Economies of scale in Peru’s water and sanitation sector

Augusto Mercadier, Walter A. Cont () and Gustavo Ferro
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Walter A. Cont: FIEL and Universidad Nacional de La Plata

Journal of Productivity Analysis, 2016, vol. 45, issue 2, No 7, 215-228

Abstract: Abstract This paper quantifies economies of scale in Peru’s water and sanitation (W&S) sector based on a five-year panel (2006–2010) that examines 39 water services providers. Our findings highlight the lack of economies of scale in the Peruvian W&S sector as a whole. Cost savings are possible through water volume increases (Economies of Production Density) and a higher provision density (Economies of Customer Density), but not via an increase in the number of served municipalities (overall Economies of Scale). Some agglomerations are possible, yielding cost reductions of up to 9 %.

Keywords: Economies of scale; Water and sanitation; Peru; Econometrics (search for similar items in EconPapers)
JEL-codes: D61 L5 L95 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11123-016-0468-0

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