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Article Abstract
We propose a dynamic approach to analyze water use efficiency across Spanish regions in the period 2001-2018. To measure efficiency, we implement several specifications of a slacks-based measure Data Envelopment Analysis (SBM-DEA) model considering different intertemporal aspects of the water cycle, ranging from depletion to wastewater treatment and recycling. Accounting for the last two components makes a crucial difference when determining the efficiency of regions. A dynamic Tobit model is applied to identify the main driving forces behind the observed trends in efficiency. We find a very strong autoregressive component, suggesting an important structural dimension. Efficiency is also positively related to competitiveness, while economic growth can have a positive effect though limited to the short run. The main managerial and policy implications for a country subject to strict water consumption limits and depending on wastewater treatment and recycling are analyzed.
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| http://dx.doi.org/10.1016/j.jenvman.2025.126174 | DOI Listing |
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