Does Society Win or Lose as a Result of Privatization? The Case of Water Sector Privatization in Colombia

26 Pages Posted: 8 Oct 2009

See all articles by Felipe Barrera-Osorio

Felipe Barrera-Osorio

Harvard University - Harvard Graduate School of Education

Mauricio Olivera

Fedesarrollo

Carlos G. Ospino

Universidad de los Andes, Colombia - Department of Economics

Abstract

This paper evaluates the impact of water sector privatization in Colombia on access, price and water quality, as well as health outcomes using differences-in-differences methodology. The main findings of the impact of water privatization are: (i) an improvement in the quality of water and an increase in the frequency of the service in privatized urban municipalities for the lower quintiles; (ii) a positive effect on health outcomes in both urban and rural areas; (iii) a negative effect on payment for the lower quintiles; and (iv) strong negative effects on access to water in rural areas. Some of these effects appear in municipalities with better technical capacity.

Suggested Citation

Barrera-Osorio, Felipe and Olivera, Mauricio and Ospino, Carlos G., Does Society Win or Lose as a Result of Privatization? The Case of Water Sector Privatization in Colombia. Economica, Vol. 76, Issue 304, pp. 649-674, October 2009. Available at SSRN: https://ssrn.com/abstract=1484184 or http://dx.doi.org/10.1111/j.1468-0335.2008.00731.x

Felipe Barrera-Osorio (Contact Author)

Harvard University - Harvard Graduate School of Education ( email )

456 Gutman Library
6 appian way
cambridge, MA 02138
United States

Mauricio Olivera

Fedesarrollo ( email )

Calle 78 No 9-91
Santafe de Bogota, 75074
Colombia

Carlos G. Ospino

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

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