Economies of Density, Scale and Scope in the Water Supply and Sewerage Sector: A Study of Four Developing and Transition Economies

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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Bibliographic Details
Main Authors: Nauges, Celine, van den Berg, Caroline
Format: Journal Article biblioteca
Language:EN
Published: 2008
Subjects:Gas Utilities, Pipelines, Water Utilities L950, Economic Development: Agriculture, Natural Resources, Energy, Environment, Other Primary Products O130, Socialist Systems and Transitional Economies: Natural Resources, Environment P280, Air Pollution, Water Pollution, Noise, Hazardous Waste, Solid Waste, Recycling Q530,
Online Access:http://hdl.handle.net/10986/4803
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Summary: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.