Assessing the dynamic carbon performance of water companies: a parametric approach

Abstract

Moving to a low-carbon urban water cycle is a relevant challenge for the water industry. To realise this objective, the first step is to evaluate the carbon performance of water companies. This study proposed and applied a parametric methodology to measure the carbon efficiency and total factor carbon productivity of water companies. This methodological approach allowed us to evaluate how environmental variables influenced carbon performance of water companies. The empirical component was based on a sample of English and Welsh water and sewerage companies and water only companies during the 2010–2019 period. The results showed that the carbon footprint is a relevant issue for water companies, as the average carbon efficiency was 92.5%. However, there is room for improvement, because average total factor carbon productivity decreased over time, by 0.32% per year. Thus, additional technologies and policies should be adopted to improve the carbon performance of water companies and move to a net-zero carbon urban water cycle.