Abstract

This study applies a two-stage network structure model to evaluate water service providers cost and operational performance embracing service quality variables. An empirical analysis of the Chilean water and wastewater industries over the 2010-2018 period is presented. Moreover, in the second stage of analysis, we analyzed the impact of a set of exogenous variables on the performance of water companies. Results revealed that the Chilean water companies had notable room to reduce costs and improve operational performance. Moreover, it was found that the public water provider performed better than fully private and concessionary water providers.