IDEAS home Printed from
   My bibliography  Save this article

Regulation of the Italian Water Sector: An Update


  • Amedeo Amato


The draft bill ("disegno di legge") no.772 outlines the public control of water resources and services throughout Italy. This paper argues that such a legislation would be as irrational as the diametrically opposing approach of total privatisation. So far, econometrics has not shown the "systematic" superiority of solution either in terms of productive or allocative efficiency. This paper recommends to make the choice on a case-by-case basis that takes into account the specificity of the local water service in question. The proposal of a far-reaching public control of the sector implies the drawbacks present in all regulatory methods. Faced with these limitations, public control may appear as the easiest solution. This paper illustrates how the problematical aspects of regulatory models such as "competition for the market " and "capital market competition ", as well as "yardstick competition " are in fact considerably less serious than often suggested. Therefore, such limits should not induce legislators to seek a merely public solution as a means of avoiding the limitations present in regulatory methods. In particular, the paper analyses the various criticisms of yardstick competition and attempts to show that these are, to a great extent, unfounded.

Suggested Citation

  • Amedeo Amato, 2007. "Regulation of the Italian Water Sector: An Update," Economia dei Servizi, Società editrice il Mulino, issue 3, pages 397-408.
  • Handle: RePEc:mul:j1t56u:doi:10.2382/24827:y:2007:i:3:p:397-408

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers

    File URL:
    Download Restriction: no

    As the access to this document is restricted, you may want to search for a different version of it.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:j1t56u:doi:10.2382/24827:y:2007:i:3:p:397-408. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.