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Is privatization of sanitation services good for health?

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  • Saiani, Carlos
  • Azevedo, Paulo Furquim de

Abstract

This paper investigates the effect of different modes of privatization of water and sewage services in Brazil on epidemiological indicators as an empirical strategy to assess the cost-quality trade-off claimed by received theory. Results indicate that the local private mode of organization decreases morbidity rates and that the hybrid mode of organization, where a private operator shares decision rights with the state government, does not deteriorate the quality of the services. Overall, results indicate that the privatization of sanitation services is not necessarily subject to the cost-quality trade-off, even if quality indicators are non-contractible.

Suggested Citation

  • Saiani, Carlos & Azevedo, Paulo Furquim de, 2018. "Is privatization of sanitation services good for health?," Utilities Policy, Elsevier, vol. 52(C), pages 27-36.
    • Handle: RePEc:eee:juipol:v:52:y:2018:i:c:p:27-36
    DOI: 10.1016/j.jup.2018.03.003
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    Cited by:

    1. Lazzarini,Sergio G., 2022. "The Right Privatization," Cambridge Books, Cambridge University Press, number 9781316519714, September.
    2. Deutschmann, Joshua W. & Gars, Jared & Houde, Jean-François & Lipscomb, Molly & Schechter, Laura, 2023. "Privatization of public goods: Evidence from the sanitation sector in Senegal," Journal of Development Economics, Elsevier, vol. 160(C).
    3. Junlong Chen & Chaoqun Sun & Ruiyu He & Yibing Zhang & Jiali Liu, 2023. "Optimal nationalization policy in a heterogeneous mixed oligopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 807-827, March.
    4. Valette, Héloïse & Colon, Marine, 2024. "Institutional change for the development of urban sanitation in the Global South: A social science review," Utilities Policy, Elsevier, vol. 88(C).
    5. Héloïse Valette & Marine Colon, 2024. "Institutional change for the development of urban sanitation in the Global South: A social science review," Post-Print hal-04561473, HAL.

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