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Municipal Wastewater Treatment in Poland – Efficiency, Costs and Returns to Scale

Author

Listed:
  • Krzysztof Berbeka

    (Cracow University of Economics)

  • Mikołaj Czajkowski

    (University of Warsaw, Faculty of Economic Sciences)

  • Agnieszka Markowska

    (University of Warsaw, Faculty of Economic Sciences)

Abstract

The paper reports the costs of municipal wastewater collection and treatment in Poland based on an empirical sample of 1400 operators. Treatment cost functions are investigated econometrically using the Box-Cox regression model, indicating high non-linearity and significant scale effects. Wastewater treatment costs are increasing with technology efficiency (moving from the primary, through the secondary, to the tertiary treatment), and decreasing with higher wastewater treatment plant capacity. Combining treatment and collection costs with treatment efficiency allows estimation of costs and potentials for reducing the nitrogen and phosphorus loadings to rivers by improving the efficiency of wastewater treatments plants, or building new ones, on an aggregated country-wide scale. Therefore, our results provide valuable input into any cost-benefit analyses of nutrient loadings reduction through extending or upgrading municipal wastewater treatment systems.

Suggested Citation

  • Krzysztof Berbeka & Mikołaj Czajkowski & Agnieszka Markowska, 2012. "Municipal Wastewater Treatment in Poland – Efficiency, Costs and Returns to Scale," Working Papers 2012-03, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2012-03
    as

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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP69.pdf
    File Function: First version, 2012
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    References listed on IDEAS

    as
    1. Ing-Marie Gren & Paul Jannke & Katarina Elofsson, 1997. "Cost-Effective Nutrient Reductions to the Baltic Sea," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(4), pages 341-362, December.
    2. Seaks, Terry G & Layson, Stephen K, 1983. "Box-Cox Estimation with Standard Econometric Problems," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 160-164, February.
    3. Spitzer, John J, 1982. "A Primer on Box-Cox Estimation," The Review of Economics and Statistics, MIT Press, vol. 64(2), pages 307-313, May.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Nainggolan, Doan & Hasler, Berit & Andersen, Hans E. & Gyldenkærne, Steen & Termansen, Mette, 2018. "Water Quality Management and Climate Change Mitigation: Cost-effectiveness of Joint Implementation in the Baltic Sea Region," Ecological Economics, Elsevier, vol. 144(C), pages 12-26.
    2. Edward B. Barbier & Mikołaj Czajkowski & Nick Hanley, 2017. "Is the Income Elasticity of the Willingness to Pay for Pollution Control Constant?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 663-682, November.
    3. Leticia Gallego-Valero & Encarnación Moral-Parajes & Isabel María Román-Sánchez, 2021. "Wastewater Treatment Costs: A Research Overview through Bibliometric Analysis," Sustainability, MDPI, vol. 13(9), pages 1-14, April.

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    More about this item

    Keywords

    municipal wastewater treatment costs; scale effects; nutrient loadings reductions; nitrogen; phosphorus;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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