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Privatization, water access and affordability: Evidence from Malaysian household expenditure data

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  • Lee, Cassey

Abstract

The aim of this paper is to examine empirically the impact of privatization on water access and affordability in Malaysia using household expenditure data. The development of water sector in Malaysia in terms of coverage has been fairly uneven. Some states have privatized their water supply sector while others have not. The overall finding of this study is that the impact of privatization on access and affordability in the Malaysian water supply sector is ambiguous. Privatization does not seem to have improved access to treated water from network in Malaysia. A likely explanation of this is the role played by the government in the sector in terms of tariff regulation and universal service provision. Furthermore, privatization does not seem to have adversely affected affordability in the sector. In addition to political intervention in tariff regulation, this could be due to the government maintaining a significant stake in privatized water companies.

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  • Lee, Cassey, 2011. "Privatization, water access and affordability: Evidence from Malaysian household expenditure data," Economic Modelling, Elsevier, vol. 28(5), pages 2121-2128, September.
  • Handle: RePEc:eee:ecmode:v:28:y:2011:i:5:p:2121-2128
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    Cited by:

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    3. Jonathan P. Truslove & Andrea B. Coulson & Muthi Nhlema & Emma Mbalame & Robert M. Kalin, 2020. "Reflecting SDG 6.1 in Rural Water Supply Tariffs: Considering ‘Affordability’ Versus ‘Operations and Maintenance Costs’ in Malawi," Sustainability, MDPI, vol. 12(2), pages 1-21, January.
    4. Li, Li, 2018. "Private sector participation and performance of county water utilities in China," China Economic Review, Elsevier, vol. 52(C), pages 30-53.
    5. Gawel, Erik & Sigel, Katja & Bretschneider, Wolfgang, 2011. "Affordability of water supply in Mongolia: Empirical lessons for measuring affordability," UFZ Discussion Papers 9/2011, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    6. Ouda, Omar K.M. & Al-Waked, Rafat F. & Alshehri, Abdulrahman A., 2014. "Privatization of water-supply services in Saudi Arabia: A unique experience," Utilities Policy, Elsevier, vol. 31(C), pages 107-113.
    7. Yi Jiang & Xiaoting Zheng, 2014. "Private Sector Participation and Performance of Urban Water Utilities in China," Economic Development and Cultural Change, University of Chicago Press, vol. 63(1), pages 155-189.
    8. Lisa Bagnoli & Salvador Bertomeu & Antonio Estache & Maria Vagliasindi, 2020. "Are the Poor Better Off with Public or Private Utilities ?A Survey of the Academic Evidence on Developing Economies," Working Papers ECARES 2020-24, ULB -- Universite Libre de Bruxelles.

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