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Utility governance, incentives, and performance: Evidence from India's urban water sector

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  • Nyathikala, Sai Amulya
  • Jamasb, Tooraj
  • Llorca, Manuel
  • Kulshrestha, Mukul

Abstract

In developing countries, managing trade-offs between socioeconomic and environmental objectives in water utilities is challenging. The Indian water sector suffers from financial losses, lack of access, and poor service quality. We use a stochastic frontier analysis approach to study 304 urban water supply services during 2010–2015. We examine the role of socioeconomic and environmental aspects. Results indicate that water supply exhibits significant inefficiencies and, thus, scope for improvement. Measures to reduce non-revenue water, increase water quality, and improve cost recovery and bill collection, may help induce efficiency. Results also indicate that increasing water supply hours would improve service performance.

Suggested Citation

  • Nyathikala, Sai Amulya & Jamasb, Tooraj & Llorca, Manuel & Kulshrestha, Mukul, 2023. "Utility governance, incentives, and performance: Evidence from India's urban water sector," Utilities Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:juipol:v:82:y:2023:i:c:s0957178723000462
    DOI: 10.1016/j.jup.2023.101534
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    More about this item

    Keywords

    Governance and regulation; Socioeconomic and environmental performance; Urban water supply in India;
    All these keywords.

    JEL classification:

    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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