Environmental Concerns in Water Pricing Policy: an Application of Data Envelopment Analysis (DEA)

The research evaluates irrigation water pricing policies in Puglia, Italy, using a two-step process: simulation via mathematical programming and efficiency analysis via Data Envelopment Analysis (DEA). The study compares technical efficiency with 'eco-efficiency,' which simultaneously considers economic outputs and environmental externalities. Results indicate that volumetric pricing methods are generally the most efficient, while inefficiency in other options is primarily driven by technical factors, specifically labour use, rather than environmental concerns like nitrate surplus or pesticide risk.

• The study proposes a novel methodological framework for ex ante water policy analysis that simultaneously considers environmental and technical performance by calculating efficiency as the ratio between the weighted sum of multiple desirable outputs and undesirable outputs.
• In the case study conducted in the Foggia province of Puglia, Italy, volumetric pricing methods were found to be the most efficient options.
• Indirect pricing methods, such as those based on the value of inputs specific to irrigated crops, were also found to be relatively efficient and could be preferable due to easier implementation.
• Inefficiency in the tested water pricing options is primarily attributed to technical factors rather than environmental externalities.
• Analysis of DEA weights indicates that the most significant potential for improving the efficiency of inefficient policy options lies in better labour use.
• Among environmental externalities, nitrate surplus was identified as the most critical issue affecting eco-efficiency scores, particularly in the current charge price scenario (P0), while pesticide risk was less influential.

APA

Giannoccaro, G., & Martin-Ortega, J. (2010). Environmental Concerns in Water Pricing Policy: an Application of Data Envelopment Analysis (DEA). Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201003150431111364457049.pdf

Chicago

Giannoccaro, Giacomo, and Julia Martin-Ortega. Environmental Concerns in Water Pricing Policy: an Application of Data Envelopment Analysis (DEA). Basque Centre for Climate Change, 2010. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201003150431111364457049.pdf.

Wikipedia

{{cite report |last1=Giannoccaro |first1=Giacomo |last2=Martin-Ortega |first2=Julia |title=Environmental Concerns in Water Pricing Policy: an Application of Data Envelopment Analysis (DEA) |publisher=Basque Centre for Climate Change |date=March 2010 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201003150431111364457049.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{giannoccaro2010environmental, author = {Giannoccaro, Giacomo and Martin-Ortega, Julia}, title = {{Environmental Concerns in Water Pricing Policy: an Application of Data Envelopment Analysis (DEA)}}, institution = {Basque Centre for Climate Change}, year = {2010}, month = mar, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201003150431111364457049.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }