Regulatory aspects and their effects on the water and sanitation sector in Brazil

Main Article Content

Fábio Garcia Silva
Bruno Ledo

Abstract

Context: A sanitation company vertically integrates the stages of water capture, treatment, and distribution, as well as wastewater collection and treatment. Such concentration potentially leads to inefficient and unequal allocations. In this context, the role of regulation is to promote incentive mechanisms capable of inducing efficient and equitable allocations. This study aims to understand the key regulatory aspects that contribute to the good performance of the water and sanitation industry. The research is relevant for public policy managers as it relates the efficiency of service providers to the institutional environment in which they operate.


Objective: Testing which regulatory aspects enhance the efficiency of water and sanitation service provision.


Method: To achieve the proposed objectives, the method of stochastic frontier analysis was used.


Conclusions: Among the main results found, we can mention the greater efficiency of publicly traded mixed companies and that the establishment of technical cooperation agreements between regulatory agencies and other institutions helps to explain the efficiency of the sector.

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Article Details

Section
Revista de Defesa da Concorrência
Author Biographies

Fábio Garcia Silva, Universidade de São Paulo (FEA-RP/USP) – Ribeirão Preto/SP, Brasil

Aluno do programa de doutorado direto da Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto - USP. Graduação em Economia. Universidade de São Paulo, FEA-RP, Brasil. Ano de obtenção: 2016. Principal área de interesse é saneamento básico. Bolsista do(a): Coordenação de Aperfeiçoamento de Pessoal de Nível Superior, CAPES, Brasil.

Bruno Ledo, Universidade de São Paulo (FEA-RP/USP) – Ribeirão Preto/SP, Brasil

Professor Doutor da Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto - USP. Doutorado em Economia. Fundação Getúlio Vargas, FGV, Brasil. Data de obtenção: 2009. Mestrado em Economia. Fundação Getúlio Vargas, FGV, Brasil. Ano de obtenção: 2005. Graduação em Economia. Universidade de São Paulo, USP, Brasil. Ano de obtenção: 2002.  Realiza pesquisas na área de microeconomia teórica e aplicada. Principais áreas de interesse são saneamento básico e seguros.

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