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Updated: Sep 18, 2025

Watershed Planning within a Quantitative Scenario Analysis Framework
Published on: July 24, 2016
A dynamic approach to analyze the evolution of water use efficiency across Spanish regions
Francisco Javier Santos-Arteaga1, Asensio Buendía2, Francisco J André3
1Department of Financial & Actuarial Economics and Statistics, Universidad Complutense de Madrid, Madrid, Spain.
Abstract:
We propose a dynamic approach to analyze water use efficiency across Spanish regions in the period 2001-2018. To measure efficiency, we implement several specifications of a slacks-based measure Data Envelopment Analysis (SBM-DEA) model considering different intertemporal aspects of the water cycle, ranging from depletion to wastewater treatment and recycling. Accounting for the last two components makes a crucial difference when determining the efficiency of regions. A dynamic Tobit model is applied to identify the main driving forces behind the observed trends in efficiency. We find a very strong autoregressive component, suggesting an important structural dimension. Efficiency is also positively related to competitiveness, while economic growth can have a positive effect though limited to the short run. The main managerial and policy implications for a country subject to strict water consumption limits and depending on wastewater treatment and recycling are analyzed.
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