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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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Author Info

  • 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.

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Bibliographic Info

Paper provided by International Institute for Environment and Development, Environmental Economics Programme in its series Discussion Papers with number 24142.

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Date of creation: 1999
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Handle: RePEc:ags:iieddp:24142

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Keywords: Environmental Economics and Policy; International Development; Resource /Energy Economics and Policy;

References

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  1. Emanuel Idelovitch & Klas Ringskog, 1995. "Private Sector Participation in Water Supply and Sanitation in Latin America," Reports _017, World Bank Latin America and the Caribean Region Department.
  2. Feigenbaum, Susan & Teeples, Ronald, 1983. "Public versus Private Water Delivery: A Hedonic Cost Approach," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 672-78, November.
  3. Arunava Bhattacharyya & Elliott Parker & Kambiz Raffiee, 1994. "An Examination of the Effect of Ownership on the Relative Efficiency of Public and Private Water Utilities," Land Economics, University of Wisconsin Press, vol. 70(2), pages 197-209.
  4. Cristina C. David & Arlene B. Inocencio, 1998. "Understanding Household Demand for Water: The Metro Manila Case," EEPSEA Research Report rr1998012, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 1998.
  5. Hearne, Robert R. & Trava, Jose L., 1997. "Water Markets in Mexico: Opportunities and Constraints," Discussion Papers 24145, International Institute for Environment and Development, Environmental Economics Programme.
  6. Crain, W Mark & Zardkoohi, Asghar, 1978. "A Test of the Property-Rights Theory of the Firm: Water Utilities in the United States," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 395-408, October.
  7. Antonio Estache & C. Crampes, 1998. "Regulatory Trade-offs in Designing Concession Contracts for Infrastructure Networks," ULB Institutional Repository 2013/44014, ULB -- Universite Libre de Bruxelles.
  8. Helm, Dieter, 1994. "British Utility Regulation: Theory, Practice, and Reform," Oxford Review of Economic Policy, Oxford University Press, vol. 10(3), pages 17-39, Autumn.
  9. Sen, Amartya, 1983. "Poor, Relatively Speaking," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 153-69, July.
  10. Crane, Randall, 1994. "Water markets, market reform and the urban poor: Results from Jakarta, Indonesia," World Development, Elsevier, vol. 22(1), pages 71-83, January.
  11. Chisari, Omar & Estache, Antonio & Romero, Carlos, 1999. "Winners and Losers from Utility Privatization in Argentina. Lessons from a General Equilibrium Model," UADE Working Papers 3_1999, Instituto de Economía, Universidad Argentina de la Empresa.
  12. Teeples, Ronald K & Glyer, David, 1987. "Cost of Water Delivery Systems: Specification and Ownership Effects," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 399-408, August.
  13. Kerf, M. & Smith, W., 1996. "Privatizing Africa's Infrastructure: Promise and Challenge," Papers 337, World Bank - Technical Papers.
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