David Maradan

Water Supply: Costs and Performance of Water Utilities: Evidence from Switzerland

In this paper, we assess the economic efficiency of Swiss water utilities. To reach this aim, we accessed a new and unexploited database, which counts 330 water utilities, representing about 55% of the drinking water distributed in Switzerland. The database spans over six years (2000-2005) and offers information on the type of the water production process, the characteristics of the network and the costs of water supply. This database presents an original opportunity to analyse the cost of water supply and to determine the efficiency of the water utilities. Such a study has never been done for Switzerland. We apply a stochastic cost function approach to measure cost inefficiency and to investigate the impact of environmental characteristics outside the control of the water utilities (e.g. type of water and customer density) on costs and inefficiency measures. Our results show that environmental factors have a significant influence on costs. Including exogenous variables in the analysis lowers industry inefficiency scores and provides indicators of managerial performance.

On Scope Effects in Contingent Valuation: Does the Statistical Distributional Assumption Matter?

In this paper, we test for scope effects in Contingent Valuation applying different distributional assumptions for WTP, a non-parametric estimation and an estimation based on an open-ended format. Mean WTP is sensitive to the distributional assumption, but so is the scope effect. The nonparametric model, without conditions on the distribution, is the best able to identify scope effects. More sophisticated models, such as the spike model, and open-ended follow-up question give more information about individual WTP and are thus more powerful in revealing scope effects. For small sample size, a non-parametric analysis, a spike model or an open-ended format may therefore be better than the classical parametric dichotomous choice analysis to identify scope effects.

Economic-Environmental Analysis of the Moroccan Cement Sector: Benefits from Co-Processing and Production of Renewable Energy

Environmental economic analyses of an industrial sector enable the evaluation of related environmental impacts in monetary terms. Since 1997, the Moroccan cement sector has engaged in improving its environmental performances. This research paper presents the results of the environmental economic studies (Ecosys & sba, 2004, 2007, 2008) that estimate the environmental benefits related to the 1 billion dirham (89 million euro) spent for environmental protection. It shows that the Moroccan cement sector managed to reduce its environmental damages while increasing its economic value.