TY - JOUR
T1 - The cost efficiency of water utilities
T2 - when does public ownership matter?
AU - Pazzi, Silvia
AU - Tortosa-Ausina, Emili
AU - Duygun, Meryem
AU - Zambelli, Simona
PY - 2016/11/1
Y1 - 2016/11/1
N2 - This study explores the impact of different ownership types on the efficiency of water utilities. Theories and evidence have shown a puzzling relationship between ownership and performance. Moreover, relatively recent contributions (Andrews et al. 2011) have argued that this relationship can be further convoluted by the effect of organisational and environmental variables. The current study aims to contribute to this literature by providing some empirical evidence for Italy, by proposing a methodology that combines non-parametric efficiency estimation and cluster analysis. Our main findings indicate that privately owned utilities indirectly controlled by a public organisation reach the highest level of efficiency but, when size and geographical location enter the analysis, ownership has a stronger significant effect on efficiency, and mixed utilities gain higher cost efficiency. Therefore, we may conclude that administrative reforms about privatisation and the institutional setting should consider a set of variables that characterise each individual organisation.
AB - This study explores the impact of different ownership types on the efficiency of water utilities. Theories and evidence have shown a puzzling relationship between ownership and performance. Moreover, relatively recent contributions (Andrews et al. 2011) have argued that this relationship can be further convoluted by the effect of organisational and environmental variables. The current study aims to contribute to this literature by providing some empirical evidence for Italy, by proposing a methodology that combines non-parametric efficiency estimation and cluster analysis. Our main findings indicate that privately owned utilities indirectly controlled by a public organisation reach the highest level of efficiency but, when size and geographical location enter the analysis, ownership has a stronger significant effect on efficiency, and mixed utilities gain higher cost efficiency. Therefore, we may conclude that administrative reforms about privatisation and the institutional setting should consider a set of variables that characterise each individual organisation.
KW - Efficiency
KW - geographical location
KW - ownership
KW - size
KW - water utilities
UR - http://www.scopus.com/inward/record.url?scp=84982283848&partnerID=8YFLogxK
U2 - 10.1080/03003930.2016.1207630
DO - 10.1080/03003930.2016.1207630
M3 - Article
AN - SCOPUS:84982283848
SN - 0300-3930
VL - 42
SP - 980
EP - 1003
JO - Local government studies
JF - Local government studies
IS - 6
ER -