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Does Society Win or Lose as a Result of Privatization? The Case of Water Sector Privatization in Colombia

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  • FELIPE BARRERA-OSORIO
  • MAURICIO OLIVERA
  • CARLOS OSPINO

Abstract

This paper evaluates the impact of water sector privatization in Colombia on access, price and water quality, as well as health outcomes using differences-in-differences methodology. The main findings of the impact of water privatization are: (i) an improvement in the quality of water and an increase in the frequency of the service in privatized urban municipalities for the lower quintiles; (ii) a positive effect on health outcomes in both urban and rural areas; (iii) a negative effect on payment for the lower quintiles; and (iv) strong negative effects on access to water in rural areas. Some of these effects appear in municipalities with better technical capacity. Copyright (c) The London School of Economics and Political Science 2008.

Suggested Citation

  • Felipe Barrera-Osorio & Mauricio Olivera & Carlos Ospino, 2009. "Does Society Win or Lose as a Result of Privatization? The Case of Water Sector Privatization in Colombia," Economica, London School of Economics and Political Science, vol. 76(304), pages 649-674, October.
  • Handle: RePEc:bla:econom:v:76:y:2009:i:304:p:649-674
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    Cited by:

    1. Panu Poutvaara, 2014. "Public-sector outsourcing," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-65, May.
    2. Diana Oliveros & Mauricio Mendoza, 2013. "¿Es la privatización la solución a los problemas de ineficiencia de las empresas públicas?: Revisión de la literatura," REVISTA LEBRET, UNIVERSIDAD SANTO TOMAS - BUCARAMANGA, December.
    3. repec:spr:waterr:v:31:y:2017:i:8:d:10.1007_s11269-016-1495-3 is not listed on IDEAS
    4. Fabio Sánchez Torres & Alexander Vega Carvajal, 2014. "Cobertura de Acueducto y Alcantarillado, Calidad del Agua y Mortalidad Infantil en Colombia, 2000-2012," DOCUMENTOS CEDE 012228, UNIVERSIDAD DE LOS ANDES-CEDE.
    5. Fernando Borraz & Nicolás González Pampillón & Marcelo Olarreaga, 2013. "Water Nationalization and Service Quality," World Bank Economic Review, World Bank Group, vol. 27(3), pages 389-412.
    6. Kosec, Katrina, 2014. "The child health implications of privatizing africa's urban water supply," Journal of Health Economics, Elsevier, vol. 35(C), pages 1-19.
    7. Fernando Borraz, 2011. "Water nationalization: network access, quality, and health outcomes," Working Papers 201126, Latin American and Caribbean Environmental Economics Program, revised 2011.
    8. Kosec, Katrina, 2013. "The child health implications of privatizing Africa’s urban water supply:," IFPRI discussion papers 1269, International Food Policy Research Institute (IFPRI).
    9. Calzada, Joan & Iranzo Sancho, Susana, 2012. "Neither Private nor Public: The Effects of Communal Provision of Water on Child Health in Peru," Working Papers 2072/196649, Universitat Rovira i Virgili, Department of Economics.

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