scholarly journals Economies of Scale and Scope in Australian Urban Water Utilities

2011 ◽  
Author(s):  
Andrew C. Worthington ◽  
Helen Higgs
Water Policy ◽  
2016 ◽  
Vol 19 (2) ◽  
pp. 257-270 ◽  
Author(s):  
Doron Lavee ◽  
Sefi Bahar

This study applies econometric tools to examine the economies of scale of the water and sewage utilities corporation (utilities) in the urban sector in Israel, and to find whether reducing the number of utilities will maximize efficiency in the urban water sector. Using an econometric analysis of an elasticity Translog cost function, which allows the estimation of returns to scale, the authors examined the optimal size for water and sewage utilities in Israel, based on panel data of 51 utilities. According to the study's results, there is a distinct advantage of economies of scale in Israel's water utilities, and the current distribution of the urban water sector in Israel is characterized by inefficiency and high cost. The results indicate that reducing the number of utilities will achieve an increase in water quantities by utility, and the costs of water production will decline due to economies of scale.


2014 ◽  
Vol 31 ◽  
pp. 52-62 ◽  
Author(s):  
Andrew C. Worthington ◽  
Helen Higgs

2014 ◽  
Vol 14 (5) ◽  
pp. 909-916 ◽  
Author(s):  
Masao Shibuya ◽  
Francesc Hernández-Sancho ◽  
María Molinos-Senante

Water utilities are affected by economies of scale. However, in Japan most water utilities are small-scale water services. Therefore, they face enormous difficulties in terms of financial and personnel resources. To take advantage of economies of scale, the consolidation of water utilities has been promoted since 1965 by Japanese water authorities. The measure has been successful to some extent; nevertheless, consolidation has not progressed in recent years as was expected. This paper identifies the main barriers that hinder the consolidation of water utilities in Japan and describes the new promotion plan for the consolidation of water utilities developed by the Japan Water Works Association. To assess the economic effects of consolidation, an empirical application is carried out involving four real Japanese cities. The results will be useful to water authorities considering consolidation in the long-term planning of urban water management.


Water ◽  
2022 ◽  
Vol 14 (2) ◽  
pp. 231
Author(s):  
Seo Hyung Choi ◽  
Bongwoo Shin ◽  
Eunher Shin

When water utilities establish water loss control programs, they traditionally focus on apparent loss rather than real loss when considering economic feasibility in the water sector. There is an urgent need for new management approaches that can address complex relationships and ensure the sustainability of natural resources among different sectors. This study suggests a novel approach for water utilities to manage water losses from the water-energy (WE) Nexus perspective. The Nexus model uses system dynamics to simulate twelve scenarios with the differing status of water loss and energy intensities. This analysis identifies real loss as one of the main causes of resource waste and an essential factor from the Nexus perspective. It also demonstrates that the energy intensity of each process in the urban water system has a significant impact on resource use and transfer. The consumption and movement of resources can be quantified in each process involved in the urban water system to distinguish central and vulnerable processes. This study suggests that the Nexus approach can strongly contribute to quantifying the use and movement of resources between water and energy sectors and the strategic formulation of sustainable and systematic water loss management strategies from the Nexus perspective.


2011 ◽  
Vol 26 (3) ◽  
pp. 563 ◽  
Author(s):  
América N. Lutz Ley ◽  
Alejandro Salazar Adams

En este trabajo se analiza la eficiencia física, comercial y global de los organismos operadores de agua en las localidades urbanas de México entre 2002 y 2008. A partir de sus puntajes se forman cuatro grupos que se comparan atendiendo a las variables que podrían afectar su desempeño. Los resultados indican que no existen cambios significativos en las eficiencias en este periodo. La eficiencia física es mayor en las localidades grandes, con elevados niveles de consumo, de PIB per cápita y de costos de producción; en cambio la eficiencia comercial y la recaudación por metro cúbico son superiores en las localidades que cuentan con mayor cobertura de micromedición. AbstractIn this paper, physical, commercial, and global efficiency of Mexican urban water utilities between 2002 and 2008 is analyzed. Utilities were grouped in four categories depending on their scores; afterwards the groups were compared in terms of variables that can affect their performance. Results indicate that there are not significant changes in the levels of efficiencies in this period. Physical efficiency is higher in large localities, where consumption level, per capita GDP, and production costs were also greater; whereas commercial efficiency and revenue per cubic meter are greater in localities with higher metering coverage.


2021 ◽  
Vol 3 ◽  
Author(s):  
Nelson Carriço ◽  
Bruno Ferreira

Most of urban water infrastructure around the world were built several decades ago and nowadays they are deteriorated. So, the assets that constitute these infrastructures need to be rehabilitated. Since most of the assets are buried, water utilities face the challenge of deciding how, where and when to rehabilitate. Condition assessment is a vital component on plan rehabilitation actions and is mostly based on the data collected from the managed networks. This collected data need to be put together in order to be transformed into useful information. Nonetheless, the large amount of assets and data involved makes data and information management a challenging task for water utilities, especially in those with as lower digital maturity level. This paper highlights the importance of data and information systems' management for urban water infrastructure condition assessment based on the authors' experience.


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