Factors Affecting Water Utility Companies’ Willingness to Promote Sustainable Water Use

17 Pages Posted: 28 Sep 2013

See all articles by Giulia Romano

Giulia Romano

University of Pisa - Department of Economics and Management

Nicola Salvati

University of Pisa

Andrea Guerrini

University of Verona - Department of Economics

Date Written: 2013

Abstract

The present paper investigates the factors affecting water utility companies’ willingness to implement public information campaigns aimed at promoting sustainable water use and reducing household water consumption. We have analyzed 114 Italian water utility companies. For each we hand-collected data regarding their suggestions for reducing household water consumption and sustainable reporting information, published on the corporate websites. We then classified each utility on the basis of their ownership, diversification, location, sales, population served, tariff and annual rainfall. Using M-quantile regression for count data we have constructed a performance measure of Italian water utility companies and have ranked them by the identification of a unique M-quantile coefficient associated with each datum observed. The paper provides some interesting insights into the type of companies most sensitive to water sustainability issues, providing potential guidance to policy makers in defining a water management framework and selecting firms to manage water services. Larger firms located in the center of Italy, in drought regions and the driest areas, seem to be more sensitive to promoting the reduction of household water consumption. Moreover, companies operating only in the water business that are publicly owned and apply lower tariffs embody the type of institutions that make greater use of web information campaigns to reduce consumption.

Keywords: water utilities, sustainability, information campaigns, household water consumption, M-quantile regression

JEL Classification: Q25, Q3, L95

Suggested Citation

Romano, Giulia and Salvati, Nicola and Guerrini, Andrea, Factors Affecting Water Utility Companies’ Willingness to Promote Sustainable Water Use (2013). Available at SSRN: https://ssrn.com/abstract=2331368 or http://dx.doi.org/10.2139/ssrn.2331368

Giulia Romano (Contact Author)

University of Pisa - Department of Economics and Management ( email )

Via Ridolfi, 10
Pisa, I - 56124
Italy

Nicola Salvati

University of Pisa ( email )

Lungarno Pacinotti, 43
Pisa PI, 56126
Italy

Andrea Guerrini

University of Verona - Department of Economics ( email )

Via dell'Artigliere, 8
37129 Verona
Italy

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