Analysis of Operating Cost Efficiency of Sewage Treatment Plants

Abstract

In recently years, the number of sewage treatment plants and the ability of sewage treatment in China have increased, but the problem of low operating efficiency still exists. This paper, by using New-Cost-DEA model to construct the operating cost efficiency model of sewage treatment plants, calculated the operating cost efficiency of 13 sewage treatment plants in Henan Province of China, trying to find the reasons of operating cost losses. The results show that factors affecting the cost efficiency of sewage treatment plants are not only related to the quantities but also to the prices of input factors. The low cost efficiency of some sewage treatment plants is not caused by the quantities of input factors, but by the prices and allocative efficiency of these input factors. Therefore, in order to reduce operating cost and raise efficiency, it is necessary to cut down the prices of input factors and optimize these factors.