Analysis of the water use efficiency using super-efficiency data envelopment analysis

Abstract

Abstract Data envelopment analysis (DEA) is a linear programming and production theory-based nonparametric approach that is generally used for efficiency analysis. Older DEA models, such CCR and BCC, can only identify decision-making units (DMUs) efficient or inefficient. The super-efficiency DEA model enables efficient DMUs to be ranked. A change in efficient DMUs can be measured using Malmquist index model, and the Malmquist productivity change index can be decomposed multiplicatively into an efficiency-change component (Effch) and a technical change component (Techch). This paper analyzes the water use efficiency in Shandong Province between 2006 and 2015 using Malmquist productivity index (TFP). The results show that: (1) the mean of super-efficiency scores of 17 cities in Shandong Province for the period 2006–2015 is between 0.965 and 2.760; (2) the water use efficiency was positive in 2006–2007, 2007–2008, and 2013–2014; however, it was negative in the other periods between 2006 and 2015; and (3) technical change is the key influencing factor on water use efficiency of 17 cities in Shandong Province. So, we suggest that Shandong Province encourage technological innovation to promote water use efficiency.

Keywords

• Water use efficiency
• Super-efficiency DEA
• Malmquist index
• Shandong Province