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Productivity change and its drivers for the Chilean water companies: A comparison of full private and concessionary companies

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  • María Molinos-Senante
  • Simon Porcher

    (IAE Paris - Sorbonne Business School)

  • Alexandros Maziotis

Abstract

The privatization of the water industry has aroused interest in comparing the performance of public vs. private water companies. However, little research has been conducted to compare the performances of full private (FPWCs) and concessionary water companies (CWCs). This study estimates and compares the productivity growth and its drivers (efficiency, technical and scale change) for a sample of Chilean FPWCs and CWCs over the 2007–2015 period using the input distance function. Both types of water companies showed deteriorations in productivity growth, with CWCs exhibiting higher rates of negative productivity growth than FPWCs. For FPWCs, any gains in efficiency and scale were outstripped by egative technical change. CWCs did not improve their performance in any of the three components of productivity change. The comparison of productivity change between FPWCs and CWCs is essential to support decision-making therefore, this study is of great interest for policymakers worldwide who are developing policies aimed at privatizing water companies.

Suggested Citation

  • María Molinos-Senante & Simon Porcher & Alexandros Maziotis, 2018. "Productivity change and its drivers for the Chilean water companies: A comparison of full private and concessionary companies," Post-Print hal-02145824, HAL.
    • Handle: RePEc:hal:journl:hal-02145824
    DOI: 10.1016/j.jclepro.2018.02.227
    Note: View the original document on HAL open archive server: https://hal.science/hal-02145824
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    References listed on IDEAS

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    Cited by:

    1. Molinos-Senante, María & Villegas, Andres & Maziotis, Alexandros, 2019. "Are water tariffs sufficient incentives to reduce water leakages? An empirical approach for Chile," Utilities Policy, Elsevier, vol. 61(C).
    2. Goh, Kim Huat & See, Kok Fong, 2021. "Measuring the productivity growth of Malaysia's water sector: Implications for regulatory reform," Utilities Policy, Elsevier, vol. 71(C).
    3. Ramon Sala-Garrido & Manuel Mocholi-Arce & Maria Molinos-Senante & Michail Smyrnakis & Alexandros Maziotis, 2021. "Eco-Efficiency of the English and Welsh Water Companies: A Cross Performance Assessment," IJERPH, MDPI, vol. 18(6), pages 1-17, March.
    4. Molinos-Senante, María & Maziotis, Alexandros & Sala-Garrido, Ramón, 2020. "Changes in the total costs of the English and Welsh water and sewerage industry: The decomposed effect of price and quantity inputs on efficiency," Utilities Policy, Elsevier, vol. 66(C).
    5. Maria Molinos-Senante & Alexandros Maziotis, 2021. "Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-16, May.
    6. Maziotis, Alexandros & Molinos-Senante, Maria, 2022. "The impact of model specification and environmental variables on measuring the overall technical efficiency of water and sewerage services: Evidence from Chile," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 191-198.
    7. Maziotis, Alexandros & Villegas, Andrés & Molinos-Senante, María & Sala-Garrido, Ramon, 2020. "Impact of external costs of unplanned supply interruptions on water company efficiency: Evidence from Chile," Utilities Policy, Elsevier, vol. 66(C).
    8. Sarraf, Fatemeh & Nejad, Shabnam Hashemi, 2020. "Improving performance evaluation based on balanced scorecard with grey relational analysis and data envelopment analysis approaches: Case study in water and wastewater companies," Evaluation and Program Planning, Elsevier, vol. 79(C).
    9. Maria Molinos-Senante & Alexandros Maziotis, 2021. "The Cost of Reducing Municipal Unsorted Solid Waste: Evidence from Municipalities in Chile," Sustainability, MDPI, vol. 13(12), pages 1-14, June.

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