Regulation and Management Mode: An Econometric Study of Pricing and Performance in Drinking Water Provision

44 Pages Posted: 8 Jan 2009 Last revised: 14 Jan 2009

See all articles by Marcel Boyer

Marcel Boyer

CIRANO, Université de Monréal

Serge Garcia

LEF-ENGREF-INRA

Date Written: September 1, 2008

Abstract

We model the interactions between management regimes (municipal vs. delegated) and operating costs of water supply services in order to compare their performance and pricing. We estimate the models from panel data in France. We show that the choice between management regimes at the local community level depends on costs and service characteristics, that there is a significant difference in average productive efficiency in favor of delegated services, and that municipal services appear more efficient in network returns. Under delegation, the margins realized by operators depend on service and contract characteristics.

Keywords: water supply services, management regime, selection model, cost function, pricing, panel data

JEL Classification: C25, C33, D42, L25, L95

Suggested Citation

Boyer, Marcel and Garcia, Serge, Regulation and Management Mode: An Econometric Study of Pricing and Performance in Drinking Water Provision (September 1, 2008). CIRANO - Scientific Publications 2008s-25, Available at SSRN: https://ssrn.com/abstract=1323768 or http://dx.doi.org/10.2139/ssrn.1323768

Marcel Boyer (Contact Author)

CIRANO, Université de Monréal ( email )

1400-1130 Sharbrooke St. West
Montreal, Quebec H3A 2M8
Canada
514 985-4000 (Phone)
514-985-4039 (Fax)

HOME PAGE: http://www.cirano.qc.ca/~boyerm

Serge Garcia

LEF-ENGREF-INRA ( email )

14 rue Girardet
Nancy, 54042
France

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