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The Regulation of Private Sector Participation in Urban Water Supply and Sanitation: Realising Social and Environmental Objectives in Developing Countries

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  • Johnstone, Nick
  • Wood, Libby
  • Hearne, Robert R.

Abstract

There has been a significant increase in private sector participation (PSP) in the urban water supply and sanitation (WSS) sector in recent years. However, even with increased PSP, public authorities will still have to: ensure that the service providers do not use their market power to exploit customers; internalise public health and environmental externalities; provide mechanisms whereby water consumption is sustainable and is allocated efficiently between alternative uses; and, serve as a guarantor of a level of service provision which is consistent with a basic standard of living. While there is considerable literature addressing the first of these four issues, the latter three are less adequately addressed. Through a review of five case studies (Abidjan, Buenos Aires, Cordoba, Mexico City, and Manila), this paper provides an overview of the issues involved and some of the mechanisms available to the authorities responsible for the regulation of the sector.

Suggested Citation

  • Johnstone, Nick & Wood, Libby & Hearne, Robert R., 1999. "The Regulation of Private Sector Participation in Urban Water Supply and Sanitation: Realising Social and Environmental Objectives in Developing Countries," Discussion Papers 24142, International Institute for Environment and Development, Environmental Economics Programme.
    • Handle: RePEc:ags:iieddp:24142
    DOI: 10.22004/ag.econ.24142
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    References listed on IDEAS

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    Cited by:

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    2. Mikail Pehlivan & Nazan Susam, 2022. "Transformation of Water Services: Lessons Learned from Water Privatization in Multiple Countries," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 65(65), pages 129-160, June.
    3. Aparna Sawhney & Rupa Chanda, 2003. "Trade in environmental services: opportunities and constraints," Indian Council for Research on International Economic Relations, New Delhi Working Papers 102, Indian Council for Research on International Economic Relations, New Delhi, India.
    4. Franklin Obeng†Odoom, 2018. "Transnational Corporations and Urban Development," American Journal of Economics and Sociology, Wiley Blackwell, vol. 77(2), pages 447-510, March.

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