WASTE WATER PURIFICATION IN ITALY: COSTS AND STRUCTURE OF THE TECHNOLOGY

Giovanni Fraquelli () and Roberto Giandrone
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Giovanni Fraquelli: Univ. degli Studi del Piemonte Orientale - Dip. di Studi per l'Impresa e il Territorio
Roberto Giandrone: Italgas S.p.A and Ceris-Cnr

CERIS Working Paper from CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY

Abstract: This work examines the purification processes of urban waste waters in Italy, with reference to costs and technology. The operating cost function of 103 plants shows that an increase in the sizes of the smaller ones generates strong economies of scale. A minimum efficient size at about 100,000 inhabitants, however, inhibits the creation of large monopolies at a local level and allows to maintain indirect competition. Among the explanatory variables of the costs, the pollution load of the waste water takes on a high statistical significance and suggests environmental prevention. The recent introduction of advanced treatments is expensive, but their costs are balanced by a notable improvement in the pureness of the effluent. As for general environmental policies, it is necessary to find good compromise between the need to improve the effectiveness of the existing plants and the investments in areas where the water purification service is still inexistent

Keywords: Waste-Water; Pollution-Treatment; Costs (search for similar items in EconPapers)
JEL-codes: L95 Q25 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2001-06
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Persistent link: https://EconPapers.repec.org/RePEc:csc:cerisp:200102

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