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How "natural" are natural monopolies in the water supply and sewerage sector? : case studies from developing and transition economies

Author: Céline Nauges; Caroline Van den Berg
Publisher: [Washington, D.C.] : World Bank, Energy Transport and Water Dept., Water Unit, [2007]
Series: Policy research working papers, 4137.
Edition/Format:   Print book : International government publication : EnglishView all editions and formats
Summary:
Using data from the International Benchmarking NETwork database, the authors estimate measures of density and scale economies in the water industry in four countries (Brazil, Colombia, Moldova, and Vietnam) that differ substantially in economic development, piped water and sewerage coverage, and characteristics of the utilities operating in the different countries. They find evidence of economies of scale in  Read more...
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Additional Physical Format: Online version:
Nauges, Céline.
How "natural" are natural monopolies in the water supply and sewerage sector?
[Washington, D.C.] : World Bank, Energy Transport and Water Dept., Water Unit, [2007]
(OCoLC)646903017
Material Type: Government publication, International government publication, Internet resource
Document Type: Book, Internet Resource
All Authors / Contributors: Céline Nauges; Caroline Van den Berg
OCLC Number: 86091440
Notes: "February 2007"--Cover.
Description: 38 pages ; 28 cm.
Series Title: Policy research working papers, 4137.
Responsibility: Céline Nauges and Caroline van den Berg.

Abstract:

Using data from the International Benchmarking NETwork database, the authors estimate measures of density and scale economies in the water industry in four countries (Brazil, Colombia, Moldova, and Vietnam) that differ substantially in economic development, piped water and sewerage coverage, and characteristics of the utilities operating in the different countries. They find evidence of economies of scale in Colombia, Moldova, and Vietnam, implying the existence of a natural monopoly. In Brazil the authors cannot reject the null hypothesis of constant returns to scale. They also find evidence of economies of customer density in Moldova and Vietnam. The results of this study show that the cost structure of the water and wastewater sector varies significantly between countries and within countries, and over time, which has implications for how to regulate the sector.

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