This project seeks to look at the effects of Quality on the English and Welsh Water and Sewerage Industry.

Quality has been somewhat of a focus for the companies since their privatisation in 1989, but only recently have there been regulatory changes that encourage a variety of improvements in Environmental Quality and the Quality of Services provided.

By combining a selection of these factors in to a Composite Indicator, this project first wishes to see if this new variable affects the Efficiency of the companies, and will be measured via Data Envelopment Analysis.

To further measure the impact of Quality, Allocative Efficiency will also be measured in a Dynamic DEA model, to see if the industry’s well-observed Capex Bias is changed by investments in Quality over time.

Finally, the project seeks to also develop an exploratory theoretical model of the English and Welsh Water and Sewerage Industry, which will then be tested against the real data to see if a novel tool for policy analysis can be designed in this way.