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Waste Water Purification In Italy: Costs And Structure Of The Technology

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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

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  • Giovanni Fraquelli & Roberto Giandrone, 2001. "Waste Water Purification In Italy: Costs And Structure Of The Technology," CERIS Working Paper 200102, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    • Handle: RePEc:csc:cerisp:200102
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    7. Paola Fabbri & Giovanni Fraquelli, 2000. "Costs and Structure of Technology in the Italian Water Industry," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 27(1), pages 65-82, March.
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    More about this item

    Keywords

    Waste-Water; Pollution-Treatment; Costs;
    All these keywords.

    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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