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dc.contributor.author
Ferro, Gustavo Adolfo  
dc.contributor.author
Lentini, Emilio J.  
dc.contributor.author
Mercadier, Augusto C.  
dc.date.available
2023-04-10T17:37:42Z  
dc.date.issued
2011-08  
dc.identifier.citation
Ferro, Gustavo Adolfo; Lentini, Emilio J.; Mercadier, Augusto C.; Economies of scale in the water sector: A survey of the empirical literature; IWA Publishing; Journal of Water Sanitation and Hygiene for Development; 1; 3; 8-2011; 179-193  
dc.identifier.issn
2043-9083  
dc.identifier.uri
http://hdl.handle.net/11336/193095  
dc.description.abstract
The issue of the most favorable size and optimal industry structure in the water sector is a relevant topic in many countries, due to fragmentation of the water sector and the key role played by municipalities. Important debates are taking place worldwide about how to provide universal access to the water supply and offer an efficient service. Regarding efficiency, the possibility of exploiting economies of scale would imply better resource allocation, the potential for lower water charges, and greater geographical coverage. By surveying the empirical research from different parts of the world, we aim to shed some light on the topic of economies of scale, and to provide a synthesis of the literature. We also aim to determine whether there is a tradeoff between centralization and decentralization. Our survey shows that, for several countries, variations in efficiency of water provision due to economies of scale do exist. Increases in efficiency related to economies of scale are found for populations in the range of 100,000 to 1 million people served. For larger populations, volume-or density-constant returns to scale are observed, followed by decreasing returns to scale; the reverse occurs for smaller values, suggesting that cost savings are derived from consolidation of providers. Returns to scale refer to changes in output resulting where all inputs increase by a constant factor. If output increases by that same proportional change, then there are constant returns to scale. If output increases by less than that proportional change, there are decreasing returns to scale. If output increases by more than that proportional change, there are increasing returns to scale. Returns to scale is a technological phenomenon, due to the relationship between inputs and outputs in the production function. Economies of scale refer to reductions in unit cost as the scale of production increases. Diseconomies of scale are the opposite: increasing in unit costs as the scale of production increases. Scale changes mean a proportional increase in all factors of production. Economies of scale are a economical phenomenon, due to the relationship between unit costs and the level of production.  
dc.format
application/pdf  
dc.language.iso
eng  
dc.publisher
IWA Publishing  
dc.rights
info:eu-repo/semantics/openAccess  
dc.rights.uri
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/  
dc.subject
DECENTRALIZATION  
dc.subject
ECONOMIES OF SCALE  
dc.subject
EFFICIENCY  
dc.subject
WATER  
dc.subject.classification
Economía, Econometría  
dc.subject.classification
Economía y Negocios  
dc.subject.classification
CIENCIAS SOCIALES  
dc.title
Economies of scale in the water sector: A survey of the empirical literature  
dc.type
info:eu-repo/semantics/article  
dc.type
info:ar-repo/semantics/artículo  
dc.type
info:eu-repo/semantics/publishedVersion  
dc.date.updated
2023-04-05T15:31:38Z  
dc.journal.volume
1  
dc.journal.number
3  
dc.journal.pagination
179-193  
dc.journal.pais
Reino Unido  
dc.description.fil
Fil: Ferro, Gustavo Adolfo. Universidad Argentina de la Empresa; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina  
dc.description.fil
Fil: Lentini, Emilio J.. Universidad de Buenos Aires; Argentina  
dc.description.fil
Fil: Mercadier, Augusto C.. Universidad Nacional de La Plata; Argentina  
dc.journal.title
Journal of Water Sanitation and Hygiene for Development  
dc.relation.alternativeid
info:eu-repo/semantics/altIdentifier/url/https://iwaponline.com/washdev/article-abstract/1/3/179/28777/Economies-of-scale-in-the-water-sector-a-survey-of?redirectedFrom=PDF  
dc.relation.alternativeid
info:eu-repo/semantics/altIdentifier/doi/http://dx.doi.org/10.2166/washdev.2011.041