Optimal Cost Structure in Operation and Maintenance Management of the Irrigation Systems in the Red River Delta, Vietnam
Publication: Journal of Irrigation and Drainage Engineering
Volume 149, Issue 2
Abstract
This study measured the cost efficiency and estimated the optimal cost structure in operating and maintaining the irrigation systems of eight provinces in the Red River Delta (RRD), Vietnam, from 2014 to 2016 using the input-oriented model of data envelopment analysis. The inputs included in the model were the costs of labor, materials, electric energy for irrigation, irrigation structure safety, maintenance, depreciation, administrative expenses, and overhead cost. The output was the irrigation area, which was converted to paddy areas. The findings of this study showed a large inefficiency in using the total input financial cost subsidized. The optimal technical efficiency scores under constant returns to scale (CRS) and variable returns to scale (VRS) were 0.86 and 0.98, respectively. The results implied that total input costs should be reduced by 14% under CRS and 2% under VRS to avoid cost inefficiency. The results also showed that scale efficiency occurred in the operation and maintenance (O&M) management of the irrigation systems. The O&M management in the irrigation systems in the RRD should allocate the major proportion of the costs to labor to be efficient. Application of the optimal input cost structure would improve irrigation management performance for the RRD region by 48.7% for the efficient input target (EIT) under CRS and by 5.03% for the EIT under VRS. These were the significant bases for recommending policy options for reviewing the irrigation tariff subsidy according to each input factor. And then it could create the incentives for private participation partnership in the irrigation sector.
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Data Availability Statement
All data, models, and code generated or used during the study appear in the published article.
Acknowledgments
The research was supported by the Institute for Water Resources Management and Economics, and the Ph.D. program organized by the Training Board of Vietnam Academy of Water Resources.
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Published In
Journal of Irrigation and Drainage Engineering
Volume 149 • Issue 2 • February 2023
Copyright
© 2022 American Society of Civil Engineers.
History
Received: Oct 28, 2021
Accepted: Oct 8, 2022
Published online: Dec 13, 2022
Published in print: Feb 1, 2023
Discussion open until: May 13, 2023
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