Economies of density, scale and scope in the water supply and sewerage sector: a study of four developing and transition economies |
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Authors: | Céline Nauges Caroline van den Berg |
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Institution: | (1) Toulouse School of Economics, LERNA-INRA, Manufacture des Tabacs, 21 Allée de Brienne, Toulouse, 31000, France;(2) Water, Transport and Energy Department, World Bank, 1818 H Street NW, Washington, DC 20433, USA |
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Abstract: | Using panel data, we estimate measures of density, scale and scope economies in four countries that differ substantially in
their levels of economic development and in their piped water and sewerage coverage: Brazil, Moldova, Romania and Vietnam.
We find evidence of economies of scale in Moldova, Romania and Vietnam. In Brazil, we cannot reject the null hypothesis of
constant returns to scale. The results of this study show that the cost structure of water and sewerage utilities varies significantly
within and between countries and over time.
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Keywords: | Water supply Sewerage Economies of scale Developing countries Transition economies |
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