An-Najah University Journal for Research - B (Humanities)




It’s widely recognized that within the water sector, economic efficiency can affect the inputs and outputs of the water supply and sanitation service facility. However, based on an interactive situation that requires adjusting the inputs based on the targeted outputs and compared to counterpart facilities, which may create price restrictions that affect the economic sustainability within the water sector. Hence, this study aimed at revealing the economic efficiency role in sustainable water development, for the major water service providers in the West Bank and Gaza Strip in Palestine. The research adopted a combined approach (i.e., quantitative and qualitative) by analyzing the Council's data, which tracks all activities of the Retail water providers, through the DEAP program. Preliminary results have shown that seven of eleven providers do not cover operational costs. Moreover, the economic efficiency ratio (EER) has decreased from (78%) when calculated using five operating cost inputs to (66%) when highlighting the relative weight of both allocative and technical efficiency to, finally, (58%) when unwanted outputs (i.e., outputs over 100%) were excluded, as it considered as an unbalance in the distribution of inputs compared to outputs. Results has also emphasized the role of economic efficiency as the main driver for sustainable water development by linking efficiency and importance of water to general welfare. Finally, this work recommends adapting a three crossover-model style that fucus on management, market needs and society as a direct indicator for pricing equity within the water and sanitation sectors in Palestinian. Such approach would ensure a holistic input for s strategic management changes in water sustainability, which requires a collaborative vision by all involved parties including government agencies and decision makers.