Governance of the Water Supply Systems in the Palestinian Territories : A Data Envelopment Analysis Approach to the Management of Water Resources

The purpose of this study is to evaluate the governance efficiencies of the water supply systems by applying data envelopment analysis (DEA) to 33 Palestinian municipalities. We demonstrate that DEA can be a useful tool to assess the relative efficiencies of water supply systems and to establish benchmarks with which to measure progress in the management of water resources. Frontier estimation models measure the efficiency of water use in the Palestinian Territories (West Bank and the Gaza Strip). At the municipality level, sufficient data for the years 1999-2002 were available to estimate efficiency and stability scores. The Gaza Strip efficiency scores were considerably lower than those of the West Bank. Water losses were the major source of the inefficiency as indicated by the large slacks of this input. The relative size of the municipalities did not affect efficiency scores as much. Palestinian policy makers should focus on rebuilding the infrastructure of the water networks, beginning with the most inefficient municipalities in order to minimize water losses. We document that water shortage crisis can be alleviated by improvements in the management of domestic water sector. The needs for improvement in water network infrastructure are assessed to aid water management decisions. The evaluation of water use efficiency factors allow policy makers to monitor improvement programs and to make better management decisions. Even more importantly, the alleviation of water supply crisis will improve the prospects for a peaceful settlement of other issues involving the Palestinian territories. Gestures by the Israeli and the Palestinian authorities toward political stability can also stimulate more progressive and enlightened water management policies. Rather than being perceived as an obstacle to progress and permanent peace, solutions to these problems can help motivate broader commonalities of interest