Measuring the total factor productivity of the Portuguese water and sewerage services

Abstract

The poor productivity in the water and sewerage services (WSS) has been a justification for the difficulties these entities face when trying to expand the service coverage, enhance the quality of service and reduce the cost of service. Improving the WSS productivity is, therefore, one of the best ways of protecting the customers' interests. This article presents an empirical study that computes the total factor productivity (TFP). It stresses the results obtained and discusses them, proving the low productivity of this sector in Portugal and pointing to the conclusion that the private and the rural WSS are the most productive ones.