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TitleOptimal size for utilities? : returns to scale in water : evidence from benchmarking
Publication TypeBriefing Note
Year of Publication2005
AuthorsTynan, N, Kingdom, B
Secondary TitleWorld Bank public policy for the private sector notes
Volumeno. 283
Pagination4 p. : 3 tab.
Date Published01/2005
PublisherWorld Bank
Place PublishedWashington, DC, USA
Publication LanguageEnglish
Keywordscost benefit analysis, sdiman, water authorities, water costs, water supply, water supply charges

This note investigates the relationship between a utility's size and its operating costs. Data from 270 water and sanitation providers is used in the research. 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.


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