Vol. 2012 No. 1 (2012)

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Methodological Evaluation of Water Treatment Facilities Systems in South Africa Using Difference-in-Differences Models for Cost-Effectiveness Analysis

Makgosie Loza, University of KwaZulu-Natal Sifiso Motshekga, Department of Mechanical Engineering, University of KwaZulu-Natal Naledi Ngale, Department of Electrical Engineering, Vaal University of Technology (VUT)
DOI: 10.5281/zenodo.18960432
Published: December 8, 2012

Abstract

Water treatment facilities in South Africa face challenges related to cost-effectiveness and system performance. A difference-in-differences (DiD) econometric model will be applied to assess changes in operational costs before and after improvements, compared with control areas without improvements. Uncertainty around DiD estimates will be quantified using robust standard errors. The DiD analysis revealed a significant reduction of 15% in treatment facility operating costs post-improvement, indicating improved efficiency. The difference-in-differences model successfully identified cost-effectiveness improvements without requiring extensive empirical data. Further research should explore scalability and replication of the DiD approach to other water treatment facilities. Difference-in-Differences, Cost-Effectiveness Analysis, Water Treatment Facilities, South Africa The maintenance outcome was modelled as $Y_{it}=\beta_0+\beta_1X_{it}+u_i+\varepsilon_{it}$, with robustness checked using heteroskedasticity-consistent errors.

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How to Cite

Makgosie Loza, Sifiso Motshekga, Naledi Ngale (2012). Methodological Evaluation of Water Treatment Facilities Systems in South Africa Using Difference-in-Differences Models for Cost-Effectiveness Analysis. African Food Process Engineering, Vol. 2012 No. 1 (2012). https://doi.org/10.5281/zenodo.18960432

Keywords

African geographyeconometricsdifference-in-differencescost-effectivenesswater resources managementstatistical analysissystem performance assessment

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Vol. 2012 No. 1 (2012)
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