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Paths to universalize water and sewage services in Brazil: The role of regulatory authorities in promoting efficient service

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  • Carvalho, Anne Emília Costa
  • Sampaio, Luciano Menezes Bezerra

Abstract

The 2007 institution of a regulatory framework established ways to overcome deficits in Brazil's sanitation services, including economic efficiency. This study analyzes the performance of regulatory authorities in promoting the efficiency of water and sewage service providers in Brazil. The study was developed in three stages: analysis of efficiency with Data Envelopment Analysis (DEA) for 2006 and 2011; assessment of productivity using the Malmquist Index (MI); and document analysis of regulatory standards. Among the results, significant inefficiencies were detected and the mean for pure technical efficiency was higher among unregulated providers both for 2006 and in 2011. The MI showed gains in productivity from 2006 to 2011. The decomposed analysis of the index indicated a shift in the efficiency frontier to a higher level, but with a decrease in the providers' pure efficiency. From the analysis of the regulatory activity, we identified regulators that had not issued regulatory standards related to the promotion of allocative or productive efficiency. Analysis of the results shows that the regulatory performance has not ensured that providers achieve better performance.

Suggested Citation

  • Carvalho, Anne Emília Costa & Sampaio, Luciano Menezes Bezerra, 2015. "Paths to universalize water and sewage services in Brazil: The role of regulatory authorities in promoting efficient service," Utilities Policy, Elsevier, vol. 34(C), pages 1-10.
    • Handle: RePEc:eee:juipol:v:34:y:2015:i:c:p:1-10
    DOI: 10.1016/j.jup.2015.03.001
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    3. Antonio Estache & Caroline Philippe, 2016. "What if the TTIP changed the regulation of public services? Lessons for Europe from developing countries," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(3), pages 59-73.
    4. Alvaro Cavalcanti & Arthur Teixeira & Karen Pontes, 2020. "Evaluation of the Efficiency of Basic Sanitation Integrated Management in Brazilian Municipalities," IJERPH, MDPI, vol. 17(24), pages 1-29, December.
    5. Tourinho, Marco & Barbosa, Flávia & Santos, Paulo Rosa & Pinto, Francisco Taveira & Camanho, Ana S., 2023. "Productivity change in Brazilian water services: A benchmarking study of national and regional trends," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    6. Peci, Alketa & D’Assunção, Márcio Leite & Holperin, Michelle Moretzsohn & de Souza, Celso Florêncio, 2017. "Regulation inside government: The challenges of regulating a government-owned utility," Utilities Policy, Elsevier, vol. 49(C), pages 61-70.
    7. Narzetti, Daniel Antonio & Marques, Rui Cunha, 2021. "Isomorphic mimicry and the effectiveness of water-sector reforms in Brazil," Utilities Policy, Elsevier, vol. 70(C).
    8. Goh, Kim Huat & See, Kok Fong, 2021. "Measuring the productivity growth of Malaysia's water sector: Implications for regulatory reform," Utilities Policy, Elsevier, vol. 71(C).
    9. Salvador Bertomeu & Daniel Camos-Daurella & Antonio Estache, 2017. "Do Private Water Utilities Operators Care about Regulatory Agencies in Developing Countries ?," Working Papers ECARES ECARES 2017-18, ULB -- Universite Libre de Bruxelles.
    10. Tourinho, Marco & Santos, Paulo Rosa & Pinto, Francisco Taveira & Camanho, Ana S., 2022. "Performance assessment of water services in Brazilian municipalities: An integrated view of efficiency and access," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    11. Bertoméu-Sánchez, Salvador & Camos, Daniel & Estache, Antonio, 2018. "Do economic regulatory agencies matter to private-sector involvement in water utilities in developing countries?," Utilities Policy, Elsevier, vol. 50(C), pages 153-163.

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