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Does Size Matter? Operating Cost Coverage for Water Utilities

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  • Konstantinos Tsagarakis

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Abstract

This paper compares the operational cost coverage index from 1132 water utilities for five countries (Albania, Brazil, Norway, Russia and Poland). The data used is available through the International Benchmarking Network (IBNET) for Water and Sanitation Utilities. By comparing means or medians of different serving population groups, it was shown that significant financial gains can be achieved by larger utilities. Such analysis can assist decision makers pursue merging of water utilities for profit maximizing purposes. The importance of benchmarking is also emphasized in order to illustrate the utility of the perused statistical analysis. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Konstantinos Tsagarakis, 2013. "Does Size Matter? Operating Cost Coverage for Water Utilities," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(5), pages 1551-1562, March.
  • Handle: RePEc:spr:waterr:v:27:y:2013:i:5:p:1551-1562
    DOI: 10.1007/s11269-012-0256-1
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    References listed on IDEAS

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    1. Nauges, Celine & van den Berg, Caroline, 2007. "How"natural"are natural monopolies in the water supply and sewerage sector ? Case studies from developing and transition economies," Policy Research Working Paper Series 4137, The World Bank.
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    6. Torres, Marcelo & Morrison Paul, Catherine J., 2006. "Driving forces for consolidation or fragmentation of the US water utility industry: A cost function approach with endogenous output," Journal of Urban Economics, Elsevier, vol. 59(1), pages 104-120, January.
    7. Harrison Mutikanga & Saroj Sharma & Kalanithy Vairavamoorthy, 2011. "Multi-criteria Decision Analysis: A Strategic Planning Tool for Water Loss Management," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(14), pages 3947-3969, November.
    8. De Witte, Kristof & Marques, Rui, 2009. "Gaming in a benchmarking environment. A non-parametric analysis of benchmarking in the water sector," MPRA Paper 14679, University Library of Munich, Germany.
    9. Caroline van den Berg & Alexander Danilenko, 2011. "The IBNET Water Supply and Sanitation Performance Blue Book," World Bank Publications, The World Bank, number 2545, January.
    10. Francisco González Gómez & Miguel Angel García Rubio, 2008. "Efficiency in the management of urban water services. What have we learned after four decades of research?," Hacienda Pública Española, IEF, vol. 185(2), pages 39-67, July.
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    Cited by:

    1. María Molinos-Senante & Manuel Mocholi-Arce & Ramón Sala-Garrido, 2016. "Efficiency Assessment of Water and Sewerage Companies: a Disaggregated Approach Accounting for Service Quality," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(12), pages 4311-4328, September.
    2. Shivendra Kumar & Andrew Groth & Ljubo Vlacic, 2015. "Cost Evaluation of Water and Wastewater Treatment Plants Using Water Price Index," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(9), pages 3343-3356, July.
    3. repec:spr:waterr:v:31:y:2017:i:8:d:10.1007_s11269-016-1346-2 is not listed on IDEAS
    4. Norbert Brunner & Vijay Mishra & Ponnusamy Sakthivel & Markus Starkl & Christof Tschohl, 2015. "The Human Right to Water in Law and Implementation," Laws, MDPI, Open Access Journal, vol. 4(3), pages 1-59, August.
    5. Molinos-Senante, María & Hernández-Sancho, Francesc & Mocholí-Arce, Manuel & Sala-Garrido, Ramón, 2014. "Economic and environmental performance of wastewater treatment plants: Potential reductions in greenhouse gases emissions," Resource and Energy Economics, Elsevier, vol. 38(C), pages 125-140.

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