Optimal Size for Utilities? Returns to Scale in Water: Evidence from Benchmarking

Using data from 270 water and sanitation providers, this Note investigates the relationship between a utility's size and its operating costs. The current trend toward transferring responsibility for providing services to the municipal level is driven in part by the assumption that this will make providers more responsive to customers' needs. But findings reported here suggest that smaller municipalities may face higher per-customer costs and could lower costs (and prices for consumers) by merging.

Saved in:
Bibliographic Details
Main Authors: Tynan, Nicola, Kingdom, Bill
Format: Viewpoint biblioteca
Language:English
Published: World Bank, Washington, DC 2005-01
Subjects:BENCHMARKING, COMMUNITIES, CONSTANT RETURNS TO SCALE, COST SAVINGS, DATA SETS, DECENTRALIZATION, DISECONOMIES, DISECONOMIES OF SCALE, ECONOMICS, ECONOMIES OF SCALE, EXCHANGE RATE, EXCHANGE RATES, INCOME, INEFFICIENCY, MUNICIPALITIES, PRIVATE SECTOR, PRODUCTIVITY, PUBLIC POLICY, RETURNS TO SCALE, SANITATION, SCALE ECONOMIES, SCALE EFFECTS, SERVICE DELIVERY, SERVICE PROVISION, TOTAL COSTS, URBAN AREAS, UTILITIES, WATER SERVICES, WATER SUPPLY,
Online Access:http://documents.worldbank.org/curated/en/2005/01/5628543/optimal-size-utilities
http://hdl.handle.net/10986/11235
Tags: Add Tag
No Tags, Be the first to tag this record!