Análisis de eficiencia técnica del servicio público de agua potable en el Municipio de Málaga, Santander: una Aplicación del Análisis Envolvente de Datos (DEA)

Abstract

The main purpose of this research is to assess the overall technical efficiency, pure technical efficiency and scale efficiency of the productive resources used in the provision of potable water in the municipality of Malaga, Santander, over the period 2007-2015. To this end, a Data Envelope Analysis DEA approach was applied to a longitudinal data series of 36 semesters regarding total revenues, labor, materials and capital expenses. The analysis was carried out on 6 different scenarios assuming variable returns to scale in both output and input oriented frameworks. The calculated global technical efficiency index ranged from 66.9% (input-oriented) to 81.9% (product-oriented). These technical inefficiencies suggest that Malaga’s EPM could decrease by 33,1% current costs and expenses on resources while keeping actual level of water ouput and service prices alike. Likewise, this company could rise present supply of potable water by 18,1% with prevailing resource endowment. Then, the Company´s management should seek for additional financial and technical assistance in order to bring the present scale of operation to its optimal scale.