Pan-European Water Use Efficiency and Sustainability Evaluation Based on Stochastic Meta-frontier Analysis

Abstract

In 2007, the European Union (EU) intended to become a water-efficient community. Yet, despite the EU’s commitment to the United Nations (UN) sustainable development goals (SDGs), relevant insights based on scientific research are still sparse. This study presents a pan-European water use performance evaluation, considering differences in production technologies and potential efficiency determinants. The empirical results are obtained by analysing country-level panel data from 2011 to 2020. Our paper provides more instructive and encompassing findings to inform holistic policy formulation and management practices than prior studies that have typically relied on partial-factor indicators with limited explanatory power. We find that European countries are subject to technological and efficiency heterogeneity, and our production function and inefficiency equation estimations attest to the existence of divergent cause-effect relationships, calling for decentralised, customised solutions. Arguably, our comparative benchmarking analysis constitutes the first comprehensive cross-country investigation for Europe of its kind, underscoring the importance of impactful science in fostering the preservation of high civilisation in line with the theme of this special issue.