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Privatisation and Efficiency in the UK Water Industry: An Empirical Analysis

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Author Info
Hunt, Lester C
Lynk, Edward L

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Abstract

The postprivatization structure of the U.K. water industry involves the separation of environmental services from other outputs previously produced under an integrated system by the publicly-owned water authorities. This paper examines the extent to which the integrated authorities benefited from the joint production. Estimating a dynamic multiproduct cost function from pooled cross-section, time-series quality adjusted data drawn from accounts of the water authorities for the period 1979/80-1987/88, prior to privatization, significant elements of joint production are found. Divestiture of the industry, arguably justified on other criteria, implies the loss of substantial areas of cost complimentary. Copyright 1995 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 57 (1995)
Issue (Month): 3 (August)
Pages: 371-88
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Handle: RePEc:bla:obuest:v:57:y:1995:i:3:p:371-88

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  1. NAUGES Céline & VAN DEN BERG Caroline, 2007. "How "natural" are natural monopolies in the water supply and sewerage sector? Case studies from developing and transition economies," Working Papers 07.05.226, LERNA, University of Toulouse. [Downloadable!]
  2. Anna Bottasso & Maurizio Conti, 2003. "Cost Inefficiency in the English and Welsh Water Industry: An Heteroskedastic Stochastic Cost Frontier Approach," Economics Discussion Papers 573, University of Essex, Department of Economics. [Downloadable!]
  3. Céline Nauges & Caroline Berg, 2008. "Economies of density, scale and scope in the water supply and sewerage sector: a study of four developing and transition economies," Journal of Regulatory Economics, Springer, vol. 34(2), pages 144-163, October. [Downloadable!] (restricted)
  4. David Saal & David Parker & Tom Weyman-Jones, 2007. "Determining the contribution of technical change, efficiency change and scale change to productivity growth in the privatized English and Welsh water and sewerage industry: 1985–2000," Journal of Productivity Analysis, Springer, vol. 28(1), pages 127-139, October. [Downloadable!] (restricted)
  5. Angel Prieto & José L. Zofio & Inmaculada Alvarez, 2009. "Economies of scale, density and scope in public provision of basic local infraestructure," Hacienda Pública Española, IEF, vol. 190(3), pages 59-94, September. [Downloadable!]
  6. Nauges, Celine & van den Berg, Caroline, 2007. "How"natural"are natural monopolies in the water supply and sewerage sector ? Case studies from developing and transition economies," Policy Research Working Paper Series 4137, The World Bank. [Downloadable!]
  7. Estache, Antonio & Kouassi, Eugene, 2002. "Sector organization, governance, and the inefficiency of African water utilities," Policy Research Working Paper Series 2890, The World Bank. [Downloadable!]
  8. Francisco González Gómez & Miguel Angel García Rubio, 2008. "Efficiency in the management of urban water services. What have we learned after four decades of research?," Hacienda Pública Española, IEF, vol. 185(2), pages 39-67, July. [Downloadable!]
  9. Fabrizio Erbetta & Martin Cave, 2007. "Regulation and Efficiency Incentives: Evidence from the England and Wales Water and Sewerage Industry," Review of Network Economics, Concept Economics, vol. 6(4), pages 425-452, December. [Downloadable!]
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