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Die optimale Organisation der Wasserversorgung aus ökonomischer Perspektive / The Optimal Organisation of the Water Supplying Industry – An Economic Perspective

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  • Sauer Johannes

    (MSc MA, Zentrum für Entwicklungsforschung (ZEF), Universität Bonn, Germany)

Abstract

This paper deals with the optimal organisation of the water supplying industry by having a close look on the basic characteristics of water as an economic good as well as the specific structure of production. The stages of water generation, treatment, transport and distribution are analysed by applying economic concepts as economies of scale and scope, subadditivity, irreversible investments and transaction costs, vertical integration as well as functional separability. On the basis of these analyses the determination of the optimal firm and industry structure is approached. Empirically based organisation models have not been considered in the course of the ongoing discussion on water sector liberalisation so far. Hence, with respect to tight public budgets as well as increasingly scarce water resources central economic concepts are modelled for an empirical application to the water industry in order to contribute to the identification of a sustainable firm and industry structure. The ,pool-model' seems to be a promising alternative with respect to the restructuring of the water supplying industry.

Suggested Citation

  • Sauer Johannes, 2005. "Die optimale Organisation der Wasserversorgung aus ökonomischer Perspektive / The Optimal Organisation of the Water Supplying Industry – An Economic Perspective," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(2), pages 225-244, April.
    • Handle: RePEc:jns:jbstat:v:225:y:2005:i:2:p:225-244
    DOI: 10.1515/jbnst-2005-0208
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    References listed on IDEAS

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