COST EFFICIENCY EVALUATION OF WASTE WATER DISPOSAL SYSTEMS

Abstract

In this paper, a methodology to evaluate cost efficiencies of waste water disposal systems is presented. The waste water disposal systems are modeled as two-level hierarchical systems. The stochastic frontier models hybridizing cost frontiers both of lower subsystems and upper systems are formulated to evaluate cost efficiencies of hierarchical systems as a whole. The case studies are carried out based upon Japanese data set to elucidate the cost efficiencies of the waste water disposal systems operated by local jurisdictions.