Productivity Change and Characteristica for Danish Water Companies

Abstract

It is essential to see productivity change in the dansih water sector, and how it has changed over time. A positive productivity change is in favour of the consumers who pays the price in this sector, where natural monopoly is the rule. The companies within the danish water section will also benefit, as they will optimize their productions and costs, and also to mention the climate and environment will benefit from less production. By applying different statistic tools for the results from the malmquist index, this paper will try to find certain characteristica on different groups, that could explain a difference in producitivity over time. The analysis will consist of 3 different groups, that each differ in how their costs are split into production.
Hereafter a continuous variabel that indicates the size of the comapnies is included, to see if there is a correlation with productivity change and amount of water produced. We will see that there a difference in groups and their productivity change, where the group that includes both transport and cleaning do better, than companies who only
does either transport or cleaning. It can be found that the greatest effects are seen within the technical change in the malmquist index. The amount of water produced also has an effect, but more for the group that consist of both transport and cleaning, and also only most significant for the technical change in the malmquist index.