public? Water Resour Manage. Springer Science+Business Media Dordrecht 2016. DOI 10.1007/s11269-016-1495-3 |
| [22] | MoLG. (2017). Joint Service Councils Archive. http://www.molg.pna.ps/Join_Council_arch.aspx.Ministry of Local Government. 27/06/2017 |
| [23] | Murrar, A. (2017) The Relationship between Size and Performance of Palestinian Water Service Providers. Journal of Water Resource and Protection, 9, 536-552. Doi: org/10.4236/jwarp.2017.95035 |
| [24] | Murrar. Abdullah. (2017). The water invoices and customers’ payment motivational strategies: an empirical study on Palestinian water service providers. EPRA International Journal of Economic and Business Review-Online ISSN 2347-9671 & Print ISSN 2349-0187. Vol: 5, Issue: 1, January 2017. |
| [25] | Obosi, J. O. (2017). Impact of Public-Private Partnership on Water Service Delivery in Kenya. Open Journal of Political Science, 7, 211-228. doi: 10.4236/ojps.2017.72017 |
| [26] | Pazzi, Ausina, Duygun & Zambell. (2016). The Cost Efficiency of Water Utilities: When Does Public Ownership Matter? Article in Local Government Studies. August 2016. DOI: 10.1080/03003930.2016.1207630 |
| [27] | Peda, P., Grossi, G. and Liik, M. (2013) Do Ownership and Size Affect the Performance of Water Utilities? Evidence from Estonian Municipalities. Journal of Management & Governance, 17, 237-259. Doi: 10.1007/s10997-011-9173-6 |
| [28] | Rao, D. P., O’Donnell, C. J., Battese, G. E., and Coelli, T. J. (2005). An Introduction to Efficiency and Productivity Analysis. Springer, New York. DOI: 10.1007/978-1-4615-5493-6 |
| [29] | Rubio, Go´mez & Guardiola. (2010). Performance and ownership in the governance of urban water. Municipal Engineer 163 Issue ME1. Proceedings of the Institution of Civil Engineers Municipal Engineer 163 March 2010 Issue ME1 Pages 51–58 doi: 10.1680/muen.2010.163.1.51 |
| [30] | State of Palestine (2014). Decree No. 14 for year 2014 relating to the Water Law. Palestinian Water Authority. Articles 45, 46 and 47. |
| [31] | T. Coelli (1996): A Guide to DEAP Version 2.1: A Data Envelopment Analysis (Computer) Program, Australia: University of New England. |
| [32] | T. J. Coelli, S. Rahman and C. Thirtle (2002): Technical, Allocative Cost and Scale Efficiency in Bangladesh Rice Cultivation: A Non-Parametric Approach, Journal of Agricultural Econometrics, 53 (3): 607-627. DOI: 10.1111/j.1477-9552.2002.tb00040.x |
| [33] | Warne, Russell (2014). A Primer on Multivariate Analysis of Variance (MANOVA) for Behavioral Scientists. Practical Assessment, Research & Evaluation, 19(17). Practical Assessment, Research & Evaluation, Vol 19, No 17 http://pareonline.gross/getvn.asp?v=19&n=17 |
| [34] | Water Sector Regulatory Council. (2014). Water Services Providers Performance Report 2014. WSRC hardcopy and softcopy publishing report. wsrc. ps.20.06.2017. |
| [35] | Water Sector Regulatory Council. (2015). Water Services Providers Performance Report 2015. WSRC hardcopy and softcopy Arabic Version. publishing report. wsrc. ps.30.06.2017. |
APA Style
Abdullah Murrar, Ahmad Sadaqa, Khalid Rabayah, Subhi Samhan, Abdelrahman Tamimi, et al. (2017). The Efficiency and Institutional Performance of the Palestinian Water Service Providers. American Journal of Environmental and Resource Economics, 2(4), 162-174. https://doi.org/10.11648/j.ajere.20170204.13
ACS Style
Abdullah Murrar; Ahmad Sadaqa; Khalid Rabayah; Subhi Samhan; Abdelrahman Tamimi, et al. The Efficiency and Institutional Performance of the Palestinian Water Service Providers. Am. J. Environ. Resour. Econ. 2017, 2(4), 162-174. doi: 10.11648/j.ajere.20170204.13
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.ajere.20170204.13,
author = {Abdullah Murrar and Ahmad Sadaqa and Khalid Rabayah and Subhi Samhan and Abdelrahman Tamimi and Walid Sabbah and Ihab Barghothi},
title = {The Efficiency and Institutional Performance of the Palestinian Water Service Providers},
journal = {American Journal of Environmental and Resource Economics},
volume = {2},
number = {4},
pages = {162-174},
doi = {10.11648/j.ajere.20170204.13},
url = {https://doi.org/10.11648/j.ajere.20170204.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajere.20170204.13},
abstract = {The Palestinian Water Law 2014 calls for the amalgamation of the current water service providers into large regional utilities that are financially independent and have separate legal entities. This research, evaluates whether there are significant differences in the performance of the Palestinian water service providers based on their institutional structure and ownership. Thereafter, calculating the efficiency scores, in which the water providers may maximize the output for given level of input consumption. The multivariate analysis shows significant differences in non-revenue water, average price, and water consumption based on the structure. The water utilities perform better than municipalities when examining working ratio, gross profit, and collection efficiency. Wherein the Joint Service Councils have high sales price than utilities and municipalities; therefore, they are more profitable, more efficient in non-revenue water, and better in staff productivity. The results show more efficiency can be achieved during aggregation current water service providers into regional utilities. Amalgamating the providers into only four main water regional utilities – one in the north, middle, south, and Gaza will deliver less than current efficiency; and will double the cost or diminish half of overall output. Therefore, changing the current large and medium providers into regional utilities, and merging the current small providers into medium or large regional utilities will have more efficiency and capacity for improvement. Implications of these findings case by case through conducting further studies will add value for better merging efficiency and reforming process.},
year = {2017}
}
TY - JOUR T1 - The Efficiency and Institutional Performance of the Palestinian Water Service Providers AU - Abdullah Murrar AU - Ahmad Sadaqa AU - Khalid Rabayah AU - Subhi Samhan AU - Abdelrahman Tamimi AU - Walid Sabbah AU - Ihab Barghothi Y1 - 2017/09/23 PY - 2017 N1 - https://doi.org/10.11648/j.ajere.20170204.13 DO - 10.11648/j.ajere.20170204.13 T2 - American Journal of Environmental and Resource Economics JF - American Journal of Environmental and Resource Economics JO - American Journal of Environmental and Resource Economics SP - 162 EP - 174 PB - Science Publishing Group SN - 2578-787X UR - https://doi.org/10.11648/j.ajere.20170204.13 AB - The Palestinian Water Law 2014 calls for the amalgamation of the current water service providers into large regional utilities that are financially independent and have separate legal entities. This research, evaluates whether there are significant differences in the performance of the Palestinian water service providers based on their institutional structure and ownership. Thereafter, calculating the efficiency scores, in which the water providers may maximize the output for given level of input consumption. The multivariate analysis shows significant differences in non-revenue water, average price, and water consumption based on the structure. The water utilities perform better than municipalities when examining working ratio, gross profit, and collection efficiency. Wherein the Joint Service Councils have high sales price than utilities and municipalities; therefore, they are more profitable, more efficient in non-revenue water, and better in staff productivity. The results show more efficiency can be achieved during aggregation current water service providers into regional utilities. Amalgamating the providers into only four main water regional utilities – one in the north, middle, south, and Gaza will deliver less than current efficiency; and will double the cost or diminish half of overall output. Therefore, changing the current large and medium providers into regional utilities, and merging the current small providers into medium or large regional utilities will have more efficiency and capacity for improvement. Implications of these findings case by case through conducting further studies will add value for better merging efficiency and reforming process. VL - 2 IS - 4 ER -
Information
Email: