The Analysis Of Efficiency On Urban Water Supply And The Effect From The Entrance Of Private Capital In China

With the acceleration of urbanization, the gap between China’s urban water supply and need is enlarged, high leakage rate is the other problem, so it is very important to improve the efficiency of urban water supply. Meanwhile, The aim of Chinese urban water supply industry market-oriented reforms have gradually transformed from the introduction of funding for improved efficiency. And Chinese urban water supply industry market-oriented reforms are characterized by the entry of private capital. Therefore, can private capital entering improve Chinese urban water supply efficiency seems very important. It is not only related to the future direction of Chinese water supply industry market-oriented reform, but also related to improve the quality of urban residents’ lives in the future and the healthy development of the urban economy.By using BAM and selecting data from 209 cities during 2000 and 2012,this study measures the performance of China’s urban water supply in “quantity” and “quality” aspects. On the basis of it, we explore the impact of private capital participation on industrial performance of urban water supply.The study indicates that:(1)In two models,the provinces or cities whose water supply efficiency reach 1 are different, but Shanghai is the only city whose water supply efficiency is always on the production frontier.(2) China ’s western region has the highest efficiency,eastern region has the second efficiency,the central region has the lowest efficiency; The region which is rich of water resources has a high efficiency score in water supply, however, the region which is great shortage of water resources gets a low efficiency score.(3)The main source of whole inefficiency is due to the inefficiency of input, the inefficiency of power input、labor input and assets input are decrease in sequence. While the leakage of water which reflects management ability is another important source.(4)The participation of private capital not only improves the water supply capacity of China’s urban water supply, but also improves the management ability in China’s urban water supply. In this way, the efficiency of China’s urban water supply is improved.