Abstract
Abstract This study examines whether the Japanese scheme of nontransferable water rights results in technical inefficiency. Using data on 1280 Japanese retail water suppliers in 2011, technical efficiency is measured via data envelopment analysis. The determinants of this technical efficiency are then examined via a bootstrapped truncated regression model. The estimation results reveal that the nontransferability of water rights leads to technical inefficiency among retail water suppliers. Furthermore, this inefficiency costs about 133.9 billion yen per year, underlining the importance of the Japanese government flexibly reallocating water rights to improve efficiency.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.