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Privatization, water access and affordability: Evidence from Malaysian household expenditure data

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  • Lee, Cassey

Abstract

The aim of this paper is to examine empirically the impact of privatization on water access and affordability in Malaysia using household expenditure data. The development of water sector in Malaysia in terms of coverage has been fairly uneven. Some states have privatized their water supply sector while others have not. The overall finding of this study is that the impact of privatization on access and affordability in the Malaysian water supply sector is ambiguous. Privatization does not seem to have improved access to treated water from network in Malaysia. A likely explanation of this is the role played by the government in the sector in terms of tariff regulation and universal service provision. Furthermore, privatization does not seem to have adversely affected affordability in the sector. In addition to political intervention in tariff regulation, this could be due to the government maintaining a significant stake in privatized water companies.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 28 (2011)
Issue (Month): 5 (September)
Pages: 2121-2128

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Handle: RePEc:eee:ecmode:v:28:y:2011:i:5:p:2121-2128

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Web page: http://www.elsevier.com/locate/inca/30411

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Keywords: Privatization Water supply and Malaysia;

References

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  1. Clarke, George & Kosec, Katrina & Wallsten, Scott, 2004. "Has Private Participation in Water and Sewerage Improved Coverage? Empirical Evidence from Latin America," Working paper 370, Regulation2point0.
  2. Antonio Estache & MartÌn A. Rossi, 2002. "How Different Is the Efficiency of Public and Private Water Companies in Asia?," World Bank Economic Review, World Bank Group, vol. 16(1), pages 139-148, June.
  3. Kayaga, Sam & Calvert, John & Sansom, Kevin, 2003. "Paying for water services: effects of household characteristics," Utilities Policy, Elsevier, vol. 11(3), pages 123-132, September.
  4. Sebastian Galiani & Paul Gertler & Ernesto Schargrodsky, 2002. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Working Papers 54, Universidad de San Andres, Departamento de Economia, revised Sep 2005.
  5. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
  6. Colin Kirkpatrick & David Parker & Yin-Fang Zhang, 2006. "An Empirical Analysis of State and Private-Sector Provision of Water Services in Africa," World Bank Economic Review, World Bank Group, vol. 20(1), pages 143-163.
  7. Sullivan, Caroline, 2002. "Calculating a Water Poverty Index," World Development, Elsevier, vol. 30(7), pages 1195-1210, July.
  8. R. Maria Saleth & Ariel Dinar, 2004. "The Institutional Economics of Water : A Cross-Country Analysis of Institutions and Performance," World Bank Publications, The World Bank, number 14884, March.
  9. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
  10. Estache, Antonio & Kouassi, Eugene, 2002. "Sector organization, governance, and the inefficiency of African water utilities," Policy Research Working Paper Series 2890, The World Bank.
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Cited by:
  1. Gawel, Erik & Sigel, Katja & Bretschneider, Wolfgang, 2011. "Affordability of water supply in Mongolia: Empirical lessons for measuring affordability," UFZ Discussion Papers 9/2011, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).

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