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Has efficiency improved after the decentralization in the water industry in Venezuela?

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  • Higuerey, Angel
  • Trujillo, Lourdes
  • González, María Manuela

Abstract

The importance of water in life and health of population, especially in developing countries, justifies the comparative study of the performance of undertakings providing potable water and waste water collection. The main objective of this research is to investigate if the decentralization process has led to an improvement of the efficiency in the water industry. Using a stochastic frontier analysis, we show that technical efficiency of Venezuelan water companies remained around 84% and that decentralized companies were more efficient than the centralized ones. The main policy recommendation is that the process of decentralization in the water services should continue.

Suggested Citation

  • Higuerey, Angel & Trujillo, Lourdes & González, María Manuela, 2017. "Has efficiency improved after the decentralization in the water industry in Venezuela?," Utilities Policy, Elsevier, vol. 49(C), pages 127-136.
    • Handle: RePEc:eee:juipol:v:49:y:2017:i:c:p:127-136
    DOI: 10.1016/j.jup.2017.05.003
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    3. Alexandros Maziotis & Ramon Sala-Garrido & Manuel Mocholi-Arce & Maria Molinos-Senante, 2021. "Changes to The Productivity of Water Companies: Comparison of Fully Private and Concessionary Water Companies," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(10), pages 3355-3371, August.

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    More about this item

    Keywords

    Efficiency; Decentralization; Potable water; Sewerage; Distance function; Venezuela; Latin America;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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