Technical efficiency of sewage companies in the North and Northeast of Brazil

Authors

  • Helton Neves Canguçú Oliveira Universidade Federal de Viçosa
  • Marília Fernandes Maciel Gomes Universidade Federal de Viçosa
  • Maria Micheliana da Costa Silva Universidade Federal de Viçosa

DOI:

https://doi.org/10.4013/pe.2012.82.04

Abstract

This study investigates the association between the technical efficiency of companies collecting and treating sewage in North and Northeast Brazil – which are the poorest ones in terms of the service – in 2003 and 2008 and public health indicators. It also discusses the evolution of technical efficiency in the period and checks whe ther there were economies of scale in firms that operate at a regional level. The methodology used to measure the technical efficiency is the Data Envelopment Analysis. The results indicate that nearly one third of the companies were inefficient in 2008, although there was an increase of the number of efficient firms in the period. Firms with lower technical efficiency scores are mostly concentrated in the states most deficient in terms of this service. With caveats, the impact of technical efficiency of companies seems to be positive for infant mortality.

Key words: technical efficiency, sewage, Data Envelopment Analysis – DEA.

Author Biographies

Helton Neves Canguçú Oliveira, Universidade Federal de Viçosa

Mestrando em Economia Aplicada da Universidade Federal de Viçosa.

Marília Fernandes Maciel Gomes, Universidade Federal de Viçosa

Professora do Departamento de Economia Rural da Universidade Federal de Viçosa.

Maria Micheliana da Costa Silva, Universidade Federal de Viçosa

Mestranda em Economia Aplicada da Universidade Federal de Viçosa.

Published

2013-02-25

Issue

Section

Articles