Regulation, Organization and Incentives: The Political Economy of Potable Water Services in Mexico

Jr. Ozuna and Irma Adriana Gomez

No 3025, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: The general objective of this study is to provide an evaluation of how the institutions linked to Mexico`s potable water sector interact with the legislative, regulatory, and economic process of the sector. In particular, the study examines how prior or current institutional changes in the potable water sector impact public and private investment, incentives, efficient water use, externalities, and administrative capacities in the sector. Given the institutional structure of Mexico`s water utilities, the study formulates and tests a series of hypothesis relating to the institutional changes which have occurred in the sector and to the regulation, organization, and efficiency of the sector. The study seeks to provide policy recommendations aimed at improving the services provided by this sector.

Date: 1998-01
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