Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case.

Evaluating the performance and analyzing the cost drivers of water utilities is of great interest for water regulators and water sector managers. This study uses a quadratic cost function to investigate the existence of economies of scale and scope in the Chilean water and sewerage industry over the...

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Autores principales: Maria Molinos-Senante, Alexandros Maziotis
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Lenguaje:EN
Publicado: Public Library of Science (PLoS) 2021
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Acceso en línea:https://doaj.org/article/56368c6a939e4a61b8ddfb75406f1745
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spelling oai:doaj.org-article:56368c6a939e4a61b8ddfb75406f17452021-11-25T06:19:01ZProductivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case.1932-620310.1371/journal.pone.0251874https://doaj.org/article/56368c6a939e4a61b8ddfb75406f17452021-01-01T00:00:00Zhttps://doi.org/10.1371/journal.pone.0251874https://doaj.org/toc/1932-6203Evaluating the performance and analyzing the cost drivers of water utilities is of great interest for water regulators and water sector managers. This study uses a quadratic cost function to investigate the existence of economies of scale and scope in the Chilean water and sewerage industry over the period 2010-2017. We also estimate and decompose productivity growth into technical change and scale efficiency change. Technical change is further broken into pure, non-neutral and scale-augmenting technical change. The results indicate that cost savings can be achieved by increases in the scale of production and the separation of water and sewerage services. Productivity progressed favorably throughout the whole period at an annual rate of 8.4%, which was attributed to the scale effect, the adoption of new technologies and a good allocation of resources. Some policy implications are finally discussed based on our findings.Maria Molinos-SenanteAlexandros MaziotisPublic Library of Science (PLoS)articleMedicineRScienceQENPLoS ONE, Vol 16, Iss 5, p e0251874 (2021)
institution DOAJ
collection DOAJ
language EN
topic Medicine
R
Science
Q
spellingShingle Medicine
R
Science
Q
Maria Molinos-Senante
Alexandros Maziotis
Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case.
description Evaluating the performance and analyzing the cost drivers of water utilities is of great interest for water regulators and water sector managers. This study uses a quadratic cost function to investigate the existence of economies of scale and scope in the Chilean water and sewerage industry over the period 2010-2017. We also estimate and decompose productivity growth into technical change and scale efficiency change. Technical change is further broken into pure, non-neutral and scale-augmenting technical change. The results indicate that cost savings can be achieved by increases in the scale of production and the separation of water and sewerage services. Productivity progressed favorably throughout the whole period at an annual rate of 8.4%, which was attributed to the scale effect, the adoption of new technologies and a good allocation of resources. Some policy implications are finally discussed based on our findings.
format article
author Maria Molinos-Senante
Alexandros Maziotis
author_facet Maria Molinos-Senante
Alexandros Maziotis
author_sort Maria Molinos-Senante
title Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case.
title_short Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case.
title_full Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case.
title_fullStr Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case.
title_full_unstemmed Productivity growth, economies of scale and scope in the water and sewerage industry: The Chilean case.
title_sort productivity growth, economies of scale and scope in the water and sewerage industry: the chilean case.
publisher Public Library of Science (PLoS)
publishDate 2021
url https://doaj.org/article/56368c6a939e4a61b8ddfb75406f1745
work_keys_str_mv AT mariamolinossenante productivitygrowtheconomiesofscaleandscopeinthewaterandsewerageindustrythechileancase
AT alexandrosmaziotis productivitygrowtheconomiesofscaleandscopeinthewaterandsewerageindustrythechileancase
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