The impact of privatization approaches on the productivity growth of the water industry: A case study of Chile

Molinos-Senante, María; Sala-Garrido, Ramón

doi:10.1016/j.envsci.2015.02.015

Cited by 65 publications

(10 citation statements)

References 49 publications

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“…Public company’s TFP also improved considerably throughout the whole period at an annual rate of 7%. This result is consistent with previous studies by Molinos-Senante and Sala-Garrido [ 17 ] and Molinos-Senante et al [ 18 ] who reported that FPWCs performed slightly better than CWCs. A study by Molinos-Senante et al [ 25 ] showed that concessionary and private companies increased their TFP by 8.4% and 3.3% per year, respectively.…”

Section: Resultssupporting

confidence: 93%

“…Like England and Wales, the Chilean water industry is fully privatized and its privatization took place during the years 1998–2004 [ 17 ]. (Two forms of companies were formed namely: i) full private water companies (FPWCs) where the full ownership and operation of infrastructure is undertaken by private consortiums for an infinite time period, and ii) concessionary water companies (CWCs) where the water services are provided by private consortiums for a limited time period (e.g., 30 years) through a concessionary contract [ 18 ].…”

Section: Introductionmentioning

confidence: 99%

“…Studies by Molinos-Senante and Sala-Garrido [ 17 ] and Sala-Garrido et al [ 19 , 24 ] used non-parametric techniques to study the productivity change of FPWCs and CWCs, i.e., the public water company was not integrated in the assessment. Studies by Molinos-Senante et al [ 18 , 25 ] used parametric techniques to study the performance of the private Chilean water industry.…”

Section: Introductionmentioning

confidence: 99%

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

Molinos-Senante

Maziotis

2021

PLoS ONE

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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.

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Section: Resultssupporting

confidence: 93%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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

Molinos-Senante

Maziotis

2021

PLoS ONE

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“…Then several methods emerged, in general divided into three parts including parametric methods (specifically, Stochastic Frontier Analysis, Kumbhakar, 1996), semi-parametric methods (Olley and Pakes, 1992; Levinsohn and Petrin, 2003) and non-parametric methods (specifically, Index Number Technique, Diewert, 1992) and Data Envelopment Analysis (DEA) (Raj and Mahapatra, 2009; Lindlbauer et al , 2016). In addition, prior literature provide lots of indicators which represent productivity changes commonly, including Hicks–Moorsteen index (Bjurek, 1996), MPI (Oh and Lee, 2010; Tamini et al , 2012; Ali and Klein, 2014), Luenberger productivity indicator (Molinos-Senante et al , 2014; Molinos-Senante and Sala-Garrido, 2015), Färe–Primont index (O’Donnell, 2011; Molinos-Senante et al , 2016). Although there are several developed productivity indicators to assess productivity changes (Molinos-Senante et al , 2016), in this paper, we use the MPI as the methodology to measure productivity changes over time.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Lean manufacturing and productivity changes: the moderating role of R&D

Shi

Wang

Zhu

2019

IJPPM

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Purpose The purpose of this paper is to empirically investigate the effect of lean manufacturing on productivity changes and to identify the root sources of productivity changes. Furthermore, the authors explore the moderating effects of research and development (R&D) to examine the relationship between lean manufacturing and productivity changes. Design/methodology/approach This paper employs the propensity score matching (PSM) model combined with the difference-in-difference (DID) estimation to overcome the selectivity bias. The Malmquist productivity index is used to capture productivity changes. By analyzing 671 Chinese manufacturing listed firms from 2009 to 2014, the moderating effects of R&D on the relationship between lean manufacturing and productivity changes are measured. Findings The results reveal that lean manufacturing implementation has non-significant effects on productivity changes in principle, while a detailed analysis indicates that lean manufacturing could improve scale efficiency significantly. While engaged in R&D could significantly improve the efficiency of technological changes for lean manufacturing implementation firms, there exist negative effects on pure technical efficiency. Research limitations/implications This research only covers manufacturing listed firms in China. Further studies should extend the generalizability of the findings. Practical implications This study helps managers to identify the important role of R&D on the relationship between lean manufacturing and productivity changes and provides insights into how to improve the lean manufacturing performance. Originality/value This paper appears to be one of the earliest studies on the relationship between lean manufacturing and productivity changes by applying the PSM combined with DID estimation in Chinese manufacturing environment.

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“…However, HRW is not incompatible with privatization [164], as private-sector-participation (business models: [165]) may support HRW by service improvements that in turn would justify moderately higher tariffs. For, even assuming that private investors were basically interested in revenue maximization (aiming to charge users higher opportunity costs), by data for Argentina and Chile productivity of privatized water and sewerage companies initially increased due to technical improvements [166,167]. Also a comparison of 308 cities in 102 countries concluded that low water tariffs are not necessarily pro-poor, as lower tariffs tend to go with a higher risk of shortages [143], i.e., water services of poorer quality.…”

Section: Water Conflictsmentioning

confidence: 99%

The Human Right to Water in Law and Implementation

Brunner

Mishra

Sakthivel

et al. 2015

Laws

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Recent concerns about alleged insufficient water provision to the poor in Detroit, USA, has put the Human Right to Water (HRW) into the international discussion. The paper asks: "To what extent did international human rights treaties make HRW judiciable?" and "How did government policies implement it?" In a crosscountry comparison of performance indicators, merely accepting HRW has not been helpful in promoting affordable access to potable water or sanitation facilities close to the home, amongst the reasons being deficiencies in water-governance. Case-law confirmed that with respect to affordable access HRW obliges governments to a "progressive realization" only, also in countries accepting HRW (India, South Africa). The paper focuses on the resulting positive state obligation to establish funding programs for better water and sanitation services and analyzes funding policies by a mathematical model of policy goals. It identifies two viable goals namely the successful support for the poor, as in developing countries, and the most economic use of public funds, as in industrialized countries. Other goals conceivable for the model have been tried in the past and failed.

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The impact of privatization approaches on the productivity growth of the water industry: A case study of Chile

Cited by 65 publications

References 49 publications

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

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

Lean manufacturing and productivity changes: the moderating role of R&D

The Human Right to Water in Law and Implementation

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