Performance Evaluation Of Urban Water Supply Industry In China And Shadow Price Of Leaking Water

With the rapid development of China’s economy and the rapid progress of urbanization,the shortage of water supply in Chinese cities is becoming more and more serious,and the urban water supply industry is not only related to the process of urbanization,but also closely related to the living standard and quality of the residents.In this paper,the quadratic directional output distance function model(DDF)is used to measure the efficiency of the water supply industry in 202 cities in China for 2003-2014 years,and to calculate the shadow price of the leaking water.The study found that the technical efficiency of urban water supply increased from 0.5094 in 2003 to 0.6930 in 2014,but it was not stable and fluctuated,with an average annual growth of about 3.06%,and the average technical efficiency of all sample cities was 0.6838.The efficiency of 166 cities is distributed among 0.6-0.8,and the efficiency of 22 cities is distributed between 0.4-0.6.Only 8 cities have more than 0.8 efficiency values,and the efficiency value of one city is between 0-0.2.The efficiency of each city is very different.Pearl River Delta,Yangtze River Delta and Beijing Tianjin Hebei three major urban agglomeration efficiency differences are relatively large,and the efficiency fluctuations are relatively large.From a regional perspective,the technical efficiency of water supply in the western region has always been the highest.During the study period,the shadow price of the average leakage water in China’s urban water supply industry was 4.15 yuan per cubic meter,that is to say,the cost of reducing the leakage of one unit is 4.15 yuan,which is much larger than the average water supply price of 1.90 yuan / cubic meter during the study period.From the regional perspective,the shadow price of leakage water in the western region is the highest of 4.25 yuan per cubic meter,and the lowest in central region is 3.94 yuan per cubic meter.There is a great difference in the shadow price calculated under different direction vectors,in which the leaking water has the smallest change under the condition of g=(1,0),which is in line with the management target of the business operator.