Efficiency and Regulation in the Sanitation Sector in Brazil

IPEA Discussion Paper No. 1059

27 Pages Posted: 21 Jan 2005

See all articles by Ronaldo Seroa da Motta

Ronaldo Seroa da Motta

Universidade do Estado do Rio de Janeiro (UERJ)

Ajax R. Moreira

Institute of Applied Economic Research (IPEA) - Directory of Macroeconomic Policy & Studies (DIMAC)

Date Written: December 2004

Abstract

Regulation in the sanitation sector in Brazil is facing a great deal of debate regarding the government level in which conceding authority should reside and how private operators can fulfill social objectives. The main objective of this study is to show that these issues are not the crucial barriers to the development of the sector when one looks at the productivity performance of the operators. Therefore, we elaborate a detailed analysis of the productivity performance of the current structure of the sanitation sector in Brazil. In doing so, we are able to analyze how jurisdiction of operators, as well as the nature of the management, either private or public, has affected performance of the current operators. Moreover, we investigate how the absence of tariff regulation has dissipated efficiencies and allowed the practice of monopolistic tariffs.

Keywords: Productivity performance, regulation, sanitation sector, rent dissipation

JEL Classification: L11, L51, L95

Suggested Citation

Seroa da Motta, Ronaldo and Moreira, Ajax R., Efficiency and Regulation in the Sanitation Sector in Brazil (December 2004). IPEA Discussion Paper No. 1059, Available at SSRN: https://ssrn.com/abstract=651884 or http://dx.doi.org/10.2139/ssrn.651884

Ronaldo Seroa da Motta (Contact Author)

Universidade do Estado do Rio de Janeiro (UERJ) ( email )

Av Borges de Medeiros 3709 ap 401
ap 401
Lagoa, 22470-001
Brazil
21997775494 (Phone)

Ajax R. Moreira

Institute of Applied Economic Research (IPEA) - Directory of Macroeconomic Policy & Studies (DIMAC) ( email )

Av. Presidente Antonio Carlos 51
10 Andar Centro
Rio de Janeiro RJ 20020-010
Brazil
+55 21 3804 8000 (Phone)
+55 21 2240 1920 (Fax)

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