Governance of Finnish waterworks – A DEA comparison of selected models

The efficiency of water and sewage services has been studied worldwide for decades and it has also attracted interest in Finland. The objective of this research is to find out whether a governance model has an effect on the efficiency of waterworks in Finland. Data Envelopment Analysis (DEA) was used as a tool to measure the efficiency of 19 waterworks. The research results indicate a statistical difference between two governance models analyzed. This study was the first attempt to compare the efficiency of the governance models of waterworks in Finland and it can be used as a foundation for improved models in the future.

► We study four governance models in the Finnish water sector.
► We compare efficiency of 19 waterworks with Data Envelopment Analysis.
► The results show differences between governance models.