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Economies of density, scale and scope in the water supply and sewerage sector: a study of four developing and transition economies

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  • Céline Nauges

    ()

  • Caroline Berg

Abstract

Using panel data, we estimate measures of density, scale and scope economies in four countries that differ substantially in their levels of economic development and in their piped water and sewerage coverage: Brazil, Moldova, Romania and Vietnam.We find evidence of economies of scale inMoldova, Romania and Vietnam. In Brazil, we cannot reject the null hypothesis of constant returns to scale. The results of this study show that the cost structure of water and sewerage utilities varies significantly within and between countries and over time.

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File URL: http://hdl.handle.net/10.1007/s11149-008-9063-2
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Bibliographic Info

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 34 (2008)
Issue (Month): 2 (October)
Pages: 144-163

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Handle: RePEc:kap:regeco:v:34:y:2008:i:2:p:144-163

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Web page: http://www.springerlink.com/link.asp?id=100298

Related research

Keywords: Water supply; Sewerage; Economies of scale; Developing countries; Transition economies; D24; L25; L95; O57;

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  1. Tupper, Henrique Cesar & Resende, Marcelo, 2004. "Efficiency and regulatory issues in the Brazilian water and sewage sector: an empirical study," Utilities Policy, Elsevier, Elsevier, vol. 12(1), pages 29-40, March.
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  7. Serge Garcia & Alban Thomas, 2001. "The Structure of Municipal Water Supply Costs: Application to a Panel of French Local Communities," Journal of Productivity Analysis, Springer, Springer, vol. 16(1), pages 5-29, July.
  8. Seroa da Motta, Ronaldo & Moreira, Ajax, 2006. "Efficiency and regulation in the sanitation sector in Brazil," Utilities Policy, Elsevier, Elsevier, vol. 14(3), pages 185-195, September.
  9. Fumitoshi Mizutani & Takuya Urakami, 2001. "articles: Identifying network density and scale economies for Japanese water supply organizations," Papers in Regional Science, Springer, Springer, vol. 80(2), pages 211-230.
  10. Bhattacharyya, Arunava & Harris, Thomas R. & Narayanan, Rangesan & Raffiee, Kambiz, 1995. "Specification and estimation of the effect of ownership on the economic efficiency of the water utilities," Regional Science and Urban Economics, Elsevier, vol. 25(6), pages 759-784, December.
  11. Cubbin, John & Tzanidakis, George, 1998. "Regression versus data envelopment analysis for efficiency measurement: an application to the England and Wales regulated water industry," Utilities Policy, Elsevier, Elsevier, vol. 7(2), pages 75-85, June.
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  13. Estache, Antonio & Perelman, Sergio & Trujillo, Lourdes, 2005. "Infrastructure performance and reform in developing and transition economies: evidence from a survey of productivity measures," Policy Research Working Paper Series 3514, The World Bank.
  14. Paola Fabbri & Giovanni Fraquelli, 2000. "Costs and Structure of Technology in the Italian Water Industry," Empirica, Springer, Springer, vol. 27(1), pages 65-82, March.
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Citations

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Cited by:
  1. Anne-Kathrin Faust & Andrea Baranzini, 2014. "The economic performance of Swiss drinking water utilities," Journal of Productivity Analysis, Springer, Springer, vol. 41(3), pages 383-397, June.
  2. Tsegai, Daniel W. & Linz, Teresa & Kloos, Julia, 2009. "Economic analysis of water supply cost structure in the Middle Olifants sub-basin of South Africa," Discussion Papers 49926, University of Bonn, Center for Development Research (ZEF).
  3. Andrea Guerrini & Giulia Romano & Bettina Campedelli, 2013. "Economies of Scale, Scope, and Density in the Italian Water Sector: A Two-Stage Data Envelopment Analysis Approach," Water Resources Management, Springer, Springer, vol. 27(13), pages 4559-4578, October.
  4. Germà Bel, 2012. "Local Government Size and Efficiency in Capital Intensive Services: What Evidence is There of Economies of Scale, Density and Scope?," International Center for Public Policy Working Paper Series, at AYSPS, GSU, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University paper1215, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  5. Carvalho, Pedro & Marques, Rui Cunha, 2014. "Computing economies of vertical integration, economies of scope and economies of scale using partial frontier nonparametric methods," European Journal of Operational Research, Elsevier, Elsevier, vol. 234(1), pages 292-307.
  6. Caroline van den Berg & Alexander Danilenko, 2011. "The IBNET Water Supply and Sanitation Performance Blue Book," World Bank Publications, The World Bank, number 2545, October.
  7. van den Berg, Caroline, 2014. "The drivers of non-revenue water : how effective are non-revenue water reduction programs ?," Policy Research Working Paper Series 6997, The World Bank.
  8. Carvalho, Pedro & Marques, Rui Cunha & Berg, Sanford, 2012. "A meta-regression analysis of benchmarking studies on water utilities market structure," Utilities Policy, Elsevier, Elsevier, vol. 21(C), pages 40-49.
  9. Walter, Matthias & Cullmann, Astrid & von Hirschhausen, Christian & Wand, Robert & Zschille, Michael, 2009. "Quo vadis efficiency analysis of water distribution? A comparative literature review," Utilities Policy, Elsevier, Elsevier, vol. 17(3-4), pages 225-232, September.

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