Efficiency and Regulation in the Sanitation Sector in Brazil

Ronaldo Motta and Ajax Moreira

No 139, Discussion Papers from Instituto de Pesquisa Econômica Aplicada - IPEA

Abstract: Regulation in the sanitation sector in Brazil is facing a great deal of debate regarding the government level in which conceding authority should reside and how private operators can fulfill social objectives. The main objective of this study is to show that these issues are not the crucial barriers to the development of the sector when one looks at the productivity performance of the operators. Therefore, we elaborate a detailed analysis of the productivity performance of the current structure of the sanitation sector in Brazil. In doing so, we are able to analyze how jurisdiction of operators as well as the nature of the management, either private or public, has affected performance of the current operators. Moreover, we investigate how the absence of tariff regulation has dissipated efficiencies and allowed the practice of monopolistic tariffs. O marco regulatório do setor de saneamento no Brasil ainda enfrenta a controvérsia sobre em que nível de governo reside o poder concedente e como o setor privado pode operar no setor sem ferir os seus objetivos sociais. Este estudo visa mostrar como essa controvérsia mascara questões mais cruciais associadas ao desempenho produtivo e financeiro do setor. Para tal, estimamos medidas de eficiência e indicadores financeiros que nos permitem analisar em detalhes como as questões de jurisdição e da natureza do capital afetam o desempenho das operadoras de saneamento no país. Em seguida, investigamos como a ausência de instrumentos regulatórios para controle tarifário tem permitido a dissipação da renda mesmo em um ambiente de preços monopolísticos.

Pages: 31 pages
Date: 2015-01
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