2005年-世界发展银行全球_Optimal_Size_for_Utilities__Returns_to_Scale_in_Water__Evidence_from_Benchmarking_4页_144kb

Summary of "Public Policy for the Private Sector: Optimal Size for Utilities?"

Core Content

This document investigates the relationship between the size of water and sanitation utilities and their operating costs, using data from 270 providers across 33 countries. The study is part of a broader effort to understand how public policy can support private sector involvement in water and sanitation services.

Main Viewpoints

1. Economies of Scale in Water Services

• The study finds that economies of scale exist in water utilities, particularly for smaller providers.
• As utilities grow, the per-customer operating costs tend to decrease due to shared infrastructure.
• However, administrative and coordination costs can increase with scale, potentially leading to X-inefficiency.
• The cost of expanding to remote areas may also raise unit capital costs, especially when averaged across the entire service area.

2. Size and Cost Relationship

• The analysis uses five indicators of utility size: population served, number of connections, volume of water produced, and length of distribution network.
• For most countries, doubling the size of a utility leads to cost increases below 95%, indicating economies of scale.
• In some cases, cost increases exceed 105%, suggesting diseconomies of scale.
• The results show that smaller utilities benefit more from expansion than larger ones.

3. Country-Specific Findings

• Africa: Small utilities (serving 125,000 or fewer people) show significant economies of scale, but administrative and distribution costs may offset these gains at larger scales.
• Indonesia: Both small and large utilities show economies of scale, though the gains are less pronounced for small ones.
• Peru: The results are mixed, with some measures indicating constant returns and others diseconomies of scale.
• United States: Similar to Peru, there is evidence of diseconomies of scale for some utilities.
• Vietnam: Strong economies of scale are observed, with cost increases remaining below 95% when utilities double in size.

4. Implications for Decentralization

• The current trend of decentralizing water and sanitation services to the municipal level is based on the assumption that it improves responsiveness to customer needs.
• However, the study suggests that smaller municipalities may face higher per-customer costs.
• Merging small utilities could lead to lower costs and more efficient service delivery.

Key Information

• Data Sources: The study uses data from the International Benchmarking Network (IBNet), which includes providers from Africa, Indonesia, Peru, the United States, and Vietnam.
• Methodology: A standard econometric model is used to estimate economies of scale, with the data split into small and large utilities to assess scale effects more accurately.
• Findings:
  • Economies of scale are most consistent when using the volume of water produced as the measure of size.
  • Small utilities generally benefit more from expansion than large ones.
  • The relationship between utility size and costs may depend on customer mix and service range.

Conclusion

The study concludes that increasing the size of water and sanitation utilities can lead to lower unit operating costs, particularly for smaller providers. This suggests that merging small utilities could be an effective strategy for cost reduction and improved service efficiency. However, the analysis also highlights the importance of considering settlement patterns and service characteristics when evaluating scale effects.

Recommendations

• Merging Small Utilities: Smaller municipalities may benefit from merging to achieve economies of scale and reduce per-customer costs.
• Policy Considerations: Policymakers should be cautious about assuming uniform scale effects across all utilities and consider local conditions when designing policies.
• Private Sector Involvement: Larger groups of utilities may be more attractive to private sector investors, especially national or international operators.

Notes and Further Research

• Previous Studies: Four prior studies have also found evidence of economies of scale in water utilities, particularly for small providers.
• Ongoing Research: The World Bank continues to study these issues as part of the Small Towns and Multi-Village Initiative.

References

• Feigenbaum, Susan, and Ronald Teepees. 1983. "Public versus Private Water Delivery: A Hedonic Cost Approach." Review of Economics and Statistics 65 (4): 672-78.
• Garcia, Serge, and Alban Thomas. 2001. "The Structure of Municipal Water Supply Costs: Application to a Panel of French Local Communities." Journal of Productivity Analysis 16 (1): 5-29.
• Kim, Euijune, and Hyun Lee. 1998. "Spatial Integration of Urban Water Services and Economies of Scale." Review of Urban and Regional Development Studies 10 (1): 3-18.
• Kim, H. Youn, and Robert M. Clark. 1998. "Economies of Scale and Scope in Water Supply." Regional Science and Urban Economics 18 (4): 479-502.
• Mizutani, Fumitoshi, and Takuya Urakami. 2001. "Identifying Network Density and Scale Economies for Japanese Water Supply Organizations." Papers in Regional Science 80 (2): 211-30.