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Regulation models for the public water supply and their competitive effects

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  • Johann Wackerbauer

Abstract

Faced with liberalisation proposals and an increasing internationalisation of water resource management, the question arises as to how a change of the regulatory framework in Germany would affect the market structure and the supply conditions in this area. The water-supply companies in Germany have invested ca. €2.5 billion annually to achieve a high technical standard, which has resulted in high cost increases and price hikes. It is thus presumed that there is a high rationalisation potential for the municipal water suppliers. The question of economic efficiency and the participation of private providers in the water supply has increasingly gained importance. In this article, the organisation of water resource management is described for different European countries and the effects to be expected from a liberalisation of the water supply on the competitive situation in Germany is discussed.

Suggested Citation

  • Johann Wackerbauer, 2003. "Regulation models for the public water supply and their competitive effects," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 56(21), pages 9-16, November.
    • Handle: RePEc:ces:ifosdt:v:56:y:2003:i:21:p:9-16
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    References listed on IDEAS

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    1. Cowan, Simon, 1997. "Competition in the Water Industry," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 13(1), pages 83-92, Spring.
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    Cited by:

    1. Christopher Müller, 2015. "Welfare Effects of Water Pricing in Germany," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(04), pages 1-25, December.
    2. Hesse, Mario & Lenk, Thomas & Rottmann, Oliver, 2009. "Privatisierung der Wasserversorgung aus ordnungstheoretischer Perspektive," Arbeitspapiere des Lehrstuhls Finanzwissenschaft 40, University of Leipzig, Institute of Public Finance and Public Management.
    3. Ursula Triebswetter & Johann Wackerbauer, 2010. "Water - a substantial location factor for the Bavarian economy," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 47.

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    More about this item

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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