How Natural are Natural Monopolies in the Water Supply and Sewerage Sector? Case Studies from Developing and Transition Economies
38 Pages Posted: 20 Apr 2016
Date Written: February 1, 2007
Abstract
Using data from the International Benchmarking NETwork database, the authors estimate measures of density and scale economies in the water industry in four countries (Brazil, Colombia, Moldova, and Vietnam) that differ substantially in economic development, piped water and sewerage coverage, and characteristics of the utilities operating in the different countries. They find evidence of economies of scale in Colombia, Moldova, and Vietnam, implying the existence of a natural monopoly. In Brazil the authors cannot reject the null hypothesis of constant returns to scale. They also find evidence of economies of customer density in Moldova and Vietnam. The results of this study show that the cost structure of the water and wastewater sector varies significantly between countries and within countries, and over time, which has implications for how to regulate the sector.
Keywords: Town Water Supply and Sanitation, Urban Water Supply and Sanitation, Economic Theory & Research, Water and Industry, Water Supply and Sanitation Governance and Institutions
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Sector Organization, Governance, and the Inefficiency of African Water Utilities
By Antonio Estache and Eugene Kouassi
-
By Scott Wallsten and Katrina Kosec
-
By Antonio Estache, Sergio Perelman, ...
-
Efficiency Effects of 'Privatization' in Argentina's Water and Sanitation Services
By Antonio Estache and Lourdes Trujillo
-
Using Internal Incentive Contracts to Improve Water Utility Performance: The Case of Uganda's NWSC
By Silver Mugisha, Sanford V. Berg, ...
-
Reforms and Infrastructure Efficiency in Spain's Container Ports
-
Restrictive Labor Practices in Seaports
By Ariel Dinar, Trichur K. Balakrishnan, ...
-
By Geraldo Silva Souza, Ricardo C. Faria, ...