Productivity change in Brazilian water services: A benchmarking study of national and regional trends

Abstract

Assessing the evolution of the performance of water supply and sanitation services is essential to monitor progress towards the universalization of water services, as specified by the Sustainable Development Goal 6 of Agenda 2030, adopted by United Nations member countries. Brazil, a developing country with a continental size and geographical diversity, will face significant challenges to achieve this goal. The main objective of this paper is to evaluate the evolution of productivity of water supply and sanitation services in Brazilian municipalities in the period 2012-2019. The analysis also explores whether water services' performance is balanced across the country, with a specific analysis of performance at the macroregion level. From a methodological perspective, this research evaluates productivity change over time using a Malmquist Productivity Index estimated with a metafrontier, satisfying the circularity property. It also develops a pseudo Malmquist index that compares productivity levels across macro-regions. The results revealed a productivity loss of approximately 4% at the national level, with an unequal profile across the macro-regions. The Southeast municipalities stand out for exhibiting, on average, higher productivity levels than the South and Northeast municipalities.