Gaming in a benchmarking environment. A non-parametric analysis of benchmarking in the water sector

Kristof De Witte*, Rui Cunha Marques

*Corresponding author for this work

    Research output: Contribution to journalArticleAcademicpeer-review

    Abstract

    This paper discusses the use of benchmarking in general and its application to the drinking water sector in particular. It systematizes the various classifications of performance measurement, discusses some of the pitfalls of benchmark studies and provides some examples of benchmarking in the water sector. After a presentation of the institutional framework of the water sector in the Belgian region of Flanders (without any benchmarking experience), Wallonia (recently started a public benchmark) and the Netherlands (introduced a public benchmark in 1997), we point to their different stages in the benchmarking cycle. As these three regions are comparable apart from their different implementation of benchmarking, a non-parametric estimation of the productivity gains over time (by a Malmquist index) could be insightful. The 'carrot' and the 'stick' of benchmarking seem to offer an effective incentive to trigger performance. In addition, the Malmquist decompositions provide some indication on the 'gaming' of the stakeholders by the water utilities.
    Original languageEnglish
    Pages (from-to)45-66
    JournalWater Policy
    Volume14
    Issue number1
    DOIs
    Publication statusPublished - 2012

    Keywords

    • Benchmarking
    • Gaming
    • Malmquist decomposition
    • Regulation
    • Water sector

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